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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 963 By: Standridge
AS INTRODUCED
An Act relating to the Oklahoma Turnpike Authority;
amending 69 O.S. 2021, Section 1709, which relates to
turnpike revenue bonds; est ablishing a bond debt
ceiling; updating statutory language; updating
statutory references; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 69 O.S. 2021, Sect ion 1709, is
amended to read as follows:
Section 1709. A. The Oklahoma Turnpike Authority may provide
by resolution, at one time or from time to time, for the issuance of
turnpike revenue bonds of the Authority for the purpose of paying
all or any part of the cost of any one or more turnpike projects in
such amount or amounts not to exceed Two Billion Seven Hundred Ten
Million Dollars ($2,710,000,000.00) in total aggregate indebtedness
outstanding at any time . The Authority, when it finds that it would
be economical and beneficial to do so, may combine two or more, or
any part thereof, or all of its proposed projects into one unit and
consider the same as one project to the same extent and with like
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effect as if the same were a single project. The princi pal of and
the interest on the bonds shall be payable solely from the funds
provided for such payment. The bonds of each issue shall be dated,
shall bear interest at such rate or rates not exceeding the
limitations pertaining to public trust indebtedness from time to
time expressed in subsection E F of Section 176 of Title 60 of th e
Oklahoma Statutes, shall mature at such time or times not exceeding
forty (40) years from their date or dates, as may be determined by
the Authority, and may be made redeemable before maturity at the
option of the Authority at such price or prices and pursuant to such
terms and conditions as may be fixed by the Authority prior to the
issuance of the bonds. The Authority shall determine the form of
the bonds, including any inter est coupons to be attached thereto,
and the manner of execution of the bonds, and shall fix the
denomination or denominations of the bonds and the place or places
of payment of principal and interest, which may be at any bank or
trust company within or wit hout the state. If any officer whose
signature or facsimile of whose signature appears on any bonds or
coupons shall cease to be said such officer before the delivery of
the bonds, the signature or the facsimile shall nevertheless be
valid and sufficient for all purposes the same as if the person had
remained in office until such d elivery. All bonds issued pursuant
to the provisions of this article shall have all the qualities and
incidents of negotiable instruments subject to the negotiable
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instruments law of this state. The bonds may be issued in coupon or
in registered form, or both, as the Authority may determine, and
provisions may be made for the registration of any coupon bonds as
to principal alone and also as to both principal and interest, and
for the reconversion into coupon bonds of any bonds registered as to
both principal and interest. The Authority may sell the bonds in
such amounts and in such manner, either at public or private sale,
and for such price, as it may determine to be in the be st interest
of this state, but in no event at a discount in excess of that from
time to time expressed in said subsection E G of Section 176 of
Title 60 of the Oklahoma Statutes.
B. The proceeds of the bonds of each issue shall be used solely
for the payment of the cost of the turnpike project for which such
bonds have been issued, and shall be disbursed in such manner and
pursuant to such restrictions, if any, as the Authority may provide
in the resolution authorizing the issuance of such bonds or in the
trust agreement securing the same. If the proceeds of the bonds of
any issue, by error of estimates or otherwise, shall be less than
such cost, additional bonds may in like manner be issued to provide
the amount of such deficit, and, unless otherwise prov ided for in
the resolution authorizing the issuance of such bonds or in the
trust agreement securing the same, shall be deemed to be of the same
issue and shall be entitled to payment from the same fund without
preference or priority of the bonds first iss ued. If the proceeds
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of the bonds of any issue shall exceed such cost, the surplus shall
be deposited to the credit of the sinking fund for such bonds, or
shall be used by the Authority in implementing any other power
expressly granted to the Authority in this article.
C. Prior to the preparation of definitive bonds, the Authority ,
subject to like restrictions, may issue interim receipts or
temporary bonds, with or without coupons, exchangeable for
definitive bonds when such bonds have been executed and a re
available for delivery. The Authority may also provide for the
replacement of any bonds which have become mutilated or were
destroyed or lost. Bonds may be issued pursuant to the provisions
of this article without obtaining the consent of any departme nt,
division, commission, board, bureau, or agency of this state, and
without any other proceedings or the occurrence of any other
conditions or things than those proceedings, conditions, or things
that are specifically required by this article.
D. The Authority is hereby authorized to provide that the
bonds:
1. Be made payable from time to time on demand or tender for
purchase by the owner , provided a credit facility supports such
bonds, unless the Authority specifically determines that a credit
facility is not required;
2. Be additionally supported by a credit facility;
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3. Be made subject to redemption prior to maturity, with or
without premium, on such notice and at such time or times and with
such redemption provisions as may be determined by the Aut hority or
with such variations as may be permitted in connection with a par
formula;
4. Bear interest at a rate or rates that may vary as permitted
pursuant to a par formula and for such period or periods of time,
all as may be determined by the Authority ; and
5. Be made the subject of a remarketing agreement whereby an
attempt is made to remarket the bonds to new purchasers prior to
their presentment for payment to the provider of the credit facility
or to the Authority.
No credit facility, repayment agr eement, par formula or
remarketing agreement shall become effective without the approval of
the Authority.
E. As used in this section, the following terms shall have the
following meanings:
1. “Credit facility” means an agreement entered into by the
Authority with any bank, savings and loan association or other
banking institution; an insurance company, reinsurance company,
surety company, or other insurance institution; a corporation,
investment banker or other investment institution; or any other
financial institution providing for prompt payment of all or any
part of the principal, whether at maturity, presentment for
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purchase, redemption or acceleration, redemption premium, if any,
and interest on any bonds payable on demand or tender by the owner
issued in accordance with this section, in consideration of the
Authority’s agreeing to repay the provider of such credit facility
in accordance with the terms and provisions of such repayment
agreement; provided, that any such repayment agreement shall provid e
that the obligation of the Authority thereunder shall have only such
sources of payment as are permitted for the payment of the bonds
issued under this article; and
2. “Par formula” means any provision or formula adopted by the
Authority to provide for the adjustment, from time to time, of the
interest rate or rates borne by any such bonds so that the purchase
price of such bonds in the open market would be as close to par as
possible.
F. Nothing in any law heretofore enacted or enacted at the
present session of the Legislature shall be deemed to limit or
restrict the right of the Authority to issue bonds or other
obligations the interest income, in whole or in part, on which is
subject, directly or indirectly, to federal income taxation.
G. The Authority may enter into transactions utilizing
derivative products, and other financial products intended to hedge
interest rate risk, including any option to enter into or terminate
any of them, that the Authority deems to be necessary or desirable
in connection with any bonds issued prior to, at the same time as,
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or after entering into such arrangement and containing terms and
provisions, and may be with such parties, as determined by the
Authority. Provided, any action taken by the Authority pursuant to
this subsection must first be approved by the Oklahoma State Bond
Advisor Deputy Treasurer for Debt Management and the Council of Bond
Oversight pursuant to the provisions of the Oklahoma Bond Oversight
and Reform Act.
SECTION 2. This act shall become effective November 1, 2025.
60-1-1337 MSBB 1/16/2025 1:15:11 PM