Okla. Stat. tit. 62, § 62-57.3

- 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, the Commissioners of the Land Office

of the State of Oklahoma, or other purchasers, "State of Oklahoma

Building Bonds" in a total principal amount not to exceed Thirty-six

Million Dollars ($36,000,000.00). It is hereby expressly provided

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

said bonds, that two cents ($0.02) of the tax on each package of

cigarettes authorized and levied by 68 O.S. 1951, Sections 586 to

586p, as amended and supplemented to the effective date of Section

31, Article X, of the Constitution of Oklahoma, or so much of said

tax as may be necessary to pay and discharge the principal of and

interest on said bonds as the same become due, and to create an

adequate reserve to assure such payments when due, shall be and the

same is hereby irrevocably pledged to the sole and exclusive use and

purpose of paying and discharging the principal of and interest on

said bonds. There is hereby created in the State Treasury, a fund

to be known as the "State of Oklahoma Building Bonds Sinking Fund",

which sinking fund is irrevocably pledged to the payment of the

bonds issued hereunder, together with the interest thereon, and

shall be paid out only in the manner and at the times and places

provided for in the resolution or resolutions of the Commission

authorizing the issuance of the bonds. Beginning July 1, 1950, all

cigarette taxes collected shall be paid monthly by the Oklahoma Tax

Commission to the State Treasurer of the State of Oklahoma. Upon

receiving from the Oklahoma Tax Commission the cigarette tax money

hereinabove mentioned, accompanied by a schedule showing the net

Oklahoma Statutes - Title 62. Public Finance Page 195

proceeds of the two cents ($0.02) tax upon each package of

cigarettes, it shall be the duty of the State Treasurer to place in

said sinking fund the net proceeds of two cents ($0.02[) of the tax

on each package of cigarettes, or so much of said cigarette tax as

may be necessary to assure prompt payment of the principal of and

interest on the bonds as they fall due and to carry out the

covenants with respect to reserve requirements. The cigarette tax

herein referred to shall constitute the primary revenue dedicated to

the payment of the principal and interest of said bonds but it is

further pledged for the benefit of the purchasers, owners and

holders of said bonds that the State of Oklahoma will, if necessary,

impose and collect an additional tax, other than an ad valorem tax,

and devote the same irrevocably to the payment of the principal and

interest of said bonds, and that should said cigarette tax, herein

referred to, ever fail to produce sufficient revenue to pay said

principal and interest as they fall due, such cigarette tax,

together with such additional tax, shall always be sufficient to pay

and discharge said principal and interest when due. 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 is pledged for 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

said 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 principal

or interest of the bonds are outstanding and unpaid. The Commission

is authorized to make such other equally binding covenants and

agreements, not inconsistent with this act, or with Section 31,
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 principal

or interest of the bonds are outstanding and unpaid. The Commission

is authorized to make such other equally binding covenants and

agreements, not inconsistent with this act, or with Section 31,

Article X, Oklahoma Constitution, as it deems to be needful and

appropriate to the general purpose of effectuating this act.