Okla. Stat. tit. 60, § 60-176

Approval - Expenditures - Conveyance of title to real property used

for airport - Bylaws - Amendments - Indebtedness - Bonds - Contracts

- Eminent domain - Exemptions.

A. Express trusts may be created to issue obligations, enter

into financing arrangements including, but not limited to, lease-

leaseback, sale-leaseback, interest rate swaps, and other similar

transactions and to provide funds for the furtherance and

accomplishment of any authorized and proper public function or

purpose of the state or of any county or municipality or any and all

combinations thereof, in real or personal property, or either or

both, or in any estate or interest in either or both, with the

state, or any county or municipality or any and all combinations

thereof, as the beneficiary thereof by:

1. The express approval of the Legislature and the Governor if

the State of Oklahoma is the beneficiary;

2. The express approval of two-thirds (2/3) of the membership

of the governing body of the beneficiary if a county is a

beneficiary;

3. The express approval of two-thirds (2/3) of the membership

of the governing body of the beneficiary if a municipality is a

beneficiary; or

4. The express approval of two-thirds (2/3) of the membership

of the governing body of each beneficiary in the event a trust has

more than one beneficiary; provided, that no funds of a beneficiary

derived from sources other than the trust property, or the operation

thereof, shall be charged with or expended for the execution of the

trust, except by express action of the legislative authority of the

beneficiary prior to the charging or expending of the funds. The

officers or any other governmental agencies or authorities having

the custody, management, or control of any property, real or

personal or mixed, of the beneficiary of the trust, or of a proposed

trust, which property shall be needful for the execution of the

trust purposes, are authorized and empowered to lease the property

for those purposes, after the acceptance of the beneficial interest

therein by the beneficiary as hereinafter provided.

B. Any trust created pursuant to the provisions of this

section, in whole or in part, may engage in activities outside of

the geographic boundaries of its beneficiary, so long as the

activity provides a benefit to a large class of the public within

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the beneficiary’s geographic area or lessens the burdens of

government of the beneficiary and which does not solely provide a

benefit by generating administrative fees.

C. A municipality may convey title to real property which is

used for an airport to the trustees of an industrial development

authority trust whose beneficiary is the municipality. The

industrial development authority trust must already have the

custody, management, or control of the real property. The

conveyance must be approved by a majority of the governing body of

the municipality. A conveyance pursuant to this section may be made

only for the sole purpose of allowing the authority to sell the

property for fair market value when the property is to be used for

industrial development purposes. Conveyances made pursuant to this

subsection shall be made subject to any existing reversionary

interest or other restrictions burdening the property and subject to

any reversionary interest or other restriction considered prudent by

the municipality.

D. The trustees of a public trust having the State of Oklahoma

as beneficiary shall make and adopt bylaws for the due and orderly

administration and regulation of the affairs of the public trust.

All bylaws of a public trust having the State of Oklahoma as

beneficiary shall be submitted in writing to the Governor of the

State of Oklahoma. The Governor must approve the proposed bylaws

before they take effect.

E. No public trust in which the State of Oklahoma is the

beneficiary may be amended without a two-thirds (2/3) vote of
stration and regulation of the affairs of the public trust.

All bylaws of a public trust having the State of Oklahoma as

beneficiary shall be submitted in writing to the Governor of the

State of Oklahoma. The Governor must approve the proposed bylaws

before they take effect.

E. No public trust in which the State of Oklahoma is the

beneficiary may be amended without a two-thirds (2/3) vote of

approval of the trustees of the trust; provided, that any amendment

is subject to the approval of the Governor of the State of Oklahoma.

Any amendments shall be sent to the Governor within fifteen (15)

days of their adoption.

F. No trust in which a county or municipality is the

beneficiary shall hereafter create an indebtedness or obligation

until the indebtedness or obligation has been approved by a two-

thirds (2/3) vote of the governing body of the beneficiary. In the

event a trust has more than one beneficiary, as authorized by this

section, the trust shall not incur an indebtedness or obligation

until the indebtedness or obligation has been approved by a two-

thirds (2/3) vote of the governing body of two-thirds (2/3) of the

beneficiaries of the trust. Provided, however, a municipality with

a governing body consisting of fewer than seven (7) members shall be

required to approve the creation of an indebtedness or obligation

under this subsection by a three-fifths (3/5) vote of the governing

body.

G. All bonds described in subsection F of this section, after

December 1, 1976, except bonds sold to the federal government or any

agency thereof or to any agency of the State of Oklahoma, shall be

awarded to the lowest and best bidder based upon open competitive

Oklahoma Statutes - Title 60. Property Page 119

public offering, advertised at least once a week for two (2)

successive weeks in a newspaper of general circulation in the county

where the principal office of the trust is located prior to the date

on which bids are received and opened; provided, competitive bidding

may be waived on bond issues with the approval of three-fourths

(3/4) of the trustees, unless the trust has fewer than four

trustees, in which case a two-thirds (2/3) approval shall be

required, and a three-fourths (3/4) vote of the governing body of

the beneficiary, unless the beneficiary is a county in which case a

two-thirds (2/3) vote of the members of the governing body shall be

required, or three-fourths (3/4) vote of the governing bodies of

each of the beneficiaries of the trust, unless one of the

beneficiaries is a county in which case a two-thirds (2/3) vote of

the members of the governing body of such county shall be required.

