Current through Vol. 42, No. 1, September 16, 2024
(a) Each public entity treasurer may select the type of collateral which is acceptable. The treasurer may select, but is not required to accept, any of the listed collateral below. The only securities which are acceptable for pledging as collateral securities for public entity deposits are as follows:
(1) United States Treasury Bills, Treasury Notes and Treasury Bonds
(2) General obligations of the State of Oklahoma and Oklahoma counties, municipalities and school districts, which obligations are not in default
(3) General obligations of any other state of the United States
(4) Obligations of instrumentalities of the State of Oklahoma and instrumentalities of Oklahoma counties, municipalities and school districts rated 1, 2, or 3 by the Municipal Rating Committee of Oklahoma, Inc.
(5) Revenue bonds or notes issued by a public trust which operates a public utility and of which the depositing entity is the sole beneficiary
(6) Bonds, Notes, or Obligations issued by the Government National Mortgage Association (GNMA), excluding CMO's
(7) Bonds, Notes, or Obligations issued by the Federal National Mortgage Association (FNMA), excluding CMO's
(8) Bonds, Notes, or Obligations issued by the Federal Home Loan Mortgage Corporation (FHLMC), excluding CMO's
(9) Bonds, Notes, or Obligations issued by the Federal Home Loan Banks (FHLB), excluding CMO's
(10) Bonds, Notes, or Obligations issued by the Federal Farm Credit Banks (Farm Credit), excluding CMO's
(11) Bonds, Notes, or Obligations issued by the Student Loan Marketing Association (SLMA)
(12) The guaranteed portion of loan pools containing loans guaranteed by the Small Business Administration (SBA), if the pools are being offered in the secondary market and where the guaranty of the SBA is not subject to any defenses or offsets, with the specific approval of the public entity treasurer, as to each pool
(b) Revenue obligations of instrumentalities of the State of Oklahoma or of instrumentalities of Oklahoma counties and municipalities, which are insured and possess the highest rating from at least one nationally recognized rating agency acceptable to the State Treasurer, may be accepted as collateral. The use of other revenue obligations of instrumentalities of the State of Oklahoma or of instrumentalities of Oklahoma counties, municipalities and school districts, to secure public entity deposits must conform to the following conditions in order to be pledgeable:
(1) It must be rated "A" or better by Standard and Poor's or Moody's, or both; and if rated by both services, the rating must be "A" or better in both services.
(2) The indenture authorizing the issue must stipulate that revenues available for debt service must equal not less than 1.25 times.
(3) The issuer must have a debt history covering the preceding six (6) years and must have covered its debt service during that period by 1.25 times.
(4) The financial institution is responsible for providing documentation verifying that the collateral meets the above requirements.
(5) Acceptance of collateral will be made on a case by case basis by OST.
(c) Any obligation of the State of Oklahoma or its instrumentalities, or of counties, municipalities, school districts and their instrumentalities, which have been advance refunded and are being paid by an irrevocable escrow composed only of direct obligations of the United States government.
(d) When reviewing the acceptability of a security offered to be pledged as collateral, the public entity treasurer may consider attributes of the security such as the source of debt service, credit quality, price volatility, whether the security is widely traded, the availability of market price information, or any other relevant factor.
Added at 16 Ok Reg 1275, eff 5-13-99; Amended at 18 Ok Reg 2857, eff 7-1-01; Amended at 19 Ok Reg 2474, eff 6-27-02
