Oklahoma § 62-517.6 - Default or insolvency of public depository - Procedures

§ 62-517.6. Default or insolvency of public depository - Procedures

to be implemented - Sale and forfeiture - Attorney fees.

In the event of a default or insolvency of a public depository,

the treasurer of a public entity shall implement the following

procedures:

1. In cooperation with the State Department of Banking and

other regulatory officials, the treasurer shall ascertain the amount

of public funds on deposit at the defaulting institution and the

amount of deposit insurance applicable to such deposit;

2. The potential loss to the public entity shall be calculated

by the treasurer. The loss to the public entity shall be satisfied,

insofar as possible, first through any applicable deposit insurance

and then through the sale of securities pledged, or through the

proceeds of collateral instruments pledged, by the defaulting

depository institution. Such sales shall be conducted by the

treasurer;

3. The securities, bonds or other forms of collateral shall

become forfeited to and become the property of the public entity.

If the securities, bonds or other forms of collateral are valued at

less than the amount of principal and interest due to the public

entity plus the cost of the ensuing sale, the securities, bonds and

other forms of collateral shall be sold by the treasurer, and the

treasurer shall be entitled to recover from the financial

institution such balances with costs and attorney's fees. If the

market value of the securities, bonds or other forms of collateral

exceeds the principal and interest due to the public entity plus the

cost of the ensuing sale, the securities, bonds and other forms of

collateral may be sold by the treasurer and the excess of the

Oklahoma Statutes - Title 62. Public Finance

proceeds shall be returned to the pledging financial institution or

its receiver, without further process of law.

Added by Laws 2000, c. 136, § 13, eff. July 1, 2000.