Okla. Stat. tit. 62, § 62-57.17

Sinking fund.

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

Oklahoma, is hereby authorized and empowered to issue, sell and

deliver to the State Treasurer, or to the Commissioners of the Land

Office of the State of Oklahoma, or to other purchasers, as

hereinafter provided for, "State of Oklahoma Buildings Bonds of

1955", in a total principal amount not to exceed Fifteen Million

Dollars ($15,000,000.00). It is hereby expressly provided and

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

said bonds that any remainder available from the two cents ($0.02)

of the tax on each package of cigarettes authorized and levied by 68

O.S.1941, Sections 538 and 586p, as amended and supplemented to the

effective date of Section 31 of Article X of the Constitution of the

State of Oklahoma, after the annual requirements for the payment of

the interest on, and principal of, the Thirty-six Million Dollars

($36,000,000.00) of "State of Oklahoma Building Bonds" authorized by

Section 31 of Article X of the Constitution of the State of Oklahoma

and Chapter 4 of House Bill No. 4 of the Extraordinary Session of

the Twenty-second (1949) Oklahoma Legislature have been fully met

and said Thirty-six Million Dollars ($36,000,000.00) bond issue

fully retired as to both principal and interest or so much of said

remainder as shall be necessary, and, thereafter, the full amount of

said two cents ($0.02) of said tax on each package of cigarettes, or

so much thereof as may be necessary, and if, at any time, said

remainder of said two cents ($0.02) of the tax on each package of

cigarettes, or said two cents ($0.02) of the tax on each package of

cigarettes, as the case might be, shall not be sufficient for said

purpose, three cents ($0.03) of the tax now imposed, or which may

hereafter be imposed, on each package of cigarettes containing more

than twenty cigarettes, or so much of said three cents ($0.03) of

said tax 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 hereby created, in the State Treasury, a fund to be known

as the "State of Oklahoma Building Bonds of 1955 Sinking Fund,"

which sinking fund is hereby irrevocably pledged to the payment of

the interest on, and principal of, the bonds issued hereunder; 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 the bonds.

Beginning July 1, 1955, the Oklahoma Tax Commission, when

transmitting to the State Treasurer the monthly collection of the

Oklahoma Statutes - Title 62. Public Finance Page 204

tax on cigarettes, hereinabove mentioned, shall also transmit to the

State Treasurer a schedule showing the net proceeds of two cents

($0.02) of the tax on each package of twenty cigarettes or less, and

the net proceeds of three cents ($0.03) of the tax on each package

of more than twenty cigarettes. It shall be the duty of the State

Treasurer, upon receiving said taxes and schedules from the Oklahoma

Tax Commission, to deposit in said 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, said bonds as the same

falls due and to comply with the covenants hereof with respect to

reserve requirements. The cigarette tax monies hereinabove pledged

to the retirement of said bonds shall constitute the primary revenue

dedicated to the payment of the interest on, and the principal of,

the bonds issued hereunder, but it is further pledged, for the
f the interest on, and the principal of, said bonds as the same

falls due and to comply with the covenants hereof with respect to

reserve requirements. The cigarette tax monies hereinabove pledged

to the retirement of said bonds shall constitute the primary revenue

dedicated to the payment of the interest on, and the principal of,

the bonds issued hereunder, but it is further pledged, for the

purchasers, owners and holders of said bonds, that the State of

Oklahoma will, if and when it shall appear to be necessary, devote,

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

said bonds, any funds available in any fund or funds of the state

not created or realized from ad valorem tax sources or so much

thereof as may be necessary for such purpose, and, if the funds

hereinabove mentioned are not sufficient for such purpose, will

impose and collect a tax, other than an ad valorem tax, and devote

the same, or so much thereof as may be necessary, to the payment of

the interest on, and principal of, the bonds issued hereunder. The

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 in 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 Section

33 of Article X of the Constitution of the State of Oklahoma, as it

deems to be needful and appropriate to the general purpose of

effectuating this act.