1. A. Deposit requirement - As pledge for faithful performance.

   1. (1) Before any bank or trust company, including national banking associations, shall transact any trust business within this state it shall deposit with the Commissioner, as security and as a pledge for the faithful performance of its duties as a trust company, cash or interest-bearing securities, which securities shall have a ready market value in an amount regulated by the amount of cash and securities held in trust by the bank or trust company.
   2. (2) Whenever such cash and securities held in trust amount to less than One Million Dollars ($1,000,000.00), the deposit shall be Fifty Thousand Dollars ($50,000.00). Whenever such cash and securities held in trust amount to One Million Dollars ($1,000,000.00) but do not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00), the deposit shall be One Hundred Thousand Dollars ($100,000.00). For each Five Hundred Thousand Dollars ($500,000.00) or fraction thereof in excess of One Million Five Hundred Thousand Dollars ($1,500,000.00) so held in trust, the deposit shall be increased an additional Twenty-Five Thousand Dollars ($25,000.00); provided, no bank or trust company shall be required to increase the deposit to an amount in excess of Five Hundred Thousand Dollars ($500,000.00), and no trust company not receiving deposits other than funds held by it in trust shall be required to increase the deposit to an amount in excess of its capital. The term "cash and securities held in trust" as employed herein shall not include lands held in trust as collateral security for monies lent or to be lent, nor to trust funds registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended (48 Stat. 74, 15 U.S.C. § 77 (1933)), and the Securities Exchange Act of 1934, as amended (48 stat. 881, 15 U.S.C. § 78 (1934)).

2. B. Securities eligible for deposit. The securities mentioned in subsection A of this section (Section 1004) may be of the following classes and not otherwise:

   1. (1) Interest-bearing bonds, notes or obligations of the United States, or those for which the faith of the United States is pledged for the payment of the principal and interest.
   2. (2) Bonds or other obligations of the State of Oklahoma or any county of this state, or of any incorporated city, town or school or port district of this state having a population of not less than two thousand (2,000) inhabitants as shown by the last federal census, or bonds of any other state of the United States, or any county, incorporated city, town or school district having a population of not less than twenty-five thousand (25,000) inhabitants, as shown by the last federal census, provided such bonds were issued in compliance with the constitution and laws of such state, and there has been no default in payment of either principal or interest on any of the general obligations of such state, county, incorporated town, city or school or port district for a period of five (5) years next preceding the date of the deposit, and such bonds are a general obligation of the state, county, school or port district, city or town issuing the same.
   3. (3) Bonds, other than foreign bonds, listed on the New York Stock Exchange, provided the total obligation of any one debtor shall not exceed twenty percent (20%) of the aggregate deposit.
   4. (4) Notes or bonds secured by first lien upon improved real estate in the State of Oklahoma. Such loans may be subsequent to taxes not due and bonded indebtedness for public improvements not due, but any such obligation, plus taxes not due and bonded indebtedness for public improvements not due, shall not exceed fifty percent (50%) of the reasonable market value of such real estate, except as provided in Section 1008 of this Code. There shall be filed by the bank or trust company in support of such real estate obligation such appraisal, evidence of merchantable title and insurance as may be required by the Commissioner.
3. C. Primary liability for deposit. The deposit mentioned in subsection A of this section (Section 1004) is primarily liable for the malfeasance of a company as guardian, executor, administrator, assignee, receiver, trustee under inter vivos trust or trustee under will by an appointment of court, or depository of money in court, and is not liable for any debt or other obligation of the company until such malfeasance liability of the company has been discharged.
4. D. Right of action against deposit. Any person who suffers loss or damage because of the breach of any trust committed to any trust company shall have a right of action to recover the amount of such loss or damage out of the moneys or securities deposited with the Commissioner by the trust company.
5. E. Charge for handling securities. The Commissioner may make such charges and assessments for expenses incurred, including insurance, and services rendered in connection with deposits of securities as he deems just and reasonable.
6. F. Appraisal of real estate securing deposit. The Commissioner may appraise, or cause to be appraised, or may in lieu of his own appraisal accept the appraisal of qualified appraisers, every parcel of real estate securing any note or bond offered for deposit with the Commissioner. If the appraisement is made by the Commissioner he shall collect from the company offering the mortgages for deposit his actual expenses in making the appraisement. If the appraisement is made by an appraiser selected by the Commissioner he shall collect a reasonable fee from the company.
7. G. Certificates of title, title insurance, or title opinion on real estate securing deposit. The Commissioner may accept a certificate of title or guaranty of title or title insurance policy from a title insurance company, or the opinion of the attorney who examined the title to the property for the trust company offering a mortgage and note for deposit, or he may require an opinion as to title from the Attorney General.

8. H. Fire insurance; deposit of documents with notes or bonds.

   1. (1) Fire insurance shall be in effect upon all insurable property for the reasonable value thereof.
   2. (2) All mortgages or deeds of trust and all insurance policies, abstracts of title (when required by the Commissioners), certificates of title, guaranty of title or title insurance policies and appraisements shall be deposited with the notes or bonds. When less than the whole of a bond issue is deposited, the Commissioner shall not require the deposit of the abstract of title, certificate of title, guaranty of title or title insurance policies and appraisements, but may require in lieu thereof a certificate from the trustee of the mortgage or bond issue that such documents have been deposited with the trustee.

9. I. Substitution of deposit securities; income of securities deposited.

   1. (1) The Commissioner may require the immediate substitution of other securities when he has reason to believe that the market value of securities which have heretofore been deposited have depreciated below their face value. Substitution of securities with the Commissioner at the request of the depositing bank or trust company may be permitted when approved by the Commissioner.
   2. (2) So long as the depositing bank or trust company continues solvent it shall be permitted to receive and retain all interest, income or dividends from all securities deposited with the Commissioner.

10. J. Return of deposit; liability of state.

    1. (1) The State of Oklahoma is liable for the return of any funds or securities deposited in accordance with this section (Section 1004).
    2. (2) The State of Oklahoma is responsible for the safe return of such securities deposited with the Commissioner under this Code.

Added by Laws 1965, c. 161, § 1004. Amended by Laws 1967, c. 258, § 9, emerg. eff. May 8, 1967.