{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-3980.7","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-3980.7","heading":"Power to borrow money and issue bonds - Bond","body":"resolutions - Bonds deemed negotiable instruments.\n\nA. An authorized issuer shall have the power and is hereby\n\nauthorized to borrow money and to issue bonds in such principal\n\namounts as the authorized issuer determines shall be necessary to\n\nprovide sufficient funds for:\n\n1. The providing of financing for all or any part of any\n\nprojects of the Regents as authorized under this act;\n\n2. The payment of principal and interest on bonds of the\n\nauthorized issuer;\n\n3. The establishment of reserves to secure the bonds; and\n\n4. All other expenditures of the authorized issuer incident to\n\nand necessary or convenient to carry out its purposes and powers,\n\nincluding the payment of any credit enhancement fees and costs of\n\nissuance incurred in connection with the issuance of bonds. The\n\nauthorized issuer shall have the power to make expenditures for\n\npurposes of insuring and securing holders of bonds as provided in\n\nthis act.\n\nB. The authorized issuer shall have the power to refund any\n\nbonds and any bonds, notes or other obligations heretofore or\n\nhereafter issued by any other issuer of bonds in the state if the\n\nauthorized issuer is authorized hereunder to issue bonds for the\n\npurpose the refunded bonds were issued by the issuance of new bonds,\n\nwhether the bonds to be refunded have or have not matured, and to\n\nissue bonds partly to refund bonds then outstanding and partly for\n\nany of its corporate purposes. Refunding bonds may be issued in\n\nsuch amount as the authorized issuer may determine, but not\n\nexceeding an amount sufficient to refund the principal amount of the\n\nbonds or notes to be refunded, together with any unpaid interest\n\naccrued and to accrue thereon and any premiums, expenses and\n\ncommissions incurred in connection with the issuance of such\n\nrefunding bonds and any reserve established in connection with the\n\nissuance of such refunding bonds. The refunding bonds may be sold\n\nand the proceeds applied to the purchase, redemption, or payment of\n\nthe bonds to be refunded or exchanged for the bonds to be refunded,\n\nall as determined by the authorized issuer.\n\nC. All bonds of the authorized issuer issued pursuant to this\n\nsection shall be special and limited obligations of the authorized\n\nissuer, secured and payable solely out of the revenues and receipts,\n\nexcluding appropriations from tax receipts, derived pursuant to a\n\nfinancing agreement, but in no case shall such obligations be\n\ngeneral obligations of the State of Oklahoma.\n\nD. The bonds shall be authorized by resolution or resolutions\n\nof the authorized issuer, shall be dated such date or dates, and\n\nshall mature at such time or times as such resolution or resolutions\n\nmay provide. The bonds shall bear interest at such rate or rates or\n\ncontain terms providing for the means of determining such rate or\n\nrates, including variations in such rates, be in such denomination,\n\nbe in such form, either coupon or registered, or in book-entry form,\n\ncarry such registration privileges, be executed in such manner, be\n\npayable in such medium of payment, at such place or places, and be\n\nsubject to such term of redemption, including redemptions prior to\n\nmaturity, as such resolution or resolutions may provide. The bonds\n\nof the authorized issuer may be sold by the authorized issuer at\n\npublic or private sale, and at the price or prices as the authorized\n\nissuer shall determine.\n\nE. Any resolution or resolutions authorizing any bonds or any\n\nissue thereof may contain provisions, which shall be a part of the\n\ncontract or contracts with the owners thereof, as to:\n\n1. Pledging all or any part of the revenues to secure the\n\npayment of the bonds or of any issue thereof, subject to such\n\nagreements with bondowners as may then exist;\n\n2. Pledging all or any part of the assets of the authorized\n\nissuer, including mortgages and obligations securing the same, to\ncontain provisions, which shall be a part of the\n\ncontract or contracts with the owners thereof, as to:\n\n1. Pledging all or any part of the revenues to secure the\n\npayment of the bonds or of any issue thereof, subject to such\n\nagreements with bondowners as may then exist;\n\n2. Pledging all or any part of the assets of the authorized\n\nissuer, including mortgages and obligations securing the same, to\n\nsecure the payment of the bonds or of any issue of bonds, subject to\n\nthe agreements with bondowners as may then exist;\n\n3. The use and disposition of the gross income from assets of\n\nany type owned by the authorized issuer and payment of principal of\n\nassets of any type owned by the authorized issuer;\n\n4. The setting aside of reserves or sinking funds and the\n\nregulations and disposition thereof;\n\n5. Limitations on the purpose to which the proceeds of sale of\n\nbonds may be applied and pledging the proceeds to secure the payment\n\nof the bonds;\n\n6. Limitations on the issuance of additional bonds, the terms\n\nupon which additional bonds may be issued and secured, and the\n\nrefunding of outstanding or other bonds;\n\n7. The procedure, if any, by which the terms of