{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-57.3","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-57.3","heading":"Authority to issue and sell bonds - Pledges and covenants","body":"- Sinking fund.\n\nThe Commission, acting for and on behalf of the State of\n\nOklahoma, is hereby authorized and empowered to issue, sell and\n\ndeliver to the State Treasurer, the Commissioners of the Land Office\n\nof the State of Oklahoma, or other purchasers, \"State of Oklahoma\n\nBuilding Bonds\" in a total principal amount not to exceed Thirty-six\n\nMillion Dollars ($36,000,000.00). It is hereby expressly provided\n\nand pledged for the benefit of the purchasers, owners and holders of\n\nsaid bonds, that two cents ($0.02) of the tax on each package of\n\ncigarettes authorized and levied by 68 O.S. 1951, Sections 586 to\n\n586p, as amended and supplemented to the effective date of Section\n\n31, Article X, of the Constitution of Oklahoma, or so much of said\n\ntax as may be necessary to pay and discharge the principal of and\n\ninterest on said bonds as the same become due, and to create an\n\nadequate reserve to assure such payments when due, shall be and the\n\nsame is hereby irrevocably pledged to the sole and exclusive use and\n\npurpose of paying and discharging the principal of and interest on\n\nsaid bonds. There is hereby created in the State Treasury, a fund\n\nto be known as the \"State of Oklahoma Building Bonds Sinking Fund\",\n\nwhich sinking fund is irrevocably pledged to the payment of the\n\nbonds issued hereunder, together with the interest thereon, and\n\nshall be paid out only in the manner and at the times and places\n\nprovided for in the resolution or resolutions of the Commission\n\nauthorizing the issuance of the bonds. Beginning July 1, 1950, all\n\ncigarette taxes collected shall be paid monthly by the Oklahoma Tax\n\nCommission to the State Treasurer of the State of Oklahoma. Upon\n\nreceiving from the Oklahoma Tax Commission the cigarette tax money\n\nhereinabove mentioned, accompanied by a schedule showing the net\n\nproceeds of the two cents ($0.02) tax upon each package of\n\ncigarettes, it shall be the duty of the State Treasurer to place in\n\nsaid sinking fund the net proceeds of two cents ($0.02[) of the tax\n\non each package of cigarettes, or so much of said cigarette tax as\n\nmay be necessary to assure prompt payment of the principal of and\n\ninterest on the bonds as they fall due and to carry out the\n\ncovenants with respect to reserve requirements. The cigarette tax\n\nherein referred to shall constitute the primary revenue dedicated to\n\nthe payment of the principal and interest of said bonds but it is\n\nfurther pledged for the benefit of the purchasers, owners and\n\nholders of said bonds that the State of Oklahoma will, if necessary,\n\nimpose and collect an additional tax, other than an ad valorem tax,\n\nand devote the same irrevocably to the payment of the principal and\n\ninterest of said bonds, and that should said cigarette tax, herein\n\nreferred to, ever fail to produce sufficient revenue to pay said\n\nprincipal and interest as they fall due, such cigarette tax,\n\ntogether with such additional tax, shall always be sufficient to pay\n\nand discharge said principal and interest when due. The bonds\n\nissued hereunder and the interest thereon shall be general\n\nobligations of the State of Oklahoma and the full faith, credit and\n\nresources of the State of Oklahoma is pledged for their payment. The\n\nCommission is authorized to incorporate in the face of each of the\n\nbonds issued under this act, pledges, the same or substantially the\n\nsame as those made herein. The pledges and covenants so made by\n\nsaid Commission shall constitute the commitment of the State of\n\nOklahoma, made in full good faith in its sovereign capacity and\n\nshall be binding upon said state and the Legislature, officers,\n\ninstrumentalities and agents thereof so long as any of the principal\n\nor interest of the bonds are outstanding and unpaid. The Commission\n\nis authorized to make such other equally binding covenants and\n\nagreements, not inconsistent with this act, or with Section 31,\nof\n\nOklahoma, made in full good faith in its sovereign capacity and\n\nshall be binding upon said state and the Legislature, officers,\n\ninstrumentalities and agents thereof so long as any of the principal\n\nor interest of the bonds are outstanding and unpaid. The Commission\n\nis authorized to make such other equally binding covenants and\n\nagreements, not inconsistent with this act, or with Section 31,\n\nArticle X, Oklahoma Constitution, as it deems to be needful and\n\nappropriate to the general purpose of effectuating this act.","path":["OK Code","Title 62"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os62.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"b3ad431d4989747ebfb25a3a7b038f05b01d01e01d93a4d51a700fbc662b141e","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-57.27","next":"us-ok/okla.-stat.-tit.-62-62-57.300"},"notice":"GroundRules: Original legal text. Not legal advice."}