§ 11-22-157. Approval issuance, sale and delivery of revenue obligations.

A.  Subject to the provisions of Sections 6 and 7 of this act, upon the affirmative vote of at least three-fourths (3/4) of all the members of the governing body, a municipality may borrow money or issue obligations to finance or refinance acquisition, construction or purchase of or the making of improvements to a public utility or utilities.

B.  Obligations issued and sold pursuant to the provisions of the Oklahoma Municipal Utility Revenue Bond Act shall be in such principal amounts and shall mature at such time as determined by the municipal governing body, and shall bear interest at such annual rate or rates as determined by the governing board of the municipality, provided the rate of interest on the obligations or any particular maturity thereof, shall not exceed fourteen percent (14%) per annum.

C.  Evidence of the issuance, sale and delivery of revenue obligations under the Oklahoma Municipal Utility Revenue Bond Act shall be provided by delivering (1) to the Secretary of State a preliminary offering document and notice of sale at least ten (10) business days prior to the date of sale thereof, and (2) to the Secretary of State and the Oklahoma Securities Commission a final offering document within fifteen (15) business days after the delivery thereof.

D.  In the proceedings leading to the approval, issuance, sale and delivery of revenue obligations under the Oklahoma Municipal Utility Revenue Bond Act, a private attorney or attorneys acting as bond counsel and in other necessary capacities may be employed at a fee to be negotiated by the municipality and such attorneys; and the fees and expenses of such counsel may, at the option of the governing body of the municipality, be paid from the proceeds of the obligations or from other available sources.

E.  The governing body of the municipality may also, at its option, employ a financial advisor in connection with the issuance and sale of the obligations at a fee to be negotiated by the governing body and the financial advisor.  Fees and expenses of the financial advisor, if any are incurred, may be paid from the proceeds of the obligations or from other available sources.

F.  The obligations issued pursuant to the Oklahoma Municipal Utility Revenue Bond Act shall be sold at competitive bid, to the bidder bidding the lowest net interest cost on the obligations or the lowest true interest cost as the governing body shall direct.  Notice of the sale of the obligations shall be published at least ten (10) days prior to the sale thereof, and such notice by publication shall include publication once a week for two (2) consecutive weeks in a legally qualified newspaper of general circulation in the municipality, provided that the date specified in the notice for sale of the obligations shall not be less than ten (10) days after the first publication thereof.  The notice of sale shall state that the municipality reserves the right to reject any and all bids.  Provided, however, competitive bidding may be waived upon an affirmative vote of the governing body.  The governing body thereupon may negotiate for the private sale of the obligations to an underwriter or other purchaser or purchasers if it has received the written opinion of bond counsel that such negotiated sale is in accordance with the terms and provisions of the Oklahoma Municipal Utility Revenue Bond Act, and contravenes no other provisions of applicable law.

G.  The obligations may, at the election of the governing body, be sold at a discount; provided that no obligations shall be sold for less than ninety-six percent (96%) of par value until the governing body has received from the underwriter or financial advisor, or in the absence of an underwriter or financial advisor, the initial purchaser of such bonds, an estimated alternative financing structure or structures showing the estimated total interest and principal cost of each alternative.  At least one alternative financing structure shall include bonds sold to the public at par.  Such estimates shall be considered a public record.  In no event shall bonds be sold for less than sixty-five percent (65%) of par value.  Said net interest cost or true interest cost shall include and take into consideration any discount or premium bid on the obligations.

H.  It shall be a further condition to the issuance and sale of revenue obligations hereunder that the municipality establish and maintain for the particular utility or utilities providing revenues to repay the obligations a separate system of accounting for such revenues in order that the governing body of the municipality may accurately and reliably determine from year to year the sufficiency of rates, charges and amounts of revenues derived from such utilities and available to pay debt service and other costs related to the obligations.  Such enterprise accounts shall be clearly identified in the annual audits of the municipality.

Added by Laws 1992, c. 211, § 8, eff. July 1, 1992.