Okla. Stat. tit. 74, § 74-9055

A. The Oklahoma Development Finance Authority is hereby

authorized to provide loans from the Unregulated Utility Consumer

Protection Fund, created pursuant to Section 7 of this act, to

unregulated utilities for the purposes provided in this act.

B. Prior to executing any loan agreement with an unregulated

utility, the Authority shall have determined the approved qualified

costs of the unregulated utility. The principal amount of a loan to

an unregulated utility shall not exceed the approved qualified

costs.

C. Loans made by the Authority shall be made pursuant to notes,

bonds, revenue bonds or other appropriate form of evidence of

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indebtedness to the Authority by the unregulated utility. The

interest rate and loan term shall be determined by the Authority.

As part of the loan documents or other documents evidencing

indebtedness under this subsection, the unregulated utility shall

agree and pledge to collect and remit sufficient amounts to repay

its indebtedness over the loan term agreed with the Authority. The

Authority is authorized to issue credit with loan terms of and up to

thirty (30) years.

D. In the event an unregulated utility receives a loan pursuant

to the provisions of this act, the unregulated utility shall base

customer charges mitigated pursuant to this act on the then-current

monthly billing of the customer and shall line-item such charges on

the monthly bill of the unregulated utility customer.

E. On the same date a loan is issued, the Authority shall

notify in writing the Governor, the President Pro Tempore of the

Senate and the Speaker of the House of Representatives. This

notification shall include the amount and terms of the loan.

F. The Authority shall be authorized to take a security

interest in any property or revenues of the unregulated utility, and

a pledge of the revenues from the unregulated utility including

customer charges may be pledged by the unregulated utility for such

purposes.

G. During the term of a loan, no person or entity other than

the unregulated utility that is a party to the loan, shall provide a

service relied upon for the security of any loan issued pursuant to

this section and as identified in the loan documents or related

security documents.

H. The Authority is hereby authorized to issue utility revenue

bonds or other obligations to provide adequate funds to capitalize

the Unregulated Utility Consumer Protection Fund created pursuant to

Section 7 of this act and meet the funding needs of loans approved

by the Authority. The Authority is authorized to issue negotiable

utility revenue bonds as may, in the opinion of the Authority, be

necessary for such purposes, and to provide for the payment of such

bonds and the rights of the bond holders, as provided in this act.

The bonds may be issued in one or more series, may be sold in such

manner and at such price or prices, may bear such date or dates, may

mature at such time or times, may be in such denomination or

denominations, may be in such form either coupon or registered, may

carry such registration or conversion privileges, may be executed in

such manner, may be payable in such medium of payments, at such

place or places, may be subject to such terms of redemption, with or

without premium, and may bear such rate or rates of interest, and

shall be subject to such call for redemption as may be provided by

resolution or resolutions to be adopted by the Authority and as are

consistent with the terms of the loan or loans, security and other

documents agreed with unregulated utilities. The Authority may

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pledge the Unregulated Utility Consumer Protection Fund, revenues

from one or more loans to a single series or issuance of bonds as it

may provide by resolution or resolutions to be adopted by the

Authority. Bonds issued under this section shall have all of the
ty and other

documents agreed with unregulated utilities. The Authority may

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pledge the Unregulated Utility Consumer Protection Fund, revenues

from one or more loans to a single series or issuance of bonds as it

may provide by resolution or resolutions to be adopted by the

Authority. Bonds issued under this section shall have all of the

qualities and incidents of negotiable paper, and the bonds and the

interest earned on said bonds shall not be subject to taxation by

the State of Oklahoma, or by any county, municipality or political

subdivision therein.

I. The Authority may issue utility revenue refunding bonds for

the purpose of refinancing or restructuring its outstanding

obligations. If bonds are issued under this subsection, the bonds

may either be sold or delivered in exchange for the outstanding

obligations. If sold, the process may be either applied to the

payment of the obligations refunded or deposited in escrow for the

retirement thereof.

J. The utility revenue 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 full faith and credit of the state or any

political subdivision. Such bonds or other obligations shall

contain on the face thereof a statement that neither the faith and

credit or 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 interest on the bonds. Any utility revenue bonds or

other obligations issued pursuant to this section shall contain on

the face thereof a statement to the following effect:

“Neither the full faith and credit nor the taxing power of the

State of Oklahoma is pledged to the payment of the principal of, or

interest on, this bond”.

K. The State Treasurer is hereby authorized to purchase from

the Authority at private sale all or any part of the bonds issued

under this section as an investment of the public monies in his or

her possession. It shall be the responsibility of the State

Treasurer to invest only that portion of such public monies as he or

she deems to be more than sufficient to meet current expenditures

payable from public monies. The State Treasurer is authorized to

buy and the Authority is authorized to sell to the State Treasurer

at private sale so many of the bonds authorized by this section as

may be safely purchased for investment of public monies by the State

Treasurer without handicapping the state in promptly meeting its

obligations. The State Treasurer may later sell such bonds as are

necessary to ensure sufficient cash on hand is available to meet

current expenditures payable from public monies.

L. Bonds issued under this section shall be delivered to the

purchaser only upon payment of par and accrued interest to the date

of delivery, together with any premium bid.

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M. The proceeds of the sale of bonds issued under this section,

and revenues received with respect to loans issued pursuant to

subsection A of this section, shall be deposited in the State

Treasury in the Unregulated Utility Consumer Protection Fund created

pursuant to Section 7 of this act, where they shall remain subject

to disposition to be provided for by the Authority consistent with

this act, provided that the State Treasurer shall invest the monies

in an interest-bearing account; and provided further, that all such

investments of the monies must be so made that the same may be

liquidated in time to enable the Authority to pay, in due course,

the valid indebtedness incurred by the Authority for the purposes

set forth in this section.

N. Any bank, trust or insurance company organized under the

laws of Oklahoma may invest its capital, surplus and reserve funds
account; and provided further, that all such

investments of the monies must be so made that the same may be

liquidated in time to enable the Authority to pay, in due course,

the valid indebtedness incurred by the Authority for the purposes

set forth in this section.

N. Any bank, trust or insurance company organized under the

laws of Oklahoma may invest its capital, surplus and reserve funds

and other funds under its control in bonds issued under this

section.