Oklahoma Administrative Code
Title 735 - State Treasurer
Chapter 10 - Security for Public Deposits
Section 735:10-1-14 - Acceptance of surety bonds to secure deposits
Current through Vol. 41, No. 13, March 15, 2024
(a) OST may accept surety bonds as collateral instruments to secure State funds on deposit with financial institutions. A surety bond must meet the following statutory conditions to be accepted:
(b) The issuer of a surety bond and the financial institution with State funds on deposit are required to notify OST by certified mail at least 45 days prior to cancellation or the non-renewal of a surety bond. Within 48 hours of discovery of a downgrade by a rating agency, notice must be given to OST by the issuer of the surety bond and the financial institution by certified mail. In the event an insurance company providing a surety bond to OST loses its authority to do business in the State of Oklahoma, experiences a rating downgrade below the statutory minimum, or in the event the insurance company exceeds the ten percent (10%) statutory limitation in providing a surety bond to a single financial institution, OST shall require the financial institution with State funds on deposit to substitute conforming collateral for the surety bond The financial institutions which use surety bonds to secure state deposits shall be solely responsible for the cost of securing a surety bond.
Added at 15 Ok Reg 2479, eff 4-29-98 (emergency); Added at 15 Ok Reg 2865, eff 6-25-98