Okla. Stat. tit. 62, § 62-57.53

Sinking fund.

Oklahoma Statutes - Title 62. Public Finance Page 220

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

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

"State of Oklahoma Building Bonds of 1965" in a total principal

amount of Seven Million Dollars ($7,000,000.00). It is hereby

expressly provided and pledged for the benefit of the purchasers,

owners and holders of said bonds that three cents ($0.03) of the

five cents ($0.05) of the tax on each package of cigarettes levied

by 68 O.S.1961, as amended, Section 586a 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, 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 hereby

created in the State Treasury, a fund to be known as the "State of

Oklahoma Building Bonds of 1965 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,

1965, 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 three cents ($0.03) of the tax on each package of

cigarettes levied by 68 O.S.1961, Section 586a, as amended. 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

State Treasurer in each fiscal year commencing July 1, 1967, to and

including the fiscal year commencing July 1, 1988, shall deposit in

the above-created sinking fund, the sum of Three Hundred Thousand

Dollars ($300,000.00), plus interest for each fiscal year, and in

the fiscal year commencing July 1, 1989, the sum of Four Hundred

Thousand Dollars ($400,000.00). In the event that the payments into

the above-created 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 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

Oklahoma Statutes - Title 62. Public Finance Page 221

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, if and when it shall appear to be necessary hereby

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

of said bond, 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 State of Oklahoma
Oklahoma, if and when it shall appear to be necessary hereby

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

of said bond, 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 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 and

interest of the bonds issued hereunder as they come 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 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

36 of Article X of the Constitution of the State of Oklahoma adopted

December 3, 1963, as it deems to be needful and appropriate to the

general purpose of effectuating this act.