Okla. Stat. tit. 6, § 6-1004

A. Deposit requirement - As pledge for faithful performance.

(1) Before any bank or trust company, including national banking

associations, shall transact any fiduciary business within this

state it shall deposit with the Commissioner, as security and as a

pledge for the faithful performance of its duties as a trust

company, cash or interest-bearing securities, which securities shall

have a ready market value in an amount regulated by the amount of

cash and securities held in trust by the bank or trust company.

(2) Whenever such cash and securities held in trust amount to

less than One Million Dollars ($1,000,000.00), the deposit shall be

Fifty Thousand Dollars ($50,000.00). Whenever such cash and

securities held in trust amount to One Million Dollars

($1,000,000.00) but do not exceed Five Million Dollars

($5,000,000.00), the deposit shall be Two Hundred Fifty Thousand

Dollars ($250,000.00). Whenever such cash and securities held in

trust amount to Five Million Dollars ($5,000,000.00) but do not

exceed Ten Million Dollars ($10,000,000.00), the deposit shall be

Four Hundred Thousand Dollars ($400,000.00). Whenever such cash and

securities held in trust exceed Ten Million Dollars

($10,000,000.00), the deposit shall be Five Hundred Thousand Dollars

($500,000.00); provided, no trust company not receiving deposits

other than funds held by it in trust shall be required to increase

the deposit to an amount in excess of its capital. The term "cash

and securities held in trust" as employed herein shall not include

lands held in trust as collateral security for monies lent or to be

lent, nor to trust funds registered with the Securities and Exchange

Commission under the Securities Act of 1933, as amended (48 Stat.

74, 15 U.S.C. Section 77 (1933)), and the Securities Exchange Act of

1934, as amended (48 stat. 881, 15 U.S.C. Section 78 (1934)).

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B. Securities eligible for deposit. The securities mentioned

in subsection A of this section may be of the following classes and

not otherwise:

(1) Interest-bearing bonds, notes or obligations of the United

States, or those for which the faith of the United States is pledged

for the payment of the principal and interest.

(2) Bonds or other obligations of the State of Oklahoma or any

county of this state, or of any incorporated city, town or school or

port district of this state having a population of not less than two

thousand (2,000) inhabitants as shown by the last federal census, or

bonds of any other state of the United States, or any county,

incorporated city, town or school district having a population of

not less than twenty-five thousand (25,000) inhabitants, as shown by

the last federal census, provided such bonds were issued in

compliance with the constitution and laws of such state, and there

has been no default in payment of either principal or interest on

any of the general obligations of such state, county, incorporated

town, city or school or port district for a period of five (5) years

next preceding the date of the deposit, and such bonds are a general

obligation of the state, county, school or port district, city or

town issuing the same.

(3) Bonds, other than foreign bonds, listed on the New York

Stock Exchange, provided the total obligation of any one debtor

shall not exceed twenty percent (20%) of the aggregate deposit.
or port district for a period of five (5) years

next preceding the date of the deposit, and such bonds are a general

obligation of the state, county, school or port district, city or

town issuing the same.

(3) Bonds, other than foreign bonds, listed on the New York

Stock Exchange, provided the total obligation of any one debtor

shall not exceed twenty percent (20%) of the aggregate deposit.

(4) Notes or bonds secured by first lien upon improved real

estate in the State of Oklahoma. Such loans may be subsequent to

taxes not due and bonded indebtedness for public improvements not

due, but any such obligation, plus taxes not due and bonded

indebtedness for public improvements not due, shall not exceed fifty

percent (50%) of the reasonable market value of such real estate,

except as provided in Section 1008 of this Code. There shall be

filed by the bank or trust company in support of such real estate

obligation such appraisal, evidence of merchantable title and

insurance as may be required by the Commissioner.

C. Purchase of bond or irrevocable letter of credit in lieu of

deposit. As an alternative to the deposit and pledge of cash or

securities pursuant to the provisions of this section, a bank or

trust company may purchase a bond or irrevocable letter of credit,

for the benefit of the Commissioner and any person suffering a loss

by reason of the malfeasance of the bank or trust company (a

"Claimant"). The amount of the bond or letter of credit must be not

less than twice the amount of the cash and securities which would

otherwise be required to be pledged under paragraph (2) of

subsection A of this section. The bond or letter of credit must be

submitted to and approved by the Commissioner. The bond or letter

of credit may be canceled only after thirty (30) days' prior written

notice to the Commissioner and only after the bank or trust company

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has made a sufficient deposit of cash or securities under the terms

of this section, or the company has been relieved of its fiduciary

positions by transfer pursuant to the terms of Section 1109 of this

title and has relinquished its trust powers pursuant to the

provisions of Section 1017 of this title. Any bank or trust company

that does not maintain a bond or letter of credit which complies

with the terms of this subsection must make a deposit or pledge of

securities pursuant to the terms of this section.

