{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-5-136.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-5-136.1","heading":"Certificates of indebtedness – Curing of delinquencies","body":"by withholding of State Aid.\n\nA. With respect to school districts seeking cash-flow\n\nmanagement during any fiscal year, any school district may issue and\n\ndeliver certificates of indebtedness bearing a stated maturity date\n\nfor the purpose of participating in a short-term cash management\n\nprogram pursuant to the provisions of Section 177.2 of Title 60 of\n\nthe Oklahoma Statutes to fund the estimated costs of operations,\n\ncapital expenditures or other lawful costs of the school district\n\nfor the current fiscal year. The proceeds of certificates of\n\nindebtedness shall be set aside in a separate account and used only\n\nfor the purpose of meeting expenditures and obligations which would\n\notherwise be lawfully payable from the revenue certified by the\n\nCounty Excise Board. As proceeds from the certificates are used to\n\npay such lawful expenditures and obligations, the financial records\n\nof the school district shall reflect the amounts of these\n\nobligations paid with such proceeds so that a like amount of revenue\n\ncollected and available to the school district may be used to repay\n\nthe certificates of indebtedness, in whole or in part. The State\n\nAuditor and Inspector shall adopt uniform accounting procedures for\n\nuse by the school districts to ensure that the issuance of\n\ncertificates of indebtedness and the use of the proceeds derived\n\nfrom these certificates will be documented and will not result in a\n\ndistrict overspending its authorized budget. All certificates of\n\nindebtedness executed pursuant to a cash management program shall be\n\nissued, delivered and registered for payment in the specific manner\n\ndesignated by the State Auditor and Inspector; provided, any such\n\ncertificates of indebtedness shall be made payable on any date\n\nwithin the then current fiscal year and may be purchased for value\n\nthrough the funding of uncollateralized investments or investments\n\nauthorized pursuant to Section 5-115 of this title made for the\n\nbenefit of and on behalf of the school district. Short-term cash\n\nmanagement programs of any school district may lawfully provide for\n\nthe investment of note or bond proceeds by the issuer of the\n\nobligations with the benefit and use of such proceeds assured to the\n\nschool district when needed by the school district for that fiscal\n\nyear and as approved by the Oklahoma Commission on School and County\n\nFunds Management. In no case may a school district participate in a\n\nshort-term cash management program in any given fiscal year beyond\n\nthat fiscal year. Monies received by a school district pursuant to\n\na short-term cash management program may be used only for those\n\npurposes for which other monies of the school district may be\n\nlawfully expended.\n\nB. For school districts electing to participate in the payment\n\nsecurity procedure set forth in this subsection, which procedure\n\nshall serve as additional security for the payment of any bond or\n\nnote of a participating school district, the State Board of\n\nEducation shall cure any delinquencies in payment by withholding\n\nState Aid due the participating district as determined pursuant to\n\nSection 18-200.1 of this title. Whenever the designated paying\n\nagent for receipt of payments for the school district does not\n\nreceive a payment when due pursuant to the authorizing documents,\n\nthe paying agent shall be entitled to payment from the withheld\n\nState Aid in any amount sufficient to cure the payment deficiency.\n\nThe paying agent shall notify the State Department of Education and\n\nthe superintendent of the school district of the delinquent payment\n\nby telephone, facsimile, or other similar communication, followed by\n\nwritten verification. Unless the Department determines that payment\n\nhas been made by the school district and there is no longer a\n\npayment deficiency, the Department shall withhold from the next\n\ndistribution of State Aid for the school district an amount\nand\n\nthe superintendent of the school district of the delinquent payment\n\nby telephone, facsimile, or other similar communication, followed by\n\nwritten verification. Unless the Department determines that payment\n\nhas been made by the school district and there is no longer a\n\npayment deficiency, the Department shall withhold from the next\n\ndistribution of State Aid for the school district an amount\n\nsufficient to cure the deficiency and remit the amount to the paying\n\nagent. In the event that the amount of State Aid next due to be\n\ndistributed to the delinquent school district is not sufficient to\n\ncure the delinquency, the Department shall continue to withhold\n\nState Aid as due and remit it to the paying agent until the payment\n\ndeficiency has been cured.","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":"f62b01db2339346360e634dc3c9e7308e0eb89e392bf4ddebef2889ab5954d8e","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-5-135.4","next":"us-ok/okla.-stat.-tit.-70-70-5-137"},"notice":"GroundRules: Original legal text. Not legal advice."}