Okla. Stat. tit. 62, § 62-91.7

linked deposit agreements.

A. The State Treasurer may accept or reject a rural housing

linked deposit loan package or any portion thereof, which has been

recommended for approval by the certifying agency based on the State

Treasurer's evaluation of the eligible rural housing developer

included in the package, and the amount of the package. If the

State Treasurer rejects the application, the written notice of

rejection shall include reasons for said rejection in a report to

the certifying agency. The Treasurer shall also forward a copy of

the rejection notice to the lending institution and the borrower.

Oklahoma Statutes - Title 62. Public Finance Page 328

The borrower may be allowed to bring the application into compliance

with the State Treasurer's requirements and resubmit the

application. If the State Treasurer rejects the application because

sufficient funds are not available for a linked deposit, then the

completed application may be considered in the order received when

funds are once again available subject to a review by the certifying

agency and the lending institution. In evaluating the eligible

rural housing developers, the State Treasurer shall consider the

recommendation of the certifying agency and the economic needs of

the area where the business is located.

B. Upon acceptance of the rural housing linked deposit loan

package or any portion thereof, the State Treasurer shall notify the

certifying agency, the lending institution, and the borrower. Upon

acceptance, the State Treasurer may place certificates of deposit

with the eligible lending institution at a rate no more than three

percent (3%) below current market rates, or may invest in bonds,

notes, debentures, or other obligations or securities issued by the

federal farm credit bank with respect to the eligible lending

institution at a rate no more than three percent (3%) below current

market rates. When necessary, the State Treasurer may place

certificates of deposit or may invest in such obligations or

securities prior to acceptance of a rural housing linked deposit

loan package.

C. The eligible lending institution shall enter into a rural

housing linked deposit agreement with the State Treasurer, which

shall include requirements necessary to implement the purposes of

the Oklahoma Rural and Affordable Housing Linked Deposit Program.

Such requirements shall include an agreement by the eligible lending

institution to lend an amount equal to the rural housing linked

deposit to eligible rural housing developers at an interest rate

that reflects a percentage-rate reduction below the present

borrowing rate applicable to each specific rural housing developer

in the accepted loan package that is equal to the percentage-rate

reduction below market rates at which the certificates of deposit

that constitute the rural housing linked deposit were placed or at

which the investments in bonds, notes, debentures or other

obligations or securities that constitute the rural housing linked

deposit were made. Such requirements shall also reflect the market

conditions prevailing in the eligible lending institution's lending

area. The agreement shall also include a specification of the

period of time in which the lending institution is to lend funds

upon the placement of a linked deposit, and shall include provisions

for the certificates of deposit to be placed or the investment in

bonds, notes, debentures, obligations, or securities to be made for

any maturity considered appropriate by the State Treasurer not to

exceed two (2) years and may be renewed once for up to an additional

Oklahoma Statutes - Title 62. Public Finance Page 329

year, at the option of the State Treasurer. Interest shall be paid

at the times determined by the State Treasurer.