Okla. Stat. tit. 62, § 62-695.25

be issued for year - Publication - Application by issuers for

allocation of state ceilings - Contents.

A. On January 1 of each calendar year or the first business day

thereafter, the Deputy Treasurer for Debt Management shall determine

the maximum total volume of private activity bonds that may be

issued pursuant to federal law by the state during that year.

B. On or before February 15 of each calendar year, the Deputy

Treasurer for Debt Management shall cause to be published in The

Oklahoma Register, or any successor publication, a notice specifying

the amount of the state ceiling for the calendar year.

C. Complete applications for state ceiling allocations from the

pools set forth in Section 695.24 of this title shall be processed

in chronological order of receipt on the basis of the information

and provisions set forth in subsections D, E, F, G and H of this

section.

1. The state ceiling reserved and placed pursuant to subsection

A of Section 695.24 shall be allocated in the order in which

applications are received, subject to the following:

a. applications exceeding the available amount of the

state ceiling reserved and placed in a pool pursuant

to subsection A of Section 695.24, provided that the

Deputy Treasurer for Debt Management does not exercise

the discretion provided under subparagraph a of

paragraph 4 of subsection A of Section 695.24 of this

title, shall be held, but retain chronological

priority, for the remaining amounts of the state

ceiling that are reserved and placed in the

Consolidated Pool, and

b. applications from issuers or projects that previously

received allocations but failed to issue within the

120-day timeframe as required by subsection H of this

section, notwithstanding the no fee provision of

subparagraph a of paragraph 4 of this subsection,

shall be subject to the fee provision of Consolidated

Pool applications as provided in subparagraph b of

paragraph 4 of this subsection and eligible to apply

for an allocation under subsection A of Section 695.24

with a new priority date.

2. The state ceiling reserved and placed pursuant to subsection

B of Section 695.24 shall be allocated in the order in which

applications are received, subject to the following:

a. applications held pursuant to subparagraph a of

paragraph 1 of this subsection or new applications,

but not applications submitted pursuant to

subparagraph b of paragraph 1 of this subsection,

Oklahoma Statutes - Title 62. Public Finance Page 503

shall receive first priority based on the

chronological issuance of confirmation,

b. applications from issuers or projects that previously

received allocations under subsection B of Section

695.24 but failed to issue within the 120-day

timeframe required pursuant to subsection H shall be

subject to the fee provision of carryforward

applications as provided in subparagraph c of

paragraph 4 of this subsection and eligible to apply

for an allocation under subsection B of Section 695.24

with a new priority date, and

c. applications from issuers or projects that previously

received allocations under subsection A of Section

695.24, but failed to issue within the 120-day

timeframe required pursuant to subsection H of this

section shall not be eligible to receive a priority

date for the Consolidated Pool prior to August 1;

3. The state ceiling reclaimed or reserved for qualified

carryforward projects pursuant to subsection C of Section 695.24

shall be allocated in the order in which confirmations are issued,

subject to the following:

a. applications submitted under subsection B of Section

695.24 or new applications, but not applications

submitted pursuant to subparagraph b of paragraph 1 of

this subsection shall receive first priority based on

the chronological issuance of confirmation,

b. applications from issuers or projects that previously

received allocations but failed to issue within the
subject to the following:

a. applications submitted under subsection B of Section

695.24 or new applications, but not applications

submitted pursuant to subparagraph b of paragraph 1 of

this subsection shall receive first priority based on

the chronological issuance of confirmation,

b. applications from issuers or projects that previously

received allocations but failed to issue within the

120-day timeframe required pursuant to subsection H of

this section, shall not be eligible to receive a

priority date prior to December 20, and

c. applications exceeding the amount of the state ceiling

reclaimed or reserved for qualified carryforward

projects pursuant to subsection C of Section 695.24

shall be permitted to reduce the requested amount,

without losing priority, and receive eligible

carryforward at the discretion of the Deputy Treasurer

for Debt Management;

