Okla. Stat. tit. 62, § 62-756: Bond proceeds and interest - Uses - Escrow and trust

accounts.

A. The proceeds derived from the issuance of refunding bonds

pursuant to the provisions of the General Obligation Public

Securities Refunding Act, together with other legally available

funds, if any, of the public body, shall either be immediately

applied to the payment or redemption and retirement of the

obligations to be refunded and the cost and expense incident to such

procedure or shall be placed in escrow or trust to be applied for

the purposes and in the manner required or permitted pursuant to the

provisions of the General Obligation Public Securities Refunding Act

as the governing body may determine.

B. Any accrued interest and any premium appertaining to a sale

of refunding bonds may be:

1. applied to the payment of the interest thereon or the

principal thereof, or to both interest and principal; or

2. used to pay refunded obligations by deposit in the escrow or

trust account, or otherwise; or

3. used for any combination thereof or any lawful purpose of

the public body, as the governing body may determine.

C. For the purpose of implementing the provisions of the

General Obligation Public Securities Refunding Act, the governing

body shall have the power to enter into escrow agreements and to

establish escrow or trust accounts with any qualified escrow agent

under protective covenants and agreements whereby such accounts

shall be fully secured as provided for in Section 7 of this act.