Okla. Stat. tit. 82, § 82-1085.36: Loans to political subdivisions and other eligible

entities - Rate of interest - Security - Payment.

Whenever any municipality, public trust, rural water or sewer

district or any other eligible entity proposes to acquire or

construct a project and/or refinance any indebtedness originally

incurred to acquire or construct a project, the Board is hereby

authorized to advance to the municipality, public trust, rural water

district or other eligible entity or combination thereof sufficient

funds for such purposes. Such loans by the Board shall be made

pursuant to notes, bonds, revenue bonds or other appropriate form of

evidence of indebtedness to the Board by the municipality, public

trust, rural water district or other eligible entity. The interest

rate and loan term shall be determined by the Board, provided,

however, that the interest rate for loans made to rural water or

sewer districts, created and existing under the provisions of

Section 1324.1 et seq. of this title, for the purposes of acquiring

or constructing a project and/or refinancing any indebtedness

originally incurred to acquire or construct a project, shall not

exceed fourteen percent (14%) per annum. As security, the Board may

take a mortgage on the entire project, and a pledge of the revenues

derived from the operation thereof or such other revenues as may be

pledged by the applicant for such purposes. The Board, in its

discretion, may defer the principal or an installment on such loans

but the total cumulating time such payment may be deferred shall not

exceed five (5) years. After a loan or other financial assistance

is obtained under Sections 1085.31 through 1085.65 of this title,

and during the term of such loan or other financial assistance, no

person, other than the eligible entity obtaining the financial

assistance, shall be authorized to provide services of the type

relied on for security of the loan or other financial assistance to

customers of the portion of the system that is identified in the

loan documents as collateral for the loan and either (1) in

existence at the time of the loan or other financial assistance or

(2) financed by the loan or other financial assistance.