Oklahoma § 70-2203 - Bonds as special obligations - Covenants

§ 70-2203. Bonds as special obligations - Covenants

The bonds issued hereunder shall not be an indebtedness of the

State of Oklahoma or of the institution for which they are issued or

of the Board of Education thereof, but shall be special obligations

payable solely from the revenues to be derived from the operation of

the building, and the Board is authorized and directed to pledge all

or any part of such revenues to the payment of principal of and

interest on the bonds. In order to secure the prompt payment of

such principal and interest and the proper application of the

revenues pledged thereto, the Board is authorized by appropriate

provisions in the resolution or resolutions authorizing the bonds:

(a) to covenant as to the use and disposition of the proceeds of

the sale of such bonds;

(b) to covenant as to the operation of the building and the

collection and disposition of the revenues derived from such

operation;

(c) to covenant as to the rights, liabilities, powers, and

duties arising from the breach of any covenant or agreement into

which it may enter in authorizing and issuing the bonds;

(d) to covenant and agree to carry such insurance on the

building and the use and occupancy thereof as may be considered

desirable and, in its discretion, to provide that the cost of such

insurance shall be considered a part of the expense of operating the

building;

(e) to vest in a trustee or trustees the right to receive all or

any part of the income and revenues pledged and assigned to or for

the benefit of the holder or holders of bonds issued hereunder and

Oklahoma Statutes - Title 70. Schools

to hold, apply, and dispose of the same, and the right to enforce

any covenant made to secure the bonds and to execute and deliver a

trust agreement or agreements which may set forth the powers and

duties and the remedies available to such trustee or trustees and

may limit the liabilities thereof and prescribe the terms and

conditions upon which such trustee or trustees or the holder or

holders of the bonds in any specified amount or percentage may

exercise such rights and enforce any or all such covenants and

resort to such remedies as may be appropriate;

(f) to fix rents, charges, and fees to be imposed in connection

with and for the use of the building and the facilities supplied

thereby, which rents, charges, and fees shall be considered to be

income and revenues derived from the operation of the building, and

are hereby expressly required to be fully sufficient to assure the

prompt payment of principal and interest on the bonds as each

becomes due, and to make and enforce such rules and regulations with

reference to the use of the building and with reference to requiring

any class or classes of students to use the building as it may deem

desirable for the welfare of the institution and its students or for

the accomplishment of the purposes of this act;

(g) to covenant to maintain a maximum percentage of occupancy of

the building;

(h) to covenant against the issuance of any other obligations

payable from the revenues to be derived from the building; and

(i) to make covenants other than and in addition to those herein

expressly mentioned of such character as may be considered necessary

or advisable to effect the purposes of this act.

All such agreements and covenants entered into by the Board

shall be binding in all respects upon the Board and its officials,

agents, and employees, and upon its successors, and all such

agreements and covenants shall be enforceable by appropriate action

or suit at law or in equity, which may be brought by any holder or

holders of bonds issued hereunder.

Added by Laws 1961, p. 559, § 3, emerg. eff. June 29, 1961.