{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-3654","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-3654","heading":"Issuance of obligations - Calculation of foregone","body":"incentives - Payment of proceeds - Repayment - Guaranty.\n\nA. The Oklahoma Development Finance Authority shall, according\n\nto the requirements of the Oklahoma Development Finance Authority\n\nAct, issue obligations in a principal amount determined as required\n\nby this section upon certification by the Oklahoma Department of\n\nCommerce that an establishment has filed the second irrevocable\n\nelection described in subsection A of Section 3658 of this title.\n\nThe Authority shall not issue any additional obligations as a result\n\nof a second irrevocable election authorized by Section 3658 of this\n\ntitle until any obligations issued by the Authority prior to the\n\neffective date of this act have been fully defeased. No obligation\n\nissued by the Oklahoma Development Finance Authority pursuant to\n\nthis act shall be considered a general obligation of the State of\n\nOklahoma for any purpose and the indebtedness incurred shall be a\n\ndebt of the Oklahoma Development Finance Authority and not a debt of\n\nthe State of Oklahoma.\n\nB. Notwithstanding any other provision of this section to the\n\ncontrary, the total principal amount of indebtedness incurred by the\n\nAuthority shall not be greater than an amount required for proceeds\n\nequal to fourteen and four-tenths percent (14.4%) of the maximum\n\namount of projected additional investment, as disclosed pursuant to\n\nSection 3655 of this title, for the applicable facility of an\n\nestablishment as defined by Section 3653 of this title. The maximum\n\namount of projected additional investment for purposes of this\n\nsubsection shall not exceed Two Hundred Fifty Million Dollars\n\n($250,000,000.00).\n\nC. The proceeds of such issuance shall be used by the Authority\n\nfor the benefit of an establishment making a second irrevocable\n\nelection pursuant to the requirements of this act and such proceeds\n\nshall be made available to an establishment for purposes of making\n\nthe investments described by Section 3653 and Section 3655 of this\n\ntitle according to the requirements of this act and any agreement\n\nexecuted by the establishment and the Oklahoma Development Finance\n\nAuthority.\n\nD. Upon receipt and analysis of the disclosures regarding\n\nproposed investment for additional modernization and retooling of a\n\nfacility located within the state and owned by an establishment that\n\nqualifies for access to the proceeds from the sale of the\n\nobligations, the Oklahoma Development Finance Authority shall, if\n\nrequested by the establishment, structure the issuance of the\n\nobligations in a manner that provides for the receipt of proceeds\n\nequal to fourteen and four-tenths percent (14.4%) of the amount of\n\nadditional investment disclosed pursuant to the provisions of\n\nSection 3655 of this title.\n\nE. Upon availability of such proceeds, the Authority shall make\n\npayment to the qualified establishment of the full allocation of\n\nproceeds from a second or subsequent issuance of obligations based\n\nupon the computation required by subsection D of this section.\n\nF. The obligations authorized by subsection A of this section,\n\nwhether issued prior to or on or after the effective date of this\n\nact, shall be fully repaid in a period not to exceed twenty (20)\n\nyears from their issuance.\n\nG. The Oklahoma Development Finance Authority shall require\n\nthat each and every establishment filing a second irrevocable\n\nelection pursuant to Section 3658 of this title will use proceeds\n\nderived from the sale of obligations issued pursuant to subsection A\n\nof this section according to the requirements of this act.\n\nH. An establishment that otherwise qualifies to use proceeds\n\nfrom the sale of obligations pursuant to this section shall be\n\nrequired to provide documentation to the Oklahoma Development\n\nFinance Authority that, prior to the effective date of this act, a\n\nminimum of Fifty Million Dollars ($50,000,000.00) has been expended\n\nor legally committed for expenditure for a modernization and\nof this act.