{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-4002","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-4002","heading":"Bonds authorized","body":"(a) For the purpose of paying all or part of the cost of\n\nacquisition of any such lands, rights-of-way, easements, licenses\n\nand permits and the construction, acquisition, equipment and\n\nfurnishing of any such building or buildings or structure or\n\nstructures, plants or systems, or of any additions, improvements or\n\nextensions thereto, or any additions to existing buildings, the\n\nBoard of Regents of the institution for which such buildings,\n\nstructures, plants or systems, all of which lands, rights-of-way,\n\neasements, licenses and permits, buildings, structures, plants and\n\nsystems constructed, acquired, added to, improved or extended\n\nhereunder as a single project are hereafter referred to as \"the\n\nbuilding\", are to be constructed, acquired, added to, improved,\n\nextended, furnished or equipped, which Board of Regents or each of\n\nthem is hereinafter referred to as \"the board\", is authorized to\n\nborrow money on the credit of the income and revenues to be derived\n\nfrom the operation of the building, together with the income and\n\nrevenue derived from any existing revenue-producing building or\n\nfacility or facilities and, in anticipation of the collection of\n\nsuch income and revenues, to issue negotiable bonds in such amount\n\nas may in the opinion of the board be necessary for such purposes,\n\nand is authorized to provide for the payment of such bonds and the\n\nrights of the holders thereof as hereinafter provided. Such bonds\n\nmay be issued in one or more series, may bear such date or dates,\n\nmay mature at such time or times not exceeding forty (40) years from\n\ntheir date, may be in such denomination or denominations, may be in\n\nsuch form, either coupon or registered, may carry such registration\n\nand conversion privileges, may be executed in such manner, may be\n\npayable in such medium of payment at such place or places, may be\n\nsubject to such terms of redemption with or without premium, and may\n\nbear such rate or rates of interest, not exceeding twelve percent\n\n(12%) per annum, as may be provided by resolution or resolutions\n\nadopted by the board. Such bonds may be sold in such manner and at\n\nsuch price or prices plus accrued interest to date of delivery, as\n\nmay be considered by the board to be advisable, but interest cost to\n\nmaturity for any bonds issued hereunder shall not exceed twelve\n\npercent (12%) per annum, computed on the basis of average maturities\n\naccording to standard tables of bond values. Bonds payable to\n\nbearer shall have all the qualities and incidents of negotiable\n\npapers.\n\n(b) The board may in any resolution authorizing bonds hereunder\n\nprovide for the initial issuance of one or more bonds, in this\n\nsection called \"bond\", aggregating the amount of the entire issue\n\nand make such provision for installment payments of the principal\n\namount of any such bond as it may consider desirable, and may\n\nprovide for the making of any such bond payable to bearer or\n\notherwise, registrable as to principal or as to both principal and\n\ninterest, and where interest accruing thereon is not represented by\n\ninterest coupons, for the endorsing of payments of interest on such\n\nbond. The board may further make provision in any such resolution\n\nfor the manner and circumstances in and under which any such bond\n\nmay in the future, at the request of the holder thereof, be\n\nconverted into bonds of smaller denominations, which bonds of\n\nsmaller denominations may in turn be either coupon bonds or bonds\n\nregistrable as to principal or principal and interest.\nof interest on such\n\nbond. The board may further make provision in any such resolution\n\nfor the manner and circumstances in and under which any such bond\n\nmay in the future, at the request of the holder thereof, be\n\nconverted into bonds of smaller denominations, which bonds of\n\nsmaller denominations may in turn be either coupon bonds or bonds\n\nregistrable as to principal or principal and interest.\n\n(c) Bonds issued hereunder and interest thereon shall not be\n\nsubject to taxation by the State of Oklahoma, or by any county,\n\nmunicipality or political subdivision therein. The board may in its\n\ndiscretion authorize one issue of bonds hereunder for constructing,\n\nacquiring, adding to, improving, extending, furnishing or equipping\n\nof more than one building, as \"building\" is above defined, and may\n\nmake said bonds payable from the combined revenues of all buildings\n\nso constructed, acquired, added to, improved, extended, furnished or\n\nequipped, in whole or in part, with the proceeds thereof, together\n\nwith revenues from the operation of any existing revenue-producing\n\nbuilding or facility. The term \"building\" as herein used shall be\n\nconstrued to refer to all such \"buildings\". If more than one series\n\nof bonds shall be issued hereunder payable from the revenues of the\n\nbuildings or facilities, priority of lien thereof on such revenues\n\nshall depend on the provisions of the proceedings authorizing the\n\nissuance of such bonds, it being within the discretion of the board,\n\nat the time it authorizes the first such series, to provide that\n\nsubsequent series of bonds payable from such revenues shall not be\n\nissued, that subsequent series of bonds shall be subordinate as to\n\nlien, or that subsequent series of bonds shall enjoy parity of lien\n\nif such conditions and restrictions as may be specified in such\n\nproceedings can be met.