Okla. Stat. tit. 74, § 74-5062.10

A. The Authority shall have the power and is hereby authorized

to borrow money and to issue its bonds in such principal amounts as

the Authority determines shall be necessary to provide sufficient

funds for: (a) the providing of financing for all or any part of

any projects of the state or any of its political subdivisions as

authorized under this act; (b) the providing of financing assistance

to the state or political subdivisions as authorized under this act;

(c) the payment of interest on bonds of the Authority; (d) the

establishment of reserves to secure the bonds; and (e) all other

expenditures of the Authority incident to and necessary or

convenient to carry out its purposes and powers, including the

payment of any credit enhancement fees and costs of issuance

incurred in connection with the issuance of bonds. The Authority

shall have the power to make expenditures for purposes of insuring

and securing holders of bonds as provided in this act.

B. The Authority shall have the power to refund any bonds and

any bonds, notes or other obligations heretofore or hereafter issued

by any other issuer of bonds in the state if the Authority is

authorized hereunder to issue bonds for the purpose the refunded

bonds were issued by the issuance of new bonds, whether the bonds to

be refunded have or have not matured, and to issue bonds partly to

refund bonds then outstanding and partly for any of its corporate

purposes. Refunding bonds may be issued in such amount as the

Authority may determine, but not exceeding an amount sufficient to

refund the principal amount of the bonds or notes to be refunded,

together with any unpaid interest accrued and to accrue thereon and

any premiums, expenses and commissions incurred in connection with

the issuance of such refunding bonds and any reserve established in

connection with the issuance of such refunding bonds. The refunding

bonds may be sold and the proceeds applied to the purchase,

redemption, or payment of the bonds to be refunded or exchanged for

the bonds to be refunded, all as determined by the Authority.

C. All bonds of the Authority shall be either (i) general

obligations of the Authority, secured by any and all moneys and

revenues of the Authority, (ii) special and limited obligations of

Oklahoma Statutes - Title 74. State Government Page 1127

the Authority, secured and payable solely out of the revenues and

receipts derived pursuant to a financing agreement, or (iii) both

general and special limited obligations, as may be designated in the

proceedings of the Authority under which the bonds shall be

authorized to be issued.

D. The bonds shall be authorized by resolution or resolutions

of the Authority, shall be dated such date or dates, and shall

mature at such time or times as such resolution or resolutions may

provide. The bonds shall bear interest at such rate or rates or

contain terms providing for the means of determining such rate or

rates, including variations in such rates, but not to exceed an

average interest rate of fourteen percent (14%) per annum if the

interest thereon is not includable in the gross income of the

recipients thereof for federal income tax purposes or eighteen

percent (18%) per annum if the interest thereon is includable in the

gross income of recipients thereof for federal income tax purposes,

be in such denomination, be in such form, either coupon or

registered, or in book-entry form, carry such registration

privileges, be executed in such manner, be payable in such medium of

payment, at such place or places, and be subject to such term of

redemption, including redemptions prior to maturity, as such

resolution or resolutions may provide. The bonds of the Authority

may be sold by the Authority at public or private sale, and at the

price or prices as the Authority shall determine.

E. Any resolution or resolutions authorizing any bonds or any
yable in such medium of

payment, at such place or places, and be subject to such term of

redemption, including redemptions prior to maturity, as such

resolution or resolutions may provide. The bonds of the Authority

may be sold by the Authority at public or private sale, and at the

price or prices as the Authority shall determine.

E. Any resolution or resolutions authorizing any bonds or any

issue thereof may contain provisions, which shall be a part of the

contract or contracts with the owners thereof, as to:

1. pledging all or any part of the revenues to secure the

payment of the bonds or of any issue thereof, subject to such

agreements with bondowners as may then exist;

2. pledging all or any part of the assets of the Authority,

including mortgages and obligations securing the same, to secure the

payment of the bonds or of any issue of bonds, subject to the

agreements with bondowners as may then exist;

3. the use and disposition of the gross income from assets of

any type owned by the Authority and payment of principal of assets

of any type owned by the Authority;

4. the setting aside of reserves or sinking funds and the

regulations and disposition thereof;

