Oklahoma § 74-1305.2 - Fiduciaries - Duties, powers and responsibilities

§ 74-1305.2. Fiduciaries - Duties, powers and responsibilities

(1) A fiduciary with respect to the State and Education

Employees Group Insurance Board shall not cause the Board to engage

in a transaction if the fiduciary knows or should knowthat such

transaction constitutes a direct or indirect:

(a) sale or exchange, or leasing of any property from the Board

to a party in interest for less than adequate consideration or from

a party in interest to the Board for more than adequate

consideration;

(b) lending of money or other extension of credit from the

Board to a party in interest without the receipt of adequate

security and a reasonable rate of interest, or from a party in

interest to the Board with provision of excessive security or an

unreasonably high rate of interest;

(c) furnishing of goods, services or facilities from the Board

to a party in interest for less than adequate consideration, or from

a party in interest to the Board for more than adequate

consideration; or

(d) transfer to, or use by or for the benefit of, a party in

interest of any assets of the Board for less than adequate

consideration.

(2) A fiduciary with respect to the Board shall not:

(a) deal with the assets of the Board in the fiduciary's own

interest or for the fiduciary's own account;

(b) in the fiduciary's individual or any other capacity act in

any transaction involving the Board on behalf of a party whose

interests are adverse to the interests of the Board or the interests

of its participants or beneficiaries; or

(c) receive any consideration for the fiduciary's own personal

account from any party dealing with the Board in connection with a

transaction involving the assets of the Board.

(3) A fiduciary with respect to the Board may:

(a) invest all or part of the assets of the Board in deposits

which bear a reasonable interest rate in a bank or similar financial

institution supervised by the United States or a state, if such bank

or other institution is a fiduciary of such plan; or

(b) provide any ancillary service by a bank or similar

financial institution supervised by the United States or a state, if

such bank or other institution is a fiduciary of such plan.

(4) A person or a financial institution is a fiduciary with

respect to the Board to the extent that the person or the financial

institution:

(a) exercises any discretionary authority or discretionary

control respecting management of the Board or exercises any

Oklahoma Statutes - Title 74. State Government

authority or control respecting management or disposition of the

assets of the Board;

(b) renders investment advice for a fee or other compensation,

direct or indirect, with respect to any monies or other property of

the Board, or has any authority or responsibility to do so; or

(c) has any discretionary authority or discretionary

responsibility in the administration of the Board.

Added by Laws 1989, c. 318, § 7, operative July 1, 1989.