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Oklahoma Legislature· SB 785Second Reading referred to Business and Insurance

An act relating to Oklahoma Banking Code, the official text

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1                  STATE OF OKLAHOMA

1

2                  1st Session of the 60th Legislature (2025)

2

3 SENATE BILL 785               By: Jett
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5

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6                               AS INTRODUCED

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7   An Act relating to Oklahoma Banking Code; amending 6

7   O.S. 2021, Section 102, which relates to definitions;

8   defining terms; updating statutory language; updating

8   statutory references; and providing an effective

9   date.

9

10

10

11

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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13  SECTION 1.     AMENDATORY   6 O.S. 2021, Section 102, is

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14 amended to read as follows:
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15  Section 102. As used in the Oklahoma Banking Code unless the

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16 context otherwise requires:
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17  1. "Acquisition" or "acquire" means any act or action with

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18 respect to the ownership or control of a bank or the purchase of its
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19 assets and the assumption of its liabilities which would require the
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20 approval of the Federal Deposit Insurance Corporation, the Office of
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21 the Comptroller of the Currency, the Board of Governors of the
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22 Federal Reserve System or other supervisory authority having
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23 jurisdiction and approval authority over the bank;
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24

24

    Req. No. 1560                                              Page 1
1   2. "Action" in the sense of a judicial proceeding includes

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2 recoupment, counterclaim, third-party claims, cross claims, setoff,
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3 suit in equity, arbitration and any other proceedings in which
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4 rights are determined;
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5   3. "Bank" means any bank authorized and chartered by the laws

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6 of this state to engage in the banking business, or any bank
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7 chartered by the office Office of the Comptroller of the Currency
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8 with its main office in this state;
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9   4. "Banking company" means any bank;

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10  5. "Bank holding company" means any Oklahoma corporation which

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11 directly or indirectly owns or controls at least one bank or out-of-
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12 state bank as defined in this section;
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13  6. "Board" when used with an initial capital letter means the

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14 Banking Board of this state;
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15  7. "Branch bank" means any place of business separated from the

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16 main office of a bank at which deposits are received, or checks paid
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17 or money lent;
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18  8. "Capital" shall include the paid-in common capital stock

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19 account, preferred stock account, surplus account, undivided profits
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20 account, capital reserves (other than contingency reserves),
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21 allowance for possible loan losses and mandatory convertible
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22 instruments that are convertible into common stock. "Capital"
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23 Capital shall also include all other approved subordinated notes and
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24 debentures, having an original weighted average maturity of at least
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    Req. No. 1560                          Page 2
1 seven (7) years, to the extent their maturity date exceeds five (5)
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2 years. As such notes and debentures approach maturity of less than
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3 five (5) years, they shall be considered "capital" in proportion to
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4 their years to maturity as it bears to five (5) years;
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5   9. "Central bank digital currency" means a digital currency, a

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6 digital medium of exchange, or a digital monetary unit of account
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7 issued by the United States Federal Reserve System, a federal
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8 agency, a foreign government, a foreign central bank, or a foreign
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9 reserve system, that is made directly available to a consumer by
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10 such entities. The term includes a digital currency, a digital
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11 medium of exchange, or a digital monetary unit of account issued by
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12 the United States Federal Reserve System, a federal agency, or a
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13 foreign reserve system that is processed or validated directly by
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14 such entity;
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15  10. "Commissioner" means the State Banking Commissioner

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16 appointed and serving pursuant to this act, who shall be the
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17 Commissioner of Banking and who shall administer and enforce the
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18 applicable provisions of this act;
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19  10. 11. "Community" means a city, town or incorporated village

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20 of this state, or a trade area in this state in unincorporated
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21 territory;
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22  11. 12. "Company" means any corporation, association,

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23 partnership, business trust or similar organization, but shall not
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24

24

    Req. No. 1560                                          Page 3
1 include any corporation, the majority of the shares of which are
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2 owned by the United States or by any state;
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3   12. 13. "Compliance review committee" means:

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4   a. an audit, loan review or compliance committee

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5                  appointed by the Board of Directors board of directors

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6                  of an insured depository institution, or

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7   b. any other person to the extent the person acts in an

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8                  investigatory capacity at the direction of a

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9                  compliance review committee;

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10  13. 14. "Compliance review documents" means documents prepared

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11 for or created by a compliance review committee;
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12  14. 15. "Confusingly similar name" means:

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13  a. as applied to the name of any bank, a name which is

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14                 identical to that of any other bank located within

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15                 this state, or a name which:

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16                 (1) contains one or more of the following words with

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17                 or without the words "State," "National," or

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18                 "Trust": American, Central, Citizens, City,