\n\nH. An establishment that otherwise qualifies to use proceeds\n\nfrom the sale of obligations pursuant to this section shall be\n\nrequired to provide documentation to the Oklahoma Development\n\nFinance Authority that, prior to the effective date of this act, a\n\nminimum of Fifty Million Dollars ($50,000,000.00) has been expended\n\nor legally committed for expenditure for a modernization and\n\nretooling of an existing facility located within the state before\n\nthe Authority is authorized to transfer any such proceeds to the\n\nestablishment.\n\nI. Subject to the requirements of this section, the Oklahoma\n\nDevelopment Finance Authority is authorized to issue its obligations\n\nin the principal amount required in order to make the proceeds from\n\nthe sale of its obligations available to each establishment that\n\nqualifies for the use of such proceeds as required by this section,\n\nand in such additional principal amount as may be required for the\n\npayment of interest or the payment of principal and interest for the\n\nfiscal year ending June 30, 2010, or subsequent fiscal year,\n\ntogether with such additional principal amount that may be required\n\nor that may be associated with the costs of the issuance of the\n\nobligations. Under no circumstances shall the amount of proceeds\n\nderived from the sale of obligations authorized by subsection A of\n\nthis section and which are made available to a qualified\n\nestablishment exceed the amount prescribed by this section.\n\nJ. The Oklahoma Development Finance Authority shall provide\n\nthat the first payment of interest or the first payment of principal\n\nand interest in repayment of the obligations authorized by\n\nsubsection A of this section as a result of a second irrevocable\n\nelection shall not become due until the later of July 1, 2009, or\n\nthe first date upon which the revenues payable to the Authority from\n\nthe Quality Jobs Program Incentive Leverage Fund are no longer\n\ncommitted to the payment of debt service requirements and related\n\ncosts in connection with obligations issued by the Authority\n\npursuant to the Quality Jobs Program Incentive Leverage Act prior to\n\nthe effective date of this act, if feasible, or the Authority shall\n\nprovide for the first payment of interest or the first payment of\n\nprincipal and interest using some portion of the proceeds derived\n\nfrom the sale of obligations authorized by subsection A of this\n\nsection. If any payment of principal or interest with respect to\n\nobligations issued on or after the effective date of this act is due\n\nat any time after July 1, 2009, the Authority may use such proceeds\n\nwith respect to such required payment. With respect to obligations\n\nissued by the Authority as a result of a second irrevocable\n\nelection, in no case shall the Authority issue the obligations in\n\nany manner that requires the use of revenues apportioned to the\n\nQuality Jobs Program Incentive Leverage Fund pursuant to Section\n\n3659 of this act until July 1, 2009, or thereafter.\n\nK. The Oklahoma Development Finance authority may enter into\n\nsuch agreements with a qualified establishment as are necessary to\n\nimplement the provisions of this act. The Authority shall require\n\nthat an establishment using proceeds from obligations issued\n\npursuant to this section as a result of a second irrevocable\n\nelection enter into a contract with the Authority reflecting the\n\nbenefits derived by the State of Oklahoma in a manner consistent\n\nwith the findings of Section 3652 of this title. The Authority may\n\nprovide for the issuance of obligations in a manner that results in\n\navailability of proceeds suitable to the proposed additional\n\ninvestment activity of an establishment and which takes into account\n\nthe obligation of the Authority to repay principal and interest with\n\nthe objective of obtaining the most favorable financing terms to the\n\nAuthority for the repayment of the obligations.\nhority may\n\nprovide for the issuance of obligations in a manner that results in\n\navailability of proceeds suitable to the proposed additional\n\ninvestment activity of an establishment and which takes into account\n\nthe obligation of the Authority to repay principal and interest with\n\nthe objective of obtaining the most favorable financing terms to the\n\nAuthority for the repayment of the obligations.