Okla. Stat. tit. 70, § 70-3980.4

Approval procedures for issuance of obligations - Restrictions on

issuance.

A. The Oklahoma State Regents for Higher Education shall be

authorized to issue indebtedness for capital projects to benefit

each and every institution within The Oklahoma State System of

Higher Education except the University of Oklahoma and Oklahoma

State University.

B. The Board of Regents of the University of Oklahoma shall be

authorized to issue indebtedness for capital projects to benefit the

University of Oklahoma as provided by paragraph (n) of Section 3305

of this title. The Board of Regents of the University of Oklahoma,

acting for the benefit of the University of Oklahoma, shall be

authorized to pledge any lawfully available source of revenue other

than revenues appropriated by the Legislature from tax receipts, but

inclusive of revenues derived from the Oklahoma Education Lottery

Act accruing to the credit of the University of Oklahoma to the

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repayment of obligations issued pursuant to this subsection and,

with respect to obligations issued for the purpose specified in

Section 160.1 of Title 62 of the Oklahoma Statutes, inclusive of

monies accruing to the credit of the Comprehensive Cancer Center

Debt Service Revolving Fund.

C. The Board of Regents for the Oklahoma Agricultural and

Mechanical Colleges shall be authorized to issue indebtedness for

capital projects to benefit Oklahoma State University pursuant to

paragraph 16 of Section 3412 of this title. The Board of Regents

for the Oklahoma Agricultural and Mechanical Colleges, acting for

the benefit of Oklahoma State University, shall be authorized to

pledge any lawfully available source of revenue, other than revenues

appropriated by the Legislature from tax receipts, but inclusive of

revenues derived from the Oklahoma Education Lottery Act, accruing

to the credit of Oklahoma State University to the repayment of

obligations issued pursuant to this subsection.

D. The Board of Regents of Oklahoma Colleges, also known as the

Regional University System of Oklahoma (RUSO) pursuant to Section

3507.1 of this title, shall be authorized to issue indebtedness for

capital projects to benefit the institutions supervised and managed

by RUSO. RUSO shall be authorized to pledge any lawfully available

source of revenue, other than revenue appropriated by the

Legislature from tax receipts, but inclusive of revenues derived

from the Oklahoma Education Lottery Act, accruing to the credit of

institutions supervised and managed by RUSO to the repayment of

obligations issued pursuant to this subsection.

E. The Oklahoma State Regents for Higher Education shall be

required to affirmatively approve the issuance of obligations

pursuant to the provisions of the Oklahoma Higher Education Promise

of Excellence Act of 2005 by either the Board of Regents of the

University of Oklahoma, acting for the benefit of the University of

Oklahoma, the Board of Regents for the Oklahoma Agricultural and

Mechanical Colleges, acting for the benefit of Oklahoma State

University, or RUSO, acting for the benefit of institutions

supervised and managed by RUSO. For each of the proposed bond

issues authorized pursuant to the Oklahoma Higher Education Promise

of Excellence Act of 2005, a Statement of Essential Facts shall be

prepared by the issuing Board of Regents for the use and information

of prospective bond purchasers. It shall be the duty of the

Oklahoma State Regents for Higher Education to examine such

Statement of Essential Facts and determine that, based upon such

facts and projections, the projected revenue will satisfy the

financial obligation to be incurred under the proposed bond issue.

If the facts are found by the State Regents to be substantially

accurate and if the State Regents find that, based upon such facts

and projections, the projected revenue will satisfy the financial
uch

Statement of Essential Facts and determine that, based upon such

facts and projections, the projected revenue will satisfy the

financial obligation to be incurred under the proposed bond issue.

If the facts are found by the State Regents to be substantially

accurate and if the State Regents find that, based upon such facts

and projections, the projected revenue will satisfy the financial

obligation to be incurred under the proposed bond issue, then the

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Oklahoma State Regents for Higher Education shall certify such to

the Governor, the Speaker of the House of Representatives, and the

President Pro Tempore of the Senate. The certificate shall be made

in substantially the following form:

The Oklahoma State Regents for Higher Education do hereby

certify that the provisions of this section have been complied with

in proper order, for the bond issue mentioned above.

