Application of Oklahoma Educational Television Authority

1954 OK 219, 272 P.2d 1027, 1954 Okla. LEXIS 589
CourtSupreme Court of Oklahoma
DecidedJuly 9, 1954
Docket36411
StatusPublished
Cited by24 cases

This text of 1954 OK 219 (Application of Oklahoma Educational Television Authority) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Application of Oklahoma Educational Television Authority, 1954 OK 219, 272 P.2d 1027, 1954 Okla. LEXIS 589 (Okla. 1954).

Opinions

WELCH, Justice.

This is an original action in the form of an application for the approval of $1,450,-000 in bonds proposed to be issued by the Oklahoma Educational Television Authority, herein referred to as “Authority,” pursuant to the provisions of H.B.No.1033, enacted by the 1953 Legislature, S.L.1953, p. 551, et seq.; 70 Okl.St.Ann. §§ 2141-2165'; creating the Oklahoma Educational Television Authority and which enactment will be referred to as the “Act.”

By the Act Authority is made “ * * * a body corporate and politic * * *,” 70 O.S.1953 Supp. § 2145, with the authority to sue and to be sued, and designated an instrumentality of the State for the expressed purpose of making educational television services available to Oklahoma citizens. Authority is authorized “ * * * to plan, construct, repair, maintain and operate educational television facilities with channels assigned by the Federal Communications Commission to the State of Oklahoma for educational television purposes. * * * » yo O.S.1953 Supp. § 2141.

Authority is authorized to receive appropriations from the State Legislature and to accept grants in aid of construction and operation, and “to issue revenue 'bonds payable solely from dedicated revenues,” to meet the costs of the facilities authorized. It is stated in Section 1 of the Act that bonds issued by Authority “ * * * shall never become obligations of the State of Oklahoma, but shall be retired by the Authority as provided in this Act * * *,” and that neither the faith and credit, nor the taxing power of the State, or any political subdivision thereof, is pledged to the payment of the principal of or the interest on such bonds.

The Act then provides in Section 10 as follows:

. “The principal and interest necessary to retire any bonds issued by the Authority shall be paid out of the ‘Oklahoma Educational Television Bond Sinking Fund’ hereinafter established by Section 11- of this Act.” 70 O.S.1953 Supp. § 2150.

The Act then in Section 11 creates the aforesaid sinking fund in the State Treasury and authorizes and directs the State Treasurer to transfer into said sinking fund all revenues accruing to the public Building Fund, to be used solely for the purpose of retiring bonds issued by the Authority.

Section 20 of the Act gives this court exclusive original jurisdiction to pass upon the constitutionality of the Act and authorizes an original action in this court to determine the validity of any proposed bond issue.

It appears that the Authority proposes to issue bonds in the sum of $1,450,000, and has made a tentative agreement for the sale [1029]*1029thereof, and now seeks a decision by this court on the following five points, to-wit:

“(1) That House Bill No. 1033 enacted by the 1953 Legislature is constitutional.
“(2) That the bonds authorized by the said House Bill No. 1033 are not violative of Sections 23, 24 and 25, Article 10 of the State Constitution.
“(3) That all of the revenue accruing to the Public Building Fund is pledged to the payment of said bonds.
“(4) That the revenue pledged for the payment of said bonds cannot be diverted or appropriated to other purposes by future Legislatures as long as there are bonds of the Authority outstanding and unpaid.
“(5) That the bonds of the Authority are issued in accordance with House Bill No. 1033.”

We first consider point No. 3, and it appears certain that all of the presently existing revenue and moneys in the Public Building Fund of the State of Oklahoma, together with all revenue accruing therein in future years is pledged to the payment of said bonds. It is provided in the trust agreement for retirement of the bonds as authorized by Section 12 of the Act, that

“The Authority has pledged and assigned and does hereby pledge and assign to the Trustee revenues now in and accruing to the Public Building Fund which shall go into the Oklahoma Educational Television Bond Sinking Fund, and in event of a deficiency therein also net revenues of the Facilities, as security for the payment of the bonds and the interest thereon,”

It is further provided in Article IV of the same trust agreement that

“The Authority covenants and agrees that it shall cause (a) the Commissioners of the Land Office and the State Board of Public Affairs to transmit to the State Treasurer daily or in any event not to exceed every thirty days, all funds collected by them which constitute revenues accruing to the Public Building Fund of the State of Oklahoma; (b) the State Treasurer to transfer such revenue of the Public Building Fund to the Oklahoma Educational Television Bond Sinking Fund in the State Treasury; (c) the State Treasurer monthly to transmit all such revenue to the Trustee to be placed by such Trustee in the Bond Fund to meet principal and interest requirements of the bonds, and to call bonds for redemption as herein provided.”

It is further provided in Article IV of the trust agreement as follows:

“The Authority covenants and agrees that the revenues accruing to the Public Building Fund as hereinbe-fore set out and which shall be placed in the Oklahoma Educational Television Bond Sinking Fund in the State Treasury and to be transmitted to the Trustee is pledged and dedicated for the payment of the principal and interest of said bonds. Such Public Building Fund consisting of the following revenue: An Act of Congress approved June 16, 1906, entitled ‘An Act to enable the people of Oklahoma and of Indian Territory to form a Constitution and State Government and be admitted into the Union on an equal footing with the original states, etc., certain lands were granted to the State of Oklahoma for charitable, penal, educational and public building purposes; the State of Oklahoma by Section 4, Article XI of its Constitution has accepted the grant thereby made; the State of Oklahoma by acts of its legislature known as Title 64, Oklahoma Statutes 1951, provides for the sale, leasing and rental of such land; Section 371 of said Title 64, Oklahoma Statutes 1951, provides that all moneys heretofore or hereafter received from the sale or rentals of Section 33 and lands granted in lieu thereof, the same being lands granted to the State of Oklahoma for charitable and penal institutions and public buildings shall constitute and be known as the Public Building Fund. Title 74, Oklahoma Statutes 1951, Section 98, provides for the placing of all moneys received from oil, gas and mineral leases on cer[1030]*1030tain Capitol grounds to the Public Building Fund. Title 64 Oklahoma Statutes 1951, Section 371a, provides for the placing of moneys in the Public Building Fund which formerly went into the University Hospital Oil and Gas Account.”

And it is further provided in Article 7 of the trust agreement that in the event of any default the Trustee may enforce compliance with all provisions of the trust agreement by such legal action or suits or special proceedings before courts or boards or any officer having jurisdiction, as the trustee deems effectual to protect or enforce such rights.

It seems this is amply sufficient to say without question that, if it may legally be done, all of the revenue accruing to the Public Building Fund in future years is pledged to the payment of said bonds.

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Bluebook (online)
1954 OK 219, 272 P.2d 1027, 1954 Okla. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/application-of-oklahoma-educational-television-authority-okla-1954.