No bonds shall be sold for less than par value, except upon approval

of three-fourths (3/4) of the trustees, unless the beneficiary is a

county in which case a two-thirds (2/3) vote of the members of the

governing body shall be required. In no event shall bonds be sold

for less than sixty-five percent (65%) of par value; provided,

however, in no event shall the original purchaser from the issuer of

any bonds issued by any public trust for any purpose receive

directly or indirectly any fees, compensation, or other remuneration

in excess of four percent (4%) of the price paid for the bonds by

the purchaser of the bonds from the original purchaser; and further

provided, that the average coupon rate thereon shall in no event

exceed fourteen percent (14%) per annum. No public trust shall sell

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

public trust has received from the underwriter or financial advisor

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

initial purchaser of the 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.
the

public trust has received from the underwriter or financial advisor

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

initial purchaser of the 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.

Any estimates shall be considered a public record of the public

trust. Bonds, notes, or other evidences of indebtedness issued by

any public trust shall be eligible for purchase by any state banking

association or corporation subject to such limitations as to

investment quality as may be imposed by regulations, rules, or

rulings of the Bank Commissioner.

H. Public trusts created pursuant to this section shall file

annually, with their respective beneficiaries, copies of financial

documents and reports sufficient to demonstrate the fiscal activity

of such trust including, but not limited to, budgets, financial

reports, bond indentures, and audits. Amendments to the adopted

budget shall be approved by the trustees of the public trust and

recorded as such in the official minutes of such trust.

Oklahoma Statutes - Title 60. Property Page 120

I. Public construction contracts as provided in the Public

Competitive Bidding Act of 1974 shall be subject to the Public

Competitive Bidding Act of 1974 and the Fair Pay for Construction

Act, where applicable. The provisions of this subsection shall not

apply to contracts of industrial and cultural trusts.

J. Any public trust created pursuant to the provisions of this

section shall have the power to acquire lands by use of eminent

domain in the same manner and according to the procedures provided

for in Sections 51 through 66 of Title 66 of the Oklahoma Statutes.

Any exercise of the power of eminent domain by a public trust

pursuant to the provisions of this section shall be limited to the

furtherance of public purpose projects involving revenue-producing

utility projects of which the public trust retains ownership;

provided, for public trusts in which the State of Oklahoma is the

beneficiary the exercise of the power of eminent domain may also be

used for public purpose projects involving air transportation.

Revenue-producing utility projects shall be limited to projects for

the transportation, delivery, treatment, or furnishing of water for

domestic purposes or for power including, but not limited to, the

construction of lakes, pipelines, and water treatment plants or for

projects for rail transportation. Any public trust formed pursuant

to this section which has a county as its beneficiary shall have the

power to acquire, by use of eminent domain, any lands located either

inside the county, or contiguous to the county pursuant to the

limitations imposed pursuant to this section.

K. If a roadway owned and maintained by a public trust whose

beneficiary is the State of Oklahoma, which roadway is not within

the corporate limits of any municipality and has been used by the

public for any length of time, and the trust has not dedicated the

roadway for public use by written easement, plat, or similar writing

recorded in the land records of the county clerk of the county in

which the roadway is located, the trust may at any time, by

resolution of its board of trustees, close, reopen, or re-close the

roadway to public use. Such closure shall not leave any property

not owned by the trust without contiguous access to a roadway,

whether a public right-of-way or a roadway owned by the trust. If a

roadway is closed pursuant to this subsection and the right to

reopen the roadway is foreclosed by the district court of the county

where the roadway is located, pursuant to the procedures provided in

Sections 42-111 through 42-115 of Title 11 of the Oklahoma Statutes,

then the closure of such roadway shall be permanent and not subject

to being reopened.
or a roadway owned by the trust. If a

roadway is closed pursuant to this subsection and the right to

reopen the roadway is foreclosed by the district court of the county

where the roadway is located, pursuant to the procedures provided in

Sections 42-111 through 42-115 of Title 11 of the Oklahoma Statutes,

then the closure of such roadway shall be permanent and not subject

to being reopened.

L. Provisions of this section shall not apply to entities

created under Sections 1324.1 through 1324.26 of Title 82 of the

Oklahoma Statutes.

M. Any trust created under Section 176 et seq. of this title,

in whole or in part, to operate, administer, or oversee any county

Oklahoma Statutes - Title 60. Property Page 121

jail facility shall consist of not fewer than five members and

include a county commissioner and the county sheriff, or their

designees, and one member appointed by each of the county

commissioners. The appointed members shall not be elected

officials.