Okla. Stat. tit. 70, § 70-821.4

Negotiability - Registration - Proceeds - Recitals - Exemption from

taxation - Corporate trustee - Rights of bondholders - Depository.

The provisions set forth in this section shall be applicable to

all bonds issued under authority of this act.

(a). It shall be the mandatory duty of the governing body of

any independent school district to fix such fees, tolls, rent and

other charges for use of the facilities of any such stadium, sport

arena or other recreational facility and for additions thereto and

for additions to existing stadium, sport arena or other recreational

facility, in this act sometimes referred to as the "Project," as

will yield revenues fully sufficient to operate and maintain such

Project, pay the principal of and interest on the bonds when due,

and to establish and maintain such reserve as may be prescribed in

the resolution authorizing the bonds or in the Indenture securing

them.

(b). The bonds shall mature serially or otherwise at such time

or times, and shall bear interest at such rate or rates, as shall be

prescribed in the resolution authorizing the bonds or in the

Indenture securing them; provided that the sale of the bonds shall

be for cash at not less than par and accrued interest and shall be

sold after competitive bidding to produce the maximum sale price at

the lowest possible interest rate. The interest cost shall not

exceed four percent (4%) per annum, computed on average maturities

according to Standard Tables of Bond Values.

Oklahoma Statutes - Title 70. Schools Page 1133

(c). The resolution authorizing, or the Indenture securing the

bonds, shall prescribe the rights, if any, which the independent

school district may have to redeem all or any part of said bonds

prior to maturity, and the conditions under which and the prices not

in excess of par and accrued interest at which they may be

redeemable and the rights of the independent school district to

redeem the bonds prior to scheduled maturity dates shall be limited

to such provisions.

(d). All bonds issued hereunder shall have and are hereby

declared to have all of the qualifications and incidents of

negotiable instruments.

(e). The resolution authorizing, or the Indenture accruing any

such bonds, may contain provisions that the bonds shall be

registerable as to principal or as to both principal and interest.

(f). The proceeds of the bonds shall be used solely to pay the

cost of the Project. There may be included in the cost of the

Project for which bonds are to be issued reasonable allowance for

legal and engineering services, interest during construction and for

six (6) months after estimated date of completion of construction.

Such proceeds shall be disbursed under such restrictions as may be

provided in the bond resolution or Indenture, and there shall be and

there is hereby created and granted a lien upon such monies, until

so applied, in favor of the holders of the bonds or of any trustee

provided for in respect to such bonds. If so provided in such

resolution or Indenture in the event that proceeds of the bonds

prove insufficient to pay the cost of the project additional bonds

may be issued to the amount of the deficit and shall be deemed to be

of the same issue and entitled to payment from the same fund without

preference or priority of the bonds first issued. Any surplus

remaining from bond proceeds after the cost of the project has been

paid in full shall be used in retiring bonds.

(g). The resolution authorizing the bonds may provide that such

bonds shall contain a recital that they are issued pursuant to this

act.

(h). Any bond issued pursuant to the provisions of this act

shall be exempt from taxation by the State of Oklahoma or by any

county or municipal corporation, or other political subdivision

therein.
ct has been

paid in full shall be used in retiring bonds.

(g). The resolution authorizing the bonds may provide that such

bonds shall contain a recital that they are issued pursuant to this

act.

(h). Any bond issued pursuant to the provisions of this act

shall be exempt from taxation by the State of Oklahoma or by any

county or municipal corporation, or other political subdivision

therein.

(i). If so provided in the resolution authorizing the bonds the

Indenture may be executed by and between such independent school

district and a corporate trustee, which may be any trust company or

bank within or outside of the State of Oklahoma, having powers of a

trust company.

(j). Either the resolution providing for the issuance of the

bonds or such Indenture may contain such provisions for protecting

or enforcing the rights of remedies of the bondholders as may be

reasonable or proper and not in violation of law, including

Oklahoma Statutes - Title 70. Schools Page 1134

covenants setting forth the duties of the independent school

district in relationship to the acquisition of properties and the

construction, maintenance, operation or repair and insurance of the

project and the custody, safeguarding and application of all monies

received from the sale of the bonds and from the operation of the

Projects.

(k). It shall be lawful for any bank or trust company in this

state to act as depository for the proceeds of bonds or revenues

derived from the operation of the Project and to furnish such

indemnity bonds or to pledge such securities as may be required by

the independent school district. Such Indenture or resolution may

set forth the rights and remedies of the bondholders and of the

trustee and may restrict the individual rights of action of the

bondholders. In addition such bond resolution or Indenture may

contain such other provisions as the governing body of such

independent school district may deem reasonable and proper for the

security of the bondholders including, but without limitation,

covenants prescribing all happenings, or occurrences which

constitute events of default and the terms and conditions upon which

all or any of the bonds shall become or may be declared to be due

before maturity, and as to the rights, liabilities, powers and

duties arising from the breach by the independent school district of

any of its duties or obligations.

(l). That any holder or holders of bonds issued hereunder,

including a trustee or trustees for such holders, shall have the

right in addition to all other rights by mandamus or other

proceedings in any Court of competent jurisdiction to enforce his or

their rights against the independent school district and its

employees and against any Board of trustees which may be created to

operate the Project, the agents and employees thereof, or any lessee

of any such Project, including, but not limited to, the right to

require the independent school district and such board to impose and

collect sufficient income, tolls, fees, rents, charges and other

revenues to carry out the agreements contained in the bond

resolution or Indenture and to perform all agreements and covenants

therein contained and duties arising therefrom, and in the event of

default as defined in the resolution authorizing the bonds or in the

Indenture, to apply for and obtain the appointment of a receiver for

any properties involved. If such receiver be appointed, he may

enter and take possession of the project and until the independent

school district may no longer be in default or until relieved by the

Court retain possession of the properties involved, and collect and

receive all revenues and tolls arising therefrom in the same manner

as the independent school district itself might do and shall dispose

of such monies and apply same in accordance with the obligations of

the independent school district under the bond or resolution or
trict may no longer be in default or until relieved by the

Court retain possession of the properties involved, and collect and

receive all revenues and tolls arising therefrom in the same manner

as the independent school district itself might do and shall dispose

of such monies and apply same in accordance with the obligations of

the independent school district under the bond or resolution or

Indenture and as the court may direct. Nothing in this act shall

Oklahoma Statutes - Title 70. Schools Page 1135

authorize any bondholder to require the independent school district

to use any funds in the payment of the principal of, or interest on,

such bonds except out of revenues pledged to their payment.

(m). The resolution authorizing, or the Indenture securing

bonds issued under this act may contain provisions to the effect

that so long as the revenues of the Project are pledged to the

payment of bonds no fee admission or use can be given.

(n). The provisions contained in the resolution authorizing the

bonds and in the Indenture and the applicable provisions of this act

shall constitute an irrepealable contract between such independent

school district and the holders of such bonds.