Okla. Stat. tit. 62, § 62-57.83

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,

"State of Oklahoma Institutional Building Bonds of 1965 Series C",

in the principal sum of Ten Million Eight Hundred Thousand Dollars

($10,800,000.00), and the remaining portion of said "State of

Oklahoma Institutional Building Bonds of 1965" shall be sold as

provided by subsequent acts of the Oklahoma Legislature. 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 the House Bill No. 511, enacted by the 30th Oklahoma

Legislature 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

Oklahoma Statutes - Title 62. Public Finance Page 237

for such purposes. There is in the State Treasury, a fund known as

the "State of Oklahoma Institutional Building Bonds of 1965 Sinking

Fund" to which Series C shall be added, said 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 on the 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 30th 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 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. The State Treasurer shall deposit in the above-created

sinking fund for the fiscal years 1966-1967, 1967-1968, 1968-1969,

and 1969-1970, the amount necessary to pay the interest upon the

outstanding bonds. The State Treasurer shall deposit in the above-

created sinking fund the following sums for the following fiscal

years for the payment of the principal upon Series C Bonds:

Commencing July 1, 1970, 1971, 1972 and 1973, the sum of Two

Hundred Thousand Dollars ($200,000.00) each year; commencing July 1,

1974, 1975 and 1976, the sum of Three Hundred Thousand Dollars

($300,000.00) each year; for the fiscal years commencing July 1,

1977, to and including the fiscal year commencing July 1, 1982, the

sum of Five Hundred Thousand Dollars ($500,000.00) each year; for

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

fiscal year commencing July 1, 1990, the sum of Seven Hundred

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

commencing July 1, 1991, the sum of Five Hundred Thousand Dollars

($500,000.00), and in addition thereto, the amounts necessary for

the payment of interest. In the event that the payments into the

above-created sinking fund in any fiscal year plus the accumulation
g the

fiscal year commencing July 1, 1990, the sum of Seven Hundred

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

commencing July 1, 1991, the sum of Five Hundred Thousand Dollars

($500,000.00), and in addition thereto, the amounts necessary for

the payment of interest. 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 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

Oklahoma Statutes - Title 62. Public Finance Page 238

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 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 House

Joint Resolution No. 522 of the 30th Oklahoma Legislature, as it

deems to be needful and appropriate to the general purpose of

effectuating this act.