\n\nL. If an establishment to which proceeds from the sale of\n\nobligations issued pursuant to subsection A of this section as a\n\nresult of a second irrevocable election are transferred does not\n\nmake use of the proceeds in the amount required by any agreement\n\nwith the Authority or in contravention of any of the terms or\n\nrequirements imposed by the Authority or by the requirements of this\n\nact, the establishment shall become liable to the Oklahoma\n\nDevelopment Finance Authority for the payment of principal, interest\n\nor other costs associated with the repayment of any amount of debt\n\nrepresented by obligations issued pursuant to subsection A of this\n\nsection resulting from a second irrevocable election to the extent\n\nsuch proceeds were paid to the establishment and such proceeds were\n\nnot used in the amount disclosed to the Oklahoma Development Finance\n\nAuthority pursuant to Section 3655 of this title. If an\n\nestablishment does not make the full amount of additional investment\n\nas disclosed pursuant to Section 3655 of this title, the\n\nestablishment shall be liable for principal, interest or other costs\n\nassociated with repayment of debt equal to the difference between\n\nthe amount of investment disclosed pursuant to Section 3655 of this\n\ntitle and the actual investment made by the establishment multiplied\n\nby fourteen and four-tenths percent (14.4%).\n\nM. An establishment that otherwise qualifies for the use of\n\nproceeds derived from the sale of obligations pursuant to subsection\n\nA of this section resulting from a second irrevocable election shall\n\nexecute and deliver to the Oklahoma Development Finance Authority a\n\nguaranty, or shall cause a guaranty to be executed and delivered by\n\na third party, in such form as the Authority may determine, for the\n\nbenefit of the Oklahoma Development Finance Authority in the event\n\nof a deficit between the sum of the incentive payment and the\n\nwithholding taxes transferred to the Quality Jobs Program Incentive\n\nLeverage Fund pursuant to Section 3659 of this title and the total\n\namount required for the payment of principal, interest or other\n\ncosts associated with the obligations, proceeds from the sale of\n\nwhich are paid to the establishment or are available for use by the\n\nestablishment. The Authority shall only accept a third-party\n\nguaranty from an entity that has a net worth in excess of the net\n\nworth of the establishment on behalf of which the guaranty is\n\nprovided. Payments received by the Oklahoma Development Finance\n\nAuthority pursuant to the provisions of this subsection and pursuant\n\nto the terms of the guaranty shall be deposited into the Quality\n\nJobs Program Incentive Leverage Fund. The Oklahoma Development\n\nFinance Authority shall require that the guaranty provide for such\n\nterms of payment as may be required to make payments of principal,\n\ninterest or other costs in a timely manner to the entity or entities\n\nto which the Authority is obligated to make payment. No revenues\n\nauthorized to be apportioned pursuant to Section 2352 of Title 68 of\n\nthe Oklahoma Statutes shall be transferred to the Quality Jobs\n\nProgram Incentive Leverage Fund until the terms of the guaranty have\n\nbeen invoked and payment received or until the Oklahoma Development\n\nFinance Authority determines an event of default under the terms of\n\nthe guaranty.\n\nN. The Oklahoma Development Finance Authority, in addition to\n\nany other powers granted to it pursuant to the Oklahoma Development\nve Leverage Fund until the terms of the guaranty have\n\nbeen invoked and payment received or until the Oklahoma Development\n\nFinance Authority determines an event of default under the terms of\n\nthe guaranty.\n\nN. The Oklahoma Development Finance Authority, in addition to\n\nany other powers granted to it pursuant to the Oklahoma Development\n\nFinance Authority Act, may pursue such remedies for the collection\n\nof any debt owed to the Authority as authorized by this section as\n\nare available to any creditor under the laws of the State of\n\nOklahoma.\n\nO. The provisions of the Oklahoma Development Finance Authority\n\nAct shall be fully applicable to the obligations issued pursuant to\n\nsubsection A of this section and except insofar as the provisions of\n\nthis act are inconsistent with the provisions of the Oklahoma\n\nDevelopment Finance Authority Act, the Oklahoma Quality Jobs\n\nIncentive Leverage Act shall supercede and govern all entities,\n\ntransactions, obligations, rights and remedies associated with such\n\nobligations.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"346aa077d337f781f0aa4699a4ff33fb1ebf1909152d021f557a5a3755f8e25d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-3653","next":"us-ok/okla.-stat.-tit.-68-68-3655"},"notice":"GroundRules: Original legal text. Not legal advice."}