Okla. Stat. tit. 74, § 74-1226.5

Definitions.

A. The Authority may provide by resolution, at one time or from

time to time, for the issuance of revenue bonds of the Authority for

the purpose of paying all or any part of the cost of any one or more

projects. The Authority, when it finds that it would be economical

and beneficial to do so, may combine two or more, or any part

thereof, or all of its proposed projects into one unit and consider

the same as one project to the same extent and with like effect as

if the same were a single project. The principal of and the

interest on the bonds shall be payable solely from the funds

provided for such payment. The bonds of each issue shall be dated,

shall bear interest at such rate or rates not exceeding the

limitations pertaining to public trust indebtedness from time to

time expressed in subsection (f) of Section 176 of Title 60 of the

Oklahoma Statutes, shall mature at such time or times not exceeding

forty (40) years from their date or dates, as may be determined by

the Authority, and may be made redeemable before maturity at the

option of the Authority at such price or prices and pursuant to such

terms and conditions as may be fixed by the Authority prior to the

issuance of the bonds. The Authority shall determine the form of

the bonds, including any interest coupons to be attached thereto,

and the manner of execution of the bonds, and shall fix the

denomination or denominations of the bonds and the place or places

of payment of principal and interest, which may be at any bank or

trust company within or without the state. If any officer whose

signature or facsimile of whose signature appears on any bonds or

coupons shall cease to be said officer before the delivery of the

bonds, the signature or the facsimile shall nevertheless be valid

and sufficient for all purposes the same as if the person had

remained in office until such delivery. All bonds issued pursuant

to the provisions of this act shall have all the qualities and

incidents of negotiable instruments subject to the negotiable

instruments law of this state. The bonds may be issued in coupon or

in registered form, or both, as the Authority may determine, and

provisions may be made for the registration of any coupon bonds as

to principal alone and also as to both principal and interest, and

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for the reconversion into coupon bonds of any bonds registered as to

both principal and interest. The Authority may sell the bonds in

such amounts and in such manner, either at public or private sale,

and for such price, as it may determine to be in the best interests

of this state, but in no event at a discount in excess of that from

time to time expressed in said subsection (f) of Section 176 of

Title 60 of the Oklahoma Statutes.

B. The proceeds of the bonds of each issue shall be used solely

for the payment of the cost of the project for which such bonds have

been issued, and shall be disbursed in such manner and pursuant to

such restrictions, if any, as the Authority may provide in the

resolution authorizing the issuance of such bonds or in the trust

agreement securing the same. If the proceeds of the bonds of any

issue, by error of estimates or otherwise, shall be less than such

cost, additional bonds may in like manner be issued to provide the

amount of such deficit, and, unless otherwise provided for in the

resolution authorizing the issuance of such bonds or in the trust

agreement securing the same, shall be deemed to be of the same issue

and shall be entitled to payment from the same fund without

preference or priority of the bonds first issued. If the proceeds

of the bonds of any issue shall exceed such cost, the surplus may be

deposited to the credit of the sinking fund for such bonds, or may

be used by the Authority in implementing any other power expressly

granted to the Authority in this act.
med to be of the same issue

and shall be entitled to payment from the same fund without

preference or priority of the bonds first issued. If the proceeds

of the bonds of any issue shall exceed such cost, the surplus may be

deposited to the credit of the sinking fund for such bonds, or may

be used by the Authority in implementing any other power expressly

granted to the Authority in this act.

C. Prior to the preparation of definitive bonds, the Authority,

subject to like restrictions, may issue interim receipts or

temporary bonds, with or without coupons, exchangeable for

definitive bonds when such bonds have been executed and are

available for delivery. The Authority may also provide for the

replacement of any bonds which have become mutilated or were

destroyed or lost. Bonds may be issued pursuant to the provisions

of this act without obtaining the consent of any department,

division, commission, board, bureau, or agency of this state, and

without any other proceedings or the occurrence of any other

conditions or things than those proceedings, conditions, or things

that are specifically required by this act; provided however, the

Authority shall be subject to and shall comply with the Oklahoma

Bond Oversight and Reform Act, Section 695.2 et seq. of Title 62 of

the Oklahoma Statutes, and for purposes of said act the Authority

shall be deemed to be a state governmental entity.

D. The Authority is hereby authorized to provide that the

bonds:

1. Be made payable from time to time on demand or tender for

purchase by the owner provided a credit facility supports such

bonds, unless the Authority specifically determines that a credit

facility is not required;

2. Be additionally supported by a credit facility;

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3. Be made subject to redemption prior to maturity, with or

without premium, on such notice and at such time or times and with

such redemption provisions as may be determined by the Authority or

with such variations as may be permitted in connection with a par

formula;

4. Bear interest at a rate or rates that may vary as permitted

pursuant to a par formula and for such period or periods of time,

all as may be determined by the Authority; and

5. Be made the subject of a remarketing agreement whereby an

attempt is made to remarket the bonds to new purchasers prior to

their presentment for payment to the provider of the credit facility

or to the Authority. No credit facility, repayment agreement, par

formula or remarketing agreement shall become effective without the

approval of the Authority.

E. As used in this section, the following terms shall have the

following meanings:

1. "Credit facility" means an agreement entered into by the

Authority with any bank, savings and loan association or other

banking institution; an insurance company, reinsurance company,

surety company, or other insurance institution; a corporation,

investment banker or other investment institution; or any other

financial institution providing for prompt payment of all or any

part of the principal, whether at maturity, presentment for

purchase, redemption or acceleration, redemption premium, if any,

and interest on any bonds payable on demand or tender by the owner

issued in accordance with this section, in consideration of the

Authority's agreeing to repay the provider of such credit facility

in accordance with the terms and provisions of such repayment

agreement, provided, that any such repayment agreement shall provide

that the obligation of the Authority thereunder shall have only such

sources of payment as are permitted for the payment of the bonds

issued under this act; and

2. "Par formula" means any provision or formula adopted by the

Authority to provide for the adjustment, from time to time, of the

interest rate or rates borne by any such bonds so that the purchase

price of such bonds in the open market would be as close to par as
ority thereunder shall have only such

sources of payment as are permitted for the payment of the bonds

issued under this act; and

2. "Par formula" means any provision or formula adopted by the

Authority to provide for the adjustment, from time to time, of the

interest rate or rates borne by any such bonds so that the purchase

price of such bonds in the open market would be as close to par as

possible.

F. Nothing in any law heretofore enacted or enacted at the

present session of the Legislature shall be deemed to limit or

restrict the right of the Authority to issue bonds or other

obligations the interest income, in whole or in part, on which is

subject, directly or indirectly, to federal income taxation.

G. All bonds issued, reissued or refunded by the Authority

shall comply with the Oklahoma Bond Oversight and Reform Act,

Section 695.2 et seq. of Title 62 of the Oklahoma Statutes, and for

purposes of said Act the Authority shall be deemed to be a state

governmental entity.

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