{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-857","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-857","heading":"Loans to industrial development agencies - Conditions","body":"(1) When it has been determined by the Authority, upon\n\napplication of an industrial development agency and hearing thereon\n\nin the manner hereinafter provided, that the establishment of a\n\nparticular industrial development project referred to in such\n\napplication has accomplished or will accomplish the public purposes\n\nof this act, the Authority may contract to loan such industrial\n\ndevelopment agency an amount not in excess of sixty-six and two-\n\nthirds percent (66 2/3%) of the cost or the estimated cost of such\n\nindustrial development project where the loan is secured by a first\n\nmortgage on the industrial development project, or not in excess of\n\nthirty-three and one-third percent (33 1/3%) of the cost or\n\nestimated cost of such industrial development project where the loan\n\nis secured by a second mortgage on the industrial development\n\nproject, as established or to be established, subject however to the\n\nfollowing conditions:\n\n(A) In case of industrial development projects to be\n\nestablished:\n\n1. the Authority shall first have determined that the\n\nindustrial development agency holds funds which together with the\n\ncommitment in paragraph 2 of this subsection constitute an amount\n\nequal to, or property of a value equal to, not less than thirty-\n\nthree and one-third percent (33 1/3%) of the estimated cost of\n\nestablishing the industrial development project where the\n\nAuthority's loan will be secured by a first mortgage on the\n\nindustrial development project, or not less than sixty-six and two-\n\nthirds percent (66 2/3%) of the estimated cost of establishing the\n\nindustrial development project where the Authority's loan will be\n\nsecured by a second mortgage on the industrial development project,\n\nwhich funds or property are available for and shall be applied to\n\nthe establishment of such project, and\n\n2. the Authority shall also have determined that the industrial\n\ndevelopment agency has obtained from other independent and\n\nresponsible sources, such as banks and insurance companies or\n\notherwise, a firm commitment for all other funds, over and above the\n\nloan of the Authority and such funds or property as the industrial\n\ndevelopment agency may hold, necessary for payment of all the\n\nestimated cost of establishing the industrial development project,\n\nand that the sum of all these funds is adequate to insure completion\n\nand operation of the plant or facility, or that the sum of all these\n\nfunds, together with the machinery and equipment to be provided by\n\nthe responsible tenant or responsible buyer, is adequate to insure\n\ncompletion and operation of the plant or facility. Provided,\n\nhowever, that the participation required of the industrial\n\ndevelopment agency referred to in paragraph 1 of this subsection,\n\nmay in the discretion of the Authority be reduced to the extent that\n\nfunds from independent and responsible sources under firm commitment\n\nshall, together with the participation of the Authority, and the\n\nparticipation of the industrialdevelopment agency, if any,\n\nconstitute one hundred percent (100%) of the cost of establishing an\n\nindustrial development project, as defined herein.\n\n(B) In the case of industrial development projects established\n\nwithout initial Authority loan participation:\n\n1. the Authority shall first have determined that the\n\nindustrial development agency has expended funds which, together\n\nwith the commitment in paragraph 2 of this subsection, constitute an\n\namount equal to, or has applied property which, together with the\n\ncommitment in paragraph 2 of this subsection, constitutes a value\n\nequal to, not less than sixty-six and two-thirds percent (66 2/3%)\n\nof the cost of establishing the industrial development project where\n\nthe Authority's loan will be secured by a first mortgage lien on the\n\nindustrial development project, or not less than thirty-three and\ne\n\ncommitment in paragraph 2 of this subsection, constitutes a value\n\nequal to, not less than sixty-six and two-thirds percent (66 2/3%)\n\nof the cost of establishing the industrial development project where\n\nthe Authority's loan will be secured by a first mortgage lien on the\n\nindustrial development project, or not less than thirty-three and\n\none-third percent (33 1/3%) where the Authority's loan will be\n\nsecured by a second mortgage lien on the industrial development\n\nproject, and\n\n2. the Authority shall also have determined that the industrial\n\ndevelopment agency obtained from other independent