Okla. Stat. tit. 70, § 70-4002

(a) For the purpose of paying all or part of the cost of

acquisition of any such lands, rights-of-way, easements, licenses

and permits and the construction, acquisition, equipment and

furnishing of any such building or buildings or structure or

structures, plants or systems, or of any additions, improvements or

extensions thereto, or any additions to existing buildings, the

Board of Regents of the institution for which such buildings,

structures, plants or systems, all of which lands, rights-of-way,

easements, licenses and permits, buildings, structures, plants and

systems constructed, acquired, added to, improved or extended

hereunder as a single project are hereafter referred to as "the

building", are to be constructed, acquired, added to, improved,

extended, furnished or equipped, which Board of Regents or each of

them is hereinafter referred to as "the board", is authorized to

borrow money on the credit of the income and revenues to be derived

from the operation of the building, together with the income and

revenue derived from any existing revenue-producing building or

facility or facilities and, in anticipation of the collection of

such income and revenues, to issue negotiable bonds in such amount

as may in the opinion of the board be necessary for such purposes,

and is authorized to provide for the payment of such bonds and the

rights of the holders thereof as hereinafter provided. Such bonds

may be issued in one or more series, may bear such date or dates,

may mature at such time or times not exceeding forty (40) years from

their date, may be in such denomination or denominations, may be in

such form, either coupon or registered, may carry such registration

and conversion privileges, may be executed in such manner, may be

payable in such medium of payment at such place or places, may be

subject to such terms of redemption with or without premium, and may

bear such rate or rates of interest, not exceeding twelve percent

(12%) per annum, as may be provided by resolution or resolutions

adopted by the board. Such bonds may be sold in such manner and at

such price or prices plus accrued interest to date of delivery, as

may be considered by the board to be advisable, but interest cost to

maturity for any bonds issued hereunder shall not exceed twelve

percent (12%) per annum, computed on the basis of average maturities

according to standard tables of bond values. Bonds payable to

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bearer shall have all the qualities and incidents of negotiable

papers.

(b) The board may in any resolution authorizing bonds hereunder

provide for the initial issuance of one or more bonds, in this

section called "bond", aggregating the amount of the entire issue

and make such provision for installment payments of the principal

amount of any such bond as it may consider desirable, and may

provide for the making of any such bond payable to bearer or

otherwise, registrable as to principal or as to both principal and

interest, and where interest accruing thereon is not represented by

interest coupons, for the endorsing of payments of interest on such

bond. The board may further make provision in any such resolution

for the manner and circumstances in and under which any such bond

may in the future, at the request of the holder thereof, be

converted into bonds of smaller denominations, which bonds of

smaller denominations may in turn be either coupon bonds or bonds

registrable as to principal or principal and interest.
of interest on such

bond. The board may further make provision in any such resolution

for the manner and circumstances in and under which any such bond

may in the future, at the request of the holder thereof, be

converted into bonds of smaller denominations, which bonds of

smaller denominations may in turn be either coupon bonds or bonds

registrable as to principal or principal and interest.

(c) Bonds issued hereunder and interest thereon shall not be

subject to taxation by the State of Oklahoma, or by any county,

municipality or political subdivision therein. The board may in its

discretion authorize one issue of bonds hereunder for constructing,

acquiring, adding to, improving, extending, furnishing or equipping

of more than one building, as "building" is above defined, and may

make said bonds payable from the combined revenues of all buildings

so constructed, acquired, added to, improved, extended, furnished or

equipped, in whole or in part, with the proceeds thereof, together

with revenues from the operation of any existing revenue-producing

building or facility. The term "building" as herein used shall be

construed to refer to all such "buildings". If more than one series

of bonds shall be issued hereunder payable from the revenues of the

buildings or facilities, priority of lien thereof on such revenues

shall depend on the provisions of the proceedings authorizing the

issuance of such bonds, it being within the discretion of the board,

at the time it authorizes the first such series, to provide that

subsequent series of bonds payable from such revenues shall not be

issued, that subsequent series of bonds shall be subordinate as to

lien, or that subsequent series of bonds shall enjoy parity of lien

if such conditions and restrictions as may be specified in such

proceedings can be met.

