Oklahoma § 74-5062.12 - Insurance fund

§ 74-5062.12. Insurance fund

The Oklahoma Development Finance Authority is authorized to

create an insurance fund consisting solely of funds deposited

pursuant to Section 81 of this act. Said insurance fund shall be

held in the custody of one or more banks or trust companies having a

principal place of business in this state. The insurance fund shall

be held as security for the holders of bonds issued pursuant to the

provisions of this act. It shall be governed by a trust agreement

entered into by the Authority with the trustees. The trust

agreement may contain such provisions and limitations as to the

Oklahoma Statutes - Title 74. State Government

investment and disbursement of monies in the insurance fund; the

payment of expenses of the insurance fund; the appointment,

resignation, and discharge of trustees; the delegation of

enforcement and collection powers under the insurance agreements to

the trustee; the duties of the trustees, amendments of the trust

agreement, and such other lawful provisions and limitations as may

be deemed appropriate by the Authority. The trust agreement may

pledge premiums and other monies which may be deposited in the

insurance fund. Such pledge shall be valid and binding from the time

when the pledge is made. The premiums and other monies so pledged

and thereafter received by the insurance fund or by the trustees in

its behalf shall immediately be subject to the lien of such pledge

and shall be valid and binding as against all parties having claims

of any kind against the insurance fund, irrespective of whether such

parties have notice thereof. The Authority may also use the funds

deposited pursuant to Section 81 of this act to purchase insurance

which shall be pledged for the security of the holders of any bonds

issued under this act or to enter into agreements with credit

facilities in order to enhance the security of any holders of bonds.

In any case in which insurance is pledged as security, whether

obtained through the insurance funds authorized to be created

pursuant to the provisions of this section or purchased with monies

deposited pursuant to Section 81 of this act, any description of

such insurance shall expressly indicate the limitation of the

liability of the Authority and that neither the credit nor taxing

power of this state or any political subdivision thereof shall be

available to satisfy any obligations with respect thereto.

Added by Laws 1987, c. 222, § 60, operative July 1, 1987.