Oklahoma § 70-4010 - Borrowing money and issuing notes in anticipation of bond

§ 70-4010. Borrowing money and issuing notes in anticipation of bond

issue.

Whenever the board shall have adopted a resolution authorizing

the issuance of any series of bonds hereunder and said bonds have

been sold but prior to the time as of which the bonds can be

delivered the board finds it necessary to borrow money for the

purpose for which the bonds were authorized, the board may, by

appropriate resolutions, authorize the borrowing of money in

anticipation of the issuance of the bonds, and the issuance of the

note or notes of the board to evidence such borrowing. The amount

so borrowed shall not exceed the principal amount of the bonds and

shall not bear interest at a rate exceeding the average interest

rate of the bonds. Such note or notes shall be signed in the manner

prescribed by the board and shall be made payable at such time or

times as the board may prescribe not later than one (1) year from

their respective dates and may be renewed from time to time by the

issuance of new notes hereunder. The proceeds of any loan made

under this section shall be devoted exclusively to the purposes for

which the bonds shall have been authorized and the note or notes and

the interest thereon shall be paid with the proceeds of the bonds

simultaneously with the delivery of the bonds. If for any reason

the bonds shall not be issued, the holder or holders of the notes

shall be entitled to all rights which would have been enjoyed by the

holders of the bonds had they been issued, and the notes shall be

paid from the revenues provided for the payment of the bonds and

shall be entitled to the benefit of all covenants, agreements and

rights appearing in the resolution authorizing the bonds for the

benefit of the bonds.

Laws 1965, c. 396, § 1010.