Okla. Stat. tit. 82, § 82-874

Pledge of revenues - Exemption from forced sale - Section not

applicable to certain agreements.

A. Nothing in Sections 861 through 890 of this title shall be

construed as authorizing the district and it shall not be authorized

to mortgage or otherwise encumber any of its property of any kind,

real, personal or mixed, or any interest therein, or to acquire any

property or interest subject to a mortgage or conditional sale,

provided that this section shall not be construed as preventing the

pledging of the revenues of the district as herein authorized. Any

pledge of revenues, monies, securities or contract rights made by

the district pursuant to the provisions of this title shall be valid

and binding from the date the pledge is made. The revenues, monies,

securities and contract rights so pledged and then held or

thereafter received by the district or any fiduciary shall

immediately be subject to the lien of the pledge without any

physical delivery thereof or further act, and the lien of the pledge

shall be valid and binding against all parties having claims of any

kind in tort, contract or otherwise against the district without

regard to the provisions of Title 12A of the Oklahoma Statutes, the

bond resolution, trust indenture, security agreement or other

instrument by which a pledge is created need not be filed or

recorded in any manner.

B. Nothing in Sections 861 through 890 of this title shall be

construed as authorizing the sale, lease or other disposition of any

property or interest of the district by the district or any receiver

of any of its properties or through any court proceeding or

otherwise.

C. 1. The district may sell for cash, subject to competitive

bidding as provided by the Board of Directors of the Grand River Dam

Authority, any property or interest in an aggregate value not

exceeding the sum of Five Hundred Thousand Dollars ($500,000.00) in

any one (1) year, except that the district may sell any or all

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surplus property that the district may have acquired without regard

to the limitations herein, if the Board, by the affirmative vote of

five or more of the members, shall have determined that the same is

not necessary to the business of the district and shall have

approved the terms of any sale.

2. Notwithstanding any other provision of law, the district may

sell real and personal property directly used for the generation,

transmission or distribution of electricity to any corporation,

limited liability company, association, cooperative, municipal

corporation or a beneficial trust thereof engaged in the furnishing

of wholesale or retail electric if the Board approves by a vote of

five or more members that the property is not necessary to the

business of the district. Sales pursuant to this paragraph shall be

exempt from the requirements and limitations of paragraph 1 of this

subsection and from the requirements of Section 129.4 of Title 74 of

the Oklahoma Statutes.

3. If approved by affirmative vote of five or more members, the

Board may authorize the district to enter into agreements to

purchase letters of credit or other financial instruments to

facilitate the exercise of the powers, rights, and privileges

granted it.

D. The district may lease any of its lands if the Board, by the

affirmative vote of five or more of the members, shall have

determined that the same can be leased without injury to or without

interference with the operations of the project, and shall have

approved the terms of any lease. Except as otherwise provided, no

shorelands (lands lying between the low and high water marks) shall

be leased for a term longer than two (2) years and not more than

one-fourth (1/4) mile of the lake front shall be leased to any one

person, firm or corporation. The district may lease shorelands for

a term longer than two (2) years and more than one-fourth (1/4) mile
ed the terms of any lease. Except as otherwise provided, no

shorelands (lands lying between the low and high water marks) shall

be leased for a term longer than two (2) years and not more than

one-fourth (1/4) mile of the lake front shall be leased to any one

person, firm or corporation. The district may lease shorelands for

a term longer than two (2) years and more than one-fourth (1/4) mile

of lake front may be leased to any one person, firm, or corporation

without regard to the limitations herein, if the Board, by the

affirmative vote of a majority of the members, determines that the

lease is necessary or beneficial to the business of the district.

The district may lease shorelands to political subdivisions,

agencies of the State of Oklahoma, or tax-exempt public trusts, for

any public purpose, on such terms as are mutually satisfactory to

the parties, notwithstanding the limitations herein. No lease shall

deprive the owner of any land adjacent to the shorelands or lake

front, or abutting thereon, of ingress or egress to and from the

water of the lakes and shall not deprive the owner of any wharf,

dock or boat anchorage privileges that would belong to the owner if

the shorelands or lake front were not leased.

E. It is the intention of Sections 861 through 890 of this

title that, except by sale, lease or agreement as expressly

authorized in Sections 861 through 890 of this title, no property or

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interest of the district shall ever come into the ownership or

control, directly or indirectly, of any person, firm or corporation

other than a public authority created under the laws of the State of

Oklahoma.

F. Nothing in this section shall be construed as preventing the

district from contracting with the United States or any agency

thereof for the temporary possession, control and use of properties

by the United States or any agency thereof for the safety and

defense of the United States in time of a national emergency or in

anticipation thereof.

G. All property of the district shall be at all times exempted

from forced sale, and nothing contained in Sections 861 through 890

of this title shall authorize the sale of any of the property of the

district under any judgment rendered in any suit, and such sales are

hereby prohibited and forbidden. The provisions of this subsection

shall not apply to any property constructed on a lease or the

interest in a lease of shoreland that has been entered into by the

district pursuant to subsection B of this section for a term of

longer than two (2) years, provided the provisions of the lease

authorizing the mortgage and forced sale of the property or lease

interest has been approved by an affirmative vote of a majority of

the members of the Board.

H. The provisions of this section shall not apply to any sale

agreement, lease agreement or other agreement entered into by the

district pursuant to paragraphs (f) or (g) of Section 862 of this

title, provided that the agreement is in compliance with any

applicable provision restricting the sale or leasing of property by

the district contained in any resolution of the district providing

for the issuance of revenue bonds.