(d) The board may issue bonds hereunder for the purpose of

refunding any obligations of the board payable from the revenues of

any building, as "building" is hereinabove defined, together with

revenues derived from any existing revenue-producing building or

facility or facilities, or may authorize and deliver a single issue

of bonds hereunder for the purpose in part of refunding obligations

of the board payable from the revenues derived from any building or

buildings and in part for the making of additions, improvements and

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extensions to such building or buildings, or the construction or

acquisition of additional buildings, and the furnishing and

equipping of such buildings or additions, together with revenues

derived from any existing revenue-producing building or facility or

facilities. Where bonds are issued under this paragraph solely for

refunding purposes, such bonds may either be sold as above provided

or delivered in exchange for the outstanding obligations. If sold,

the proceeds may be either applied to the payment of the

obligations, refunded or deposited in escrow for the retirement

thereof. Nothing herein contained shall be construed to authorize

the refunding of any outstanding obligations which are not either

maturing, callable for redemption under their terms, or voluntarily

surrendered by their holders for cancellation, unless the board

covenants that sufficient funds to pay all remaining interest and

principal payments of the outstanding bonds when due will be placed

in escrow as hereinafter set out for such purpose at the time of

delivery of and payment for the new bonds issued hereunder.

In any case where refunding bonds are issued and sold six (6)

months or more before the earliest date on which all bonds to be

refunded thereby mature or are called for redemption in accordance

with their terms, the proceeds of the refunding bonds, other than

the amount included therein incidental to the issuance of the bonds,

shall be deposited, together with any other funds available and
.

In any case where refunding bonds are issued and sold six (6)

months or more before the earliest date on which all bonds to be

refunded thereby mature or are called for redemption in accordance

with their terms, the proceeds of the refunding bonds, other than

the amount included therein incidental to the issuance of the bonds,

shall be deposited, together with any other funds available and

appropriated by the board for the purpose, in escrow with a suitable

banking institution having trust powers within the state, whose

deposits are insured by the Federal Deposit Insurance Corporation.

Such monies shall be invested in securities maturing or callable at

the option of the holder on such dates and bearing interest at such

rates as shall be required to provide funds sufficient, with any

cash retained in the escrow account, to pay when due the interest to

accrue on each obligation refunded to its maturity, or if

prepayable, to an earlier designated date on which it may be called

for redemption, and to pay the principal amount of each such bond at

maturity, or, if prepayable at its designated earlier redemption

date, and to pay any premium required for redemption on such date.

Before the refunding bonds are delivered, the board shall by

resolution irrevocably appropriate for these purposes the escrow

account and all payments of principal and interest on the securities

held therein, and shall provide for the call of all bonds directed

to be prepaid, in accordance with their terms, on the redemption

date or dates designated. Securities purchased from the escrow

account shall be limited to direct obligations of the United States

or obligations whose principal and interest payments are guaranteed

by the United States. Such securities shall be purchased

simultaneously with the delivery of the refunding bonds. No

refunding bonds shall be issued more than ten (10) years before the

last date on which the bonds to be refunded thereby mature or are

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directed to be prepaid in accordance with their terms. All bonds

issued under this paragraph and the preceding paragraph shall in all

respects be authorized, issued and secured in the manner provided

for other bonds issued under this article, and shall have all of the

attributes of such bonds. The board may provide that any such

refunding bonds shall have the same priority of lien on the revenues

pledged for their payment as was enjoyed by the bonds refunded

thereby.

(e) All proceedings heretofore adopted by said Board of Regents

for the issuance of revenue bonds on a parity as to payment with

other existing revenue bonds or which provide for the pledging of

revenues from the building to be constructed, improved and furnished

from the proceeds of revenue bonds and income and revenue derived

from any existing revenue-producing building or facility, or

facilities, and the bonds issued pursuant thereto are hereby

validated, ratified and confirmed, and such revenue bonds constitute

valid and binding obligations in accordance with the terms of such

proceedings.