Okla. Stat. tit. 68, § 68-3654

incentives - Payment of proceeds - Repayment - Guaranty.

A. The Oklahoma Development Finance Authority shall, according

to the requirements of the Oklahoma Development Finance Authority

Act, issue obligations in a principal amount determined as required

by this section upon certification by the Oklahoma Department of

Commerce that an establishment has filed the second irrevocable

election described in subsection A of Section 3658 of this title.

The Authority shall not issue any additional obligations as a result

of a second irrevocable election authorized by Section 3658 of this

title until any obligations issued by the Authority prior to the

effective date of this act have been fully defeased. No obligation

issued by the Oklahoma Development Finance Authority pursuant to

this act shall be considered a general obligation of the State of

Oklahoma for any purpose and the indebtedness incurred shall be a

debt of the Oklahoma Development Finance Authority and not a debt of

the State of Oklahoma.

B. Notwithstanding any other provision of this section to the

contrary, the total principal amount of indebtedness incurred by the

Authority shall not be greater than an amount required for proceeds

equal to fourteen and four-tenths percent (14.4%) of the maximum

amount of projected additional investment, as disclosed pursuant to

Section 3655 of this title, for the applicable facility of an

establishment as defined by Section 3653 of this title. The maximum

amount of projected additional investment for purposes of this

subsection shall not exceed Two Hundred Fifty Million Dollars

($250,000,000.00).

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C. The proceeds of such issuance shall be used by the Authority

for the benefit of an establishment making a second irrevocable

election pursuant to the requirements of this act and such proceeds

shall be made available to an establishment for purposes of making

the investments described by Section 3653 and Section 3655 of this

title according to the requirements of this act and any agreement

executed by the establishment and the Oklahoma Development Finance

Authority.

D. Upon receipt and analysis of the disclosures regarding

proposed investment for additional modernization and retooling of a

facility located within the state and owned by an establishment that

qualifies for access to the proceeds from the sale of the

obligations, the Oklahoma Development Finance Authority shall, if

requested by the establishment, structure the issuance of the

obligations in a manner that provides for the receipt of proceeds

equal to fourteen and four-tenths percent (14.4%) of the amount of

additional investment disclosed pursuant to the provisions of

Section 3655 of this title.

E. Upon availability of such proceeds, the Authority shall make

payment to the qualified establishment of the full allocation of

proceeds from a second or subsequent issuance of obligations based

upon the computation required by subsection D of this section.

F. The obligations authorized by subsection A of this section,

whether issued prior to or on or after the effective date of this

act, shall be fully repaid in a period not to exceed twenty (20)

years from their issuance.

G. The Oklahoma Development Finance Authority shall require

that each and every establishment filing a second irrevocable

election pursuant to Section 3658 of this title will use proceeds

derived from the sale of obligations issued pursuant to subsection A

of this section according to the requirements of this act.

H. An establishment that otherwise qualifies to use proceeds

from the sale of obligations pursuant to this section shall be

required to provide documentation to the Oklahoma Development

Finance Authority that, prior to the effective date of this act, a

minimum of Fifty Million Dollars ($50,000,000.00) has been expended

or legally committed for expenditure for a modernization and
of this act.

H. An establishment that otherwise qualifies to use proceeds

from the sale of obligations pursuant to this section shall be

required to provide documentation to the Oklahoma Development

Finance Authority that, prior to the effective date of this act, a

minimum of Fifty Million Dollars ($50,000,000.00) has been expended

or legally committed for expenditure for a modernization and

retooling of an existing facility located within the state before

the Authority is authorized to transfer any such proceeds to the

establishment.

I. Subject to the requirements of this section, the Oklahoma

Development Finance Authority is authorized to issue its obligations

in the principal amount required in order to make the proceeds from

the sale of its obligations available to each establishment that

qualifies for the use of such proceeds as required by this section,

and in such additional principal amount as may be required for the

payment of interest or the payment of principal and interest for the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1431

fiscal year ending June 30, 2010, or subsequent fiscal year,

together with such additional principal amount that may be required

or that may be associated with the costs of the issuance of the

obligations. Under no circumstances shall the amount of proceeds

derived from the sale of obligations authorized by subsection A of

this section and which are made available to a qualified

establishment exceed the amount prescribed by this section.

J. The Oklahoma Development Finance Authority shall provide

that the first payment of interest or the first payment of principal

and interest in repayment of the obligations authorized by

subsection A of this section as a result of a second irrevocable

election shall not become due until the later of July 1, 2009, or

the first date upon which the revenues payable to the Authority from

the Quality Jobs Program Incentive Leverage Fund are no longer

committed to the payment of debt service requirements and related

costs in connection with obligations issued by the Authority

pursuant to the Quality Jobs Program Incentive Leverage Act prior to

the effective date of this act, if feasible, or the Authority shall

provide for the first payment of interest or the first payment of

principal and interest using some portion of the proceeds derived

from the sale of obligations authorized by subsection A of this

section. If any payment of principal or interest with respect to

obligations issued on or after the effective date of this act is due

at any time after July 1, 2009, the Authority may use such proceeds

with respect to such required payment. With respect to obligations

issued by the Authority as a result of a second irrevocable

election, in no case shall the Authority issue the obligations in

any manner that requires the use of revenues apportioned to the

Quality Jobs Program Incentive Leverage Fund pursuant to Section

3659 of this act until July 1, 2009, or thereafter.

