Okla. Stat. tit. 11, § 11-22-157

obligations.

A. Subject to the provisions of Sections 6 and 7 of this act,

upon the affirmative vote of at least three-fourths (3/4) of all the

members of the governing body, a municipality may borrow money or

Oklahoma Statutes - Title 11. Cities and Towns Page 202

issue obligations to finance or refinance acquisition, construction

or purchase of or the making of improvements to a public utility or

utilities.

B. Obligations issued and sold pursuant to the provisions of

the Oklahoma Municipal Utility Revenue Bond Act shall be in such

principal amounts and shall mature at such time as determined by the

municipal governing body, and shall bear interest at such annual

rate or rates as determined by the governing board of the

municipality, provided the rate of interest on the obligations or

any particular maturity thereof, shall not exceed fourteen percent

(14%) per annum.

C. Evidence of the issuance, sale and delivery of revenue

obligations under the Oklahoma Municipal Utility Revenue Bond Act

shall be provided by delivering (1) to the Secretary of State a

preliminary offering document and notice of sale at least ten (10)

business days prior to the date of sale thereof, and (2) to the

Secretary of State and the Oklahoma Securities Commission a final

offering document within fifteen (15) business days after the

delivery thereof.

D. In the proceedings leading to the approval, issuance, sale

and delivery of revenue obligations under the Oklahoma Municipal

Utility Revenue Bond Act, a private attorney or attorneys acting as

bond counsel and in other necessary capacities may be employed at a

fee to be negotiated by the municipality and such attorneys; and the

fees and expenses of such counsel may, at the option of the

governing body of the municipality, be paid from the proceeds of the

obligations or from other available sources.

E. The governing body of the municipality may also, at its

option, employ a financial advisor in connection with the issuance

and sale of the obligations at a fee to be negotiated by the

governing body and the financial advisor. Fees and expenses of the

financial advisor, if any are incurred, may be paid from the

proceeds of the obligations or from other available sources.

F. The obligations issued pursuant to the Oklahoma Municipal

Utility Revenue Bond Act shall be sold at competitive bid, to the

bidder bidding the lowest net interest cost on the obligations or

the lowest true interest cost as the governing body shall direct.

Notice of the sale of the obligations shall be published at least

ten (10) days prior to the sale thereof, and such notice by

publication shall include publication once a week for two (2)

consecutive weeks in a legally qualified newspaper of general

circulation in the municipality, provided that the date specified in

the notice for sale of the obligations shall not be less than ten
l direct.

Notice of the sale of the obligations shall be published at least

ten (10) days prior to the sale thereof, and such notice by

publication shall include publication once a week for two (2)

consecutive weeks in a legally qualified newspaper of general

circulation in the municipality, provided that the date specified in

the notice for sale of the obligations shall not be less than ten

(10) days after the first publication thereof. The notice of sale

shall state that the municipality reserves the right to reject any

and all bids. Provided, however, competitive bidding may be waived

upon an affirmative vote of the governing body. The governing body

Oklahoma Statutes - Title 11. Cities and Towns Page 203

thereupon may negotiate for the private sale of the obligations to

an underwriter or other purchaser or purchasers if it has received

the written opinion of bond counsel that such negotiated sale is in

accordance with the terms and provisions of the Oklahoma Municipal

Utility Revenue Bond Act, and contravenes no other provisions of

applicable law.

G. The obligations may, at the election of the governing body,

be sold at a discount; provided that no obligations shall be sold

for less than ninety-six percent (96%) of par value until the

governing body has received from the underwriter or financial

advisor, or in the absence of an underwriter or financial advisor,

the initial purchaser of such bonds, an estimated alternative

financing structure or structures showing the estimated total

interest and principal cost of each alternative. At least one

alternative financing structure shall include bonds sold to the

public at par. Such estimates shall be considered a public record.

In no event shall bonds be sold for less than sixty-five percent

(65%) of par value. Said net interest cost or true interest cost

shall include and take into consideration any discount or premium

bid on the obligations.

H. It shall be a further condition to the issuance and sale of

revenue obligations hereunder that the municipality establish and

maintain for the particular utility or utilities providing revenues

to repay the obligations a separate system of accounting for such

revenues in order that the governing body of the municipality may

accurately and reliably determine from year to year the sufficiency

of rates, charges and amounts of revenues derived from such

utilities and available to pay debt service and other costs related

to the obligations. Such enterprise accounts shall be clearly

identified in the annual audits of the municipality.