Okla. Stat. tit. 62, § 62-57.316

obligations - Pledge of tax revenue.

A. The Oklahoma Building Bonds Commission is authorized until

June 30, 2011, to issue bonds, notes, or other obligations for the

purpose of refinancing or restructuring its outstanding obligations

regarding bonds issued under the 1992 Oklahoma Building Bond and

College Savings Bond Act.

B. To the extent funds are available from the proceeds of the

borrowing authorized by this section, the Oklahoma Building Bonds

Commission shall provide for the payment of professional fees and

associated costs approved by the Oklahoma State Bond Advisor. The

Commission is authorized to hire bond counsel, financial

consultants, and such other professionals as it may deem necessary

to provide for the efficient sale of the obligations and may utilize

a portion of the proceeds of any borrowing to create such reserves

as may be deemed necessary and to pay costs associated with the

issuance and administration of such obligations.

C. An issuance of bonds under this section may be undertaken to

achieve an overall debt service savings, modify restrictive bond

document covenants, or reduce payment requirements during periods of

fiscal stress. To achieve these objectives, the Commission is

authorized to extend the final maturity of its outstanding

obligations if necessary, but in no event shall the final maturity

of an individual bond issue be extended more than ten (10) years

without the approval of the Legislature.

D. The obligations authorized under this section may be sold at

either competitive or negotiated sale, as determined by the

Commission, and in such form and at such prices as may be authorized

by the Commission. The Commission may issue obligations in one or

more series and may set such other terms and conditions as may be

necessary, in its judgment to achieve an efficient financing. The

Commission may enter into agreements with such credit enhancers and

Oklahoma Statutes - Title 62. Public Finance Page 290

liquidity providers as may be determined necessary to efficiently

market the obligations, including the purchase of surety policies or

other financial instruments to be utilized in lieu of reserve funds.

The obligations may mature and have such provisions for redemption

as shall be determined by the Commission, but in no event shall the

final maturity of such obligations occur later than thirty (30)

years from the delivery date.

E. Any interest on the funds or accounts created for the

purposes of this section may be utilized as partial payment of the

annual debt service or for the purposes directed by the Commission.

F. The obligations issued under this section, the transfer

thereof and the interest earned on such obligations, including any

profit derived from the sale thereof, shall not be subject to

taxation of any kind by the State of Oklahoma, or by any county,

municipality or political subdivision therein.

G. It is hereby expressly provided and pledged for the benefit

of the purchasers, owners and holders of bonds issued pursuant to

this section that the tax on each package of cigarettes levied by

Section 302 of Title 68 of the Oklahoma Statutes, constituting the

remainder of revenue available from 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, and

the tax levy on cigarettes pursuant to Sections 302-2 and 302-4 of

Title 68 of the Oklahoma Statutes, 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 revenue shall be, and hereby is,

irrevocably pledged for such purposes.