Okla. Stat. tit. 62, § 62-71

depositories - Relationship with financial institutions -

Limitations on deposits - Reports.

A. The State Treasurer is authorized and directed to select a

number of banks, savings banks or savings and loan associations and

credit unions within the State of Oklahoma as depositories for all

monies and funds coming into the hands of the State Treasurer as the

Oklahoma Statutes - Title 62. Public Finance Page 292

official depository. Such banks, savings banks or savings and loan

associations and credit unions shall be in good standing and

conducting a regular banking business and shall collect such drafts,

bills of exchange, and checks as may be deposited by the state in

the regular course of business, and shall pay all checks and drafts

legally authorized and duly drawn on the funds deposited in such

banks, savings banks or savings and loan associations and credit

unions.

B. At the request of state agencies or state institutions

conducting operations or transacting state business outside the

State of Oklahoma, the State Treasurer is hereby authorized to name

and designate financial institutions located without the State of

Oklahoma as official depositories of state monies and funds where it

is shown to the satisfaction of the State Treasurer that the need

for such out-of-state depository is required for the orderly and

expeditious deposit of monies and funds coming into the possession

of the requesting state agency or state institution. For purposes

of this section, the State Treasurer shall not designate any

financial institution outside the United States for the deposit of

public funds, monies, securities, or any other financial assets

subject to the control of the State Treasurer. Any out-of-state

financial institution designated as an official depository of the

State Treasurer shall have a service agent in the State of Oklahoma

so that service of summons or legal notice may be had on such

designated agent as is now or may hereafter be provided by law.

Before designating any financial institution outside the State of

Oklahoma as an official depository, the State Treasurer shall, if

the State Treasurer deems it necessary, require a bond to be given

by such financial institution to the State of Oklahoma in double the

amount of monies which the requesting state agency or institution

anticipates will be the maximum amount of money or funds on deposit

at any one time with the financial institution. Such bond will be

approved by the State Treasurer and filed with the Secretary of

State. Any out-of-state financial institution designated as an

official depository shall in all respects conform to and comply with

the provisions of this section, the Security for Public Deposits

Act, and any and all laws pertaining to financial institutions

receiving deposits of public monies or funds.

C. The State Treasurer shall establish procedures which provide

minimum standards for establishing and maintaining relationships

between state entities and financial institutions. As used in this

subsection, “financial institutions” means those institutions

described in subsection E of this section, companies that provide

alternative direct deposit services known as payroll card or

paycard, credit card processing companies and other companies which

handle or process financial transactions. Any agreements between

state agencies and financial institutions, as defined in this

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subsection, shall be subject to prior approval by the State

Treasurer. If the State Treasurer has an agreement with a financial

institution to provide services to the State Treasurer, a state

agency may pay the institution directly for services performed for

the agency under the same terms, if the services are services not

previously provided to the agency through the State Treasurer.

State agencies may enter into agreements with the State Treasurer to
reasurer. If the State Treasurer has an agreement with a financial

institution to provide services to the State Treasurer, a state

agency may pay the institution directly for services performed for

the agency under the same terms, if the services are services not

previously provided to the agency through the State Treasurer.

State agencies may enter into agreements with the State Treasurer to

participate in any agreements entered into by the State Treasurer

with financial institutions or companies which handle or process

financial transactions as described in this subsection. Any state

agency participating in such an agreement may pay the vendor

directly for any fees owed on transactions associated with that

agency. The State Treasurer is authorized to prescribe formats and

issue all state vouchers, warrants and checks drawn on state

treasury funds. The State Treasurer may compensate financial

institutions for services rendered to the state by direct fee

charges or through compensating balances. Any financial institution

receiving payment for services from the state through compensating

balances shall file a report quarterly with the State Treasurer

detailing the services rendered to the state and the charges for

such services. Such charges shall not exceed those made for similar

services to other customers of the financial institution. If the

quarterly value of the compensating balance arrangement is above or

below the quarterly charges for the services rendered to the state

had service charges been separately billed, the difference in amount

of the quarterly charges for the services rendered and the amount of

the compensating balance shall be applied to the subsequent quarter.

Any compensation arrangements made with financial institutions

pursuant to this subsection shall not be subject to the provisions

of The Oklahoma Central Purchasing Act.

D. Of the public funds in the hands of the State Treasurer,

there shall not be deposited in any one of such banks, savings banks

or savings and loan associations and credit unions an amount to

exceed the combined amount of insured deposits plus approved legal

securities pledged by such banks, savings banks or savings and loan

associations and credit unions therefor. Such banks, savings banks

or savings and loan associations and credit unions shall make

quarterly reports of the amount deposited, checked out, or withdrawn

and the balances on hand for the fiscal year.

E. All provisions of this title relating to depositories for

public funds shall include, in addition to banks, all financial

institutions of this state. As used in this subsection, the term

“financial institutions” means banks, savings banks, savings and

loan associations and credit unions in this state whose deposits are

insured by the Federal Deposit Insurance Corporation, the National

Credit Union Administration or any successor institutions.

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F. The State Treasurer may permit treasurers of local

governmental entities to place public funds under their control into

investments used by the State Treasurer for state funds, if the

local treasurer has appropriate investment authority.

R.L. 1910, § 6779. Amended by Laws 1923-24, c. 59, p. 76, § 5,

emerg. eff. March 22, 1924; Laws 1933, c. 207, p. 493, § 1, emerg.

eff. July 20, 1933; Laws 1935, p. 105, § 1, emerg. eff. April 6,

1935; Laws 1937, p. 120, § 1, emerg. eff. March 26, 1937; Laws 1983,

c. 182, § 1, operative July 1, 1983; Laws 1986, c. 235, § 1; Laws

1987, c. 194, § 2, operative July 1, 1987; Laws 1989, c. 343, § 24,

operative July 1, 1989; Laws 1990, c. 168, § 2, eff. Sept. 1, 1990;