{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-89.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-89.2","heading":"Investment of funds by State Treasurer","body":"A. The State Treasurer is directed to invest the maximum amount\n\nof funds under control of the State Treasurer consistent with good\n\nbusiness practices. Except as otherwise provided for by law, the\n\ninvestments shall earn not less than the rate for comparable\n\nmaturities on United States Treasury obligations. Except as\n\notherwise provided for by law, the State Treasurer may purchase and\n\ninvest only in:\n\n1. Obligations of the United States Government, its agencies\n\nand instrumentalities, or other obligations fully insured or\n\nunconditionally guaranteed as to the payment of principal and\n\ninterest by the United States government or any of its agencies and\n\ninstrumentalities;\n\n2. Collateralized or insured certificates of deposit and other\n\nevidences of deposit at banks, savings banks, savings and loan\n\nassociations and credit unions located in this state;\n\n3. Negotiable certificates of deposit issued by a nationally or\n\nstate-chartered bank, a savings bank, a savings and loan association\n\nor a state-licensed branch of a foreign bank. Purchases of\n\nnegotiable certificates of deposit shall not exceed ten percent\n\n(10%) of the cash available for investment which may be invested\n\npursuant to this section. Not more than one-half (1/2) of the ten\n\npercent (10%) limit shall be invested in any one financial\n\ninstitution specified in this paragraph;\n\n4. Prime banker's acceptances which are eligible for purchase\n\nby the Federal Reserve System and which do not exceed two hundred\n\nseventy (270) days' maturity. Purchases of prime banker's\n\nacceptances shall not exceed ten percent (10%) of the cash available\n\nfor investment which may be invested pursuant to this section. Not\n\nmore than three-fourths (3/4) of the ten percent (10%) limit shall\n\nbe invested in any one commercial bank pursuant to this paragraph;\n\n5. Prime commercial paper which shall not have a maturity that\n\nexceeds one hundred eighty (180) days nor represent more than ten\n\npercent (10%) of the outstanding paper of an issuing corporation.\n\nPurchases of prime commercial paper shall not exceed seven and one-\n\nhalf percent (7 1/2%) of the cash available for investment which may\n\nbe invested pursuant to this section;\n\n6. Investment grade obligations of state and local governments,\n\nincluding obligations of Oklahoma state public trusts which possess\n\nthe highest rating from at least one nationally recognized rating\n\nagency acceptable to the State Treasurer. Purchases of investment\n\ngrade obligations of state and local governments shall not exceed\n\nten percent (10%) of the cash available for investment which may be\n\ninvested pursuant to this section;\n\n7. Repurchase agreements, provided that such agreements are\n\nincluded within the written investment policy required by subsection\n\nD of this section that have underlying collateral consisting of\n\nthose items and those restrictions specified in paragraphs 1 through\n\n6 of this subsection;\n\n8. Money market funds and short term bond funds regulated by\n\nthe Securities and Exchange Commission and which investments consist\n\nof those items and those restrictions specified in paragraphs 1\n\nthrough 7 of this subsection; and\n\n9. Bonds, notes, debentures or other similar obligations of a\n\nforeign government which the International Monetary Fund lists as an\n\nindustrialized country and for which the full faith and credit of\n\nsuch nation has been pledged for the payment of principal and\n\ninterest; provided, that any such security shall be rated at least\n\nA- or better by Standard \u0026 Poor's Corporation or A3 or better by\n\nMoody's Investors Service, or an equivalent investment grade by a\n\nsecurities ratings organization accepted by the National Association\n\nof Insurance Commissioners; and provided further, that the total\n\ninvestment in such foreign securities at any one time shall not\n\nexceed five percent (5%) of the cash available for investment which\n- or better by Standard \u0026 Poor's Corporation or A3 or better by\n\nMoody's Investors Service, or an equivalent investment grade by a\n\nsecurities ratings organization accepted by the National Association\n\nof Insurance Commissioners; and provided further, that the total\n\ninvestment in such foreign securities at any one time shall not\n\nexceed five percent (5%) of the cash available for investment which\n\nmay be invested pursuant to this section. In no circumstance shall\n\ninvestments be made in bonds, notes, debentures or any similar\n\nobligations of a foreign government that:\n\na. is identified as a state sponsor of terrorism by the\n\nUnited States Department of State, or\n\nb. any authoritarian or totalitarian government the\n\nsovereign powers of which are exercised through a\n\nsingle person or group of persons who are not elected\n\nby any form of legitimate popular voting.\n\nB. Investments shall be made with judgment and care, under\n\ncircumstances then prevailing, which persons of prudence, discretion\n\nand intelligence exercise in the management of their own affairs,\n\nnot for speculation, but for investment, considering the probable\n\nsafety of their capital as well as the probable income to be\n\nderived.