The Governor is hereby authorized to accept beneficial interest on behalf of the State of Oklahoma in an express trust which shall be an agency of the state for the specific object and purpose of providing student loan funds pursuant to requirements of any appropriate federal agency to qualified persons as provided herein. Said state trust shall be entitled the Oklahoma Student Loan Authority. The Authority shall be created in accordance with the provisions of Title 60 of the Oklahoma Statutes, Section 176 et seq. It shall issue bonds or other obligations from time to time for and on behalf of the State of Oklahoma as such funds are needed to underwrite loans insured by the United States to qualified persons at participating institutions as provided herein. Bonds issued by the Authority, or interest thereon, shall be paid through funds received by the Authority as provided in Section 695.7 of this title.

All bonds issued under the Oklahoma Student Loan Act are legal and authorized investments for banks, savings banks, trust companies, savings and loan associations, insurance companies, credit unions, fiduciaries, trustees and guardians, and for the State of Oklahoma and any of its political subdivisions, departments, institutions and agencies. When accompanied by all unmatured coupons appurtenant thereto, the bonds are sufficient security for all deposits of state funds and of all funds of any board in control at the par value of the bond. The bonds and the income therefrom are free from taxation within this state.