Financial institutions accepting funds on deposit from public entities under the Security for Local Public Deposits Act, must transfer collateral securities to a safekeeping bank and/or provide collateral instruments to the public entity prior to receiving said funds. Financial institutions retain a right to substitute and withdraw collateral securities, and collateral instruments if:

1. (1) the transaction would not reduce the total collateral pledged and provided below the required amounts as established in 735:20-1-3;
2. (2) the transaction is otherwise in compliance with these rules and regulations; and
3. (3) if the transaction is approved by the public entity treasurer.

Added at 16 Ok Reg 1275, eff 5-13-99

Amended at 18 Ok Reg 2857, eff 7-1-01