2022 Oklahoma Statutes
Title 74. State Government
§74-9077. Agreements to receive securitization property – Proceeds of bond issuance.
A. The Oklahoma Development Finance Authority is hereby authorized to enter into agreements to receive securitization property as described in Section 6 of this act from a regulated utility and, in exchange, to provide the proceeds of a bond issuance described in this section to the regulated utility. The revenues received from the securitization property shall be used to service and repay the bonds issued under this section, and the Authority may pledge the securitization property as a security interest for the bonds. The Authority shall conduct any bond issuance under this section so that the issuance provides for all qualified costs related to a financing order under this act.
B. The Authority is hereby authorized to borrow money on the credit of the revenues to be derived from securitization property received under subsection A of this section, and in anticipation of the collection of revenues, issue negotiable bonds necessary for such purposes. The Authority shall provide for the payment of such bonds and the rights of the holders thereof, as hereinafter provided. Said bonds may be issued in one or more series, may be sold in such manner and at such price or prices, may bear such date or dates, may mature at such time or times, may be in such denomination or denominations, may be in such form either coupon or registered, may carry such registration or conversion privileges, may be executed in such manner, may be payable in such medium of payments, at such place or places, may be subject to such terms of redemption, with or without premium, and may bear such rate or rates of interest, and shall be subject to such call for redemption as may be provided by resolution or resolutions to be adopted by the Authority and are consistent with the terms of the financing order issued by the Commission. The bonds shall have all of the qualities and incidents of negotiable paper, and the bonds and the interest earned on the bonds shall not be subject to taxation by the state, or by any county, municipality or political subdivision therein.
C. The Authority may only pledge the securitization property and the revenues received from such property arising from a single financing order for a single series of bonds. No revenues arising from a separate financing order shall be pledged for or used to repay the bonds or series issued with respect to a separate financing order.
D. The Authority may issue ratepayer-backed bonds for the purpose of refunding any obligation of the Authority payable from the revenues of securitization property received under subsection A of this section. Where bonds are issued under this subsection, the bonds may either be sold pursuant to subsection G of this section or delivered in exchange for the outstanding obligations. If sold, the process may be either applied to the payment of the obligations, refunded or deposited in escrow for the retirement of the obligations. Nothing herein contained shall be construed to authorize the refunding of any outstanding obligations which are not either maturing, callable for redemption under their terms or voluntarily surrendered by their holders for cancellation, unless the Authority covenants that sufficient funds to pay all remaining interest and principal payments of the outstanding obligations when due will be placed in escrow for such purpose at the place or places where the bonds are payable.
E. The Authority shall execute all bonds issued by the Authority after approval of the form of the bond by the Authority and the Attorney General.
F. 1. The ratepayer-backed bonds issued under this section shall not be an indebtedness of the state or of the Authority, but shall be special obligations payable solely from revenues related to securitization property received under subsection A of this section. The Authority is authorized and directed to pledge all or any part of such revenues to the payment of principal and interest on the bonds and to create a reserve for such purposes.
2. Any ratepayer-backed bonds issued pursuant to this section shall contain on the face thereof a statement to the following effect:
"Neither the full faith and credit nor the taxing power of the State of Oklahoma is pledged to the payment of the principal of, or interest on, this bond".
G. The State Treasurer is hereby authorized to purchase from the Authority at private sale all or any part of the bonds issued under this section as an investment of the public monies in his or her possession. It shall be the responsibility of the State Treasurer to invest only that portion of the public monies as it deems to be more than sufficient to meet current expenditures payable from public monies. The State Treasurer is authorized to buy and the Authority is authorized and required to sell to the State Treasurer at private sale so many of the bonds authorized by this section as may be safely purchased for investment of public monies by the State Treasurer without handicapping the state in promptly meeting its obligations. The State Treasurer may later sell the bonds as are necessary to ensure sufficient cash on hand is available to meet current expenditures payable from public monies.
H. Bonds issued under this section shall be delivered to the purchaser only upon payment of par and accrued interest to the date of delivery, together with any premium bid.
I. The proceeds of the sale of ratepayer-backed bonds, and revenues received with respect to securitization property, shall be deposited in the State Treasury, in a fund which is hereby created and designated the "Regulated Utility Consumer Protection Fund" where they shall remain subject to disposition to be provided for by the Authority consistent with this act; provided, that the State Treasurer shall invest the monies in interest-bearing direct obligations of the United States of America, or of the State of Oklahoma, and provided, further, that all investments of the monies shall be so made that the same may be liquidated in time to enable the Authority to pay, in due course, the valid indebtedness incurred by the Authority for the purposes set forth in this section.
J. In the event a regulated utility has or receives alternative funds directed by the Commission to be applied to a securitized balance, the regulated utility shall provide the funds to the Authority. The Authority shall deposit the funds with the State Treasury pursuant to subsection I of this section. If the funds are provided in advance of the bond issuance, the Authority shall use the funds and interest on the funds to pay expenses related to the issuance, reduce the total bond debt service or reduce the size of the required issuance. If the funds are provided after the bond issuance, the Authority shall use the funds and interest on the funds to offset amounts that would otherwise be recovered from utility customers under this act.
K. Any bank, trust or insurance company organized under the laws of this state may invest its capital, surplus and reserve funds and other funds under its control in ratepayer-backed bonds issued under this section.
Added by Laws 2021, c. 204, § 8, emerg. eff. April 23, 2021.
