Oklahoma § 6-910.1 - Definitions

§ 6-910.1. Definitions

As used in this act:

1. “Account agreement” means an agreement that:

a.

is in a record between a bank and one or more

depositors,

Oklahoma Statutes - Title 6. Banks and Trust Companies

b.

may have one or more beneficiaries as additional

parties, and

c.

states the intention of the parties to establish a

special deposit pursuant to this act;

2. “Bank” means a person engaged in the business of banking

including, but not limited to, a savings bank, savings and loan

association, credit union, trust company, or bank as defined in

Section 102 of Title 6 of the Oklahoma Statutes. Each branch or

separate office of a bank is a separate bank for the purpose of this

act;

3. “Beneficiary” means a person that:

a.

is identified as a beneficiary in an account

agreement, or

b.

if not identified as a beneficiary in an account

agreement, may be entitled to payment from a special

deposit:

(1) under the account agreement, or

(2) on termination of the special deposit;

4. “Contingency” means an event or circumstance stated in an

account agreement that is not certain to occur but shall occur

before the bank is obligated to pay a beneficiary;

5. “Creditor process” means attachment, garnishment, levy,

notice of lien, sequestration, or a similar process issued by or on

behalf of a creditor or other claimant;

6. “Depositor” means a person that establishes or funds a

special deposit;

7. “Good faith” means honesty in fact and observance of

reasonable commercial standards of fair dealing;

8. “Knowledge of a fact” means:

a.

with respect to a beneficiary, actual knowledge of the

fact, or

b.

with respect to a bank holding a special deposit:

(1) if the bank:

(a) has established a reasonable routine for

communicating material information to an

individual to whom the bank has assigned

responsibility for the special deposit, and

(b) maintains reasonable compliance with the

routine, actual knowledge of the fact by

that individual, or

(2) if the bank has not established and maintained

reasonable compliance with a routine described in

division (1) of this subparagraph or otherwise

exercised due diligence, implied knowledge of the

fact that would have come to the attention of an

individual to whom the bank has assigned

responsibility for the special deposit;

Oklahoma Statutes - Title 6. Banks and Trust Companies

9. “Obligated to pay a beneficiary” means a beneficiary is

entitled under the account agreement to receive from the bank a

payment when:

a.

a contingency has occurred, and

b.

the bank has knowledge the contingency has occurred.

An “obligation to pay a beneficiary” shall mean the same;

10. “Permissible purpose” means a governmental, regulatory,

commercial, charitable, or testamentary objective of the parties

stated in an account agreement. The term includes an objective to:

a.

hold funds:

(1) in escrow, including for a purchase and sale,

lease, buyback, or other transaction,

(2) as a security deposit of a tenant,

(3) that may be distributed to a person as

remuneration, retirement, or other benefit, or

compensation under a judgment, consent decree,

court order, or other decision of a tribunal, or

(4) for distribution to a defined class of persons

after identification of the class members and

their interest in the funds,

b.

provide assurance with respect to an obligation

created by contract, such as earnest money to ensure a

transaction closes,

c.

settle an obligation that arises in the operation of a

payment system, securities settlement system, or other

financial market infrastructure,

d.

provide assurance with respect to an obligation that

arises in the operation of a payment system,

securities settlement system, or other financial

market infrastructure, or

e.

hold margin, other cash collateral, or funds that

support the orderly functioning of financial market

infrastructure or the performance of an obligation

with respect to the infrastructure;

11. “Person” means an individual, estate, business, or

nonprofit entity, government or governmental subdivision, agency, or

instrumentality, or other legal entity. The term may include a

protected series, however denominated, of an entity if the protected

series is established under law that limits, or limits if conditions

specified under law are satisfied, the ability of a creditor of the

entity or of any other protected series of the entity to satisfy a

claim from assets of the protected series;

12. “Record” means information:

a.

inscribed on a tangible medium, or

b.

stored in an electronic or other medium and

retrievable in perceivable form;

Oklahoma Statutes - Title 6. Banks and Trust Companies

13. “Special deposit” means a deposit as specified in Section 5

of this act; and

14. “State” means a state of the United States, the District of

Columbia, Puerto Rico, the U.S. Virgin Islands, or any other

territory or possession subject to the jurisdiction of the United

States, including an agency or instrumentality of the state.

Added by Laws 2024, c. 174, § 2, eff. Nov. 1, 2024.