(a) The transfer of the Government’s right, title, and interest in and to the Matching Fund Receipts and the Related Rights pursuant to this chapter to the Corporation or any assignee permitted under the initial Indenture must be treated as an absolute transfer and true sale of all of the Government’s right, title, and interest in and to the Matching Fund Receipts designated as being sold pursuant to the terms of the Sale Agreement, and not a pledge of or secured transaction relating to the Government’s right, title, and interest in the Matching Fund Receipts and the Related Rights, if the documents governing the transaction expressly state that the transaction is a sale or other absolute transfer.
(b) The existence of a statutory lien and consensual liens on all of the Corporation’s right, title, and interest in and to the Trust Estate, including the moneys payable or received thereunder and any interest thereon, or the characterization of the transaction for accounting or securities regulation purposes may not impair or negate the characterization of any transfer as a true sale.
(c) The Legislature by this chapter is determining the nature of, and procedure for the absolute conveyance of, property rights. The characterization of the assignment, sale and transfer of the Matching Fund Receipts and the Related Rights as an absolute transfer and true sale and the corresponding characterization of the property interest of the Corporation under this chapter may not be altered, adversely affected or impaired by, among other factors, the occurrence of any of the following factors:(1) the commingling of the Matching Fund Receipts with other funds;(2) the initial retention by the Government of interest in the Residual Receipts in the Trust Estate as part of the consideration for the sale of the Matching Fund Receipts and the Related Rights;(3) any recourse that the Corporation may have against the Government pursuant to the Sale Agreement;(4) any indemnification or other obligations of the Government in favor of the Corporation;(5) the treatment of the sale, assignment or transfer for tax, financial reporting, or other purposes;(6) any subsequent Resolution of the Corporation; or(7) any deposit of Matching Fund Receipts in a separate fund in the treasury of the Virgin Islands referred to in 26 U.S.C. § 7652(b)(3), despite the instruction by the Government to the Secretary of the Treasury and the DOI or otherwise.
(1) the commingling of the Matching Fund Receipts with other funds;
(2) the initial retention by the Government of interest in the Residual Receipts in the Trust Estate as part of the consideration for the sale of the Matching Fund Receipts and the Related Rights;
(3) any recourse that the Corporation may have against the Government pursuant to the Sale Agreement;
(4) any indemnification or other obligations of the Government in favor of the Corporation;
(5) the treatment of the sale, assignment or transfer for tax, financial reporting, or other purposes;
(6) any subsequent Resolution of the Corporation; or
(7) any deposit of Matching Fund Receipts in a separate fund in the treasury of the Virgin Islands referred to in 26 U.S.C. § 7652(b)(3), despite the instruction by the Government to the Secretary of the Treasury and the DOI or otherwise.
(d) The sale and conveyance of the Matching Fund Receipts and the Related Rights pursuant to this chapter is not subject to disavowal, disaffirmance, cancellation, or avoidance by reason of insolvency of any party, lack of consideration, or any other fact, occurrence, or Virgin Islands law, the United States Code or other law or rule. On and after the effective date of the sale and conveyance of the Matching Fund Receipts and the Related Rights pursuant to this chapter, the Government has no right, title, or interest in or to the Matching Fund Receipts and the Related Rights conveyed, and the Matching Fund Receipts, and the Related Rights so conveyed are the property of the Corporation.
(e) The Corporation’s right, title, and interest in and to the Trust Estate, including the moneys payable or received thereunder and any interest thereon, or the characterization of the transaction for accounting or securities regulation purposes may not impair or negate the characterization of any transfer as a true sale. The transfer of the Government’s right, title and interest in and to the Matching Fund Receipts and the Related Rights to the Corporation or to any assignee pursuant to the Sale Agreement is irrevocable and is perfected, vested, valid and binding as against third persons having claims of any kind in tort, contract or otherwise against the Government, irrespective of whether the parties have notice thereof and are superior to any judicial liens or other liens obtained by the claimants or transferees. No instrument by which the sale is accomplished need be recorded in order to accomplish the transfer.