Okla. Stat. tit. 3, § 3-65.13: Federal and state aid

Acceptance Authorized, Conditions. Every municipality is

authorized to accept, receive, receipt for, disburse and expend

federal and state monies and other monies, public or private, made

available by grant or loan or both to accomplish, in whole or in

part, any of the purposes of this act. All federal monies accepted

under this section shall be accepted and expended by the

municipality upon such terms and conditions as are prescribed by the

United States and as are consistent with state law; and all state

monies accepted under this section shall be accepted and expended by

the municipality upon such terms and conditions as are prescribed by

the state. Unless otherwise prescribed by the agency from which

such monies were received, the chief financial officer of the

municipality shall, on its behalf deposit all monies received

pursuant to this section and shall keep them, in separate funds

designated according to the purposes for which the monies were made

available, in trust for such purposes.