Oklahoma § 62-90 - Securities lending program - Securities Lending and

§ 62-90. Securities lending program - Securities Lending and

Custodial Fee Revolving Fund.

A. The State Treasurer may implement and engage in a securities

lending program. As used in this section, "securities lending

program" means any program, arrangement or agreement whereby the

state deposits securities with a federally or state-chartered

savings and loan association, a trust company, a state or national

bank, or a broker-dealer registered with the National Association of

Securities Dealers, Inc. and insured by the Securities Investors

Oklahoma Statutes - Title 62. Public Finance

Protection Corporation, for the purpose of permitting the financial

institution or broker-dealer to lend securities to a borrower

approved by the State Treasurer in return for a fee or charge paid

by the borrower for the use of such securities. All income from

securities lending, less fees, shall be deposited into the

Securities Lending and Custodial Fee Revolving Fund created in this

section; provided, securities lending income in excess of amounts

necessary to pay custodial or other banking fees, shall be deposited

into the General Revenue Fund. Securities loaned under this program

shall be subject to the collateral requirements specified by the

State Treasurer. The State Treasurer must receive collateral equal

to at least one hundred percent (100%) of the market value of the

securities loaned, consisting of securities or instruments which the

State Treasurer can purchase pursuant to Section 89.2 of this title.

Nothing herein shall be deemed to prohibit the implementation of

securities lending programs by the state retirement systems which

are designed and managed by the boards of trustees of such systems.

B. There is hereby created in the State Treasury a revolving

fund for the Office of the State Treasurer, to be designated the

"Securities Lending and Custodial Fee Revolving Fund". The fund

shall be a continuing fund, not subject to fiscal year limitations,

and shall consist of any monies transferred thereto by act of the

Legislature and any monies which may be deposited thereto by the

State Treasurer's Office as provided by this section. All monies

accruing to the credit of the fund are hereby appropriated and may

be budgeted and expended by the Office of the State Treasurer for

the purposes of paying custodial or other banking fees.

Expenditures from the fund shall be made upon warrants issued by the

State Treasurer against claims filed as prescribed by law with the

Director of the Office of Management and Enterprise Services for

approval and payment.

Added by Laws 1988, c. 280, § 7, operative July 1, 1988. Amended by

Laws 1996, c. 219, § 4, eff. July 1, 1996; Laws 1998, c. 85, § 11,

eff. July 1, 1998; Laws 2002, c. 95, § 2, eff. July 1, 2002; Laws

2012, c. 304, § 441.