Oklahoma § 62-348 - Written investment policy – Requirements – Permissible

§ 62-348. Written investment policy – Requirements – Permissible

investments.

A. The governing board of any political subdivision of this

state, as defined by Section 152 of Title 51 of the Oklahoma

Statutes, may authorize a written investment policy, ordinance, or

resolution permitting and directing the treasurer or other duly

authorized officer or employee of the political subdivision to

invest public funds. Any written investment policy shall address

liquidity, diversification, safety of principal, yield, maturity and

quality, and capability of investment management, with primary

emphasis on safety and liquidity in the investment of funds. A

written investment policy shall, to the extent practicable, provide

for the use of competitive bids when purchasing brokered securities.

However, this section shall not be construed as preventing the use

of sound investment judgment when purchasing brokered securities.

B. The written policy, ordinance, or resolution may authorize

the treasurer or other duly authorized officer or employee of the

political subdivision to purchase and invest in any or all of the

following:

1. Direct obligations of the federal government, the payment of

which the full faith and credit of the federal government is

pledged, its agencies, or its instrumentalities; and of federal

agencies or federal government-sponsored enterprise obligations,

participations, or other instruments, including those issued by or

fully guaranteed as to principal and interest by federal agencies or

federal government-sponsored enterprises;

2. Obligations, the payment of which the full faith and credit

of this state is pledged, or investment grade obligations of state

agencies, public trusts, authorities, or instrumentalities rated A+

or better by S&P Global or A1 or better by Moody’s Ratings or

equivalent by other securities ratings organization;

3. Collateralized or insured certificates of deposits of banks,

savings and loan associations, savings banks, or credit unions

located within the state and located out of the state when such

certificates of deposits are secured by acceptable collateral;

4. Negotiable certificates of deposit issued by a nationally or

state-chartered bank, a savings bank, a savings and loan

association, or a state-licensed branch of a foreign bank;

5. Savings accounts or savings certificates of banks, savings

and loan associations, or credit unions where the funds are either

secured by acceptable collateral or fully insured by the Federal

Oklahoma Statutes - Title 62. Public Finance

Deposit Insurance Corporation or the National Credit Union

Administration;

6. Direct debt obligations of county, municipal, or school

districts or their authorities for which an ad valorem tax may be

levied or paid by bond and revenue anticipation note; and of money

judgments against a county, municipal, or school district paid by

bonds or bond and revenue anticipation notes issued by a public

trust of which the county, municipality, or school district is a

beneficiary thereof;

7. Prime banker’s acceptances which are eligible for purchase

by the Federal Reserve System and which do not exceed two hundred

seventy (270) days’ maturity; provided, purchase of prime banker’s

acceptances shall not exceed ten percent (10%) of the surplus funds

of the political subdivision which may be invested according to this

section; however, the restrictions of this paragraph shall not apply

to purchases of prime banker’s acceptances by qualified pooled

investment programs established under paragraph 11 of this section;

8. Prime commercial paper which shall not have a maturity that

exceeds one hundred eighty (180) days nor represent more than ten

percent (10%) of the outstanding paper of an issuing corporation.

Purchases of prime commercial paper shall not exceed seven and onehalf percent (7 1/2%) of the surplus funds of the political

subdivision which may be invested pursuant to this section; however,

the restrictions in this paragraph shall not apply to purchases of

prime commercial paper by qualified pooled investment programs

established under paragraph 11 of this section;

9. Repurchase agreements that have underlying collateral

consisting of those items specified in paragraphs 1 through 8 of

this subsection;

10. Money market funds regulated by the United States

Securities and Exchange Commission and which investments consist of

those items and those restrictions specified in paragraphs 1 through

9 of this subsection; or

11. Qualified pooled investment programs, the investments of

which consist of those items specified in paragraphs 1 through 10 of

this subsection. To be qualified, a pooled investment program must

be governed through an interlocal cooperative agreement formed

pursuant to Sections 1001 through 1008 of Title 74 of the Oklahoma

Statutes.

C. Any political subdivision which elects to participate in a

local government investment pool shall be deemed to have authorized

investments in the items specified in paragraphs 1 through 10 of

subsection B, notwithstanding any differences in the written

investment plans adopted by the governing body.

D. The income received on any investment may be placed in the

general fund, rainy day fund, capital reserve fund, or the fund from

which the investment was made.

Oklahoma Statutes - Title 62. Public Finance

E. Investments shall be made with judgment and care, under

circumstances then prevailing, which persons of prudence,

discretion, and intelligence exercise in the management of their own

affairs, not for speculation, but for investment, considering the

probable safety of their capital as well as the probable income to

be derived.

F. This section shall not prohibit public retirement systems

from investing under any other system authorized under state law.

Added by Laws 2025, c. 110, § 1, eff. Nov. 1, 2025.