Okla. Stat. tit. 73, § 73-177.1

A. The Oklahoma Capitol Improvement Authority is authorized to

acquire real property, together with improvements located thereon,

and personal property for the construction of:

1. A two hundred (200) bed medium security housing unit at the

Lexington Assessment and Reception Center;

2. A two hundred (200) bed medium security housing unit at the

Oklahoma State Reformatory; and

3. A two hundred (200) bed medium security housing unit at the

Joseph Harp Correctional Center.

B. The Authority may hold title to the real property and

improvements until such time as any obligations issued for this

purpose are retired or defeased and may lease the real property and

improvements to the Oklahoma Department of Corrections. Upon final

redemption or defeasance of the obligations created pursuant to this

section, title to the real property and improvements shall be

transferred from the Oklahoma Capitol Improvement Authority to the

Oklahoma Department of Corrections.

C. For the purpose of paying the costs for acquisition of the

real property and improvements and personal property authorized in

subsection A of this section, and for the purpose authorized in

subsection D of this section, the Authority is hereby authorized to

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

from the leasing of such real property and improvements and, in

anticipation of the collection of such income and revenues, to issue

negotiable obligations in an amount not to exceed Twenty-one Million

Dollars ($21,000,000.00). An amount not to exceed Eighteen Million

Dollars ($18,000,000.00) of the total proceeds from the sale of such

obligations shall be expended for construction of the housing units

specified in subsection A of this section. The balance of the

proceeds may be used for the payment of issuance costs and the

establishment of a fund for reserves. It is the intent of the

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Legislature to appropriate to the Oklahoma Department of Corrections

sufficient monies to make rental payments for the purposes of

retiring the obligations created pursuant to this section. The

Oklahoma Capitol Improvement Authority shall, as soon as practical

after issuance of the obligations authorized by this section, pay to

the Oklahoma Department of Corrections from proceeds of the issuance

an amount equal to the amount actually expended by the Oklahoma

Department of Corrections for construction of housing units pursuant

to the appropriation made by Section 3 of this act as of the date

upon which the payment is made by the Oklahoma Capitol Improvement

Authority.

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

borrowing authorized by subsection C of this section, the Oklahoma

Capitol Improvement Authority shall provide for the payment of

professional fees and associated costs approved by the Oklahoma

Department of Corrections.

E. 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.

F. 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
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 twenty (20) years from

the first principal maturity date.

G. 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.

H. 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.

I. 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

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the investment of such monies if necessary to enhance the

marketability of the obligations.