Okla. Stat. tit. 73, § 73-168.6

Issuance of obligations.

A. The Oklahoma Capitol Improvement Authority is hereby

authorized to issue bonds or other negotiable instruments or

evidences of indebtedness in the principal amount sufficient to

generate Three Hundred Million Dollars ($300,000,000.00) in proceeds

available to fund the construction and improvement of the highway

system in this state as set forth in this act.

B. The proceeds from the sale of obligations authorized in

subsection A of this section shall only be used by the Authority to

fund the construction, improvement, maintenance, and repair of

roads, highways and bridges to be designed and constructed by the

Oklahoma Department of Transportation as designated in Section 3 of

this act or to fund other costs associated with the issuance of such

obligations.

C. The obligations issued pursuant to authority of subsection A

of this section shall be repaid in full within ten (10) years from

the date of issuance.

D. The obligations issued pursuant to authority of subsection A

of this section shall be retired by payments made to the Oklahoma

Capitol Improvement Authority from the Oklahoma Department of

Transportation. The Oklahoma Capitol Improvement Authority and the

Oklahoma Department of Transportation shall be authorized to enter

into leases and agreements with respect to the use of roads,

highways and bridges, as applicable, the construction, improvement,

maintenance, or repair of which is financed with any proceeds from

Oklahoma Statutes - Title 73. State Capital and Capitol Building Page 57

the issuance of obligations authorized in subsection A of this

section.

E. The Oklahoma Department of Transportation shall make

payments to the Oklahoma Capitol Improvement Authority for the use

of any roads, highways or bridges financed from any proceeds of the

obligations authorized in subsection A of this section pursuant to

the agreement. The Oklahoma Department of Transportation shall make

the payments from the State Highway Construction and Maintenance

Fund in the manner specified by the agreement and subject to

receiving an annual appropriation for that purpose. It is the

intent of the Legislature to appropriate to the Oklahoma Department

of Transportation State Transportation Fund sufficient monies to

make payments to the Authority for purposes of retiring the debt

created pursuant to this section.

F. The bond indenture or other instrument pursuant to which the

Oklahoma Capitol Improvement Authority becomes obligated for the

repayment of principal and interest of the proceeds from the sale of

obligations authorized in subsection A of this section shall provide

that all obligations are to be repaid from the source of revenue

specified in this section.

G. The Oklahoma Department of Transportation shall make

payments from the State Transportation Fund to pay obligations

incurred pursuant to agreements with the Oklahoma Capitol

Improvement Authority for the use of roads, highways and bridges the

construction, improvement, maintenance, or repair of which is

financed with any proceeds from the issuance of obligations

authorized pursuant to subsection A of this section. No payment

from the State Transportation Fund using the monies appropriated

pursuant to this act shall be made for any other purpose.

H. It is the intent of the Oklahoma Legislature to maintain the

funding level of the State Transportation Fund as required in order

for the Department of Transportation to fully pay any and all

obligations incurred by the Department of Transportation with

respect to agreements entered into by the Department of

Transportation and the Oklahoma Capitol Improvement Authority

pursuant to subsection D of this section.

I. The bonds or other obligations issued pursuant to this

section shall not at any time be deemed to constitute a debt of the

state or of any political subdivision thereof or a pledge of the
ed by the Department of Transportation with

respect to agreements entered into by the Department of

Transportation and the Oklahoma Capitol Improvement Authority

pursuant to subsection D of this section.

I. The bonds or other obligations issued pursuant to this

section shall not at any time be deemed to constitute a debt of the

state or of any political subdivision thereof or a pledge of the

faith and credit of the state or of any such political subdivision.

J. Such bonds or other obligations shall contain on the face

thereof a statement that neither the faith and credit nor the taxing

power of the state or any political subdivision thereof is pledged,

or may hereafter be pledged, to the payment of the principal of or

the interest on such bonds.

K. To the extent funds are available from the proceeds of the

borrowing authorized by this section, the Oklahoma Capitol

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Improvement Authority shall provide for the payment of professional

fees and associated costs approved by the Oklahoma Department of

Transportation. The Authority may issue obligations in one or more

series and in conjunction with other issues of the Authority. The

Authority is authorized to hire bond counsel, financial consultants,

and such other professionals as it may deem necessary to provide for

the efficient sale of the obligations and may utilize a portion of

the proceeds of any borrowing to create such reserves as may be

deemed necessary and to pay costs associated with the issuance and

administration of such obligations.

L. The obligations authorized under this section may be sold at

either competitive or negotiated sale, as determined by the

Authority, and in such form and at such prices as may be authorized

by the Authority. The Authority may enter into agreements with such

credit enhancers and liquidity providers as may be determined

necessary to efficiently market the obligations. The obligations

may mature and have such provisions for redemption as shall be

determined by the Authority, but in no event shall the final

maturity of such obligations occur later than ten (10) years from

the first principal maturity date.

M. Any interest earnings on funds or accounts created for the

purposes of this section may be utilized as partial payment of the

annual debt service or for the purposes directed by the Authority.

N. The obligations issued under this section, the transfer

thereof and the interest earned on such obligations, including any

profit derived from the sale thereof, shall not be subject to

taxation of any kind by the State of Oklahoma, or by any county,

municipality or political subdivision therein.

O. The Authority may direct the investment of all monies in any

funds or accounts created in connection with the offering of the

obligations authorized under this section. Such investments shall

be made in a manner consistent with the investment guidelines of the

State Treasurer. The Authority may place additional restrictions on

the investment of such monies if necessary to enhance the

marketability of the obligations.

P. The Oklahoma Capitol Improvement Authority is hereby

authorized to issue bonds or other negotiable instruments or

evidences of indebtedness in the principal amount sufficient to

generate One Hundred Fifty Million Dollars ($150,000,000.00) in

proceeds available to fund the construction and improvement to the

highway system in this state as set forth in this act and subject to

the approval and authorization as set forth in subsection F of

Section 1 of this act. If such bonds or other negotiable

instruments or evidences of indebtedness are authorized for

issuance, they shall be subject to the same terms and conditions as

set forth in this section.