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19                 Commerce, Commercial, Community, Exchange,

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20                 Farmers & Merchants, First, Guaranty, Oklahoma,

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21                 Peoples, Security or United,

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22                 (2) does not contain a geographical name (other than

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23                 "Oklahoma") descriptive of the immediate location

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24

    Req. No. 1560                                                Page 4
1                  of the bank (street, town, city, county or other

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2                  local geographical name),

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3                  (3) does not contain other unique or clearly

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4                  distinguished words or marks, and

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5                  (4) is not a federally registered trade name,

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6                  trademark or service mark owned by or licensed to

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7                  the particular bank,

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8   b. as applied to the name of any person not a bank, a

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9                  name which is confusingly similar in spelling or

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10                 wording or sound to the name of any bank located

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11                 anywhere within this state, if such name would tend to

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12                 suggest falsely to the public that the person is a

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13                 bank or is affiliated with the bank, directly or

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14                 indirectly. However, nothing contained in this

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15                 subsection shall prohibit the use of a similar name by

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16                 a corporation which is in a relationship to the bank

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17                 of parent, subsidiary, brother-sister corporation or

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18                 other commonly controlled company, or

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19  c. notwithstanding anything to the contrary in

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20                 subparagraph a or b of this paragraph, the name or

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21                 shortened name of a bank shall not be considered

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22                 confusingly similar when used in conjunction with a

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23                 federally registered trademark or service mark owned

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24                 by or licensed to the particular bank. Proof of

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    Req. No. 1560                                                Page 5
1                  ownership or license of a federally registered mark

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2                  must be provided to the Banking Department.

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3 The Board shall promulgate rules which govern the use of
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4 "confusingly similar names" confusingly similar names as defined in
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5 this paragraph;
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6   15. 16. "Consumer banking electronic facility" means any

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7 electronic device owned, operated, leased by or on the behalf of a
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8 bank, savings association, or credit union other than a telephone or
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9 modem operated by a customer of a depository institution, to which a
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10 person may initiate an electronic fund transfer. The term includes
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11 without limitations, a point-of-sale terminal, automatic teller
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12 machines, automated loan machines, video banking centers, or any
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13 other similar electronic devices;
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14  16. 17. "Continuing bank" means a merging bank the charter of

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15 which becomes the charter of the resulting bank;
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16  17. 18. "Control" means control as such term is defined under

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17 the Federal Bank Holding Company Act of 1956, as amended, 12 U.S.C.,
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18 Section 1841;
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19  18. 19. "Converting bank" means a bank converting from a state

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20 to a national bank, or the reverse;
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21  19. 20. "Court" means a court of competent jurisdiction;

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22  20. 21. "Currency" or "funds" means the coin and paper money of

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23 the United States or of any other country that is designated as
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24 legal tender and that circulates and is customarily used and
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    Req. No. 1560                                               Page 6
1 accepted as a medium of exchange in the country of issuance.
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2 Currency includes U.S. silver certificates, U.S. notes, and Federal
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3 Reserve notes. Currency also includes official foreign bank notes
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4 that are customarily used and accepted as a medium of exchange in a
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5 foreign country. This term shall not include a central bank digital
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6 currency;
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7   22. "Department" means the Oklahoma State Banking Department

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8 created by this Code;
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9   21. 23. "Deposits" means all demand, time and savings deposits

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10 of individuals, partnerships, corporations, the United States and
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11 states and political subdivisions of the United States, deposits of
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12 banks, foreign governments, institutions, deposits held by foreign
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13 banking offices or corporations organized pursuant to 12 U.S.C.,
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14 Sections 601 through 604a, or Sections 611 through 631, as amended.
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15 Determinations of deposits shall be made by the Commissioner by
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16 reference to regulatory reports of condition or similar reports
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17 filed by banks or savings associations with state or federal
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18 regulatory agencies;
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19  22. 24. "Emergency" means any condition or occurrence which may

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20 interfere physically with the conduct of normal business operations
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21 at one or more or all of the offices of a bank or an out-of-state
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22 bank, or which poses an imminent or existing threat to the safety or
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23 security of persons or property, or both. Without limiting the
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24 generality of the foregoing, an emergency may arise as a result of
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    Req. No. 1560        Page 7
1 any one or more of the following: fires; floods; earthquakes;
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2 hurricanes; wind, rain or snow storms; labor disputes and strikes;
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3 power failures; transportation failures; interruptions of
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4 communication facilities; shortages of fuel, housing, food,
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5 transportation or labor; robberies or attempted robberies; actual or
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6 threatened enemy attack; epidemics or other catastrophes; riots,
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7 civil commotions and other acts of lawlessness or violence, actual
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8 or threatened;
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9   23. 25. "Executive officer", when referring to a bank, out-of-

