{"data":{"id":"us-ok/okla.-stat.-tit.-64-64-1013","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 64, § 64-1013","heading":"Investment of permanent school funds and other","body":"educational funds.\n\nA. The Commissioners of the Land Office shall be responsible\n\nfor the investment of the permanent school funds, other educational\n\nfunds and public building funds solely in the best interests of the\n\ncurrent and future beneficiaries. The Commissioners of the Land\n\nOffice shall make investments:\n\n1. For the exclusive purpose of:\n\na. providing maximum benefits to current and future\n\nbeneficiaries, and\n\nb. defraying reasonable expenses of administering the\n\ntrust funds;\n\n2. With the care, skill, prudence and diligence under the\n\ncircumstances then prevailing that a prudent person acting in a like\n\nenterprise of a like character and with like aims would use; and\n\n3. By diversifying the investments of the trust funds so as to\n\nminimize the risk of large losses.\n\nB. The permanent school fund and other educational funds may\n\nonly be invested in bonds issued in the United States, United States\n\ndollar denominated or other investments settled in United States\n\ndollars or traded on the United States exchange markets and real\n\nproperty to be owned or acquired by the Commissioners of the Land\n\nOffice. The Commissioners of the Land Office shall not invest more\n\nthan sixty percent (60%) of the trust fund investments in equity\n\nsecurities. The Commissioners of the Land Office are further\n\nauthorized to acquire, purchase, exchange and grant any real\n\nproperty under its jurisdiction as is necessary to carry out the\n\ninvestment in the real property. The Commissioners of the Land\n\nOffice shall not invest more than five percent (5%) of the total\n\nvalue of the assets of the permanent school funds in connection with\n\ninvestments in real property. The calculation of investments in\n\nreal property within the five percent (5%) cap shall not include the\n\nvalue of real property under long-term lease to the State of\n\nOklahoma, agencies of the state or subdivisions thereof. In no case\n\nshall the Commissioners of the Land Office bid against private-\n\nsector bidders above the appraised value of any property to be\n\nacquired.\n\nC. The Commissioners shall establish an investment committee.\n\nThe investment committee shall be composed of not more than three\n\nmembers of the Commissioners of the Land Office or their designees.\n\nThe committee shall make recommendations to the Commissioners of the\n\nLand Office on all matters related to the choice of managers of the\n\nassets of the funds, on the establishment of investment and fund\n\nmanagement guidelines, and in planning future investment policy.\n\nThe committee shall have no authority to act on behalf of the\n\nCommissioners of the Land Office in any circumstances whatsoever.\n\nNo recommendations of the committee shall have effect as an action\n\nof the Commissioners of the Land Office or take effect without the\n\napproval of the Commissioners as provided by law. The Commissioners\n\nshall promulgate and adopt on an annual basis an investment plan.\n\nThe investment plan shall state the criteria for selecting\n\ninvestment managers, the allocation of assets among investment\n\nmanagers, and established standards of investment and fund\n\nmanagement.\n\nD. The Commissioners shall retain qualified investment managers\n\nto provide for investment of the fund monies and for the management\n\nof investment real property pursuant to the investment plan.\n\nInvestment managers shall be chosen by a solicitation of proposals\n\non a competitive bid basis pursuant to standards set by the\n\nCommissioners. Subject to the investment plan, each investment\n\nmanager shall have full discretion in the management of the funds or\n\ninvestment real property allocated to the investment managers. The\n\nfunds allocated to investment managers shall be actively managed by\n\nthem, which may include selling investments and realizing losses if\n\nthe action is considered advantageous to longer term return\ninvestment\n\nmanager shall have full discretion in the management of the funds or\n\ninvestment real property allocated to the investment managers. The\n\nfunds allocated to investment managers shall be actively managed by\n\nthem, which may include selling investments and realizing losses if\n\nthe action is considered advantageous to longer term return\n\nmaximization. Because of the total return objective, no distinction\n\nshall be made for management and performance evaluation purposes\n\nbetween realized and unrealized capital gains and losses.\n\nE. The Commissioners shall take any measures they deem\n\nappropriate to safeguard custody of securities and other assets of\n\nthe trusts.\n\nF. By September 1 of each year, the Commissioners shall develop\n\na written investment plan for the trust funds.\n\nG. The Commissioners shall compile a quarterly financial report\n\nshowing the performance of all the combined funds under their\n\ncontrol on a fiscal year basis. The report shall contain a list of\n\nall investments made by the Commissioners and a list of any\n\ncommissions, fees or payments made for services regarding the\n\ninvestments for that reporting period. The report shall be based on\n\nmarket values and shall be compiled pursuant to uniform reporting\n\nstandards prescribed by the Oklahoma State Pension Commission for\n\nall state retirement systems. The report shall be distributed to\n\nthe Oklahoma State Pension Commission, the Cash Management and\n\nInvestment Oversight Commission, and the Legislative Service Bureau.\n\nH. Before January 1 of each year, the Commissioners shall\n\npublish an annual report of all Trust operations, presented in a\n\nsimple and easily understood manner to the extent possible. The\n\nreport shall be submitted to the Governor, the Speaker of the House\n\nof Representatives, the President Pro Tempore of the Senate, the\n\nState Department of Education and each higher education beneficiary.\n\nThe annual report shall cover the operation of the Trusts during the\n\npast fiscal year including income, disbursements and the financial\n\ncondition of the Trusts at the end of each fiscal year on a cash\n\nbasis. The annual report shall also contain a summary of the assets\n\nof each trust and current market value as of the report date.\n\nI. The Cash Management and Investment Oversight Commission\n\nshall review reports prepared by the Commissioners of the Land\n\nOffice pursuant to this subsection and shall make recommendations\n\nregarding the investment strategies and practices, the development\n\nof internal auditing procedures and practices and any other matters\n\nas determined necessary and applicable.\n\nJ. The Commissioners of the Land Office shall select one or\n\nmore custodial banks to settle transactions involving the investment\n\nof the funds under the control of the Commissioners of the Land\n\nOffice. The Commissioners of the Land Office shall review the\n\nperformance of each custodial bank at least once every year. The\n\nCommissioners of the Land Office shall require a written competitive\n\nbid every ten (10) years. The custodial bank shall have a minimum\n\nof Five Hundred Million Dollars ($500,000,000.00) in assets to be\n\neligible for selection. Any out-of-state custodial bank shall have\n\na service agent in the State of Oklahoma so that service of summons\n\nor legal notice may be had on the designated agent, and the bank\n\nshall submit to the jurisdiction of Oklahoma state courts for\n\nresolution of any and all disputes. 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\n\nCommissioners of the Land Office and to the Cash Management and\n\nInvestment Oversight Commission. The requirement for electronic\n\naccess shall be incorporated into any contract between the\neligible 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\n\nCommissioners of the Land Office and to the Cash Management and\n\nInvestment Oversight Commission. The requirement for electronic\n\naccess shall be incorporated into any contract between the\n\nCommissioners of the Land Office and the custodial bank. Neither\n\nthe Commissioners of the Land Office nor the custodial bank shall\n\npermit any of the funds under the control of the Commissioners of\n\nthe Land Office or any of the documents, instruments, securities or\n\nother evidence of a right to be paid money to be located in any\n\nplace other than within a jurisdiction or territory under the\n\ncontrol or regulatory power of the United States government.","path":["OK Code","Title 64"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os64.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"4ebef24a9970046859fecf5d27a6119c83160b49ca03047acd02a2ae8216574d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-64-64-1012","next":"us-ok/okla.-stat.-tit.-64-64-1014"},"notice":"GroundRules: Original legal text. Not legal advice."}