{"data":{"id":"us-ok/okla.-stat.-tit.-56-56-4001.3","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 56, § 56-4001.3","heading":"Use of financial institutions as depositories and","body":"managers.\n\nA. The State Treasurer may implement this act through the use\n\nof one or more financial institutions to act as the depositories and\n\nmanagers. Under the program, persons may establish accounts through\n\nthe program at a depository that has been selected by the Treasurer.\n\nB. The Treasurer may solicit proposals from financial\n\ninstitutions to act as the depositories and managers of the program.\n\nFinancial institutions that submit proposals shall provide all\n\ninformation required by the Treasurer which is sufficient to enable\n\nthe evaluation of the investment strategies and asset allocations\n\nconsistent with the program objectives set by the Treasurer.\n\nC. The Treasurer may select as program depositories and\n\nmanagers, the financial institution or institutions from among\n\nbidding financial institutions that demonstrate the most\n\nadvantageous combination, both to potential program participants and\n\nthis state, of the following factors:\n\n1. Financial stability and integrity;\n\n2. The safety of the investment instruments being offered by\n\nthe financial institution, taking into account any insurance\n\nprovided with respect to these instruments;\n\n3. The ability of the financial institution to ensure that the\n\nplan it offers tracks requirements of the Internal Revenue Code,\n\nregulations of the Internal Revenue Service, other pertinent federal\n\nand state laws and regulations, and rules and requirements of the\n\nRegents;\n\n4. The ability of the financial institution to track estimated\n\ncosts of the expenses for care of individuals with disabilities as\n\nprovided by the Department of Human Services and provided by the\n\nfinancial institution to the account holder;\n\n5. The ability of the financial institutions, directly or\n\nthrough a subcontract, to satisfy recordkeeping and reporting\n\nrequirements, including those created by Section 529A of the\n\nInternal Revenue Code and Internal Revenue Service regulations;\n\n6. The financial institution's plan for promoting the program\n\nand the investment it is willing to make to promote the program,\n\nincluding any use of institutions with offices in Oklahoma as plan\n\nmarketers and enrollment agents;\n\n7. The fees, if any, proposed to be charged to persons for\n\nmaintaining accounts;\n\n8. The minimum initial deposit and minimum contributions that\n\nthe financial institution will require and the willingness of the\n\nfinancial institution to accept contributions through payroll\n\ndeduction plans and other deposit plans; and\n\n9. Any other benefits to this state or its residents included\n\nin the proposal, including an account opening fee payable to the\n\nTreasurer by the account owner and an additional fee from the\n\nfinancial institution for statewide program marketing by the\n\nTreasurer.\n\nD. The Treasurer may enter into a contract with a financial\n\ninstitution or institutions provided in subsection E of this section\n\nto serve as program managers and depositories.\n\nE. The Treasurer may determine a minimum term for contracts\n\nexecuted between the Treasurer and a financial institution pursuant\n\nto this section and shall establish procedures by which a contract\n\nmay be renewed.\n\nF. The Treasurer may select more than one financial institution\n\nand investment for the program if the following conditions exist:\n\n1. The United States Internal Revenue Service has provided\n\nguidance that giving a contributor a choice of more than one\n\ninvestment instrument under a state plan will not cause the plan to\n\nfail to qualify for favorable tax treatment under Section 529A of\n\nthe Internal Revenue Code; and\n\n2. The Treasurer concludes that the choice of instrument\n\nvehicles is in the best interest of program participants and will\n\nnot interfere with the promotion of the program.\n\nG. A program manager shall:\n\n1. Take all action required to keep the program in compliance\nor favorable tax treatment under Section 529A of\n\nthe Internal Revenue Code; and\n\n2. The Treasurer concludes that the choice of instrument\n\nvehicles is in the best interest of program participants and will\n\nnot interfere with the promotion of the program.\n\nG. A program manager shall:\n\n1. Take all action required to keep the program in compliance\n\nwith the requirements of this act and shall not take action contrary\n\nto this act or its contract to manage the program so that it is\n\ntreated as a qualified plan under Section 529A of the Internal\n\nRevenue Code;\n\n2. Keep adequate records of each account, keep each account\n\nsegregated from each other account and provide the Treasurer with\n\nthe information necessary to prepare statements required by federal\n\nand state law or regulation or file these statements on behalf of\n\nthe Treasurer;\n\n3. Compile and total information contained in statements\n\nrequired to be prepared under federal and state law and regulation\n\nand provide these compilations to the Treasurer;\n\n4. If there is more than one program manager, the program\n\nmanagers shall provide the Treasurer with sufficient information to\n\ndetermine compliance with this act;\n\n5. Provide the Treasurer and other contractors or other state\n\nagencies, if necessary, access to the books and records of the\n\nprogram manager to the extent needed to determine compliance with\n\nthe contract; and\n\n6. Hold all accounts in trust for the benefit of this state and\n\nthe account owner.\n\nH. If a contract executed between the Treasurer and a financial\n\ninstitution pursuant to this section is not renewed, all of the\n\nfollowing conditions apply at the end of the term of the nonrenewed\n\ncontract:\n\n1. Accounts previously established and held in investment\n\ninstruments at the financial institution shall not be terminated;\n\n2. Additional contributions may be made to the accounts; and\n\n3. No new accounts may be placed with that financial\n\ninstitution.\n\nI. The Treasurer may terminate a contract with a financial\n\ninstitution at any time for good cause. If a contract is terminated\n\npursuant to this section, the Treasurer shall take custody of\n\naccounts held at that financial institution and shall seek to\n\npromptly transfer the accounts to another financial institution that\n\nis selected as a program manager and into investment instruments as\n\nsimilar to the original investments as possible.","path":["OK Code","Title 56"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os56.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"df3c406460d080f71a67e186c4da181fac450f2ac81bbab122a4cd588f174025","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-56-56-4001.2","next":"us-ok/okla.-stat.-tit.-56-56-4001.4"},"notice":"GroundRules: Original legal text. Not legal advice."}