Okla. Stat. tit. 62, § 62-57.103

of cigarette tax and sinking fund - General obligation.

The Commission, acting for and on behalf of the State of

Oklahoma, shall issue, sell and deliver, as hereinafter provided, a

series of bonds designated "State of Oklahoma Institutional Building

Bonds of 1965" (herein called the "Series D Bonds"), in the

principal sum of Sixteen Million Five Hundred Twenty-five Thousand

Dollars ($16,525,000.00). It is hereby expressly provided and

pledged for the benefit of the purchasers, owners and holders of

said bonds that seven cents ($0.07) of the tax on each package of

cigarettes levied by Section 302 of House Bill No. 511, enacted by

the Thirtieth Oklahoma Legislature, constituting the remainder of

revenue available for the revenues lawfully levied and collected by

the State of Oklahoma on the sale of cigarettes not already

committed to other obligations of the State of Oklahoma, or so much

as may be necessary, shall be devoted irrevocably to the payment and

discharge of the interest on, and the principal of, the bonds issued

hereunder as the same become due, and to create an adequate reserve

to assure such payments when due; and said revenues shall be, and

hereby are, irrevocably pledged for such purposes. There is in the

State Treasury a fund known as the "State of Oklahoma Institutional

Building Bonds of 1965 Sinking Fund" (herein called the "sinking

fund"), established by said House Bill No. 1122, which is hereby

irrevocably pledged to the payment of the interest on, and principal

of, the Series D Bonds, in addition to other State of Oklahoma

Institutional Building Bonds of 1965, and monies to the credit

thereof shall be paid out only in the manner and at the time and

places provided for in the resolution or resolutions of the

Commission authorizing the issuance of such bonds. Beginning on the

Oklahoma Statutes - Title 62. Public Finance Page 245

first day of the month following the adoption of said constitutional

amendment, the Oklahoma Tax Commission, when transmitting to the

State Treasurer the monthly collection of the tax on cigarettes,

shall also transmit to the State Treasurer a schedule showing the

net proceeds of seven cents ($0.07) of the tax on each package of

cigarettes levied by Section 302 of House Bill No. 511, enacted by

the Thirtieth Oklahoma Legislature. It shall be the duty of the

State Treasurer, upon receiving said taxes and schedules from the

Oklahoma Tax Commission, to deposit in the sinking fund such

portions of the cigarette tax or taxes hereinabove pledged to the

payment of the bonds issued hereunder as may be necessary to assure

prompt payment of the interest on, and the principal of, the

outstanding State of Oklahoma Institutional Building Bonds of 1965

as the same fall due. The State Treasurer shall deposit in the

sinking fund, in addition to all other amounts required to be

deposited therein, the following sums for the following fiscal years

for the payment of the principal upon the Series D Bonds:

For the fiscal years commencing July 1, 1971, 1972 and 1973, the

sum of Two Hundred Thousand Dollars ($200,000.00) each year; for the

fiscal years commencing July 1, 1974, 1975, and 1976, the sum of

Four Hundred Thousand Dollars ($400,000.00) each year; for the

fiscal years commencing July 1, 1977, to and including the fiscal

year commencing July 1, 1982, the sum of Seven Hundred Thousand

Dollars ($700,000.00) each year; for the fiscal years commencing

July 1, 1983, to and including the fiscal year commencing July 1,

1991, the sum of One Million Dollars ($1,000,000.00) each year; for

the fiscal year commencing July 1, 1992, the sum of One Million Five

Hundred Twenty-five Thousand Dollars ($1,525,000.00) and, in

addition thereto, in each of said fiscal years the amount necessary

for the payment of interest on the Series D Bonds. In the event

that the payments into the sinking fund in any fiscal year plus the
91, the sum of One Million Dollars ($1,000,000.00) each year; for

the fiscal year commencing July 1, 1992, the sum of One Million Five

Hundred Twenty-five Thousand Dollars ($1,525,000.00) and, in

addition thereto, in each of said fiscal years the amount necessary

for the payment of interest on the Series D Bonds. In the event

that the payments into the sinking fund in any fiscal year plus the

accumulation in such sinking fund is not sufficient to pay the

principal and interest due the following July 15 on the State of

Oklahoma Institutional Building Bonds of 1965, then it shall be the

duty of the State Treasurer to pay into said sinking fund from the

cigarette funds such sum of money as may be necessary to pay said

principal and interest. The cigarette tax monies hereinabove

pledged to the retirement of the Series D Bonds shall constitute the

primary revenue dedicated to the payment of the interest on, and the

principal of, said bonds issued hereunder, but it is further

pledged, for the purchasers, owners and holders of said bonds, that

the State of Oklahoma, if and when it shall appear to be necessary,

hereby devotes irrevocably to the payment of the interest on, and

principal of said bonds, any monies in the General Revenue Fund of

the State of Oklahoma not otherwise obligated, committed or

appropriated, and the State Treasurer is directed to apply such

General Revenue Fund of the State of Oklahoma for such purpose. The

Oklahoma Statutes - Title 62. Public Finance Page 246

State of Oklahoma further pledges to the purchasers, owners and

holders of said bonds that it will, if and when it shall appear to

be necessary, impose and collect a tax and devote the proceeds

thereof, or so much thereof as may be necessary, for the purpose of

paying the principal of and interest on the Series D Bonds issued

hereunder as they come due. The Series D Bonds issued hereunder, and

the interest thereon, shall be general obligations of the State of

Oklahoma, and the full faith, credit and resources of the State of

Oklahoma are pledged to their payment. The Commission is authorized

to incorporate on the face of each of the bonds issued under this

act, pledges the same or substantially the same as those made

herein. The pledges and covenants so made by the Commission shall

constitute the commitment of the State of Oklahoma, made in full

good faith, in its sovereign capacity, and shall be binding upon

said state and the Legislature, officers, instrumentalities and

agents thereof, so long as any of the interest on, or principal of,

said bonds shall remain outstanding and unpaid. The Commission is

authorized to make such other equally binding covenants and

agreements, not inconsistent with this act or House Joint Resolution

No. 522 (552) of the Thirtieth Oklahoma Legislature, as it deems to

be needful and appropriate to the general purpose of effectuating

this act.