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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 735. State Treasurer |
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Chapter 20. Security for Local Entity Deposits |
SECTION 735:20-1-2. Definitions
Latest version.
- The following words and terms, when used in the Chapter, shall have the following meaning, unless the context clearly indicates otherwise:"Collateral Call" means the practice of requiring a financial institution to pledge additional collateral when the fair market value of collateral that is currently pledged is determined to have fallen below the required amounts established in 735:20-1-3;"Collateral instruments" means any instruments, other than securities, which are eligible to be accepted as collateral by a local public entity to secure public deposits under the Security for Local Public Deposits Act (62 O.S. §§ 517.1 et seq.) Such instruments shall include, but not be limited to, letters of credit issued by agencies or instrumentalities of the United States Government, and surety bonds issued by certain qualified insurance companies."Collateral securities" means the types of securities listed in the Security for Local Public Deposits Act (62 O.S. §§ 517.1 et seq.) of the Oklahoma Statutes for pledging as collateral;"Collateralized Mortgage Obligations" or "CMO's" means securities which pool together mortgages and separate them into short-, medium-, and long-term positions called tranches. Tranches are set up to pay different rates of interest depending upon their maturity. CMO's include Real Estate Mortgage Investment Conduits ("REMIC's")."Duly Authorized Bank Officer" means a bank officer listed on the "Certification of Adoption of [Board of Director's or Loan Committee's] Resolution" (OST Form 2001-3) in Appendix K of this Chapter, or "Certification of Removal and/or Appointment of Duly Authorized Bank Officers" (OST Form 2001-4) in Appendix L of this Chapter and approved by the board of directors or loan committee to conduct transactions on behalf of the financial institution."Financial institution" means any bank, savings bank, savings and loan association or credit union, whose deposits are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration, or any successor institutions;"Letter of Credit" or "LOC" means a definite undertaking in writing by a federal agency or instrumentality and authenticated by an authorized signature, to a local public entity as beneficiary, at the request of a financial institution with local public entity funds on deposit, to honor the financial institution's duty to return such funds on demand or on a date certain for time deposits."Maintenance Percentage" means the amount of collateral securities required to collateralize public entity funds on deposit. The maintenance percentage is set by the public entity treasurer at a set percentage amount of at least one-hundred percent (100%) of the funds deposited with the financial institution plus the interest due at maturity, in excess of the FDIC-insured limit;"Office of State Treasurer" or "OST" means the agency governed by the State Treasurer."Pledgor bank" means a financial institution which is pledging collateral securities and/or collateral instruments to secure local public entity funds on deposit."Public entity" means any county, city, town or board of education of a public school district or vocational-technical school district or other governmental or public entity of a local nature which is required or permitted by law to collateralize its deposits [62 O.S. § 517.2]."Public entity funds on deposit" means demand deposits and monies placed in certificates of deposit with participating financial institutions, as well as interest accrued through the date of repayment;"Safekeeping bank" means a financial institution as described by the Security for Local Public Deposits Act (62 O.S. §§ 517.1 et seq.) of the Oklahoma Statutes, to hold collateral securities pledged to a local public entity in a restricted account;"State Treasurer" or "Treasurer" means the individual who is the duly elected and acting Treasurer of the State of Oklahoma which is a statewide elected official and member of the Executive Branch of state government."Surety bond" means a bond or insurance policy which guarantees the obligations of a financial institution holding local public entity funds on deposit, to make payment on such deposits of the local public entity when due.