Okla. Stat. tit. 69, § 69-1709

Oklahoma Statutes - Title 69. Roads, Bridges, and Ferries Page 324

A. The Authority may provide by resolution, at one time or from

time to time, for the issuance of turnpike revenue bonds of the

Authority for the purpose of paying all or any part of the cost of

any one or more turnpike projects. The Authority, when it finds

that it would be economical and beneficial to do so, may combine two

or more, or any part thereof, or all of its proposed projects into

one unit and consider the same as one project to the same extent and

with like effect as if the same were a single project. The

principal of and the interest on the bonds shall be payable solely

from the funds provided for such payment. The bonds of each issue

shall be dated, shall bear interest at such rate or rates not

exceeding the limitations pertaining to public trust indebtedness

from time to time expressed in subsection E of Section 176 of Title

60 of the Oklahoma Statutes, shall mature at such time or times not

exceeding forty (40) years from their date or dates, as may be

determined by the Authority, and may be made redeemable before

maturity at the option of the Authority at such price or prices and

pursuant to such terms and conditions as may be fixed by the

Authority prior to the issuance of the bonds. The Authority shall

determine the form of the bonds, including any interest coupons to

be attached thereto, and the manner of execution of the bonds, and

shall fix the denomination or denominations of the bonds and the

place or places of payment of principal and interest, which may be

at any bank or trust company within or without the state. If any

officer whose signature or facsimile of whose signature appears on

any bonds or coupons shall cease to be said officer before the

delivery of the bonds, the signature or the facsimile shall

nevertheless be valid and sufficient for all purposes the same as if

the person had remained in office until such delivery. All bonds

issued pursuant to the provisions of this article shall have all the

qualities and incidents of negotiable instruments subject to the

negotiable instruments law of this state. The bonds may be issued

in coupon or in registered form, or both, as the Authority may

determine, and provisions may be made for the registration of any

coupon bonds as to principal alone and also as to both principal and

interest, and for the reconversion into coupon bonds of any bonds

registered as to both principal and interest. The Authority may

sell the bonds in such amounts and in such manner, either at public

or private sale, and for such price, as it may determine to be in

the best interest of this state, but in no event at a discount in

excess of that from time to time expressed in said subsection E of

Section 176 of Title 60 of the Oklahoma Statutes.

B. The proceeds of the bonds of each issue shall be used solely

for the payment of the cost of the turnpike project for which such

bonds have been issued, and shall be disbursed in such manner and

pursuant to such restrictions, if any, as the Authority may provide

in the resolution authorizing the issuance of such bonds or in the

Oklahoma Statutes - Title 69. Roads, Bridges, and Ferries Page 325

trust agreement securing the same. If the proceeds of the bonds of

any issue, by error of estimates or otherwise, shall be less than

such cost, additional bonds may in like manner be issued to provide

the amount of such deficit, and, unless otherwise provided for in

the resolution authorizing the issuance of such bonds or in the

trust agreement securing the same, shall be deemed to be of the same

issue and shall be entitled to payment from the same fund without

preference or priority of the bonds first issued. If the proceeds

of the bonds of any issue shall exceed such cost, the surplus shall

be deposited to the credit of the sinking fund for such bonds, or

shall be used by the Authority in implementing any other power
ust agreement securing the same, shall be deemed to be of the same

issue and shall be entitled to payment from the same fund without

preference or priority of the bonds first issued. If the proceeds

of the bonds of any issue shall exceed such cost, the surplus shall

be deposited to the credit of the sinking fund for such bonds, or

shall be used by the Authority in implementing any other power

expressly granted to the Authority in this article.

C. Prior to the preparation of definitive bonds, the Authority,

subject to like restrictions, may issue interim receipts or

temporary bonds, with or without coupons, exchangeable for

definitive bonds when such bonds have been executed and are

available for delivery. The Authority may also provide for the

replacement of any bonds which have become mutilated or were

destroyed or lost. Bonds may be issued pursuant to the provisions

of this article without obtaining the consent of any department,

division, commission, board, bureau, or agency of this state, and

without any other proceedings or the occurrence of any other

conditions or things than those proceedings, conditions, or things

that are specifically required by this article.

D. The Authority is hereby authorized to provide that the

bonds:

1. Be made payable from time to time on demand or tender for

purchase by the owner provided a credit facility supports such

bonds, unless the Authority specifically determines that a credit

facility is not required;

2. Be additionally supported by a credit facility;

3. Be made subject to redemption prior to maturity, with or

without premium, on such notice and at such time or times and with

such redemption provisions as may be determined by the Authority or

with such variations as may be permitted in connection with a par

formula;

4. Bear interest at a rate or rates that may vary as permitted

pursuant to a par formula and for such period or periods of time,

all as may be determined by the Authority; and

5. Be made the subject of a remarketing agreement whereby an

attempt is made to remarket the bonds to new purchasers prior to

their presentment for payment to the provider of the credit facility

or to the Authority.

No credit facility, repayment agreement, par formula or

remarketing agreement shall become effective without the approval of

the Authority.

Oklahoma Statutes - Title 69. Roads, Bridges, and Ferries Page 326

E. As used in this section, the following terms shall have the

following meanings:

1. "Credit facility" means an agreement entered into by the

Authority with any bank, savings and loan association or other

banking institution; an insurance company, reinsurance company,

surety company, or other insurance institution; a corporation,

investment banker or other investment institution; or any other

financial institution providing for prompt payment of all or any

part of the principal, whether at maturity, presentment for

purchase, redemption or acceleration, redemption premium, if any,

and interest on any bonds payable on demand or tender by the owner

issued in accordance with this section, in consideration of the

Authority's agreeing to repay the provider of such credit facility

in accordance with the terms and provisions of such repayment

agreement; provided, that any such repayment agreement shall provide

that the obligation of the Authority thereunder shall have only such

sources of payment as are permitted for the payment of the bonds

issued under this article; and

2. "Par formula" means any provision or formula adopted by the

Authority to provide for the adjustment, from time to time, of the

interest rate or rates borne by any such bonds so that the purchase

price of such bonds in the open market would be as close to par as

possible.

F. Nothing in any law heretofore enacted or enacted at the

present session of the Legislature shall be deemed to limit or

restrict the right of the Authority to issue bonds or other
Authority to provide for the adjustment, from time to time, of the

interest rate or rates borne by any such bonds so that the purchase

price of such bonds in the open market would be as close to par as

possible.

F. Nothing in any law heretofore enacted or enacted at the

present session of the Legislature shall be deemed to limit or

restrict the right of the Authority to issue bonds or other

obligations the interest income, in whole or in part, on which is

subject, directly or indirectly, to federal income taxation.

G. The Authority may enter into transactions utilizing

derivative products, and other financial products intended to hedge

interest rate risk, including any option to enter into or terminate

any of them, that the Authority deems to be necessary or desirable

in connection with any bonds issued prior to, at the same time as,

or after entering into such arrangement and containing terms and

provisions, and may be with such parties, as determined by the

Authority. Provided, any action taken by the Authority pursuant to

this subsection must first be approved by the Oklahoma State Bond

Advisor and the Council of Bond Oversight pursuant to the provisions

of the Oklahoma Bond Oversight and Reform Act.