The boards of regents for educational institutions who are members of The Oklahoma State System of Higher Education are authorized to enter into loan agreements, investment agreements or other appropriate contractual arrangements, with any public trust created pursuant to Section 176 et seq. of Title 60 of the Oklahoma Statutes, which has the State of Oklahoma as its beneficiary. Said agreements may be entered into for the purpose of obtaining funds from such public trust to reimburse such educational institutions for capital expenditures made by them, and such trusts are authorized to provide such funds by issuing debt obligations pursuant to the terms and in the manner provided for in the Public Trust Laws, Section 176 et seq. of Title 60 of the Oklahoma Statutes.

Capital expenditures are defined as those capital expenditures allowed pursuant to Section 103 of the Internal Revenue Code of 1954, as amended, to be financed with tax-exempt bonds or notes. If such loan agreement, investment agreement or other appropriate contractual arrangement involves the repayment to such public trust of funds provided for capital expenditure reimbursement, the boards of regents of such educational institutions are authorized to provide for the repayment with the income and revenues from any existing revenue-producing buildings or facilities or from other income and revenues legally available and permitted for such purpose, including, but not limited to, the interest, income and rentals derived from the Section Thirteen Fund and the New College Fund, as provided for in Section 3904 of Title 70 of the Oklahoma Statutes.

It is the legislative intent that such income and revenues can be utilized by the boards of regents to the repayment, if necessary, of reimbursed capital expenditure funds received from such public trust. The boards of regents of such educational institutions are authorized to enter into contractual agreements with such financial institutions as may be necessary for such public trusts to issue the debt obligations contemplated herein. Said contractual agreements shall include, but not be limited to, investment contracts pursuant to which the State Treasurer is authorized to, and shall invest fund balances of such educational institutions.

Added by Laws 1986, c. 245, § 5, emerg. eff. June 12, 1986.