Oklahoma § 62-755 - Principal amount of refunding bond - Requisites of bonds Redemption - Recitals

§ 62-755. Principal amount of refunding bond - Requisites of bonds Redemption - Recitals

A. The principal amount of the refunding bonds may be less

than, more than, or the same as the principal amount of the

obligations being refunded, if there is a provision for the payment

in full and discharge of such refunded obligations. The principal

amount of the refunding bonds may be greater than the principal

amount of the bonds being refunded only if the total principal and

interest of the refunding bonds is less than the total principal and

interest of the bonds being refunded.

B. Refunding bonds issued pursuant to the provisions of the

General Obligation Public Securities Refunding Act shall:

1. Be of a convenient denomination;

2. Mature at such time not exceeding twenty-five (25) years

from the date of the refunding bonds as determined by the governing

body, with municipal levies to begin as determined by the governing

body, but in not more than five (5) years of the date of the

refunding bonds;

3. Be in coupon or registered form;

4. Bear interest at a specified rate determined by the

governing body, but not exceeding any applicable statutory rate,

payable annually or semiannually, but the first interest payment may

be for interest accruing for any other period not to exceed three

(3) years;

Oklahoma Statutes - Title 62. Public Finance

5. Be made payable, both principal and interest, in legal

tender of the United States, at such place as determined by the

governing body;

6. Be legal tender and authorized investments for banks,

savings banks, trust companies, savings and loan associations,

insurance companies, fiduciaries, trustees and guardians, and for

the State of Oklahoma and any of its political subdivisions,

departments, institutions and agencies. Coupon bonds, when

accompanied by all unmatured coupons appurtenant thereto, and

registered bonds are approved as collateral security for all

deposits of state funds or any other public funds. Provided, the

bonds being refunded shall still be approved as collateral security

for all deposits of state funds or any other public funds.

C. The right to redeem all or part of the refunding bonds prior

to their maturity, and the order of any said redemption, may be

reserved in the ordinance or resolution of the governing body

authorizing the issuance of the bonds and, if so reserved, shall be

set forth in the text of such refunding bonds.

D. Any ordinance or resolution authorizing, or any escrow

agreement or trust indenture or other instrument appertaining to,

any refunding bonds issued pursuant to the provisions of the General

Obligation Public Securities Refunding Act may provide that each

refunding bond shall recite that it is issued pursuant to the

authority of the General Obligation Public Securities Refunding Act.

The recital shall conclusively impart full compliance with all of

the provisions and limitations of the General Obligation Public

Securities Refunding Act. All refunding bonds issued containing the

recital shall be incontestable for any cause whatsoever after their

delivery for value.

Added by Laws 1984, c. 255, § 5, emerg. eff. May 30, 1984.