{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-754","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-754","heading":"Limitations on refunding bonds - School bonds -","body":"Competitive bidding - Excluded bidders - Conditions of refunding -\n\nEscrow supplements - Issuance of refunding bond.\n\nA. Any general obligation bonds issued or incurred by any\n\npublic body may be refunded by the public body issuing or incurring\n\nthe general obligations or any successor of thepublic body in the\n\nname of the public body that issued or incurred the obligation or\n\nindebtedness being refunded, but subject to provisions concerning\n\ntheir payment and to any other contractual limitations in the\n\nproceedings authorizing their issuance or otherwise appertaining to\n\nthe general obligations; provided, approval of the refunding by an\n\nelection held in the same manner as required for the issuance of the\n\ngeneral obligations being refunded shall be required if the\n\nrefunding extends the maturity date of the obligations.\n\nB. 1. The outstanding bonded indebtedness of any school\n\ndistrict at the time of the inclusion of all the territory of the\n\ndistrict in another district by reorganization, consolidation,\n\ndissolution, or any other lawful means may be refunded by action of\n\nthe governing body of the district including such territory at the\n\ntime of such refunding, whether or not such indebtedness has been\n\nassumed by the district including such territory.\n\n2. When an entire school district with outstanding bonded\n\nindebtedness has been divided and parts of the school district have\n\nbeen included within two or more other districts by any lawful\n\nmeans, the refunding of such indebtedness shall require affirmative\n\naction by a majority of the members of the governing body of each of\n\nthe districts within which any part of the territory of the district\n\nhaving the indebtedness is then included, except as otherwise\n\nprovided for in the General Obligation Public Securities Refunding\n\nAct.\n\n3. The outstanding bonded indebtedness of any school district\n\nat the time any territory of the district is detached from the\n\nschool district by any lawful means, which school district has\n\nretained its lawful corporate existence subsequent to the detachment\n\nof said territory from the school district, may be refunded by\n\naction of the governing body of the school district from which\n\nterritory has been detached with or without the concurrence of or\n\naction by the governing body of any school district within which all\n\nor any part of such detached territory is included. The school\n\ndistricts from which territory has been detached and which retain\n\ntheir corporate existence subsequent to detachment are specifically\n\nexempted from the requirements and provisions of paragraph 2 of this\n\nsubsection.\n\nC. General obligation refunding bonds may be issued to refund\n\nall or any portion of one or more outstanding general obligations of\n\na public body, but no two or more outstanding general obligations,\n\nor portions thereof, may be refunded by a single issue of refunding\n\nbonds unless the taxable property upon which tax levies are being\n\nmade for payment of each such outstanding general obligation\n\nproposed to be refunded by such single issue of refunding bonds, and\n\nthe same tax and debt limitations, if any, applicable to each\n\nobligation proposed to be refunded by such single issue of refunding\n\nbonds are also applicable to all other obligations to be refunded by\n\nsuch single issue.\n\nD. All refundings of general obligation issues shall be made\n\nthrough competitive bidding pursuant to the procedures established\n\nby Section 354 of Title 62 of the Oklahoma Statutes. The governing\n\nbody may waive the competitive bid requirement if three-fourths\n\n(3/4) of the membership of the governing body so vote or upon a\n\nunanimous vote of those members voting if less than three-fourths\n\n(3/4) of the membership of the governing body is present. Refunding\n\nbonds may be delivered in exchange for the obligations to be\n\nrefunded or may be sold by competitive or negotiated sale as\ngoverning\n\nbody may waive the competitive bid requirement if three-fourths\n\n(3/4) of the membership of the governing body so vote or upon a\n\nunanimous vote of those members voting if less than three-fourths\n\n(3/4) of the membership of the governing body is present. Refunding\n\nbonds may be delivered in exchange for the obligations to be\n\nrefunded or may be sold by competitive or negotiated sale as\n\ndetermined by the governing body in the best interest of the public\n\nbody in either of the following manners:\n\n1. If the public body sells the refunding bonds at competitive\n\nsale, the public body is hereby authorized to pay all expenses\n\nincident to the issuance of said bonds including fees for legal,\n\nfinancial, and other assistance in the preparation and proceedings\n\nthereof, from the proceeds of such refunding bonds or any other\n\nmoneys available to the public body. The proceeds of such sale\n\nshall be applied as provided for in the General Obligation Public\n\nSecurities Refunding Act. The bonds may be sold at a sum not less\n\nthan par with accrued interest.