Oklahoma § 62-517.5 - Securities and other instruments that may be accepted as

§ 62-517.5. Securities and other instruments that may be accepted as

collateral.

A. For purposes of securing public deposits, the treasurer of a

public entity may accept as collateral only those securities and

other instruments listed below. To insure the safety of public

funds, the treasurer may establish standards which restrict, or

limit further, any of the types or classes of securities or

instruments listed below which may be accepted. Any treasurer of a

public entity may request the State Treasurer to determine the

eligibility of an individual security for pledging under this

section. The treasurer may select the following securities and

instruments for the purpose of securing public deposits:

1. Obligations, including letters of credit of the United

States Government, its agencies and instrumentalities;

2. Obligations of this state or of a county, municipality, or

school district of this state or of an instrumentality of this state

or a county, municipality or school district of this state;

3. General obligation bonds of any other state of the United

States; and

4. A surety bond if:

a.

subject to the terms and conditions of the bond, it is

irrevocable and absolute,

Oklahoma Statutes - Title 62. Public Finance

b.

the surety bond is issued by an insurance company

authorized to do business in Oklahoma, and which has

been approved by the State Treasurer,

c.

the issuer of the surety bond does not provide surety

bonds for any one financial institution in an amount

that exceeds ten percent (10%) of the surety bond

insurer's policyholders' surplus and contingency

reserve, net of reinsurance, and

d.

the claims-paying ability of the authorized insurance

company is rated, at all relevant times, in the

highest category by at least two nationally recognized

rating agencies acceptable to the State Treasurer.

B. A financial institution may substitute different forms of

collateral from time to time, provided that the collateral is

acceptable to the treasurer, and meets the requirements of this

section and the rules of the State Treasurer.

Added by Laws 2000, c. 136, § 12, eff. July 1, 2000.