4. All applications shall be subject to the following fee

structure, which shall be apportioned to the Bond Oversight

Revolving Fund created pursuant to Section 695.8a of this title:

a. no application fee shall be assessed to issuers or

projects for an allocation of the state ceiling under

subsection A of Section 695.24,

b. applications for an allocation of the state ceiling

under subsection B of Section 695.24 shall be subject

to a fee of one-half (0.5) basis point (0.005

Oklahoma Statutes - Title 62. Public Finance Page 504

percent), provided that no application shall be

subject to a fee if held pursuant to a request that

exceeded the pool amount under subparagraph a of

paragraph 1 of this subsection, and

c. applications for an allocation of the state ceiling

for carryforward under subsection C of Section 695.24

shall be subject to a fee of one (1) basis point (0.01

percent);

5. The Deputy Treasurer for Debt Management shall have the

limited authority to defer, retain priority, or deny confirmation on

applications for state ceiling allocation that appear to be

incomplete or premature based upon information submitted or that

fail to show demand for funds pursuant to subsections F and G of

this section. In the event a confirmation or application is denied,

the Deputy Treasurer for Debt Management, within five (5) business

days following such denial, shall send written notice to the

applicant together with a brief recital of the reasons for denial.

D. An issuer that proposes to issue private activity bonds for

a specific project or purpose shall make application for an

allocation of a portion of the state ceiling for the particular

project or purpose by submitting to the Deputy Treasurer for Debt

Management an application for state ceiling allocation together with

copies of the following:

1. A certified copy of the resolution or other action adopted

by the issuer for the purpose of taking "official action" as

required by the Treasury Regulations relating to Section 103 of the

Internal Revenue Code, if the issuer of private activity bonds for

which the allocation is requested requires "official action" under

applicable Treasury Regulations and the Internal Revenue Code; and

2. A final resolution of the beneficiary of the issuer

evidencing its approval of the issuance of the issuer's obligations,

if the issuer is a municipal or county public trust, or a

certificate signed by the Governor of the state evidencing his

approval of the issuance of the issuer's obligations, to the extent

required under the Internal Revenue Code, if the issuer is a public

trust having the state as its beneficiary.

E. The application for state ceiling allocation shall contain

the following information:

1. The name and mailing address of the issuer, the beneficiary

and jurisdiction thereof, the name of the presiding officer of the

issuer and the respective pool from which an allocation is

requested;

2. The name and mailing address or other definitive description

of the location of the project or bonds and the purpose for which an
ceiling allocation shall contain

the following information:

1. The name and mailing address of the issuer, the beneficiary

and jurisdiction thereof, the name of the presiding officer of the

issuer and the respective pool from which an allocation is

requested;

2. The name and mailing address or other definitive description

of the location of the project or bonds and the purpose for which an

allocation of the state ceiling is requested, the name and mailing

address of both the initial owner or operator of the project, where

applicable, and an appropriate person from whom information

Oklahoma Statutes - Title 62. Public Finance Page 505

regarding the project or bonds can be obtained, and the name and

address of the person to whom the confirmation should be sent;

3. The amount of the state ceiling which the issuer is

requesting;

4. A statement of bond counsel for the issuer that the proposed

issue requires, pursuant to Section 103, Section 146 or such other

applicable sections of the Internal Revenue Code, an allocation of a

portion of the state ceiling; and

5. Where applicable, the intention to exchange single-family

mortgage bond authority for mortgage credit certificates.

F. 1. Applications for single-family mortgage bonds or

mortgage credit certificate programs shall also include the

submission of information demonstrating a reasonable expectation to

use an allocation of the state ceiling for its intended purpose.

This information shall include historical usage of mortgage revenue

bond proceeds or mortgage credit certificates in the geographic area

subject to an application over the previous twenty-four-month period

and the impact of known or possible competing programs that would

act to reduce demand. This information may also include demand

surveys. Provided, in cases where historical usage cannot be

documented, demand surveys shall be included with an application.

2. Applications for qualified student loan bonds shall also

include the submission of information showing a reasonable

expectation to use the state ceiling for its intended purpose. This

information shall include historical lending activity over the

previous twenty-four-month period as well as a demonstration of need

based upon such factors as increased enrollment costs, enrollment

increases, or new federal regulations that act to increase demand by

making changes to eligibility requirements to certain federally

guaranteed or subsidized student loan programs. This information

may also include demand surveys. Provided, in cases where

historical usage cannot be documented, demand surveys shall be

included with an application.

