Okla. Stat. tit. 73, § 73-350.2

— 2024.

Oklahoma Statutes - Title 73. State Capital and Capitol Building Page 155

A. Subject to the limitations with respect to the authorized

date of issuance provided by this subsection, the Oklahoma Capitol

Improvement Authority is authorized to issue notes, bonds, or other

evidences of obligation, and to execute federal loans with the

United States Department of Transportation pursuant to the

Transportation Infrastructure Finance and Innovation Act (codified

as 23 U.S.C., Sections 601 through 609), in an amount necessary to

generate net proceeds not to exceed the amount of Five Hundred

Million Dollars ($500,000,000.00), no earlier than July 1, 2024,

after providing for costs of issuance, credit enhancement, reserves,

capitalized interest and other associated expenses related to

financing. The principal amount of any note, bond, or other

evidence of obligation issued to the United States Department of

Transportation in connection with any federal loan authorized

hereunder may be increased following the disbursement of loan

proceeds by the amount of interest that may be capitalized and added

to principal in accordance with the terms of the federal loan

agreement.

B. Net proceeds of the financing shall be deposited into a

construction fund to provide for the financing of the acquisition of

real property, together with improvements located thereon, and

personal property, to construct, maintain and improve those state

highway and state bridge assets identified as follows:

1. The bridge on U.S. Highway 70 over Lake Texoma in Marshall

and Bryan Counties;

2. U.S. Highway 81 realignment in Grady County near Chickasha;

3. Interstate 35 in Cleveland, McClain, Garvin, Murray, Carter

and Love Counties.

C. The Transportation Commission or the Department of

Transportation shall use the proceeds for projects described in

subsection B of this section in order to facilitate the completion

of the enumerated projects, giving consideration to the ability to

match federal funding and such other factors as the Transportation

Commission or the Department of Transportation shall deem fiscally

prudent.

D. Earnings that result from the investment of the construction

fund may be used for the projects authorized in this section or for

other legal purposes approved by the Authority.

E. The Authority and the Transportation Commission or the

Department of Transportation are authorized to enter into such

agreements as may be necessary to authorize the Authority to hold

title to the real and personal property and improvements until any

obligation issued for the purpose set forth in subsection B of this

section are retired or defeased. The Authority may lease the real

property and improvements to the Transportation Commission or the

Department of Transportation for the purposes authorized by this

section. Upon final redemption of defeasance of the obligations

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created pursuant to this section, title to the real and personal

property and improvements shall be transferred from the Oklahoma

Capitol Improvement Authority to the Transportation Commission or

the Department of Transportation.

F. For the purpose of paying the costs for acquisition and

construction of the real property and improvements and personal

property and making the repairs, refurbishments, and improvements to

real and personal property, and providing funding for the projects

authorized in this section, and for the purpose authorized in

subsection H 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 and personal property and improvements

and, in anticipation of the collection of such income and revenues,

to issue negotiable obligations in one or more series.

G. It is the intent of the Legislature to appropriate to the
d in

subsection H 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 and personal property and improvements

and, in anticipation of the collection of such income and revenues,

to issue negotiable obligations in one or more series.

G. It is the intent of the Legislature to appropriate to the

Department of Transportation sufficient monies to make rental

payments for the purposes of retiring the obligations created

pursuant to this section.

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

borrowing authorized by subsection A of this section, the Oklahoma

Capitol Improvement Authority shall provide for the payment of the

professional fees and associated costs related to the projects

authorized in this section.

I. 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 or the issuance of obligations

to the United States Department of Transportation in connection with

federal loans, as described in subsection A of this section, 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.

J. 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 or the execution of a loan with the United States

Department of Transportation 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. Such bond indenture or

other instrument may provide for the pledge of such revenue and the

associated funds and accounts established thereunder as security for

paying such obligations.

K. 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 any political subdivision thereof or a pledge of the faith

and credit of the state or any such political subdivision.

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L. 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 thereafter be pledged, to the payment of the principal of or

the interest on such bonds or other obligations.

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

either competitive, negotiated sale or directly placed with the

United States Department of Transportation 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 to market the obligations

efficiently. 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

thirty (30) years from the first principal maturity date.

N. Any interest earnings on funds or accounts created for this

section may be utilized as partial payment of the annual debt

service or for the purposes directed by the Authority.

O. 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.
d as partial payment of the annual debt

service or for the purposes directed by the Authority.

O. 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.

P. Obligations authorized under this section shall have an

initial execution no later than five (5) years from the effective

date of this act. If no obligations have been issued by the end of

such five-year period, the authorization provided by this section

shall be null and void. Provided that an issuance of a portion of

the obligations authorized in subsection A of this section during

such five-year period shall satisfy the issuance requirement of this

subsection.

Q. 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.

R. Insofar as they are not in conflict with provisions of this

section, Section 151 et seq. of Title 73 of the Oklahoma Statutes

shall apply to this section. The Legislature intends that the

Oklahoma Capitol Improvement Authority shall have the same powers to

require the Oklahoma Department of Transportation to use and occupy

the capital improvements and real property financed by the Oklahoma

Capitol Improvement Authority, and to pay rent for such use and

occupancy, as the Oklahoma Capitol Improvement Authority has under

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paragraph 3 of Section 161 and Section 163 of Title 73 of the

Oklahoma Statutes with respect to buildings.

S. The Oklahoma Capitol Improvement Authority may initiate

proceedings for purposes of validating the obligations authorized

pursuant to the provision of this section according to the

provisions of Section 14.1 of Title 20 of the Oklahoma Statutes not

later than one hundred twenty (120) days after the effective date of

this act.