Okla. Stat. tit. 62, § 62-89.2

A. The State Treasurer is directed to invest the maximum amount

of funds under control of the State Treasurer consistent with good

business practices. Except as otherwise provided for by law, the

investments shall earn not less than the rate for comparable

maturities on United States Treasury obligations. Except as

otherwise provided for by law, the State Treasurer may purchase and

invest only in:

1. Obligations of the United States Government, its agencies

and instrumentalities, or other obligations fully insured or

unconditionally guaranteed as to the payment of principal and

interest by the United States government or any of its agencies and

instrumentalities;

2. Collateralized or insured certificates of deposit and other

evidences of deposit at banks, savings banks, savings and loan

associations and credit unions located in this state;

3. Negotiable certificates of deposit issued by a nationally or

state-chartered bank, a savings bank, a savings and loan association

or a state-licensed branch of a foreign bank. Purchases of

negotiable certificates of deposit shall not exceed ten percent

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(10%) of the cash available for investment which may be invested

pursuant to this section. Not more than one-half (1/2) of the ten

percent (10%) limit shall be invested in any one financial

institution specified in this paragraph;

4. Prime banker's acceptances which are eligible for purchase

by the Federal Reserve System and which do not exceed two hundred

seventy (270) days' maturity. Purchases of prime banker's

acceptances shall not exceed ten percent (10%) of the cash available

for investment which may be invested pursuant to this section. Not

more than three-fourths (3/4) of the ten percent (10%) limit shall

be invested in any one commercial bank pursuant to this paragraph;

5. Prime commercial paper which shall not have a maturity that

exceeds one hundred eighty (180) days nor represent more than ten

percent (10%) of the outstanding paper of an issuing corporation.

Purchases of prime commercial paper shall not exceed seven and one-

half percent (7 1/2%) of the cash available for investment which may

be invested pursuant to this section;

6. Investment grade obligations of state and local governments,

including obligations of Oklahoma state public trusts which possess

the highest rating from at least one nationally recognized rating

agency acceptable to the State Treasurer. Purchases of investment

grade obligations of state and local governments shall not exceed

ten percent (10%) of the cash available for investment which may be

invested pursuant to this section;

7. Repurchase agreements, provided that such agreements are

included within the written investment policy required by subsection

D of this section that have underlying collateral consisting of

those items and those restrictions specified in paragraphs 1 through

6 of this subsection;

8. Money market funds and short term bond funds regulated by

the Securities and Exchange Commission and which investments consist

of those items and those restrictions specified in paragraphs 1

through 7 of this subsection; and

9. Bonds, notes, debentures or other similar obligations of a

foreign government which the International Monetary Fund lists as an

industrialized country and for which the full faith and credit of

such nation has been pledged for the payment of principal and

interest; provided, that any such security shall be rated at least

A- or better by Standard & Poor's Corporation or A3 or better by

Moody's Investors Service, or an equivalent investment grade by a

securities ratings organization accepted by the National Association

of Insurance Commissioners; and provided further, that the total

investment in such foreign securities at any one time shall not

exceed five percent (5%) of the cash available for investment which
- or better by Standard & Poor's Corporation or A3 or better by

Moody's Investors Service, or an equivalent investment grade by a

securities ratings organization accepted by the National Association

of Insurance Commissioners; and provided further, that the total

investment in such foreign securities at any one time shall not

exceed five percent (5%) of the cash available for investment which

may be invested pursuant to this section. In no circumstance shall

investments be made in bonds, notes, debentures or any similar

obligations of a foreign government that:

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a. is identified as a state sponsor of terrorism by the

United States Department of State, or

b. any authoritarian or totalitarian government the

sovereign powers of which are exercised through a

single person or group of persons who are not elected

by any form of legitimate popular voting.

