Oklahoma § 62-583 - Purpose

§ 62-583. Purpose

A. The Code provides that interest with respect to certain

obligations may not be exempt from federal income taxation unless

they are in registered form. It is therefore a matter of state

concern that public entities be authorized to provide for the

issuance of obligations in such form. It is a purpose of this act

to empower all public entities to establish and maintain a system

pursuant to which obligations may be issued in registered form

within the meaning of the applicable provisions of the Code.

B. Obligations have traditionally been issued in bearer rather

than in registered form, and a change from bearer to registered form

may affect the relationships, rights and duties of issuers of and

the persons that deal with obligations, and by such effect, the

costs. Such effects will impact the various issuers and varieties

of obligations differently depending on their legal and financial

characteristics, their markets and their adaptability to recent and

prospective technological and organizational developments. It is

therefore a matter of state concern that public entities be provided

flexibility in the development of such systems and control over

system incidents, so as to accommodate such differing impacts. It

is a purpose of this act to empower the establishment and

maintenance, and amendment from time to time, of differing systems

Oklahoma Statutes - Title 62. Public Finance

of registration of obligations, including system incidents, so as to

accommodate the differing impacts upon issuers and varieties of

obligations. It is further a purpose of this act to authorize

systems that will facilitate the prompt and accurate transfer of

registered public obligations and developing practices with regard

to the registration and transfer of registered public obligations.

C. In order that all state and local obligations issued after

July 1, 1983, retain their tax exempt status and avoid other

penalties, the Legislature of the State of Oklahoma hereby urges and

encourages all state and local obligations be in registered form

unless:

1. The obligation is not of a type offered to the public;

2. The obligation has a maturity at issue of one (1) year or

less; or

3. The obligation is sold only to foreign persons and interest

on such obligation is payable only outside the United States and its

possessions.

These exemptions from registration shall be construed in light of

Internal Revenue Code Regulations interpreting 16 U.S.C.A. Section

310(b).

Added by Laws 1983, c. 170, § 3, eff. July 1, 1983.