{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-863","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-863","heading":"Tax apportionment bonds or notes","body":"A. With the approval of the governing body, a public entity,\n\nother than a city, town or county, may issue tax apportionment bonds\n\nor notes, other bonds or notes, or both, the proceeds of which may\n\nbe used to pay project costs pursuant to the plan notwithstanding\n\nany other statutory provision to the contrary. Subject to the\n\napproval of the governing body, such public entity may issue\n\nrefunding bonds or notes for the payment or retirement of bonds or\n\nnotes previously issued by the public entity to pay project costs\n\npursuant to the plan.\n\nB. The public entity issuing tax apportionment bonds or notes\n\nmay, as authorized by the governing body pursuant to Section 6C of\n\nArticle X of the Constitution of the State of Oklahoma, irrevocably\n\npledge all or part of the apportioned increments and other revenue\n\nfor payment of the tax apportionment bonds or notes. The part of\n\nthe apportioned increments pledged in payment may be used only for\n\nthe payment of the bonds or notes or interest on the bonds or notes\n\nuntil the bonds or notes have been fully paid. A holder of the\n\nbonds or notes or of coupons issued on the bonds has a lien to the\n\nextent authorized by the pledge against the apportionment fund and\n\nthe future increments for payment of the bonds or notes and interest\n\non the bonds or notes and may protect or enforce the lien at law or\n\nin equity.\n\nC. The issuing public entity may provide in the contract with\n\nthe owners or holders of tax apportionment bonds that they will pay\n\ninto the apportionment fund all or any part of the revenue produced\n\nor received from the operation or sale of a facility acquired,\n\nimproved, or constructed pursuant to a project plan, to be used to\n\npay principal and interest on the bonds. If the public entity\n\nagrees, the owners or holders of these bonds may have a lien or\n\nmortgage on a facility acquired, improved, or constructed with the\n\nproceeds of the bonds.\n\nD. Tax apportionment bonds may be issued to mature in a period\n\nnot to exceed twenty-five (25) years in one or more series;\n\nprovided, however, that for any increment district established after\n\nNovember 1, 1992, such time period shall be tolled for a period of\n\ntime equal to the pendency of any litigation directly or indirectly\n\nchallenging the increment district or apportionment or disbursement.\n\nThe trust indenture, ordinance, or resolution approved, issued in\n\nconnection with such bond or note, shall provide:\n\n1. The date that the bond or note bears;\n\n2. That the bond or note is payable on demand or at a specified\n\ntime;\n\n3. The interest rate that the bond or note bears;\n\n4. The denomination of the bond or note;\n\n5. Whether the bond or note is in coupon or registered form;\n\n6. The conversion or registration privileges of the bond or\n\nnote;\n\n7. The manner of execution of the bond or note;\n\n8. The medium of payment in which and the place or places at\n\nwhich the bond or note is payable;\n\n9. The terms of redemption, with or without premium, to which\n\nthe bond or note is subject;\n\n10. The manner in which the bond or note is secured; and\n\n11. Any other characteristic of the bond or note.\n\nE. A bond or note issued pursuant to the provisions of the\n\nLocal Development Act is fully negotiable. In a suit, action, or\n\nother proceeding involving the validity or enforceability of a bond\n\nor note issued pursuant to the provisions of the Local Development\n\nAct or the security of a bond or note issued pursuant to the\n\nprovisions of the Local Development Act, if the bond or note recites\n\nin substance that it was issued by the public entity pursuant to the\n\nLocal Development Act, the bond or note is deemed to have been\n\nissued for that purpose, and the recital shall be conclusive of its\n\nvalidity and the regularity of its issuance.\n\nF. A bank, trust company, savings bank or institution, savings\n\nand loan association, investment company or other person carrying on\nd or note recites\n\nin substance that it was issued by the public entity pursuant to the\n\nLocal Development Act, the bond or note is deemed to have been\n\nissued for that purpose, and the recital shall be conclusive of its\n\nvalidity and the regularity of its issuance.\n\nF. A bank, trust company, savings bank or institution, savings\n\nand loan association, investment company or other person carrying on\n\na banking or investment business; an insurance company, insurance\n\nassociation, or other person carrying on an insurance business; or\n\nan executor, administrator, curator, trustee, or other fiduciary may\n\ninvest any sinking funds, money, or other funds belonging to it or\n\nin its control in tax apportionment bonds or notes issued under the\n\nLocal Development Act. This act does not relieve any person of the\n\nduty to exercise reasonable care in selecting securities or of\n\ncomplying with other applicable laws.\n\nG. A tax apportionment bond or note issued pursuant to the\n\nprovisions of this section is not a debt, liability, or obligation\n\nof the city, town or county creating or approving the plan, project\n\nor increment district. The bond or note does not give rise to a\n\ncharge against the general credit or taxing powers of such city,\n\ntown or county and is not payable except as provided by the Local\n\nDevelopment Act. Bonds or notes issued pursuant to the provisions\n\nof this section are not general obligations of the state and have no\n\nclaim on the revenues or resources of the state. A bond or note\n\nissued pursuant to the provisions of this section must state the\n\nrestrictions of this subsection on its face.\n\nH. A tax apportionment bond or note issued pursuant to the\n\nprovisions of this section may not be included in any computation of\n\nthe general obligation debt of the city, town or county creating or\n\napproving the plan, project or increment district.\n\nI. A public entity may not issue bonds or notes, pursuant to\n\nthe provisions of this section, providing for repayment of any\n\nportion of the principal from apportioned tax increments in an\n\namount that exceeds the total cost of implementing the project plan\n\nfor which the bonds or notes are issued except to the extent that\n\nbond or notes issues may be sized to include costs of issuance,\n\ncredit enhancement fees or premiums, and reasonably required\n\nreserves or amounts to be repaid from sources other than apportioned\n\ntax increments.\n\nJ. All bonds issued pursuant to the provisions of this section\n\nshall be reviewed by the Oklahoma State Bond Advisor who will give a\n\nrecommendation on such bonds to the issuing entity.","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":"df52a4cfabd5555e467fc6ee488c55cddc4c0f44489053360d983577e2636109","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-862","next":"us-ok/okla.-stat.-tit.-62-62-864"},"notice":"GroundRules: Original legal text. Not legal advice."}