Oklahoma § 70-4004 - Bonds payable only from revenue - Resolution authorizing

§ 70-4004. Bonds payable only from revenue - Resolution authorizing

bonds - Agreements and terms.

(a) The bonds issued hereunder shall not be an indebtedness of

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

issued or the board of regents thereof, but shall be special

obligations payable solely from the revenue 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 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:

(1) To covenant as to the use and disposition of the proceeds

of the sale of such bonds;

(2) To covenant as to the operation of the building and the

collection and disposition of the revenues derived from such

operation;

(3) 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;

(4) 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;

(5) 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 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

Oklahoma Statutes - Title 70. Schools

resort to such remedies as may be appropriate, including the right

to enter into possession of the building and to operate the same

until the default is remedied or until all bonded indebtedness

related to that building is retired, whichever first occurs;

(6) 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 article;

(7) To covenant to maintain a maximum percentage of occupancy

of the building;

(8) To covenant against the issuance of any other obligations

payable from the revenues to be derived from the buildings;

(9) 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 article.

(b) 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 1965, c. 396, § 1004, eff. July 1, 1965. Amended by

Laws 1973, c. 43, § 2, emerg. eff. April 25, 1973.