3. Applications shall also include evidence of a structure to

deliver the financing derived from single-family mortgage bond

proceeds or mortgage credit certificates or from qualified student

loan bond proceeds to ultimate users, particularly the extent of

lender participation in the case of mortgage revenue bonds or

mortgage credit certificate programs.

G. 1. Upon receipt of the completed application for state

ceiling allocation, copies of the official action and final

resolutions or certificates as required by subsection D of this

section and the information required by subsections E and F of this

section and assuming availability of the sum requested and

compliance with the Oklahoma Private Activity Bond Allocation Act,

the Deputy Treasurer for Debt Management shall send, within five (5)

business days of the receipt thereof, a confirmation of the

Oklahoma Statutes - Title 62. Public Finance Page 506

allocation of the state ceiling for the subject project or purpose

to the person designated in the application for state ceiling

allocation. Provided, the Deputy Treasurer for Debt Management may

reject an application or deny a confirmation pursuant to the

provisions of this subsection.

2. The Deputy Treasurer for Debt Management may reject any
ma Statutes - Title 62. Public Finance Page 506

allocation of the state ceiling for the subject project or purpose

to the person designated in the application for state ceiling

allocation. Provided, the Deputy Treasurer for Debt Management may

reject an application or deny a confirmation pursuant to the

provisions of this subsection.

2. The Deputy Treasurer for Debt Management may reject any

application which is incomplete or filed with insufficient

information. The Deputy Treasurer for Debt Management may reject

any application where, in the Deputy Treasurer for Debt Management

judgment, a reasonable likelihood has not been shown that single-

family mortgage and student loan bond proceeds or mortgage credit

certificates will be used for their intended public purposes. In

the event an application or confirmation is denied, within five (5)

business days following such denial, the Deputy Treasurer for Debt

Management shall send the applicant written notice of the denial of

an application or confirmation together with the reason or reasons

therefor. In the case of disapprovals of applications or

confirmations, an applicant may appeal the disapproval by submitting

a new application to the Council of Bond Oversight, along with an

explanation addressing the reasons for disapproval cited in the

Deputy Treasurer for Debt Management letter. The Council of Bond

Oversight, through affirmative action of the Council, may accept an

application rejected by the Deputy Treasurer for Debt Management, or

order the Deputy Treasurer for Debt Management to issue a

confirmation of allocation, subject to provisions of the Oklahoma

Private Activity Bond Allocation Act. Applicants may submit only

one new application based on an appeal of any specific application

previously submitted.

3. Only complete applications, as determined by the Deputy

Treasurer for Debt Management, shall be used to establish the

chronological order of applications. In the case of a new

application submitted based on an appeal, chronological order shall

be established at the time the new application is submitted.

H. An original confirmation shall cease to be effective to

assure allocation of any portion of the state ceiling unless the

bonds, notes, other evidences of indebtedness, or the appropriate

election filed with the Internal Revenue Service exchanging mortgage

bond authority for mortgage credit certificate authority have been

issued or filed within one hundred twenty (120) days after the date

of such confirmation. No extensions shall be granted. Such

issuance shall be evidenced by the mailing, transmittal or delivery

of a final certification to the Deputy Treasurer for Debt Management

within the time specified by this subsection. Receipt by an issuer

of a confirmation as contemplated by this section shall entitle the

issuer to rely conclusively upon the accuracy of the Deputy

Treasurer for Debt Management's mathematical calculation and the

allocation for purposes of closing.

Oklahoma Statutes - Title 62. Public Finance Page 507

I. The confirmation given in advance of bond issuance or

mortgage credit certificate election will assure allocation for only

the amount of such bonds or mortgage credit certificate authority as

is therein set forth, unless a supplementary application for state

ceiling allocation for an increase in amount is filed with and a

supplementary confirmation is issued by the Deputy Treasurer for

Debt Management for such requested allocation prior to such bond

issuance or such election, pursuant to the Oklahoma Private Activity

Bond Allocation Act. The supplementary confirmation shall be

effective for the same period as the prior confirmation which it

supplements. Provided, however, no supplementary confirmation shall

be effective to preempt any intervening confirmation as to

allocation of a portion of the state ceiling.

