Oklahoma § 74-5062.34 - Oklahoma Development Finance Authority - Issuance of

§ 74-5062.34. Oklahoma Development Finance Authority - Issuance of

bonds - Titles and Liens - Deferrals.

A. When a qualified issuer that is or will be impacted by

growth at a military installation, proposes to acquire or construct

a capital project, the Oklahoma Development Finance Authority may

serve as conduit issuer for the capital project in the form of

loans, lease-purchase agreements, or other forms of indebtedness.

B. For the capital projects described in subsection A of this

section, the Authority may issue bonds to provide funding:

1. To acquire real property, together with improvements

thereon;

2. To construct buildings and other improvements to real

property;

3. To provide repairs, renovations, and improvements to real

property and other fixed assets; and

4. To defease or refund bonds or other obligations of a

qualified issuer which were issued to finance a capital project as

defined herein; and further, to fund necessary bond reserves and to

pay costs of issuance of any obligations issued under this act.

C. The Authority shall not issue bonds for loans, leasepurchase agreements, or other forms of indebtedness for a qualified

issuer pursuant to the Military Base Protection and Expansion

Incentive Act except upon the certification by the qualified issuer

that it has received or will receive an amount sufficient to repay

the indebtedness as a result of a voter-approved incentive derived

from a tax levy. Further, the qualified issuer shall certify that it

will not use the proceeds of general obligation bonds to pay the

interest on any lease-purchase obligations.

D. The Authority may hold title to the new real property and

improvements and place liens on improved existing real property

until such time as any obligations issued for the purpose of the

capital project are retired or defeased and may lease the real

property and improvements to the qualified issuer. Upon final

redemption or defeasance of the obligations created pursuant to this

section, title to the real property and improvements thereon shall

be transferred from the Authority to the qualified issuer.

E. The Authority may defer principal payments on loans made

pursuant to the Military Base Protection and Expansion Incentive Act

for a period not to exceed five (5) years.

Added by Laws 2007, c. 349, § 6, emerg. eff. June 4, 2007. Amended

by Laws 2008, c. 217, § 10, emerg. eff. May 20, 2008.