There is hereby created in the State Treasury a Water Resources Fund, which fund shall be used by the Board for those purposes stated in Sections 1085.31 through 1085.39 of this title. Toprovide necessary funds, the Board is hereby authorized to issue by public sale investment certificates from time to time, as may be required, to provide an adequate amount of cash in such fund which may be necessary to meet the anticipated needs for the funding of properly approved projects. The Board is authorized to provide for the payment of such investment certificates and the rights of the holders thereof, as hereinafter provided. Said investment certificates shall be awarded to the lowest and best bidder based upon open competitive public offering, advertised at least once a week for two (2) successive weeks in a newspaper in general circulation in Oklahoma County, Oklahoma, prior to the date on which bids are received and opened, except, on issues with the approval of three-fourths (3/4) of the membership of the Board, competitive bidding may be waived. No investment certificates shall be sold for less than par value, except upon approval of three-fourths (3/4) of the membership of the Board. Provided, however, in no event shall any investment certificates be sold at a discount in excess of four percent (4%), which shall include any fees, discounts and any other remuneration received directly or indirectly by the purchaser. Said investment certificates may be issued in one or more series; may bear such date or dates; may mature at such time or times, not to exceed fifty (50) years from their date; may be in such denomination or denominations; may be in such form 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 term of redemption, with or without premium; and may bear such rate or rates of interest not to exceed fifteen percent (15%) as may be provided by resolution or resolutions to be adopted by the Board. Such investment certificates shall have all of the qualities and incidents of negotiable paper, and shall not be subject to taxation by the state, or by any county, municipality or political subdivision therein. The Board is hereby authorized to defease, call and redeem all or any portion of any investment certificates issued hereunder, the detailed provisions for such defeasance, call and redemption to be fixed by the Board in the resolution or resolutions authorizing such defeasance, call and redemption.

Obligations issued under the provisions of this section are hereby made securities in which all public officers and public bodies of the state, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may legally invest funds, including capital in their control or belonging to them. The obligations are hereby made securities which may legally be deposited with and received by any public body of the state for any purpose for which the deposit of obligations of the state is now or may hereafter be authorized by law, and are hereby declared to be securities classified under Section 516.3 of Title 62 of the Oklahoma Statutes, and are authorized to be evidenced by a joint-custody receipt.

The investment certificates issued pursuant to the provisions of this section shall not be an indebtedness of the state or general obligations of the Board, but shall be special obligations payable solely from the revenues to be derived from the project or such other revenues as may be pledged by the applicant for such purposes, and the Board is authorized and directed to pledge all or any part of such revenues to the payment of principal and interest on the investment certificates and to create a reserve. Such pledge shall be valid and binding from the time the pledge is made. The revenues so pledged and thereafter received by the Board shall immediately be subject to the lien of such pledge without any physical delivery, filing or further act. The lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Board arising from the bond proceedings irrespective of whether these parties have notice thereof.

Amended by Laws 1982, c. 306, § 5, emerg. eff. May 28, 1982; Laws 1986, c. 272, § 6, operative July 1, 1986.