J. Notwithstanding the provisions of this section, all
ursuant to the Oklahoma Private Activity

Bond Allocation Act. The supplementary confirmation shall be

effective for the same period as the prior confirmation which it

supplements. Provided, however, no supplementary confirmation shall

be effective to preempt any intervening confirmation as to

allocation of a portion of the state ceiling.

J. Notwithstanding the provisions of this section, all

confirmation dates for an issue of private activity bonds or

mortgage credit certificate programs expire on December 1 of each

calendar year. Final certification of issuance shall be delivered

to the Deputy Treasurer for Debt Management by 9:00 a.m. on December

1 of each calendar year.

K. On or after 9:00 a.m. on December 1 of each calendar year,

issuing authorities may apply to the Deputy Treasurer for Debt

Management to carry forward a portion of the state ceiling for such

calendar year allocated to any qualified carryforward project, as

said term is used in Section 103(n)(10) and 146(f) of the Internal

Revenue Code and which shall be evidenced by the issuance of

confirmations for all carryforward projects within the limitations

of the state ceiling. Provided, issuers or projects with more than

Twenty Million Dollars ($20,000,000.00) of carryforward outstanding

as of the date of the application for carryforward shall only be

eligible for carryforward allocations to the extent other issuers

with less than Twenty Million Dollars ($20,000,000.00) of

outstanding carryforward authority do not fully commit the state

ceiling. Allocations on carryforward projects shall be processed on

the basis of the chronological receipt of applications, subject to

paragraph 3 of subsection C of this section. No portion of the

state ceiling carried forward for any given year may be carried

forward for a period in excess of three (3) calendar years following

the calendar year in which the carryforward arose, except as

otherwise permitted under federal law.

L. The Deputy Treasurer for Debt Management shall maintain

continuous and cumulative records which shall include a list and

cumulative dollar total of the private activity bonds for which:

1. Private activity bonds have been issued or state ceiling

exchanged for mortgage credit certificate authority and final

certifications have been received by the Deputy Treasurer for Debt

Management;

2. Confirmations of carryforward have been issued; and

Oklahoma Statutes - Title 62. Public Finance Page 508

3. Confirmations in effect and outstanding for which no private

activity bonds or mortgage credit certificate elections have been

issued or filed.

The Deputy Treasurer for Debt Management shall keep continuous and

cumulative records and totals for each of the categories specified

in paragraphs 1, 2 and 3 of this subsection as well as the aggregate

total of all categories. The Deputy Treasurer for Debt Management

shall not give further confirmations at such time as the aggregate

amount of bonds, other indebtedness, carryforward or mortgage credit

certificate elections specified by paragraphs 1, 2 and 3 of this

subsection equals the state ceiling authorized for the applicable

year. The Deputy Treasurer for Debt Management shall not award a

confirmation if such award would cause indebtedness, carryforward or

elections as specified by paragraphs 1, 2 and 3 of this subsection

to exceed the state ceiling. Confirmation records shall be compiled

and furnished to any local issuer and state issuer upon request.

Upon issuance of a confirmation, the amounts of the proposed bond

issue, mortgage credit certificate election and carryforward

confirmation shall be included in the continuing, mathematical

calculation, until the same shall have been terminated in accordance

with this section.

M. The person signing any confirmation for any allocations

granted pursuant to the Oklahoma Private Activity Bond Allocation
uance of a confirmation, the amounts of the proposed bond

issue, mortgage credit certificate election and carryforward

confirmation shall be included in the continuing, mathematical

calculation, until the same shall have been terminated in accordance

with this section.

M. The person signing any confirmation for any allocations

granted pursuant to the Oklahoma Private Activity Bond Allocation

Act shall certify under penalty of perjury that such allocation was

not made in consideration of any bribe, gift, gratuity or direct or

indirect contribution to any political campaign.

N. A state or local issuer, who intentionally overissues

mortgage credit certificates or bonds, shall be prohibited from

making application for an allocation of the state ceiling for any

purpose for a period of three (3) years following discovery of such

over issuance.