5. limitations on the purpose to which the proceeds of sale of

bonds may be applied and pledging the proceeds to secure the payment

of the bonds;

6. limitations on the issuance of additional bonds; the terms

upon which additional bonds may be issued and secured; and the

refunding of outstanding or other bonds;

7. the procedure, if any, by which the terms of any contract

with bondowners may be amended or abrogated, the amount of bonds the

Oklahoma Statutes - Title 74. State Government Page 1128

owners of which must consent thereto, and the manner in which the

consent may be given;

8. vesting in a trustee such property, rights, powers and

duties in trust as the Authority may determine, which may include

any or all of the rights, powers, and duties of the trustee

appointed by the bondowners pursuant to this act and limiting or

abrogating the right of bondowners to appoint a trustee under this

act or limiting the rights, powers, and duties of the trustee;

9. defining the acts or omissions to act which shall constitute

a default in the obligations and duties of the Authority to the

owners of the bonds and providing for the rights and remedies of the

owners of the bonds in the event of default, including as a matter

of right the appointment of a receiver; but the rights and remedies

shall not be inconsistent with the general laws of the state and

other provisions of this act; and

10. any other matters, of like or different character, which in

any way affect the security or protection of the owners of the

bonds.

F. Any pledge made by the Authority shall be valid and binding

from the time when the pledge is made. The revenues, monies, or

property so pledged and thereafter received by the Authority shall

immediately be subject to the lien of such pledge without any

physical delivery thereof or further act, and the lien of any such

pledge shall be valid and binding as against all parties having

claims of any kind in tort, contract, or otherwise against the

Authority, irrespective of trust indenture whether the parties have

notice thereof. Neither the resolution, trust indenture nor any

other instrument by which a pledge is created need be recorded.

G. Bonds of the Authority may be secured by resolution of the

Authority or a trust indenture or similar document by and between

the Authority and a corporate trustee, which may be any bank having

the power of a trust company or any trust company within or without

the state. Such resolution, trust indenture or similar document may

contain such provisions for protecting and enforcing the rights and

remedies of the bondowners as may be reasonable and proper and not

in violation of law, including covenants setting forth the duties of
y and a corporate trustee, which may be any bank having

the power of a trust company or any trust company within or without

the state. Such resolution, trust indenture or similar document may

contain such provisions for protecting and enforcing the rights and

remedies of the bondowners as may be reasonable and proper and not

in violation of law, including covenants setting forth the duties of

the Authority in relation to the exercise of its corporate powers

and the custody, safeguarding and application of all monies. The

Authority may provide by the resolution or trust indenture for the

payment of the proceeds of the bonds and the revenues to the trustee

under the trust indenture or other depository, and for the method of

disbursement thereof, with such safeguards and restrictions as it

may determine.

H. Whether or not the bonds are of the form and character as to

be negotiable instruments under the terms of the Uniform Commercial

Code, the bonds are hereby made negotiable instruments within the

meaning of and for all the purposes of the Uniform Commercial Code,

Oklahoma Statutes - Title 74. State Government Page 1129

subject only to the provisions of the bonds relating to

registration.

I. In the event that any of the members or officers of the

Authority shall cease to be members or officers of the Authority

prior to the delivery of any bonds or coupons signed by them, their

signatures or facsimiles thereof shall nevertheless be valid and

sufficient for all purposes, the same as if such members or officers

had remained in office until such delivery.

J. Neither the members of the Authority nor any other person

executing the bonds issued under this act shall be subject to

personal liability or accountability by reason of the issuance

thereof.

K. The Authority shall have the power to provide for the

replacement of lost, destroyed, or mutilated bonds.

L. Except as provided by the Credit Enhancement Reserve Fund

Act, bonds issued pursuant to the provisions of this act shall never

constitute an indebtedness of the state within the meaning of any

state constitutional provision or statutory limitation, but such

bonds shall be indebtedness payable solely from sources indicated on

the bond documents, and shall never constitute nor give rise to a

pecuniary liability of this state or unspecified funds of the

Authority or a charge against the general credit of the state or

taxing powers of the state, and such fact shall be plainly stated on

the face of each bond.