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10 state bank, or trust company, means any person designated as such in
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11 the bylaws and includes, whether or not so designated, the chairman
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12 chair of the board of directors, chairman chair of the executive
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13 committee, the president, any vice-president vice president, the
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14 trust officer, the treasurer, the cashier, the comptroller and the
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15 secretary, or any person who performs the duties appropriate to
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16 those offices;
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17  24. 26. "Federal Reserve Act" means the Act of Congress

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18 approved December 23, 1913, (38 Stat. 251), as amended;
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19  25. 27. "Federal Reserve Bank" means the Federal Reserve Banks

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20 created and organized under authority of the Federal Reserve Act;
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21  26. 28. "Federal Reserve Board" means the Board of Governors of

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22 the Federal Reserve System created and described in the Federal
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23 Reserve Act, as amended;
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24

24

    Req. No. 1560                                              Page 8
1   27. 29. "Fiduciary" means original or successor trustee of an

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2 expressed or implied trust, including, but not limited to, a
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3 resulting or constructive trust, special administrator, executor,
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4 administrator, administrator common trust agreement, guardian,
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5 guardian-trustee or conservator for a minor or other incompetent
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6 person, receiver, trustee in bankruptcy, assignee for creditors or
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7 any holder of a similar position of trust acting alone or with
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8 others;
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9   28. 30. "General obligation" means obligations of the State of

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10 Oklahoma or a political subdivision of this state and of any other
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11 state or political subdivision thereof supported by the full faith
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12 and credit of the obligor. It includes all obligations payable from
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13 a special fund when the full faith and credit of a state or any
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14 political subdivision of a state is obligated for payment into the
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15 fund of amounts which will be sufficient to provide for all required
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16 payments in connection with the obligation. It implies an obligor
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17 possessing resources sufficient to justify faith and credit;
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18  29. 31. "Good faith" means honesty in fact in the transaction

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19 and some reasonable ground for belief that the transaction is
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20 rightful or authorized;
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21  30. 32. "Insolvent" means that the actual cash market value of

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22 a bank's assets is insufficient to pay its liabilities other than
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23 its capital stock, surplus and undivided profits, or that the bank
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24

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    Req. No. 1560           Page 9
1 is unable to meet the demands of its creditors in the usual course
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2 of business;
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3   31. 33. "Insured depository institution" means any bank or

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4 savings association the deposits of which are insured by the Federal
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5 Deposit Insurance Corporation;
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6   32. 34. "Interstate merger transaction" means a merger between

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7 two banks, two savings associations or a bank and a savings
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8 association, one of which is chartered by or has its main office
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9 located in this state, and the other of which is an out-of-state
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10 bank as defined in this section;
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11  33. 35. "Investment securities" means marketable obligations in

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12 the form of bonds, notes or debentures which are commonly regarded
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13 as investment securities. It does not include investments which are
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14 predominantly speculative in nature;
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15  34. 36. "Item" means any instrument for the payment of money

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16 even though not negotiable, but does not include money;
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17  35. 37. "Legal newspaper" means a newspaper qualified to

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18 publish legal notices under the provisions of Section 106 of Title
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19 25 of the Oklahoma Statutes;
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20  36. 38. "Loan review committee" means a person or group of

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21 persons who, on behalf of an insured depository institution, reviews
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22 loans held by such institution for the purpose of assessing the
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23 credit quality of the loans, compliance with the loan policies of
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24

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    Req. No. 1560                                           Page 10
1 such institution, and compliance with the applicable state and
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2 federal laws, regulations and rules;
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3   37. 39. "Local media" means:

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4   a. any newspaper, radio station or television station

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5                  with its main office located in the same city or town

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6                  in which a particular main office of a bank is

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7                  located, and

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8   b. other means or media of advertising, including without

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9                  limitation any outdoor signage on the premises of the

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10                 bank, billboards, bulk mailings and other

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11                 solicitations to persons who are not customers of the

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12                 bank, but only to the extent that any such advertising

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13                 is strictly limited in geographical location or

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14                 distribution to the same city or town, including the

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15                 immediate surrounding unincorporated rural area, where

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16                 the particular main office of the bank is located;

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17  38. 40. "Main bank" means the office location which has been

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18 designated by the State Banking Commissioner or Comptroller of the
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19 Currency as the main office of a bank;
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20  39. 41. "Main office" means either the main bank or the main

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21 office location of a savings association;
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22  40. 42. "Managing officer" means the chief executive officer of

