Okla. Stat. tit. 70, § 70-4017: Boards of regents for educational institutions -

Contractual arrangements with public trusts - Capital expenditures.

The boards of regents for educational institutions who are

members of The Oklahoma State System of Higher Education are

authorized to enter into loan agreements, investment agreements or

other appropriate contractual arrangements, with any public trust

created pursuant to Section 176 et seq. of Title 60 of the Oklahoma

Statutes, which has the State of Oklahoma as its beneficiary. Said

agreements may be entered into for the purpose of obtaining funds

from such public trust to reimburse such educational institutions

for capital expenditures made by them, and such trusts are

authorized to provide such funds by issuing debt obligations

pursuant to the terms and in the manner provided for in the Public

Trust Laws, Section 176 et seq. of Title 60 of the Oklahoma

Statutes.

Capital expenditures are defined as those capital expenditures

allowed pursuant to Section 103 of the Internal Revenue Code of

1954, as amended, to be financed with tax-exempt bonds or notes. If

such loan agreement, investment agreement or other appropriate

contractual arrangement involves the repayment to such public trust

of funds provided for capital expenditure reimbursement, the boards

of regents of such educational institutions are authorized to

provide for the repayment with the income and revenues from any

existing revenue-producing buildings or facilities or from other

income and revenues legally available and permitted for such

purpose, including, but not limited to, the interest, income and

rentals derived from the Section Thirteen Fund and the New College

Fund, as provided for in Section 3904 of Title 70 of the Oklahoma

Statutes.

It is the legislative intent that such income and revenues can

be utilized by the boards of regents to the repayment, if necessary,

of reimbursed capital expenditure funds received from such public

trust. The boards of regents of such educational institutions are

authorized to enter into contractual agreements with such financial

institutions as may be necessary for such public trusts to issue the

debt obligations contemplated herein. Said contractual agreements

shall include, but not be limited to, investment contracts pursuant

to which the State Treasurer is authorized to, and shall invest fund

balances of such educational institutions.