Okla. Stat. tit. 82, § 82-876: Bonds exempted from taxation except inheritance taxes -

Bonds and securities.

All bonds and the interest thereon issued pursuant to the

provisions of this act shall be exempt from taxation, except

inheritance taxes, by the State of Oklahoma or by any municipal

corporation, county or other political subdivision or taxing

district of the state.

Bonds issued under the provisions of this act are hereby made

securities in which all public officers and public bodies, agencies

and instrumentalities of the state and its political subdivisions,

all banks, trust companies, trust and loan associations, investment

companies, and others carrying on a banking business, and all

insurance companies and insurance associations, and others carrying

on an insurance business, may legally and properly invest funds

including capital in their control or belonging to them. Such bonds

are also approved as collateral security for the deposit of any

public funds and for the investment of trust funds.