B. Investments shall be made with judgment and care, under

circumstances then prevailing, which persons of prudence, discretion

and intelligence exercise in the management of their own affairs,

not for speculation, but for investment, considering the probable

safety of their capital as well as the probable income to be

derived.

C. The State Treasurer shall appoint an investment officer who

shall perform duties related to the investment of state funds in the

Office of the State Treasurer. The investment officer shall not

perform or supervise any accounting functions, data processing

functions or duties related to the documentation or settlement of

investment transactions.

D. Investments of public funds by the State Treasurer shall be

made in accordance with written policies developed by the State

Treasurer. The written investment policies shall address:

1. Liquidity;

2. Diversification;

3. Safety of principal;

4. Yield;

5. Maturity and quality; and

6. Capability of investment management.

The State Treasurer shall place primary emphasis on safety and

liquidity in the investment of public funds. To the extent

practicable taking into account the need to use sound investment

judgment, the written investment policies shall include provision

for utilization of a system of competitive bidding in the investment

of state funds. The written investment policies shall be designed

to maximize yield within each class of investment instrument,

consistent with the safety of the funds invested.

E. Except as provided in subsection H of this section, the

State Treasurer shall select one custodial bank to settle

transactions involving the investment of state funds under the

control of the State Treasurer. The State Treasurer shall review

the performance of the custodial bank at least once every year. The

State Treasurer shall require a written competitive bid every five
unds invested.

E. Except as provided in subsection H of this section, the

State Treasurer shall select one custodial bank to settle

transactions involving the investment of state funds under the

control of the State Treasurer. The State Treasurer shall review

the performance of the custodial bank at least once every year. The

State Treasurer shall require a written competitive bid every five

(5) years. The custodial bank shall have a minimum of Five Hundred

Million Dollars ($500,000,000.00) in assets to be eligible for

selection. Any out-of-state custodial bank 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. In order to be eligible for

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selection, the custodial bank shall allow electronic access to all

transaction and portfolio reports maintained by the custodial bank

involving the investment of state funds under control of the State

Treasurer. The access shall be given to the State Treasurer. The

requirement for electronic access shall be incorporated into any

contract between the State Treasurer and the custodial bank.

Neither the State Treasurer nor the custodial bank shall permit any

of the funds under the control of the State Treasurer or any of the

documents, instruments, securities or other evidence of a right to

be paid money to be located in any place other than within a

jurisdiction or territory under the control or regulatory power of

the United States Government.

F. The investment policy shall specify the general philosophy,

policies and procedures to be followed in the investment of state

monies by the State Treasurer. The investment policy shall include,

but not be limited to, the following:

1. Policy objectives;

2. Performance measure objectives;

3. Authority for investment program;

4. Possible use of an investment advisory committee;

5. Reporting and documentation of investments;

6. Authorized investment instruments;

7. Diversification of investment risk;

8. Maturity limitations;

9. Selections of financial institutions;

10. Interest controls;

11. Safekeeping of investments;

12. Investment ethics; and

13. Formal adoption of policy.

G. The State Treasurer may invest cash balance amounts as

defined and limited by Section 2402 of this title in the Invest in

Oklahoma program.

H. The State Treasurer is hereby authorized to establish

internal custodial accounts within the State Treasury, and enter

contractual relationships for custodial account services with

private institutions as needed, for the implementation and

administration of the Invest in Oklahoma program.

I. Not later than July 1 of each year, the State Treasurer

shall forward a copy of the written investment policy to the

Governor, the Speaker of the House of Representatives, the President

Pro Tempore of the Senate, the Attorney General, the Bank

Commissioner, and the Director of the Office of Management and

Enterprise Services. In addition, the State Treasurer shall

maintain one copy of the investment policy in the office of the

State Treasurer for public inspection during regular business hours.

Copies of any modifications to the investment policy shall be

forwarded to the Governor, Speaker of the House of Representatives,

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President Pro Tempore of the Senate, and each member of the Cash

Management and Investment Oversight Commission.