AUTHORIZED INVESTMENTS).
LIKE INVESTMENTS IN CERTIFICATES OF DEPOSIT, INVESTMENTS IN REPURCHASE AGREEMENTS ARE ALSO SUBJECT TO COLLATERALIZATION REQUIREMENTS. SECTION 62 O.S. 348.1(4) PROVIDES THAT THE INVESTMENTS AUTHORIZED UNDER 62 O.S. 348.3 - INCLUDING REPURCHASE AGREEMENTS - MUST BE "FULLY COLLATERALIZED" BY OBLIGATIONS OF THE UNITES STATES GOVERNMENT, COLLATERALIZED CERTIFICATES OF DEPOSIT OR INSURED SAVINGS ACCOUNTS. MOREOVER, THIS COLLATERAL MUST BE "DEPOSITED WITH A TRUSTEE OR CUSTODIAN BANK IN AN IRREVOCABLE TRUST ESCROW ACCOUNT ESTABLISHED FOR SUCH PURPOSES." ID.
IN RESPONSE TO YOUR SPECIFIC QUESTION, IT MAY BE OBSERVED THAT THERE IS NO STATUTORY LANGUAGE INDICATING REPURCHASE AGREEMENTS MAY BE TRANSACTED ONLY WITH IN-STATE PARTIES. IN THE ABSENCE OF SUCH RESTRICTIVE LANGUAGE, THERE IS NO NECESSITY TO "READ INTO" THE STATUTE SUCH SPECIFIC ADDITIONAL REQUIREMENTS. ACCORDINGLY, THE TREASURERS OF ELIGIBLE CITIES AND COUNTIES MAY ENGAGE IN REPURCHASE AGREEMENTS WITHOUT REGARD TO WHETHER THE COUNTERPARTY TO THE TRANSACTION IS LOCATED WITHIN OR OUTSIDE OF THE STATE.
INCIDENTLY, FOR A FULLER DISCUSSION OF WHAT "COLLATERAL" MEANS WITHIN THE CONTEXT OF REPURCHASE AGREEMENTS AND HOW THESE TRANSACTIONS MAY APPROPRIATELY BE USED, I WOULD DIRECT YOUR ATTENTION TO OKLAHOMA A.G. OPINION 90-034, RECENTLY ISSUED BY THIS OFFICE.
(K. W. JOHNSTON)