Oklahoma § 73-349 - Financing authority for Oklahoma Department of Corrections

§ 73-349. Financing authority for Oklahoma Department of Corrections

construction fund.

A. In addition to any other authorization provided by law, the

Oklahoma Capitol Improvement Authority is authorized to issue notes,

bonds or other evidences of obligation in an amount necessary to

generate net proceeds of One Hundred Sixteen Million Five Hundred

Thousand Dollars ($116,500,000.00) after providing for costs of

issuance, credit enhancement, reserves and other associated expenses

related to the financing. Net proceeds of the financing will be

deposited into a construction fund to provide for the financing of

maintenance, repairs, equipment and improvements of existing

correctional facilities for the Oklahoma Department of Corrections

with debt retirement payments to be made as provided in this

section.

B. The Authority may hold title to the real and personal

property and improvements thereon until such time as any obligations

issued for this purpose are retired or defeased and may lease the

real property and improvements to the Oklahoma Department of

Corrections. Upon final redemption or defeasance of the obligations

created pursuant to this section, title to the real and personal

property and improvements shall be transferred from the Authority to

the Oklahoma Department of Corrections.

C. For the purposes authorized in subsections A and D of this

section, the Authority is hereby authorized to borrow monies on the

credit of the income and revenues to be derived from the leasing of

such properties and, in anticipation of the collection of such

income and revenues, to issue negotiable obligations whether issued

in one or more series. The Authority is authorized to capitalize

interest on the obligations issued pursuant to this section for a

Oklahoma Statutes - Title 73. State Capital and Capitol Building

period of time not to exceed one (1) year from the date of issuance.

Excluding any capitalized interest period, it is the intent of the

Legislature to appropriate to the Oklahoma Department of Corrections

sufficient monies to make debt service payments for the purpose of

retiring the obligations created pursuant to this section. To the

extent funds are available from the proceeds of the borrowing

authorized by this subsection, the Oklahoma Capitol Improvement

Authority shall provide for the payment of professional fees and

associated costs related to the project authorized in subsection A

of this section.

D. The Authority may issue obligations in one or more series

and in conjunction with other issues of the Authority. The

Authority is authorized to hire bond counsel, financial consultants

and such other professionals as it may deem necessary to provide for

the efficient sale of the obligations and may utilize a portion of

the proceed of any borrowing to create such reserves as may be

deemed necessary and to pay costs associated with the issuance and

administration of such obligations.

E. The obligations authorized under this section may be sold at

either competitive or negotiated sale, as determined by the

Authority, and in such form and at such prices as may be authorized

by the Authority. The Authority may enter into agreements with such

credit enhancers and liquidity providers as may be determined

necessary to efficiently market the obligations. The obligations

may mature and have such provisions for redemption as shall be

determined by the Authority, but in no event shall the final

maturity of such obligations occur later than twenty (20) years from

the first principal maturity date.

F. Any interest earnings on funds or accounts created for the

purposes of this section may be utilized as partial payment of the

annual debt service or for the purposes directed by the Authority.

G. The obligations issued under this section, the transfer

thereof and the interest earned on such obligations, including any

profit derived from the sale thereof, shall not be subject to

taxation of any kind by the State of Oklahoma, or by any county,

municipality or political subdivision therein.

H. The Authority may direct the investment of all monies in any

funds or accounts created in connection with the offering of the

obligations authorized under this section. Such investments shall

be made in a manner consistent with the investment guidelines of the

State Treasurer. The Authority may place additional restrictions on

the investment of such monies if necessary to enhance the

marketability of the obligations.

I. Insofar as they are not in conflict with the provisions of

this section, the provisions of Section 151 et seq. of Title 73 of

the Oklahoma Statutes shall apply to this section.

Added by Laws 2018, c. 318, § 1.

Oklahoma Statutes - Title 73. State Capital and Capitol Building

NOTE: Editorially renumbered from § 348 of this title to avoid

duplication in numbering.