and responsible\n\nsources, such as banks and insurance companies or otherwise, other\n\nfunds necessary for payment of all the cost of establishing the\n\nindustrial development project, and that the industrial development\n\nagency participation and these funds have been adequate to insure\n\ncompletion and operation of the plant or facility, or that these\n\nfunds, together with the machinery and equipment provided by the\n\nresponsible tenant or responsible buyer, have been adequate to\n\ninsure completion and operation of the plant of facility. Provided,\n\nhowever, that the proceeds of any loan made by the Authority to the\n\nindustrial development agency pursuant to this subsection (B) shall\n\nbe used only for the establishment of additional industrial\n\ndevelopment projects in furtherance of the public purposes of this\n\nact; and provided further, that the participation required of the\n\nindustrial development agency referred to in paragraph 1 of this\n\nsubsection, may in the discretion of the Authority be reduced to the\n\nextent that funds from independent and responsible sources under\n\nfirm commitment together with the participation of the industrial\n\ndevelopment agency, constitute sufficient funds to establish the\n\nindustrial development project, as defined herein.\n\n3. Any such loan of the Authority shall be for such period of\n\ntime and shall bear interest at such rate as shall be determined by\n\nthe Authority and shall be secured by mortgage on the industrial\n\ndevelopment project for which such loan was made, such mortgage to\n\nbe second and subordinate only to the mortgage securing the first\n\nlien obligation issued to secure the commitment of funds from the\n\naforesaid independent and responsible sources and used in the\n\nfinancing of the industrial development project.\n\n4. Monies so loaned by the Authority to industrial development\n\nagencies shall be withdrawn from the Industrial Development Fund and\n\npaid over to the industrial development agency in such manner as\n\nshall be provided and prescribed by the rules and regulations of the\n\nAuthority.\n\n5. All payments of interest on said loans and the principal\n\nthereof shall be deposited by the Authority without delay in the\n\nIndustrial Development Fund.\n\n6. Loans by the Authority to an industrial development agency\n\nfor an industrial development project shall be made only in the\n\nmanner and to the extent as in this section provided, except,\n\nhowever, in those instances wherein an agency of the federal\n\ngovernment participates in the financing of an industrial\n\ndevelopment project by loan or grant, or otherwise, of federal\n\nfunds. When any federal agency does so participate, the Authority\n\nmay adjust the required ratios of financial participation by the\n\nindustrial development agency, the source of independent funds, and\n\nthe Authority; in such manner as to insure the maximum benefit\n\navailable to the industrial development agency, the Authority, or\n\nboth, by the participation of the federal agency; provided, however,\n\nthat no such adjustment of such ratios shall cause the Authority to\n\ngrant a loan to the industrial development agency in excess of\n\nsixty-six and two-thirds percent (66 2/3%) of the cost or estimated\n\ncost of the industrial development project where such loan is\navailable to the industrial development agency, the Authority, or\n\nboth, by the participation of the federal agency; provided, however,\n\nthat no such adjustment of such ratios shall cause the Authority to\n\ngrant a loan to the industrial development agency in excess of\n\nsixty-six and two-thirds percent (66 2/3%) of the cost or estimated\n\ncost of the industrial development project where such loan is\n\nsecured by a first mortgage on the industrial development project,\n\nor thirty-three and one-third percent (33 1/3%) of the cost or\n\nestimated cost of the industrial development project, where such\n\nloan is secured by a second mortgage on the industrial development\n\nproject.\n\n7. Where any federal agency participating in the financing of\n\nany industrial development project is not permitted to take as\n\nsecurity for such participation a mortgage the lien of which is\n\njunior to the mortgage of the Authority, the Authority shall in such\n\ninstances be hereby authorized to take as security for its loan to\n\nthe industrial development agency a mortgage junior in lien to that\n\nof the federal agency.","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":"36c39a2f7d2ecb0c10be89a33f79b5701767f42c2d5914f09a8de2355464cdc0","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-856","next":"us-ok/okla.-stat.-tit.-74-74-858"},"notice":"GroundRules: Original legal text. Not legal advice."}