Oklahoma § 62-754 - Limitations on refunding bonds - School bonds Competitive bidding - Excluded bidders - Conditions of refunding Escrow supplements - Issuance of refunding bond

§ 62-754. Limitations on refunding bonds - School bonds Competitive bidding - Excluded bidders - Conditions of refunding Escrow supplements - Issuance of refunding bond

A. Any general obligation bonds issued or incurred by any

public body may be refunded by the public body issuing or incurring

the general obligations or any successor of thepublic body in the

name of the public body that issued or incurred the obligation or

indebtedness being refunded, but subject to provisions concerning

their payment and to any other contractual limitations in the

proceedings authorizing their issuance or otherwise appertaining to

the general obligations; provided, approval of the refunding by an

election held in the same manner as required for the issuance of the

general obligations being refunded shall be required if the

refunding extends the maturity date of the obligations.

B. 1. The outstanding bonded indebtedness of any school

district at the time of the inclusion of all the territory of the

district in another district by reorganization, consolidation,

dissolution, or any other lawful means may be refunded by action of

the governing body of the district including such territory at the

time of such refunding, whether or not such indebtedness has been

assumed by the district including such territory.

Oklahoma Statutes - Title 62. Public Finance

2. When an entire school district with outstanding bonded

indebtedness has been divided and parts of the school district have

been included within two or more other districts by any lawful

means, the refunding of such indebtedness shall require affirmative

action by a majority of the members of the governing body of each of

the districts within which any part of the territory of the district

having the indebtedness is then included, except as otherwise

provided for in the General Obligation Public Securities Refunding

Act.

3. The outstanding bonded indebtedness of any school district

at the time any territory of the district is detached from the

school district by any lawful means, which school district has

retained its lawful corporate existence subsequent to the detachment

of said territory from the school district, may be refunded by

action of the governing body of the school district from which

territory has been detached with or without the concurrence of or

action by the governing body of any school district within which all

or any part of such detached territory is included. The school

districts from which territory has been detached and which retain

their corporate existence subsequent to detachment are specifically

exempted from the requirements and provisions of paragraph 2 of this

subsection.

C. General obligation refunding bonds may be issued to refund

all or any portion of one or more outstanding general obligations of

a public body, but no two or more outstanding general obligations,

or portions thereof, may be refunded by a single issue of refunding

bonds unless the taxable property upon which tax levies are being

made for payment of each such outstanding general obligation

proposed to be refunded by such single issue of refunding bonds, and

the same tax and debt limitations, if any, applicable to each

obligation proposed to be refunded by such single issue of refunding

bonds are also applicable to all other obligations to be refunded by

such single issue.

D. All refundings of general obligation issues shall be made

through competitive bidding pursuant to the procedures established

by Section 354 of Title 62 of the Oklahoma Statutes. The governing

body may waive the competitive bid requirement if three-fourths

(3/4) of the membership of the governing body so vote or upon a

unanimous vote of those members voting if less than three-fourths

(3/4) of the membership of the governing body is present. Refunding

bonds may be delivered in exchange for the obligations to be

refunded or may be sold by competitive or negotiated sale as

determined by the governing body in the best interest of the public

body in either of the following manners:

1. If the public body sells the refunding bonds at competitive

sale, the public body is hereby authorized to pay all expenses

incident to the issuance of said bonds including fees for legal,

Oklahoma Statutes - Title 62. Public Finance

financial, and other assistance in the preparation and proceedings

thereof, from the proceeds of such refunding bonds or any other

moneys available to the public body. The proceeds of such sale

shall be applied as provided for in the General Obligation Public

Securities Refunding Act. The bonds may be sold at a sum not less

than par with accrued interest.

2. If the bonds are sold through a negotiated sale, it shall be

unlawful for any board of county commissioners, city council or city

commissioners, town council, township board, school district board,

board of education or any other officer of any such municipal

corporation, or any officer of any political corporation, or

subdivision of this state, to sell, agree to sell or contract to

sell any bonds issued with, or without a vote of the people for any

sum less than par with accrued interest added. All fees for legal,

financial, and other assistance in the preparation and proceedings

thereof shall be paid from the proceeds of such refunding bonds.

E. Persons, firms, or corporations prohibited from bidding on

or purchasing general obligations pursuant to Section 355 of Title

62 of the Oklahoma Statutes shall be prohibited from bidding on or

purchasing refunding bonds issued pursuant to the provisions of the

General Obligation Public Securities Refunding Act.

F. No general obligation may be refunded unless the holder of

the general obligation voluntarily surrenders it for exchange of

payment or the general obligation either matures or is callable by

the issuer for prior redemption under its terms within twenty-five

(25) years from the date of issuance of the refunding bonds, and

provision shall have been made in such refunding for paying the

obligation being refunded within said period of time. In no event

shall general obligations be refunded except for the purposes

specified in paragraph 1 of subsection A of Section 3 of this act,

or unless the total of the principal and interest payable over the

life of the refunding bonds and the expenses incurred in issuing the

refunding bonds shall be less than the total of the principal and

interest payable over the life of the refunded obligations.

G. A public body shall be authorized to utilize an escrow

supplement in accomplishing any refunding undertaken pursuant to the

General Obligation Public Securities Refunding Act.

H. The issuance of refunding bonds by any public body pursuant

to the provisions of the General Obligation Public Securities

Refunding Act shall not be interpreted to be the creation of debt or

indebtedness such that the issuance would require the approval at an

election in accordance with the Constitution or laws of this state.

No such approval shall be required for the issuance of such

refunding bonds except as provided for in the General Obligation

Public Securities Refunding Act. Any obligations which have been

refunded, pursuant to the provisions of the General Obligation

Public Securities Refunding Act, either by immediate payment or

Oklahoma Statutes - Title 62. Public Finance

redemption and retirement or by the placement of net proceeds of

refunding bonds in escrow shall continue to be considered general

obligations but shall not be deemed outstanding for purposes of

determining compliance with debt limitations from and after the date

on which sufficient moneys are placed either with the paying agent

of such outstanding obligations for the purpose of immediately

paying or redeeming and retiring such bonds or with the escrow agent

for the purpose of paying or redeeming and retiring such bonds at a

designated future date.

Added by Laws 1984, c. 255, § 4, emerg. eff. May 30, 1984. Amended

by Laws 1987, c. 94, § 1, emerg. eff. May 18, 1987.