any contract\n\nwith bondowners may be amended or abrogated, the amount of bonds the\n\nowners of which must consent thereto, and the manner in which the\n\nconsent may be given;\n\n8. Vesting in a trustee such property, rights, powers and\n\nduties in trust as the authorized issuer may determine, which may\n\ninclude any or all of the rights, powers, and duties of the trustee\n\nappointed by the bondowners pursuant to this act and limiting or\n\nabrogating the right of bondowners to appoint a trustee under this\n\nact or limiting the rights, powers, and duties of the trustee;\n\n9. Defining the acts or omissions to act which shall constitute\n\na default in the obligations and duties of the authorized issuer to\n\nthe owners of the bonds and providing for the rights and remedies of\n\nthe owners of the bonds in the event of default, including as a\n\nmatter of right the appointment of a receiver; but the rights and\n\nremedies shall not be inconsistent with the general laws of the\n\nstate and other provisions of this act; and\n\n10. Any other matters, of like or different character, which in\n\nany way affect the security or protection of the owners of the\n\nbonds.\n\nF. Any pledge made by the authorized issuer shall be valid and\n\nbinding from the time when the pledge is made. The revenues,\n\nmonies, or property so pledged and thereafter received by the\n\nauthorized issuer shall immediately be subject to the lien of such\n\npledge without any physical delivery thereof or further act, and the\n\nlien of any such pledge shall be valid and binding as against all\n\nparties having claims of any kind in tort, contract, or otherwise\n\nagainst the authorized issuer, irrespective of trust indenture\n\nwhether the parties have notice thereof. Neither the resolution,\n\ntrust indenture nor any other instrument by which a pledge is\n\ncreated need be recorded.\n\nG. Bonds of the authorized issuer may be secured by resolution\n\nof the authorized issuer or a trust indenture or similar document by\n\nand between the authorized issuer and a corporate trustee, which may\n\nbe any bank having the power of a trust company or any trust company\n\nas provided by law. Such resolution, trust indenture or similar\n\ndocument may contain such provisions for protecting and enforcing\n\nthe rights and remedies of the bondowners as may be reasonable and\n\nproper and not in violation of law, including covenants setting\n\nforth the duties of the authorized issuer in relation to the\n\nexercise of its corporate powers and the custody, safeguarding and\n\napplication of all monies. The authorized issuer may provide by the\n\nresolution or trust indenture for the payment of the proceeds of the\n\nbonds and the revenues to the trustee under the trust indenture or\n\nother depository, and for the method of disbursement thereof, with\nth the duties of the authorized issuer in relation to the\n\nexercise of its corporate powers and the custody, safeguarding and\n\napplication of all monies. The authorized issuer may provide by the\n\nresolution or trust indenture for the payment of the proceeds of the\n\nbonds and the revenues to the trustee under the trust indenture or\n\nother depository, and for the method of disbursement thereof, with\n\nsuch safeguards and restrictions as it may determine.\n\nH. Whether or not the bonds are of the form and character as to\n\nbe negotiable instruments under the terms of the Uniform Commercial\n\nCode, the bonds are hereby made negotiable instruments within the\n\nmeaning of and for all the purposes of the Uniform Commercial Code,\n\nsubject only to the provisions of the bonds relating to\n\nregistration.\n\nI. In the event that any of the members or officers of the\n\nauthorized issuer shall cease to be members or officers of the\n\nauthorized issuer prior to the delivery of any bonds or coupons\n\nsigned by them, their signatures or facsimiles thereof shall\n\nnevertheless be valid and sufficient for all purposes, the same as\n\nif such members or officers had remained in office until such\n\ndelivery.\n\nJ. Neither the members of the authorized issuer nor any other\n\nperson executing the bonds issued under this act shall be subject to\n\npersonal liability or accountability by reason of the issuance\n\nthereof.\n\nK. The authorized issuer shall have the power to provide for\n\nthe replacement of lost, destroyed, or mutilated bonds.\n\nL. Except as otherwise provided by this act, bonds issued\n\npursuant to the provisions of this act shall never constitute an\n\nindebtedness of the state within the meaning of any state\n\nconstitutional provision or statutory limitation, but such bonds\n\nshall be indebtedness payable solely from sources indicated on the\n\nbond documents, and shall never constitute nor give rise to a\n\npecuniary liability of this state or a charge against the general\n\ncredit of the state or taxing powers of the state, and such fact\n\nshall be plainly stated on the face of each bond.","path":["OK Code","Title 70"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os70.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"bda4f3011ba2841711ea0d296b2e089b3774f79665086f7a87825179a774a9f1","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-3980.6","next":"us-ok/okla.-stat.-tit.-70-70-3980.8"},"notice":"GroundRules: Original legal text. Not legal advice."}