\n\nC. The State Treasurer shall appoint an investment officer who\n\nshall perform duties related to the investment of state funds in the\n\nOffice of the State Treasurer. The investment officer shall not\n\nperform or supervise any accounting functions, data processing\n\nfunctions or duties related to the documentation or settlement of\n\ninvestment transactions.\n\nD. Investments of public funds by the State Treasurer shall be\n\nmade in accordance with written policies developed by the State\n\nTreasurer. The written investment policies shall address:\n\n1. Liquidity;\n\n2. Diversification;\n\n3. Safety of principal;\n\n4. Yield;\n\n5. Maturity and quality; and\n\n6. Capability of investment management.\n\nThe State Treasurer shall place primary emphasis on safety and\n\nliquidity in the investment of public funds. To the extent\n\npracticable taking into account the need to use sound investment\n\njudgment, the written investment policies shall include provision\n\nfor utilization of a system of competitive bidding in the investment\n\nof state funds. The written investment policies shall be designed\n\nto maximize yield within each class of investment instrument,\n\nconsistent with the safety of the funds invested.\n\nE. Except as provided in subsection H of this section, the\n\nState Treasurer shall select one custodial bank to settle\n\ntransactions involving the investment of state funds under the\n\ncontrol of the State Treasurer. The State Treasurer shall review\n\nthe performance of the custodial bank at least once every year. The\n\nState Treasurer shall require a written competitive bid every five\nunds invested.\n\nE. Except as provided in subsection H of this section, the\n\nState Treasurer shall select one custodial bank to settle\n\ntransactions involving the investment of state funds under the\n\ncontrol of the State Treasurer. The State Treasurer shall review\n\nthe performance of the custodial bank at least once every year. The\n\nState Treasurer shall require a written competitive bid every five\n\n(5) years. The custodial bank shall have a minimum of Five Hundred\n\nMillion Dollars ($500,000,000.00) in assets to be eligible for\n\nselection. Any out-of-state custodial bank shall have a service\n\nagent in the State of Oklahoma so that service of summons or legal\n\nnotice may be had on such designated agent as is now or may\n\nhereafter be provided by law. In order to be eligible for\n\nselection, the custodial bank shall allow electronic access to all\n\ntransaction and portfolio reports maintained by the custodial bank\n\ninvolving the investment of state funds under control of the State\n\nTreasurer. The access shall be given to the State Treasurer. The\n\nrequirement for electronic access shall be incorporated into any\n\ncontract between the State Treasurer and the custodial bank.\n\nNeither the State Treasurer nor the custodial bank shall permit any\n\nof the funds under the control of the State Treasurer or any of the\n\ndocuments, instruments, securities or other evidence of a right to\n\nbe paid money to be located in any place other than within a\n\njurisdiction or territory under the control or regulatory power of\n\nthe United States Government.\n\nF. The investment policy shall specify the general philosophy,\n\npolicies and procedures to be followed in the investment of state\n\nmonies by the State Treasurer. The investment policy shall include,\n\nbut not be limited to, the following:\n\n1. Policy objectives;\n\n2. Performance measure objectives;\n\n3. Authority for investment program;\n\n4. Possible use of an investment advisory committee;\n\n5. Reporting and documentation of investments;\n\n6. Authorized investment instruments;\n\n7. Diversification of investment risk;\n\n8. Maturity limitations;\n\n9. Selections of financial institutions;\n\n10. Interest controls;\n\n11. Safekeeping of investments;\n\n12. Investment ethics; and\n\n13. Formal adoption of policy.\n\nG. The State Treasurer may invest cash balance amounts as\n\ndefined and limited by Section 2402 of this title in the Invest in\n\nOklahoma program.\n\nH. The State Treasurer is hereby authorized to establish\n\ninternal custodial accounts within the State Treasury, and enter\n\ncontractual relationships for custodial account services with\n\nprivate institutions as needed, for the implementation and\n\nadministration of the Invest in Oklahoma program.\n\nI. Not later than July 1 of each year, the State Treasurer\n\nshall forward a copy of the written investment policy to the\n\nGovernor, the Speaker of the House of Representatives, the President\n\nPro Tempore of the Senate, the Attorney General, the Bank\n\nCommissioner, and the Director of the Office of Management and\n\nEnterprise Services. In addition, the State Treasurer shall\n\nmaintain one copy of the investment policy in the office of the\n\nState Treasurer for public inspection during regular business hours.\n\nCopies of any modifications to the investment policy shall be\n\nforwarded to the Governor, Speaker of the House of Representatives,\n\nPresident Pro Tempore of the Senate, and each member of the Cash\n\nManagement and Investment Oversight Commission.","path":["OK Code","Title 62"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os62.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"efad5a3246006be348540910dd5bf8234579ee465b50ed386214410292a78908","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-89.1a","next":"us-ok/okla.-stat.-tit.-62-62-89.4"},"notice":"GroundRules: Original legal text. Not legal advice."}