Oklahoma Administrative Code
Title 735 - State Treasurer
Chapter 20 - Security for Local Entity Deposits
Section 735:20-1-13 - Pledge Agreement and Certification of Adoption of [Board of Director's or Loan Committee's] Resolution required to participate in transactions

Universal Citation: OK Admin Code 735:20-1-13

Current through Vol. 42, No. 1, September 16, 2024

(a) A public entity shall not place funds in excess of the FDIC-insured limit with institutions that have not entered into a "Pledge Agreement for Funds Held on Deposit" (OST Form 2001-1) or a "Tri-Party Public Deposit Pledge and Custody Agreement" (OST Form 2001-2) in Appendices I and J of this Chapter. If the Federal Reserve Bank or the Federal Home Loan Bank are the sole safekeeping bank, the treasurer should use the Pledge Agreement. If a Pledgor Bank uses only collateral instruments, the Pledge Agreement may be used. However, if there is any possibility that the Pledgor Bank may need to pledge collateral securities, and the Pledgor Bank has a safekeeping relationship with one of the privately owned safekeeping banks, the Tri-Party Agreement should be used. Whenever the safekeeping bank used is a privately owned safekeeping bank, the Tri-Party Agreement shall be used.

(b) The Financial institution wishing to receive local public entity funds must complete the following steps:

(1) Complete two (2) originals of the Pledge Agreement or three (3) originals of the Tri-Party Agreement (OST Form 2001-1 or 2001-2) in Appendices I and J of this Chapter.

(2) Adopt the "Certification of Adoption of [Board of Director's or Loan Committee's] Resolution" (OST Form 2001-3) in Appendix K of this Chapter showing the acceptance of the Pledge Agreement or Tri-Party Agreement by either the Board of Directors or the Loan Committee, and listing the Duly Authorized Bank Officers authorized to do business with the public entity.

(3) Forward all of originals of the Pledge Agreement or Tri-Party Agreement and a certified copy of the Certification of Adoption of [Board of Directors' or Loan Committee's] Resolution to the public entity. After acceptance, the public entity will return one (1) signed original Pledge Agreement or Tri-Party Agreement to the financial institution for its records, and one (1) signed original Tri-Party Agreement to the safekeeping bank for its records.

(c) Upon the completion of the steps in (b) of this Section, the financial institution will be eligible to receive funds from the public entity. The financial institution must maintain the Pledge Agreement or the Tri-Party Agreement, the Certification and any transaction under the Pledge Agreement or Tri-Party Agreement as an official record within the meaning of 12 U.S.C. § 1823(e), as amended, continuously from the time of its execution.

Added at 18 Ok Reg 2857, eff 7-1-01

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