ATTORNEY GENERAL LOVING HAS ASKED ME TO RESPOND TO YOUR RECENT REQUEST FOR AN ATTORNEY GENERAL OPINION IN WHICH YOU ASKED, IN EFFECT:
1. IF A LEASE-PURCHASE AGREEMENT WAS SIGNED TO LEASE MUNICIPAL PROPERTY TO THE MUNICIPAL AUTHORITY UNTIL THE LAST PAYMENT WAS MADE, AT WHICH TIME SUCH LAND AND EQUIPMENT WOULD BECOME THE PROPERTY OF THE MUNICIPAL AUTHORITY, AND SUBSEQUENTLY, BUT PRIOR TO THE FULFILLMENT OF THE TERMS OF THE AGREEMENT, ANOTHER LEASE AGREEMENT (WITH NO LEASE-PURCHASE PROVISION) WAS SIGNED BETWEEN THE PARTIES WHICH SPECIFICALLY STATED THAT THE NEW AGREEMENT SUPERSEDED ANY PREVIOUS LEASE AGREEMENT BETWEEN SUCH PARTIES CONCERNING SUCH PROPERTY, WHICH PARTY WOULD HAVE TITLE TO THE PROPERTY AT THE END OF THE LEASE AGREEMENT?
2. IS IT NECESSARY FOR THE SUBSEQUENT LEASE AGREEMENT TO BE FILED IN THE OFFICE OF THE SECRETARY OF STATE FOR SUCH AGREEMENT TO SUPERSEDE THE FIRST LEASE-PURCHASE AGREEMENT PRIOR TO ANY FUTURE INDEBTEDNESS CONCERNING THE PROPERTY BEING MADE?
3. WOULD IT BE LEGAL FOR EITHER PARTY TO THE LEASE AGREEMENT TO LEASE OR SELL THE PROPERTY CONCERNED IN SUCH AGREEMENT TO A THIRD PARTY IF SUCH PROVISION WAS NOT SPECIFIED IN THE LEASE AGREEMENT?
4. WOULD IT BE LEGAL FOR EITHER PARTY TO THE LEASE AGREEMENT TO SELL OR LEASE ANY OF THE PROPERTY SUBJECT TO SUCH AGREEMENT IF THAT PROPERTY IS LISTED AS COLLATERAL?
BECAUSE YOUR REQUEST INVOLVES THE DETERMINATION OF FACTUAL ISSUES BEYOND THE SCOPE OF A FORMAL ATTORNEY GENERAL OPINION, THIS OFFICE HAS DETERMINED THAT YOUR REQUEST SHOULD BE ANSWERED THROUGH THIS INFORMAL LETTER. IN ADDITION, YOUR QUESTIONS INVOLVE QUESTIONS OF LAW AS TO MUNICIPAL AUTHORITY, FOR WHICH THIS OFFICE CAN PROVIDE NO RESPONSE. INSTEAD, THESE QUESTIONS SHOULD BE DIRECTED TO THE APPROPRIATE CITY ATTORNEY.
THE DISCUSSION WHICH FOLLOWS IS NOT AN OFFICIAL OPINION OF THE ATTORNEY GENERAL. RATHER, THE ANALYSIS AND CONCLUSIONS WHICH FOLLOW, WHILE SOLELY MY OWN, HAVE BEEN REACHED AFTER CAREFUL RESEARCH OF THE QUESTIONS YOU HAVE RAISED.
TITLE 60 O.S. 176 (1991) ET SEQ., PROVIDE AUTHORITY FOR THE STATE, COUNTIES, AND MUNICIPALITIES TO CREATE EXPRESS TRUSTS FOR THE FURTHERANCE OR ACCOMPLISHMENT OF ANY PUBLIC FUNCTIONS OR PURPOSES. THE GOVERNMENTAL ENTITY WHICH DOES SO HAS THE ADDITIONAL AUTHORITY TO LEASE REAL OR PERSONAL PROPERTY SUBJECT TO THE TRUST FOR THE PURPOSES THEREOF. 60 O.S. 176(A) (1991). IN THE EVENT THE TRUST IS FOR INDUSTRIAL DEVELOPMENT PURPOSES, A MUNICIPALITY MAY GRANT TITLE TO AIRPORT PROPERTY TO SUCH AN AUTHORITY. 60 O.S. 176(B) (1991). A REVIEW OF THE TRUST STATUTES INDICATES THAT IT IS A NORMAL POWER OF A TRUSTEE TO BE ABLE TO SELL, LEASE OR OTHERWISE CONVEY THE REAL AND PERSONAL PROPERTY OF THE TRUST, SUBJECT TO CERTAIN LIMITATIONS. 60 O.S. 175.2 (1991).
IN REGARD TO YOUR FIRST QUESTION, ALTHOUGH THIS QUESTION TOO FACT DEPENDENT TO PROVIDE A SPECIFIC REPLY, THERE DOES NOT APPEAR TO BE A LIMITATION IN THE OKLAHOMA STATUTES AS TO ANY CHANGE MADE TO A LEASE AGREEMENT. ONLY WHERE THE STATE OF OKLAHOMA IS THE BENEFICIARY OF THE TRUST MUST ANY AMENDMENT