K. The Oklahoma Development Finance authority may enter into

such agreements with a qualified establishment as are necessary to

implement the provisions of this act. The Authority shall require

that an establishment using proceeds from obligations issued

pursuant to this section as a result of a second irrevocable

election enter into a contract with the Authority reflecting the

benefits derived by the State of Oklahoma in a manner consistent

with the findings of Section 3652 of this title. The Authority may

provide for the issuance of obligations in a manner that results in

availability of proceeds suitable to the proposed additional

investment activity of an establishment and which takes into account

the obligation of the Authority to repay principal and interest with

the objective of obtaining the most favorable financing terms to the

Authority for the repayment of the obligations.
hority may

provide for the issuance of obligations in a manner that results in

availability of proceeds suitable to the proposed additional

investment activity of an establishment and which takes into account

the obligation of the Authority to repay principal and interest with

the objective of obtaining the most favorable financing terms to the

Authority for the repayment of the obligations.

L. If an establishment to which proceeds from the sale of

obligations issued pursuant to subsection A of this section as a

result of a second irrevocable election are transferred does not

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make use of the proceeds in the amount required by any agreement

with the Authority or in contravention of any of the terms or

requirements imposed by the Authority or by the requirements of this

act, the establishment shall become liable to the Oklahoma

Development Finance Authority for the payment of principal, interest

or other costs associated with the repayment of any amount of debt

represented by obligations issued pursuant to subsection A of this

section resulting from a second irrevocable election to the extent

such proceeds were paid to the establishment and such proceeds were

not used in the amount disclosed to the Oklahoma Development Finance

Authority pursuant to Section 3655 of this title. If an

establishment does not make the full amount of additional investment

as disclosed pursuant to Section 3655 of this title, the

establishment shall be liable for principal, interest or other costs

associated with repayment of debt equal to the difference between

the amount of investment disclosed pursuant to Section 3655 of this

title and the actual investment made by the establishment multiplied

by fourteen and four-tenths percent (14.4%).

M. An establishment that otherwise qualifies for the use of

proceeds derived from the sale of obligations pursuant to subsection

A of this section resulting from a second irrevocable election shall

execute and deliver to the Oklahoma Development Finance Authority a

guaranty, or shall cause a guaranty to be executed and delivered by

a third party, in such form as the Authority may determine, for the

benefit of the Oklahoma Development Finance Authority in the event

of a deficit between the sum of the incentive payment and the

withholding taxes transferred to the Quality Jobs Program Incentive

Leverage Fund pursuant to Section 3659 of this title and the total

amount required for the payment of principal, interest or other

costs associated with the obligations, proceeds from the sale of

which are paid to the establishment or are available for use by the

establishment. The Authority shall only accept a third-party

guaranty from an entity that has a net worth in excess of the net

worth of the establishment on behalf of which the guaranty is

provided. Payments received by the Oklahoma Development Finance

Authority pursuant to the provisions of this subsection and pursuant

to the terms of the guaranty shall be deposited into the Quality

Jobs Program Incentive Leverage Fund. The Oklahoma Development

Finance Authority shall require that the guaranty provide for such

terms of payment as may be required to make payments of principal,

interest or other costs in a timely manner to the entity or entities

to which the Authority is obligated to make payment. No revenues

authorized to be apportioned pursuant to Section 2352 of Title 68 of

the Oklahoma Statutes shall be transferred to the Quality Jobs

Program Incentive Leverage Fund until the terms of the guaranty have

been invoked and payment received or until the Oklahoma Development

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Finance Authority determines an event of default under the terms of

the guaranty.

N. The Oklahoma Development Finance Authority, in addition to

any other powers granted to it pursuant to the Oklahoma Development
ve Leverage Fund until the terms of the guaranty have

been invoked and payment received or until the Oklahoma Development

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1433

Finance Authority determines an event of default under the terms of

the guaranty.

N. The Oklahoma Development Finance Authority, in addition to

any other powers granted to it pursuant to the Oklahoma Development

Finance Authority Act, may pursue such remedies for the collection

of any debt owed to the Authority as authorized by this section as

are available to any creditor under the laws of the State of

Oklahoma.

O. The provisions of the Oklahoma Development Finance Authority

Act shall be fully applicable to the obligations issued pursuant to

subsection A of this section and except insofar as the provisions of

this act are inconsistent with the provisions of the Oklahoma

Development Finance Authority Act, the Oklahoma Quality Jobs

Incentive Leverage Act shall supercede and govern all entities,

transactions, obligations, rights and remedies associated with such

obligations.