Oklahoma § 62-804 - Sale of bonds - Per value - Maturing installments - Notice

§ 62-804. Sale of bonds - Per value - Maturing installments - Notice

for bids - Acceptance of bids - Contestability.

Except as otherwise provided in the Municipal and County

Economic and Community Development Bonds Act, bonds sold pursuant to

Section 35 of Article X of the Oklahoma Constitution shall be issued

pursuant to the following terms:

Oklahoma Statutes - Title 62. Public Finance

1. Bonds may be sold for not less than ninety-eight percent

(98%) of par with accrued interest added. All commissions allowed

any firms, persons, or corporations for the sale of the bonds, after

deducting from the sum total for which the bonds are sold, must

leave in the treasury a sum equal to ninety-eight percent (98%) of

the par value and accrued interest thereof;

2. The bonds must be made to mature in installments so that the

annual maturing principal plus interest is as nearly equal as

practicable throughout the term of the issue, or provide for level

principal debt service payments, which provide for principal on the

bonds to mature in equal annual installments, except that the first

maturing installment may be for such sum, not more than one

installment and the last maturing installment may be for such sum

not more than two installments, as will complete the full issue of

the bonds notwithstanding the necessity of varying the amount

thereof to complete the same;

3. Whenever bonds shall be made or ordered by any municipality

or county, the proper officers, before selling the bonds, shall

cause at least ten (10) days' notice to be given of the time and

place when and where bids therefor will be received. The notice

shall be signed by the county clerk if issued by a county, and by

the clerk of the municipality if issued by a municipality, and shall

be published once a week for two (2) consecutive weeks in a legally

qualified newspaper published in such political subdivision. The

date mentioned in the notice for the sale of the bonds shall not be

less than ten (10) days after the first publication thereof; and

4. The bonds must be awarded to the lowest true interest cost

bidder who will pay therefor at least ninety-eight percent (98%) of

par plus accrued interest. Bidders shall indicate the true interest

cost of their bid. Upon the acceptance of a bid, the bonds shall be

issued in accordance therewith and shall be delivered to the

purchaser upon payment of the purchase price of the bonds. Each

bidder shall submit with the bid a sum in cash or its equivalent,

equal to two percent (2%) of the bid, and upon the acceptance of any

bid, the deposit becomes the property of the county or municipality

selling the bonds, and shall be credited on the purchase price of

the bonds or returned upon payment in full of the purchase price,

upon the understanding that if the purchaser fails for five (5) days

after tender of the bonds to pay the balance of the purchase price,

the sale is annulled and the deposit is retained by the governing

body of the county or municipality and credited to the account for

which the bonds are being issued and shall be used accordingly. No

tender of the bonds to the purchaser is valid until after the

expiration of the period of contestability, as now provided by law.

All other deposits shall be returned. The governing body selling

the bonds shall have the right to reject all bids and readvertise

the bonds for sale.

Oklahoma Statutes - Title 62. Public Finance

Added by Laws 1991, c. 142, § 5, emerg. eff. May 1, 1991.

by Laws 2003, c. 433, § 5, eff. July 1, 2003.

Amended