The bonds are limited special obligations of the ODFA secured by annual appropriations of the state of Oklahoma.
The rating on the ODFA bonds, secured by annual appropriations from the state's general fund, is one notch below Oklahoma's 'AA' IDR, reflecting the state's general credit standing, sound lease structure, and statutory authorization for these types of bonds.
The remainder of obligations is fairly evenly split between the ODFA, largely for projects related to the state's system of higher education with a large proportion self-supported by tuition and campus fees, and the OCIA, for capital projects related to various state agencies, including the Department of Transportation.
APPROPRIATION MECHANISM: The rating on the ODFA bonds, backed by Oklahoma's annual legislative appropriation pledge, is one notch below the state's 'AA+' general obligation (GO) bond rating.
The ODFA bonds currently offered are secured by lease rental payments by the State Regents from state general fund revenues, subject to annual legislative appropriation.
The terms of the leases extend through the life of the bonds; the maximum lease term permitted by the ODFA under the master equipment lease program is 20 years and lease payments are not abatable.