D. Primary liability for deposit. The deposit, bond, or letter

of credit required by this section shall be primarily liable for the

malfeasance of a company as guardian, executor, administrator,

assignee, receiver, trustee under inter vivos trust or trustee under

will by an appointment of court, or depository of money in court,

and is not liable for any debt or other obligation of the company

until such malfeasance liability of the company has been discharged.

E. Right of action against deposit, bond or letter of credit.

Any person who suffers loss or damage because of the breach of any

trust committed to any bank or trust company shall have a right of

action to recover the amount of such loss or damage from the

provisions of the bond, letter of credit, or out of the moneys or

securities deposited with the Commissioner by the bank or trust

company. However, the Commissioner shall not be required to release

to a Claimant any amount deposited with the Commissioner or request

payment of any amount under the terms of the bond or letter of

credit except at the direction of an unappealable order of a court

of competent jurisdiction issued in favor of the Claimant. If the

amount for which the bank or trust company is liable exceeds the

amount of the bond or letter of credit or deposit, all Claimants

will receive a pro rata portion of the total bond or deposit based

on the Claimant's percentage of the company's total liability.
f

credit except at the direction of an unappealable order of a court

of competent jurisdiction issued in favor of the Claimant. If the

amount for which the bank or trust company is liable exceeds the

amount of the bond or letter of credit or deposit, all Claimants

will receive a pro rata portion of the total bond or deposit based

on the Claimant's percentage of the company's total liability.

F. Charge for handling securities. The Commissioner may make

such charges and assessments for expenses incurred, including

insurance, and services rendered in connection with deposits of

securities as he deems just and reasonable.

G. Appraisal of real estate securing deposit. The Commissioner

may appraise, or cause to be appraised, or may in lieu of his own

appraisal accept the appraisal of qualified appraisers, every parcel

of real estate securing any note or bond offered for deposit with

the Commissioner. If the appraisement is made by the Commissioner

he shall collect from the company offering the mortgages for deposit

his actual expenses in making the appraisement. If the appraisement

is made by an appraiser selected by the Commissioner he shall

collect a reasonable fee from the company.

H. Certificates of title, title insurance, or title opinion on

real estate securing deposit. The Commissioner may accept a

certificate of title or guaranty of title or title insurance policy

from a title insurance company, or the opinion of the attorney who

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examined the title to the property for the trust company offering a

mortgage and note for deposit, or he may require an opinion as to

title from the Attorney General.

I. Fire insurance; deposit of documents with notes or bonds.

(1) Fire insurance shall be in effect upon all insurable

property for the reasonable value thereof.

(2) All mortgages or deeds of trust and all insurance policies,

abstracts of title (when required by the Commissioners),

certificates of title, guaranty of title or title insurance policies

and appraisements shall be deposited with the notes or bonds. When

less than the whole of a bond issue is deposited, the Commissioner

shall not require the deposit of the abstract of title, certificate

of title, guaranty of title or title insurance policies and

appraisements, but may require in lieu thereof a certificate from

the trustee of the mortgage or bond issue that such documents have

been deposited with the trustee.

J. Substitution of deposit securities; income of securities

deposited.

(1) The Commissioner may require the immediate substitution of

other securities when he has reason to believe that the market value

of securities which have heretofore been deposited have depreciated

below their face value. Substitution of securities with the

Commissioner at the request of the depositing bank or trust company

may be permitted when approved by the Commissioner.

(2) So long as the depositing bank or trust company continues

solvent it shall be permitted to receive and retain all interest,

income or dividends from all securities deposited with the

Commissioner.

K. Return of deposit; liability of state.

(1) The State of Oklahoma is liable for the return of any funds

or securities deposited in accordance with this section.

(2) The State of Oklahoma is responsible for the safe return of

such securities deposited with the Commissioner under this Code.