1100179--3/31/2008--ONCOR_ELECTRIC_DELIVERY_TRANSITION_BOND_CO

related topics

{interest, director, officer}

{capital, credit, financial}

{loss, insurance, financial}

{cost, operation, labor}

{product, market, service}

Risks Due to the Limited Sources of Payment for the Transition Bonds and Limited Credit Enhancement Judicial, Legislative or Regulatory Actions That May Adversely Affect an Investment in Transition Bonds Legal Action May Reduce the Value of an Investment in Transition Bonds Further Legislative Action May Reduce the Value of An Investment in Transition Bonds Inaccurate Forecasting or Unanticipated Delinquencies Could Result in Insufficient Funds to Make Scheduled Payments on the Transition Bonds There are Uncertainties Associated with Collecting the Transition Charges, and There is Unpredictability Associated with a Deregulated Electricity Market An Investment in Transition Bonds Relies on Oncor or its Successor Acting as Servicer of the Transition Property It May Be Difficult to Collect the Transition Charges from REPs Changes to Billing and Collection Practices May Reduce the Value of An Investment in Transition Bonds Limits on Rights to Terminate Service May Make it More Difficult to Collect Transition Charges Future Adjustments to Transition Charges by Customer Class May Result in Insufficient Collections Risks Associated with the Unusual Nature of the Transition Property Oncor May Not Recover Transition Charges More Than 15 Years from the Original Issue Date of the Series of Transition Bonds Relating to Those Transition Charges Foreclosure of the Indenture Trustee s Lien on the Transition Property May Not Be Practical Risks Associated with Potential Bankruptcy Proceedings The Servicer Will Commingle the Transition Charges with Other Revenues, Which May Obstruct Access to the Transition Charges in Case of the Servicer s Bankruptcy REPs Will Commingle the Transition Charges with Other Revenues, Which May Obstruct Access to the Transition Charges in Case of a REP s Bankruptcy. If a REP Enters Bankruptcy Proceedings, Transition Charge Payments Made by that REP to the Servicer May Constitute Preferences, and the Servicer May be Required to Return such Funds to the Bankruptcy Estate of the REP. If the Servicer Enters Bankruptcy Proceedings, the Collections of the Transition Charges Held By the Servicer as of the Date of Bankruptcy May Constitute Preferences, Which Means These Funds Would Be Unavailable to Pay Amounts Owing on the Transition Bonds. Bankruptcy of Oncor or any Successor Seller Could Result in Losses or Delays in Payments on the Transition Bonds The Sale of the Transition Property Could Be Construed as a Financing and Not a Sale in a Case of Oncor s Bankruptcy Which Could Delay or Limit Payment on the Transition Bonds. Claims Against Oncor or any Successor Seller May Be Limited in the Event of a Bankruptcy of the Seller A Bankruptcy of Oncor or Any Successor Seller Would Limit the Remedies Available to the Indenture Trustee. Other Risks Associated with an Investment in the Transition Bonds Oncor s Obligation to Indemnify the Company for a Breach of a Representation or Warranty May Not Be Sufficient to Protect an Investor s Investment An Investor Might Receive Principal Payments Later, or Earlier, Than Expected Technological Change May Make Alternative Energy Sources More Attractive

Full 10-K form ▸

1100179--3/31/2008--ONCOR_ELECTRIC_DELIVERY_TRANSITION_BOND_CO_LLC