Oklahoma § 62-72.6

§ 62-72.6.

Default or insolvency of public depository.

Oklahoma Statutes - Title 62. Public Finance

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

the State Treasurer shall implement the following procedures:

1. In cooperation with the State Department of Banking and

other regulatory officials, the State 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 state shall be calculated by the

State Treasurer. The loss to the state 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 State Treasurer.

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

become forfeited to and become the property of the state. If the

securities, bonds or other forms of collateral are valued at less

than the amount of principal and interest due to the state plus the

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

collateral shall be sold by the State Treasurer, and the State

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 state plus the cost of

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

collateral may be sold by the State Treasurer and the excess of the

proceeds shall be returned to the pledging financial institution or

its receiver, without further process of law.

Added by Laws 1987, c. 194, § 10, operative July 1, 1987. Amended

by Laws 1998, c. 85, § 9, eff. July 1, 1998.