Oklahoma § 62-829 - Required attributes of bonds – Open competitive offering –

§ 62-829. Required attributes of bonds – Open competitive offering –

Special limited obligations – Investment by financial and insurance

companies.

A. Bonds issued pursuant to this act shall:

1. Be issued in one or more series;

2. Bear such date or dates;

3. Mature at such time or times not exceeding twenty-five (25)

years from their date;

4. Be in such denomination or denominations;

5. Be payable in such medium of payment at such place or

places;

6. Be subject to such terms of redemption with or without

premium; and

7. Bear such rate or rates of interest as may be provided in

the Final Project Plan; provided, however, that the average coupon

rate for such bonds shall not exceed fourteen percent (14%) per

annum.

B. All bonds issued hereunder, except bonds sold to the federal

government or any agency thereof or to any agency of the State of

Oklahoma, shall be awarded to the lowest and best bidder based upon

an open competitive public offering, advertised at least once a week

Oklahoma Statutes - Title 62. Public Finance

for two (2) successive weeks in a newspaper of general circulation

in the county where the Participating Entity is located prior to the

date on which bids are received and opened; provided, however, that

the Governor may waive this requirement if the Governor determines

that a lower aggregate interest cost may be obtained through a

negotiated sale. In no event, however, shall any bonds issued

hereunder be sold for less than ninety-six percent (96%) of par

value.

C. Bonds shall have all the qualities and incidents of

negotiable paper and the interest thereon shall not be subject to

taxation by the State of Oklahoma.

D. Each Participating Entity may issue bonds pursuant to this

act for the purpose of refunding any obligations of such entity

issued pursuant to this act.

E. The bonds issued pursuant to this act shall not constitute

an obligation of the State of Oklahoma, or general obligations of

the issuers thereof, but shall be special, limited obligations

payable solely from the taxes or other revenues described in the

Final Project Plan and only to the extent authorized by the voters

of each Participating Entity. The governing body of each

Participating Entity is hereby authorized and directed to pledge all

or any part of such revenues to the payment of principal, interest

and premium, if any, on the bonds issued by such Participating

Entity.

F. A Participating Entity may enter into any agreement or

contracts with the United States of America or the State of Oklahoma

or any agency or instrumentality thereof which it may consider

advisable or necessary in order to obtain a grant of funds or other

aid to be used in connection with the proceeds of the bonds.

G. Bonds issued pursuant to this act shall not be subject to

the provisions of the Municipal and County Industrial Development

Bonds Act, but instead, shall be issued pursuant to the provisions

of this act.

H. Any bank, trust or insurance company organized under the

laws of Oklahoma may invest its capital, surplus and reserves in

bonds issued under the provisions of this act.

Added by Laws 2001, c. 318, § 9, eff. Nov. 8, 2002.