\n\n2. If the bonds are sold through a negotiated sale, it shall be\n\nunlawful for any board of county commissioners, city council or city\n\ncommissioners, town council, township board, school district board,\n\nboard of education or any other officer of any such municipal\n\ncorporation, or any officer of any political corporation, or\n\nsubdivision of this state, to sell, agree to sell or contract to\n\nsell any bonds issued with, or without a vote of the people for any\n\nsum less than par with accrued interest added. All fees for legal,\n\nfinancial, and other assistance in the preparation and proceedings\n\nthereof shall be paid from the proceeds of such refunding bonds.\n\nE. Persons, firms, or corporations prohibited from bidding on\n\nor purchasing general obligations pursuant to Section 355 of Title\n\n62 of the Oklahoma Statutes shall be prohibited from bidding on or\n\npurchasing refunding bonds issued pursuant to the provisions of the\n\nGeneral Obligation Public Securities Refunding Act.\n\nF. No general obligation may be refunded unless the holder of\n\nthe general obligation voluntarily surrenders it for exchange of\n\npayment or the general obligation either matures or is callable by\n\nthe issuer for prior redemption under its terms within twenty-five\n\n(25) years from the date of issuance of the refunding bonds, and\n\nprovision shall have been made in such refunding for paying the\n\nobligation being refunded within said period of time. In no event\n\nshall general obligations be refunded except for the purposes\n\nspecified in paragraph 1 of subsection A of Section 3 of this act,\n\nor unless the total of the principal and interest payable over the\n\nlife of the refunding bonds and the expenses incurred in issuing the\n\nrefunding bonds shall be less than the total of the principal and\n\ninterest payable over the life of the refunded obligations.\n\nG. A public body shall be authorized to utilize an escrow\n\nsupplement in accomplishing any refunding undertaken pursuant to the\n\nGeneral Obligation Public Securities Refunding Act.\n\nH. The issuance of refunding bonds by any public body pursuant\n\nto the provisions of the General Obligation Public Securities\n\nRefunding Act shall not be interpreted to be the creation of debt or\n\nindebtedness such that the issuance would require the approval at an\n\nelection in accordance with the Constitution or laws of this state.\n\nNo such approval shall be required for the issuance of such\n\nrefunding bonds except as provided for in the General Obligation\n\nPublic Securities Refunding Act. Any obligations which have been\n\nrefunded, pursuant to the provisions of the General Obligation\n\nPublic Securities Refunding Act, either by immediate payment or\n\nredemption and retirement or by the placement of net proceeds of\ne issuance of such\n\nrefunding bonds except as provided for in the General Obligation\n\nPublic Securities Refunding Act. Any obligations which have been\n\nrefunded, pursuant to the provisions of the General Obligation\n\nPublic Securities Refunding Act, either by immediate payment or\n\nredemption and retirement or by the placement of net proceeds of\n\nrefunding bonds in escrow shall continue to be considered general\n\nobligations but shall not be deemed outstanding for purposes of\n\ndetermining compliance with debt limitations from and after the date\n\non which sufficient moneys are placed either with the paying agent\n\nof such outstanding obligations for the purpose of immediately\n\npaying or redeeming and retiring such bonds or with the escrow agent\n\nfor the purpose of paying or redeeming and retiring such bonds at a\n\ndesignated future date.","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":"5a64bc358bc2f19d90e999c051c14c34b0424f788ca0139c231d8381729adb70","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-753.1","next":"us-ok/okla.-stat.-tit.-62-62-754.1"},"notice":"GroundRules: Original legal text. Not legal advice."}