Okla. Stat. tit. 62, § 62-72.4: Deposit of collateral securities or instruments

A. The State Treasurer shall require that financial

institutions deposit collateral securities or instruments to secure

the deposits of the state in each such institution. The amount of

collateral securities or instruments to be pledged for the security

of public deposits shall be established by rules and regulations

promulgated by the State Treasurer consistent with the provisions of

the Security for Public Deposits Act; provided, such amount shall

not be less than the amount of the deposit to be secured, less the

amount insured.

B. Upon authorization by the State Treasurer, a financial

institution shall place required collateral securities in a

restricted account at a Federal Reserve Bank which serves Oklahoma,

a Federal Home Loan Bank which serves Oklahoma or with another

financial institution located in this state that is not owned or

controlled by the same institution or holding company. The

depositor shall deliver to the State Treasurer a power of attorney

authorizing the State Treasurer to transfer or liquidate the

securities in the event of a default, financial failure or

insolvency of a public depository.

C. Securities eligible for collateral shall be valued at market

value. The State Treasurer shall review and determine the market

value of collateral pledged for security not less than quarterly.

The State Treasurer shall adopt rules and regulations to provide for

the valuation of collateral if the market value is not readily

determinable. The State Treasurer shall prescribe forms for

financial institutions to list collateral securities pursuant to

this section.

D. The State Treasurer shall promulgate rules for the

acceptance of collateral instruments described in Section 72.5 of

this title, to secure deposits of the state. Such rules shall

require that sufficient documentation exists to establish that the

provider of the collateral instrument will protect the state in the

event of a default, financial failure or insolvency of a public

depository.

E. All securities purchased by the State Treasurer or held in

custody for other state agencies by the State Treasurer shall be

held in financial institutions as defined in Section 71 of this

title not involved in such transactions and shall not be held by the

State Treasurer or a broker.