Okla. Stat. tit. 74, § 74-9077

of bond issuance.

A. The Oklahoma Development Finance Authority is hereby

authorized to enter into agreements to receive securitization

property as described in Section 6 of this act from a regulated

utility and, in exchange, to provide the proceeds of a bond issuance

described in this section to the regulated utility. The revenues

received from the securitization property shall be used to service

and repay the bonds issued under this section, and the Authority may

pledge the securitization property as a security interest for the

bonds. The Authority shall conduct any bond issuance under this

section so that the issuance provides for all qualified costs

related to a financing order under this act.

B. The Authority is hereby authorized to borrow money on the

credit of the revenues to be derived from securitization property

received under subsection A of this section, and in anticipation of

the collection of revenues, issue negotiable bonds necessary for

such purposes. The Authority shall provide for the payment of such

bonds and the rights of the holders thereof, as hereinafter

provided. Said 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 are consistent with the terms of the financing order

issued by the Commission. The bonds shall have all of the qualities

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

earned on the bonds shall not be subject to taxation by the state,

or by any county, municipality or political subdivision therein.

C. The Authority may only pledge the securitization property

and the revenues received from such property arising from a single

financing order for a single series of bonds. No revenues arising

from a separate financing order shall be pledged for or used to

repay the bonds or series issued with respect to a separate

financing order.

D. The Authority may issue ratepayer-backed bonds for the

purpose of refunding any obligation of the Authority payable from

the revenues of securitization property received under subsection A

of this section. Where bonds are issued under this subsection, the

bonds may either be sold pursuant to subsection G of this section or

delivered in exchange for the outstanding obligations. If sold, the

process may be either applied to the payment of the obligations,

Oklahoma Statutes - Title 74. State Government Page 1261

refunded or deposited in escrow for the retirement of the

obligations. Nothing herein contained shall be construed to

authorize the refunding of any outstanding obligations which are not

either maturing, callable for redemption under their terms or

voluntarily surrendered by their holders for cancellation, unless

the Authority covenants that sufficient funds to pay all remaining

interest and principal payments of the outstanding obligations when

due will be placed in escrow for such purpose at the place or places

where the bonds are payable.

E. The Authority shall execute all bonds issued by the

Authority after approval of the form of the bond by the Authority

and the Attorney General.

F. 1. The ratepayer-backed bonds issued under this section

shall not be an indebtedness of the state or of the Authority, but

shall be special obligations payable solely from revenues related to

securitization property received under subsection A of this section.
shall execute all bonds issued by the

Authority after approval of the form of the bond by the Authority

and the Attorney General.

F. 1. The ratepayer-backed bonds issued under this section

shall not be an indebtedness of the state or of the Authority, but

shall be special obligations payable solely from revenues related to

securitization property received under subsection A of this section.

The Authority is authorized and directed to pledge all or any part

of such revenues to the payment of principal and interest on the

bonds and to create a reserve for such purposes.

2. Any ratepayer-backed bonds 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".

G. 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 the public monies as it

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 and required 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 the bonds as are necessary to ensure sufficient cash on hand is

available to meet current expenditures payable from public monies.

H. 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.

I. The proceeds of the sale of ratepayer-backed bonds, and

revenues received with respect to securitization property, shall be

deposited in the State Treasury, in a fund which is hereby created

and designated the "Regulated Utility Consumer Protection Fund"

where they shall remain subject to disposition to be provided for by

Oklahoma Statutes - Title 74. State Government Page 1262

the Authority consistent with this act; provided, that the State

Treasurer shall invest the monies in interest-bearing direct

obligations of the United States of America, or of the State of

Oklahoma, and provided, further, that all investments of the monies

shall 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.

J. In the event a regulated utility has or receives alternative

funds directed by the Commission to be applied to a securitized

balance, the regulated utility shall provide the funds to the

Authority. The Authority shall deposit the funds with the State

Treasury pursuant to subsection I of this section. If the funds are

provided in advance of the bond issuance, the Authority shall use

the funds and interest on the funds to pay expenses related to the

issuance, reduce the total bond debt service or reduce the size of

the required issuance. If the funds are provided after the bond

issuance, the Authority shall use the funds and interest on the

funds to offset amounts that would otherwise be recovered from

utility customers under this act.

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

laws of this state may invest its capital, surplus and reserve funds

and other funds under its control in ratepayer-backed bonds issued

under this section.