{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-5063.4","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-5063.4","heading":"Fund - Use and expenditures - Credit enhancement -","body":"Rules and regulations for administration.\n\nA. The Fund shall be employed by the Oklahoma Development\n\nFinance Authority solely to secure the payment of principal,\n\ninterest and premium, if any, on the revenue bonds and other\n\nfinancial obligations issued by the Authority pursuant to the\n\nOklahoma Development Finance Authority Act, for the specific purpose\n\nof enhancing and supporting the credit of such revenue bonds and\n\nother financial obligations. Such other financial obligations may\n\ninclude guarantees, loans, letters of credit or other similar\n\nobligations issued by the Authority pursuant to the Oklahoma\n\nDevelopment Finance Authority Act, and may include commitments by\n\nthe Authority for the Fund to secure loans made by private financial\n\ninstitutions. Except for the financial obligation provided in\n\nSection 5 of this act and Section 5063.4i of this title, each such\n\nother financial obligation must be secured by a first lien security\n\ninterest on real estate, equipment or inventory, and, except as\n\nprovided in Section 5 of this act and Sections 5063.4i and 5063.4b\n\nof this title, the amount of the commitment by the Fund shall not\n\nexceed twenty-five percent (25%) of the value of the collateral\n\nsecuring each such financial transaction. No portion of the monies\n\nor other assets deposited to the Fund shall be expended or otherwise\n\nused by the Authority in meeting its day-to-day operating expenses,\n\nin paying the cost of issuance of the Authority's revenue bonds or\n\nother financial obligations, or in supporting any other activity of\n\nthe Authority not directly related to the Credit Enhancement Reserve\n\nFund or to enhancing the credit of the Authority's revenue bonds and\n\nother financial obligations.\n\nB. The Authority shall administer the Fund prudently and\n\naccording to good insurance practice. Such administration will\n\nminimize the loss experience of the Fund, assure the future\n\nviability of the Fund, and assure the continuing availability of the\n\nproceeds of general obligation bonds issued pursuant to Section\n\n5063.11 of this title as a credit enhancement vehicle for bond\n\nissues in this state on an ongoing basis. Accordingly, the granting\n\nof credit enhancement by the Fund shall be based on principles of\n\ninsurability generally applied in the credit enhancement/insurance\n\nindustry. The Authority is authorized and directed to adopt initial\n\nrules and regulations governing the credit enhancement activities\n\nand administration of the Fund, including rules and regulations\n\ndealing with the subjects of project feasibility, credit evaluation,\n\ncollateral evaluation, reinsurance, maximum risk retention by the\n\nFund, avoidance of adverse risk selection, and all other factors\n\ndeemed relevant by the Authority to the decision whether the Fund\n\nshould provide credit enhancement to a particular issue of debt, to\n\nwhat extent, on what terms, and for what premium rate.\n\nC. The initial rules and regulations for administration of the\n\nFund promulgated by the Authority pursuant to subsection B of this\n\nsection shall be subject to the approval of the Legislature in\n\naccordance with the requirements of the Oklahoma Administrative\n\nProcedures Act.\n\nD. No general obligation bonds may be issued pursuant to\n\nSection 5063.11 of this title except upon the approval by a vote of\n\nthe people of the State of Oklahoma authorizing the Oklahoma\n\nDevelopment Finance Authority to issue general obligation bonds for\n\nthe purposes set forth in this act and unless and until initial\n\nrules and regulations governing administration of the Fund have been\n\nadopted by the Authority. The Authority by resolution or other\n\nappropriate action of the Authority shall determine each issue of\n\nbonds or portions thereof with respect to which the benefits of the\n\nact shall inure.\n\nE. The Authority is authorized to amend the initial rules and\net forth in this act and unless and until initial\n\nrules and regulations governing administration of the Fund have been\n\nadopted by the Authority. The Authority by resolution or other\n\nappropriate action of the Authority shall determine each issue of\n\nbonds or portions thereof with respect to which the benefits of the\n\nact shall inure.\n\nE. The Authority is authorized to amend the initial rules and\n\nregulations governing administration of the Fund, either by addition\n\nof new rules and regulations, or a change or repeal of existing\n\nrules and regulations; provided, that such amendment, whether by\n\naddition, change or repeal, shall be subject to the approval of the\n\nLegislature in accordance with the requirements of the Oklahoma\n\nAdministrative Procedures Act.\n\nF. Except as provided in subparagraph b of paragraph 4 of\n\nsubsection A of Section 695.8 of Title 62 of the Oklahoma Statutes,\n\ncredit enhancement by the Fund for any bonds or other financial\n\nobligations issued by the Authority pursuant to law shall also\n\nrequire approval of the Executive Bond Oversight Commission and the\n\nLegislative Bond Oversight Commission as provided by law.","path":["OK Code","Title 74"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os74.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"a74e17b8dd299f5cf8871c90e6a0b7659f4da952d46dda488cfe3e718cccff0f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-5063.3","next":"us-ok/okla.-stat.-tit.-74-74-5063.4a"},"notice":"GroundRules: Original legal text. Not legal advice."}