Oklahoma § 82-870.1 - Bond anticipation notes

§ 82-870.1. Bond anticipation notes

Whenever the board shall have adopted a resolution authorizing

the issuance of any series of bonds thereunder but prior to the time

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 and subject to all other provisions

of Sections 861 through 889 of this title, authorize the borrowing

of money in anticipation of the issuance of the bonds, and the

issuance of 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 allowable

interest rate of the bonds. Such notes shall be signed in the

manner prescribed by the board and shall be made payable at such

times as the board may prescribe not later than five (5) years 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 notes and the

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

legally available funds 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.

Added by Laws 1977, c. 24, § 2, emerg. eff. April 25, 1977. Amended

by Laws 2019, c. 507, § 12, eff. July 1, 2019.