\n\n(d) The board may issue bonds hereunder for the purpose of\n\nrefunding any obligations of the board payable from the revenues of\n\nany building, as \"building\" is hereinabove defined, together with\n\nrevenues derived from any existing revenue-producing building or\n\nfacility or facilities, or may authorize and deliver a single issue\n\nof bonds hereunder for the purpose in part of refunding obligations\n\nof the board payable from the revenues derived from any building or\n\nbuildings and in part for the making of additions, improvements and\n\nextensions to such building or buildings, or the construction or\n\nacquisition of additional buildings, and the furnishing and\n\nequipping of such buildings or additions, together with revenues\n\nderived from any existing revenue-producing building or facility or\n\nfacilities. Where bonds are issued under this paragraph solely for\n\nrefunding purposes, such bonds may either be sold as above provided\n\nor delivered in exchange for the outstanding obligations. If sold,\n\nthe proceeds may be either applied to the payment of the\n\nobligations, refunded or deposited in escrow for the retirement\n\nthereof. Nothing herein contained shall be construed to authorize\n\nthe refunding of any outstanding obligations which are not either\n\nmaturing, callable for redemption under their terms, or voluntarily\n\nsurrendered by their holders for cancellation, unless the board\n\ncovenants that sufficient funds to pay all remaining interest and\n\nprincipal payments of the outstanding bonds when due will be placed\n\nin escrow as hereinafter set out for such purpose at the time of\n\ndelivery of and payment for the new bonds issued hereunder.\n\nIn any case where refunding bonds are issued and sold six (6)\n\nmonths or more before the earliest date on which all bonds to be\n\nrefunded thereby mature or are called for redemption in accordance\n\nwith their terms, the proceeds of the refunding bonds, other than\n\nthe amount included therein incidental to the issuance of the bonds,\n\nshall be deposited, together with any other funds available and\n.\n\nIn any case where refunding bonds are issued and sold six (6)\n\nmonths or more before the earliest date on which all bonds to be\n\nrefunded thereby mature or are called for redemption in accordance\n\nwith their terms, the proceeds of the refunding bonds, other than\n\nthe amount included therein incidental to the issuance of the bonds,\n\nshall be deposited, together with any other funds available and\n\nappropriated by the board for the purpose, in escrow with a suitable\n\nbanking institution having trust powers within the state, whose\n\ndeposits are insured by the Federal Deposit Insurance Corporation.\n\nSuch monies shall be invested in securities maturing or callable at\n\nthe option of the holder on such dates and bearing interest at such\n\nrates as shall be required to provide funds sufficient, with any\n\ncash retained in the escrow account, to pay when due the interest to\n\naccrue on each obligation refunded to its maturity, or if\n\nprepayable, to an earlier designated date on which it may be called\n\nfor redemption, and to pay the principal amount of each such bond at\n\nmaturity, or, if prepayable at its designated earlier redemption\n\ndate, and to pay any premium required for redemption on such date.\n\nBefore the refunding bonds are delivered, the board shall by\n\nresolution irrevocably appropriate for these purposes the escrow\n\naccount and all payments of principal and interest on the securities\n\nheld therein, and shall provide for the call of all bonds directed\n\nto be prepaid, in accordance with their terms, on the redemption\n\ndate or dates designated. Securities purchased from the escrow\n\naccount shall be limited to direct obligations of the United States\n\nor obligations whose principal and interest payments are guaranteed\n\nby the United States. Such securities shall be purchased\n\nsimultaneously with the delivery of the refunding bonds. No\n\nrefunding bonds shall be issued more than ten (10) years before the\n\nlast date on which the bonds to be refunded thereby mature or are\n\ndirected to be prepaid in accordance with their terms. All bonds\n\nissued under this paragraph and the preceding paragraph shall in all\n\nrespects be authorized, issued and secured in the manner provided\n\nfor other bonds issued under this article, and shall have all of the\n\nattributes of such bonds. The board may provide that any such\n\nrefunding bonds shall have the same priority of lien on the revenues\n\npledged for their payment as was enjoyed by the bonds refunded\n\nthereby.\n\n(e) All proceedings heretofore adopted by said Board of Regents\n\nfor the issuance of revenue bonds on a parity as to payment with\n\nother existing revenue bonds or which provide for the pledging of\n\nrevenues from the building to be constructed, improved and furnished\n\nfrom the proceeds of revenue bonds and income and revenue derived\n\nfrom any existing revenue-producing building or facility, or\n\nfacilities, and the bonds issued pursuant thereto are hereby\n\nvalidated, ratified and confirmed, and such revenue bonds constitute\n\nvalid and binding obligations in accordance with the terms of such\n\nproceedings.","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":"c9a9c54967bc3470bd4b9142118e5fa2ae538cc6ddca836efcc75325fe9541d1","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-4001","next":"us-ok/okla.-stat.-tit.-70-70-4002.1"},"notice":"GroundRules: Original legal text. Not legal advice."}