F. All obligations except refunding or defeasance obligations

proposed to be issued by an authorized issuer pursuant to the

Oklahoma Higher Education Promise of Excellence Act of 2005 shall be

subject to final approval by the Legislature as provided by this

subsection. The authorized issuer shall communicate the proposed

projects and the terms of the financing to the Governor, the Speaker

of the House of Representatives, and the President Pro Tempore of

the Senate prior to the time any such obligations are sold. The

communication required by this subsection shall be made not later

than April 1 each year. The communication to such elected officials

shall occur upon the same date for purposes of computing the time

within which action must be taken as further prescribed by this

subsection. The Legislature shall have a period of forty-five

calendar days from the date as of which the information is

communicated to the presiding officers of both chambers in order to

pass a Concurrent Resolution disapproving the proposed issuance. If

the Concurrent Resolution has not received a majority of votes of

those elected to and constituting both the House of Representatives

and the Senate by the end of the forty-fifth day following the date

upon which the proposed issuance is communicated to the presiding

officers of both chambers, the proposed issuance shall be deemed to

have been approved by the Legislature.

G. With the approval of the Oklahoma State Regents for Higher

Education, the total revenues described by subsection B and

subsection C of this section may be pledged to the repayment of

obligations issued by either the Board of Regents of the University

of Oklahoma or obligations issued by the Board of Regents for the

Oklahoma Agricultural and Mechanical Colleges in order to obtain the

highest possible credit rating. If the Board of Regents of the

University of Oklahoma and the Board of Regents for the Oklahoma

Agricultural and Mechanical Colleges agree to the use of the total

revenues available to each such Board of Regents pursuant to this

subsection for a project that benefits either the University of

Oklahoma or Oklahoma State University or both such comprehensive

universities, there shall be an agreement executed by both such

Boards of Regents describing the project, the principal amount of

the indebtedness, the terms of the financing, and such other matters

as the two Boards of Regents may mutually agree. Such agreement

shall be executed prior to the sale of any obligations by either

Board of Regents with respect to the proposed project or projects.

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The agreement shall provide for one or the other Board of Regents to

be the authorized issuer with respect to the project or projects.

The agreement shall also provide for the ownership or control of any

real or personal property to be improved or acquired with the

proceeds from the sale of any such obligations including any
roject or projects.

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The agreement shall provide for one or the other Board of Regents to

be the authorized issuer with respect to the project or projects.

The agreement shall also provide for the ownership or control of any

real or personal property to be improved or acquired with the

proceeds from the sale of any such obligations including any

requirements for the transfer of real or personal property from one

comprehensive university to the other comprehensive university if

such transfer is required in order to promote or ensure the

marketability of any obligations sold by either Board of Regents.

H. The Oklahoma State Regents for Higher Education may pledge

all lawfully available revenues, other than revenues appropriated by

the Legislature from tax receipts, but inclusive of revenues derived

from the Oklahoma Education Lottery Act, and other than the revenues

described by subsection B, C, or D of this section, to the repayment

of obligations issued by the State Regents.

I. The authorized issuers shall be subject to the following

restrictions governing the issuance of the obligations authorized by

the Oklahoma Higher Education Promise of Excellence Act of 2005:

1. Obligations used to pay for the following assets shall be

repaid in a period not to exceed five (5) years:

a. computers,

b. portable telecommunications equipment costing less

than Fifty Thousand Dollars ($50,000.00),

c. motor vehicles, and

d. any other item of tangible personal property with an

original useful life of six (6) years or less;

2. Obligations used to pay for the following assets shall be

repaid in a period not to exceed ten (10) years:

a. equipment with an original cost of less than One

Hundred Thousand Dollars ($100,000.00) per item, and

b. renovation of existing structures, unless the cost of

the renovation exceeds the fair market value of the

existing structure or unless the improvement extends

the useful life of the existing structure, but in no

case shall the maturity period exceed the period by

which the life of the existing structure is extended;

and

3. Obligations used to pay for all other assets shall be repaid

in a period not to exceed thirty (30) years and in no case shall the

latest maturity date of an obligation exceed the expected useful

life of the asset.