Oklahoma Administrative Code
Title 735 - State Treasurer
Chapter 10 - Security for Public Deposits
Section 735:10-1-2 - Definitions

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 735:10-1-3;

"Collateral instruments" means any instruments, other than securities, which are eligible to be accepted as collateral by the State Treasurer to secure public deposits under § 72.5 of Title 62. 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 § 72.5 of Title 62 of the Oklahoma Statutes, and approved by the State Treasurer 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 95-006) in Appendix B of this Chapter, or "Certification of Removal and/or Appointment of Duly Authorized Bank Officers" (OST Form 95-008) in Appendix D 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 the Oklahoma State Treasurer as beneficiary, at the request of a financial institution with State 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 state funds on deposit. The maintenance percentage is set by the Oklahoma State Treasurer at 110% of the amount 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 or collateral instruments to secure State funds on deposit.

"Safekeeping bank" means a financial institution as described by § 72.4(B) of Title 62 of the Oklahoma Statutes, and approved by the Oklahoma State Treasurer to hold collateral securities pledged to the Oklahoma State Treasurer in a restricted account;

"State 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;

"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 State funds on deposit, to make payment on such deposits of the State Treasurer when due.

Added at 13 Ok Reg 1583, eff 4-2-96 (emergency); Added at 13 Ok Reg 3341, eff 7-25-96; Amended at 15 Ok Reg 2479, eff 4-29-98 (emergency); Amended at 19 Ok Reg 2472, eff 6-27-02