Okla. Stat. tit. 62, § 62-517.4

secure public deposits - Determination of market value.

A. A treasurer of a public entity shall require that financial

institutions deposit collateral securities or instruments to secure

the deposits of the public entity in each such institution. The

amount of collateral securities or instruments to be pledged for the

security of public deposits shall be established by the treasurer of

the public entity consistent with the provisions of the Security for

Local Public Deposits Act; provided, such amount shall not be less

than the amount of the deposit to be secured, less the amount

insured.

B. Upon authorization by the treasurer of a public entity, a

financial institution shall place required collateral securities in

a restricted account at a Federal Reserve Bank which serves

Oklahoma, a Federal Home Loan Bank which serves Oklahoma or with

another financial institution located in this state that is not

owned or controlled by the same institution or holding company. The

State Treasurer shall designate a number of such financial

institutions authorized to serve as safekeeping or custodial

institutions. The financial institution depositing collateral

securities shall deliver to the treasurer of the public entity a

power of attorney authorizing the treasurer to transfer or liquidate

the securities in the event of a default, financial failure or

insolvency of a public depository. The State Treasurer must approve

any forms or pledge agreements used by public entities and financial

institutions in securing public deposits of public entities.

C. Securities eligible for collateral shall be valued at market

value. The treasurer shall review and determine the market value of

collateral pledged for security not less than quarterly. The market

Oklahoma Statutes - Title 62. Public Finance Page 446

value of pledged securities shall be provided to the treasurer by

either the financial institution holding the deposit or the

financial institution holding the collateral securities, which

market value must have been obtained from an independent, recognized

and documented source. The State Treasurer shall promulgate rules

to provide for the valuation of collateral if the market value is

not readily determinable. The State Treasurer shall prescribe

reporting requirements and forms for financial institutions to list

collateral securities pursuant to this section.

D. The State Treasurer shall promulgate rules for the

acceptance of collateral instruments described in Section 12 of this

act, to secure deposits of the public entity. Such rules shall

require that sufficient documentation exists to establish that the

provider of the collateral instrument will protect the public entity

in the event of a default, financial failure or insolvency of a

public depository.

E. All securities purchased by a treasurer of a public entity

or held in custody for other departments of the public entity by the

treasurer shall be held in financial institutions not involved in

such transactions and shall not be held by the treasurer or a

broker.