                                 CODE OF VIRGINIA

SALE OF UTILITY ASSETS OR UNDIVIDED FRACTIONAL INTEREST THEREIN; TAXATION (§
56-90.1)

If the Commission shall have granted a petition filed pursuant to § 56-90 in
which a public utility has applied for authority to sell utility assets or
associated properties situated within the Commonwealth, or an undivided
fractional interest therein, to (i) an association of one or more electric
cooperatives or electric membership corporations that are wholesale customers of
the electric public utility, (ii) an association of one or more cities or
incorporated towns that are wholesale customers of the electric utility, (iii)
any combination of such associations, or (iv) another public utility then,
notwithstanding any other provisions of law:

1. A waiver made by any such electric public utility, association of
cooperatives, cities or towns of any right it may have to compel partition,
whether pursuant to the provisions of Article 9 (&#xA7; 8.01-81 et seq.) of
Chapter 3 of Title 8.01, or otherwise, shall be effective and enforceable
against (i) such public utility, association of cooperatives, cities or towns,
and their successors and assigns, and (ii) all creditors of such public utility,
association of cooperatives, cities and towns, their successors and assigns, who
have notice of record of such waiver, so long as the waiver shall be limited so
as not to exceed ninety-nine years;

2. No state recording tax shall be payable upon the admission to record of any
deed, deed of trust, mortgage, bill of sale, contract, agreement or other
writing supplemental to any such instrument which conveys or reconveys such
utility assets or properties, or an undivided fractional interest therein or
secures any bonds or other obligations of such association of cooperatives,
cities or towns or combination thereof; provided, however, that any local
recording taxes shall be payable as though the state recording taxes had been
collected;

3. No state franchise tax or local license tax shall be payable on the proceeds
of any such sale of utility assets or properties, or an undivided fractional
interest therein; and

4. Unless otherwise expressly agreed by the joint owners the joint ownership of
such utility assets or properties as approved by the Commission shall not
constitute a partnership or joint venture among the owners.

HISTORY: 1979, c. 238; 1980, c. 703.