Oklahoma § 74-2256 - Authority to issue negotiable bonds - Resolution Interest rate - Covenants - Trust indentures - Monies deemed trust

§ 74-2256. Authority to issue negotiable bonds - Resolution Interest rate - Covenants - Trust indentures - Monies deemed trust

funds.

A. The Commission shall have the power and is authorized to

issue negotiable bonds in anticipation of the collection of all or

any part of its revenues, not to exceed Five Million Dollars

($5,000,000.00), for the purpose of constructing, reconstructing,

improving, bettering or extending any properties which it is

authorized to maintain or operate hereunder. The Commission shall

pledge all or any part of the revenues derived from the operation of

the parks controlled and operated by the Commission to the payment

of the interest and principal of such bonds.

B. The bonds authorized by this section shall be authorized by

resolution of the Commission and may, as provided in such

resolution:

1. Be issued in one or more series;

2. Bear such date or dates and may mature at such time not

exceeding twenty-five (25) years from their respective dates;

3. Bear interest at a rate or rates not exceeding ten percent

(10%) per annum; and

4. Contain such terms, covenants and conditions.

C. The bonds authorized by this section may be sold in a manner

and upon terms as determined by the Commission. The interest cost

yield to maturity of any issue of bonds shall not exceed ten percent

(10%) per annum, payable semiannually.

D. Any resolution authorizing the issuance of bonds under this

act may contain covenants including, but not limited to:

1. The purpose or purposes to which the proceeds of the sale of

bonds may be applied, and the deposit, use, and disposition thereof;

Oklahoma Statutes - Title 74. State Government

2. The use, deposit, securing of deposits, and disposition of

the revenues of the Commission, including the creating and

maintenance of reserves;

3. The issuance of additional bonds payable from revenues of

the Commission;

4. The operation and maintenance of properties of the

Commission;

5. The insurance to be carried thereon, and the use, deposit

and disposition of insurance monies;

6. Books of account and the inspection and audit thereof and

the accounting methods of the Commission;

7. The nonrendering of any free service by the Commission

except for promotional activities as deemed in this act; and

8. The preservation of the properties of the Commission so long

as any of the bonds remain outstanding, from any mortgage, sale,

lease or other encumbrances not specifically permitted by the terms

of the resolution.

E. At the discretion of the Commission, any bonds issued under

the provisions of this act may be secured by a trust indenture by

and between the Commission and a corporate trustee, which may be any

trust company or bank having the powers of a trust company within

the state. Any trust indenture may pledge or assign the revenues

from the operation of properties of the Commission, but shall not

convey or mortgage any properties, except such revenues. Any trust

indenture or any resolution providing for the issuance of such bonds

may contain provisions for protecting and enforcing the rights and

remedies of the bondholders as may be reasonable and proper and not

in violation of law, including covenants setting forth the duties of

the Commission in relation to:

1. The construction, improvement, maintenance, repair,

operation and insurance of the improvements in connection with which

such bonds shall have been authorized;

2. The custody, safeguarding and application of all monies; and

3. The employment of consulting engineers in connection with

the construction or operation of such improvements.

F. It shall be lawful for any bank or trust company

incorporated under the laws of the state, which may act as

depository of the proceeds of bonds or of revenues, to furnish

indemnifying bonds or to pledge securities as may be required by the

Commission. Any trust indenture may set forth the rights and

remedies of the bondholders and of the trustee, and may restrict the

individual right of action by bondholders as is customary in trust

agreements or trust indentures securing bonds and debentures of

corporations. In addition to the foregoing, any trust indenture may

contain other provisions as the Commission may deem reasonable and

proper for the security of the bondholders. All expenses incurred

in carrying out the provisions of any trust indenture may be treated

Oklahoma Statutes - Title 74. State Government

as a part of the cost of operation of the improvements for which the

bonds are authorized.

G. Monies received pursuant to the authority of this act,

whether as proceeds from the sale of bonds or as revenues from the

operations of the properties which have been identified for bond

repayment purposes, shall be deemed to be trust funds, to be held

and applied solely as provided in this act. The resolution

authorizing the issuance of bonds of any issue, or the trust

indenture securing such bonds, shall provide that any officer to

whom, or any bank or trust company to which, the monies shall be

paid, shall act as trustee of the monies and shall hold and apply

the same for the purpose hereof, subject to such regulations as this

act and such resolution or trust indenture may provide.

Added by Laws 2005, c. 363, § 57, eff. Nov. 1, 2005.