Okla. Admin. Code § 200:10-3-1

Current through Vol. 42, No. 3, October 15, 2024

Section 200:10-3-1 - Purpose of the Fund

The Fund was created to be managed, administered and utilized by ODFA in accordance with the provisions of the Act.

(1)Utilization of the Fund.The Fund shall be employed by the Oklahoma Development Finance Authority solely to secure the payment of principal, interest and premium, if any, on the revenue bonds and other financial obligations issued by the Authority pursuant to the Oklahoma Development Finance Authority Act, for the specific purpose of enhancing and supporting the credit of such revenue bonds and other financial obligations. [74:5063.4]

(2)Other credit facility acquisition.The Fund may also use the funds deposited from the proceeds of the General Obligation Bonds to purchase insurance or to enter into agreements with credit facilities in order to enhance the security of any holders of ODFA revenue bonds of other financial obligations. [74:5062.12]

(3)Expense disbursements. Monies and other assets in the Fund may be expended for the operating expenses and costs of activities of the ODFA that are directly related to enhancing the credit of the ODFA's revenue and other financial obligations. In addition, a portion of the interest and other earnings on the Fund may be payable to an investment advisor, if any, for the Fund. [74:5063.4 (A), 74:5063.9]

(4)Fund objective. The objective of the Fund is to enable a participant of an ODFA financing that is a recipient of an Insurance Commitment to obtain or improve an investment grade credit rating in order to:

(A) facilitate debt capital formation throughout the State of Oklahoma;

(B) stimulate a larger flow of private investment capital to finance various Persons;

(C) increase access to capital for various Persons at better financing rates and terms; and

(D) encourage greater private financial institution lending.

Okla. Admin. Code § 200:10-3-1