Okla. Stat. tit. 56, § 56-258: Withdrawals under false pretenses or for other than

approved purposes - Penalties.

A. If the fiduciary organization receives evidence that monies

withdrawn from IDAs are withdrawn under false pretenses or are used

for purposes other than for the approved purposes indicated at the

time of the withdrawal, the fiduciary organization shall make

arrangements with the financial institution to impose a penalty of

ten percent (10%) of the amount of the monies withdrawn or loss of

matches and may, at its discretion, close the account. If the

fiduciary organization is unable to impose the penalty specified

herein, it shall notify the Oklahoma Tax Commission and the amount

of such penalty shall be added to the income tax liability of the

IDA account holder. All penalties collected by fiduciary

organizations or the Tax Commission shall be deposited to the

Individual Development Account Revolving Fund created pursuant to

the provisions of Section 10 of this act.

B. The amount of any withdrawal for purposes other than those

set forth in Section 7 of this act, or any withdrawal for purposes

other than for the approved purposes indicated at the time of the

withdrawal, shall be taxed as income during the year in which the

withdrawal is made. The fiduciary organization shall notify the Tax

Commission of any such withdrawals made.

C. The fiduciary organization shall establish a grievance

committee and a procedure to hear, review, and decide in writing any

grievance made by an IDA account holder who disputes a decision of

the operating organization that a withdrawal is subject to penalty.

D. Each fiduciary organization shall establish such regulations

as are necessary, including prohibiting eligibility for further

matching funds, to ensure compliance with this section.