§ 348.3. Cities and counties--Written investment policies--Authorized investments
Oklahoma Statutes AnnotatedTitle 62. Public FinanceEffective: November 1, 2023
Effective: November 1, 2023
62 Okl.St.Ann. § 348.3
§ 348.3. Cities and counties--Written investment policies--Authorized investments
A. In addition to the investments authorized by Section 348.1 of this title, the governing body of a city or of a county or the governing board of a qualified pooled investment program established pursuant to paragraph 6 of subsection A of Section 348.1 of this title may adopt a written investment policy directing the investment of the funds of the city or town or county and any of its public trusts or authorities or of the qualified pooled investment program. If such a policy is adopted by the governing body, such funds shall be invested pursuant to the provisions of the policy. The written policy shall address liquidity, diversification, safety of principal, yield, maturity and quality and capability of investment management, with primary emphasis on safety and liquidity. To the extent practicable, taking into account the need to use sound investment judgment, the written investment policies shall include provision for utilization of a system of competitive bidding in the investment of municipal funds. The system shall be designed to maximize yield within each class of investment instrument consistent with the safety of the funds invested.
1. Obligations of the United States government, its agencies and instrumentalities, or investment grade obligations of this state; provided, that any such security shall be rated A+ or better by Standard and Poor's Corporation or A1 or better by Moody's Investor Service or an equivalent investment grade by a securities ratings organization accepted by the National Association of Insurance Commissioners including investment grade obligations of state agencies;
2. Collateralized or insured certificates of deposit and other evidences of deposit at banks, savings banks, savings and loan associations and credit unions located in this state, or fully insured certificates of deposit at banks, savings banks, savings and loan associations and credit unions located out of state;
3. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings bank, a savings and loan association or a state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed ten percent (10%) of the surplus funds of the city or county which may be invested pursuant to this section, however the restrictions in this paragraph shall not apply to purchases of negotiable certificates of deposit by qualified pooled investment programs established under paragraph 6 of subsection A of Section 348.1 of this title. Not more than one-half (1/2) of the ten percent (10%) limit shall be invested in any one financial institution specified in this paragraph;
4. Prime banker's acceptances which are eligible for purchase by the Federal Reserve System and which do not exceed two hundred seventy (270) days' maturity. Purchases of prime banker's acceptances shall not exceed ten percent (10%) of the surplus funds of the city or county which may be invested pursuant to this section, however the restrictions in this paragraph shall not apply to purchases of prime banker's acceptances by qualified investment programs established under paragraph 6 of subsection A of Section 348.1 of this title. Not more than one-half (1/2) of the ten percent (10%) limit shall be invested in any one commercial bank pursuant to this paragraph;
5. Prime commercial paper which shall not have a maturity that exceeds one hundred eighty (180) days nor represent more than ten percent (10%) of the outstanding paper of an issuing corporation. Purchases of prime commercial paper shall not exceed seven and one-half percent (7 1/2%) of the surplus funds of the city or county which may be invested pursuant to this section, however the restrictions in this paragraph shall not apply to purchases of prime commercial paper by qualified pooled investment programs established under paragraph 6 of subsection A of Section 348.1 of this title;
C. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
Credits
Laws 1987, c. 194, § 14, operative July 1, 1987; Laws 1991, c. 124, § 21, eff. July 1, 1991; Laws 1996, c. 49, § 1, eff. July 1, 1996; Laws 1996, c. 160, § 1, eff. July 1, 1996; Laws 1997, c. 132, § 1; Laws 2001, c. 43, § 1, eff. Nov. 1, 2001; Laws 2021, c. 172, § 2, eff. Nov. 1, 2021; Laws 2023, c. 78, § 2, eff. Nov. 1, 2023.
62 Okl. St. Ann. § 348.3, OK ST T. 62 § 348.3
Current with emergency effective legislation through Chapter 257 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
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