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23 the bank;
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    Req. No. 1560                                             Page 11
1   41. 43. "Member bank" means any national bank, state bank or

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2 banking and trust company which becomes a member of the Federal
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3 Reserve System;
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4   42. 44. "Merger" includes consolidation;

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5   43. 45. "Military banking facility" means a facility maintained

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6 by a bank upon a military installation, provided the facility must
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7 be within the confines of a military reservation and located upon
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8 property owned or leased by the United States government;
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9   44. 46. "Mobile" means the ability to be moved, picked up,

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10 rolled, pulled or driven;
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11  45. 47. "Multibank holding company" means an Oklahoma

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12 corporation which directly or indirectly owns or controls two or
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13 more banks, two or more bank holding companies, or one or more of
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14 each as defined in this section;
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15  46. 48. "National Bank Examiner" or "Federal Bank Examiner"

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16 means any person employed as a bank examiner by the Comptroller of
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17 the Currency, the Federal Deposit Insurance Corporation and the
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18 Federal Reserve Board or Bank;
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19  47. 49. "Office" means any place at which a bank or an out-of-

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20 state bank transacts its business or conducts operations related to
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21 its business;
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22  48. 50. "Officer", when referring to a bank, out-of-state bank

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23 or trust company, means any person designated as such in the bylaws
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24 and includes, whether or not so designated, any executive officer,
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    Req. No. 1560                                            Page 12
1 the chairman chair of the board of directors, the chairman chair of
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2 the executive committee, and any trust officer, assistant trust
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3 officer, assistant vice-president vice president, assistant
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4 treasurer, assistant cashier, assistant comptroller, assistant
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5 secretary, auditor or any person who performs the duties appropriate
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6 to those offices;
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7   49. 51. "Order" means all, or any part, of the final

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8 disposition, whether affirmative, negative, injunctive or
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9 declaratory in form, by the Commissioner or the Banking Board, of
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10 any matter other than the making of regulations of general
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11 application;
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12  50. 52. "Out-of-state bank" means a national bank or a state or

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13 federal savings association which has its main office located in a
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14 state other than Oklahoma, or a bank chartered by a state other than
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15 Oklahoma;
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16  51. 53. "Out-of-state bank holding company" means a bank

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17 holding company which is not incorporated in this state and which
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18 directly or indirectly owns or controls one or more banks or out-of-
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19 state banks as defined in this section;
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20  52. 54. "Person" means an individual, group of individuals,

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21 board, committee, partnership, firm, association, corporation or
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22 other entity;
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23  53. 55. "Political subdivision" includes a county, city, town

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24 or other municipal corporation, a public authority, and generally
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    Req. No. 1560                                              Page 13
1 any publicly owned entity which is an instrumentality of the state
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2 or a municipal corporation;
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3   54. 56. "Principal place of business of a bank or a bank

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4 holding company" means the state in which the total deposits of the
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5 bank or the bank subsidiaries of the bank holding company are the
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6 largest;
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7   55. 57. "Reason to know" means that upon the information

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8 available a person of ordinary intelligence in the particular
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9 business, or of the superior intelligence or experience which the
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10 person in question may have, would infer that the fact in question
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11 exists or that there is such a substantial chance of its existence
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12 that, if exercising reasonable care with reference to the matter in
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13 question, conduct would be predicated upon the assumption of its
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14 possible existence;
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15  56. 58. "Resulting bank" means the combined banks and trust

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16 companies carrying on business upon completion of a merger;
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17  57. 59. "Retailer" means a person, corporation or partnership,

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18 primarily engaged in the sale of goods at retail to the general
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19 public;
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20  58. 60. "Savings association" means any savings and loan

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21 association or savings bank chartered under the laws of this state
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22 or the laws of the United States authorized to engage in the savings
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23 and loan business with its main office located in this state;
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24

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    Req. No. 1560              Page 14
1   59. 61. "Savings association branch" means any place of

1

2 business separated from the main office of a savings association at
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3 which deposits are received, checks paid or money lent;
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4   60. 62. "Subsidiary" with respect to a specified bank holding

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5 company or multibank holding company means a subsidiary as the term
5

6 is defined in the Federal Reserve federal Bank Holding Company Act
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7 of 1956, as amended, 12 U.S.C., Section 1841; and
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8   61. 63. "Trust company" means:

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9   a. any person doing a trust company business as set forth

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10                 in this Code except an incorporated or unincorporated

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11                 organization which is organized under Section

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12                 501(c)(3) of the Internal Revenue Code as being

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13                 organized and operated exclusively for educational,

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14                 religious, charitable, or other eleemosynary purposes

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15                 when exercising powers pursuant to the Oklahoma

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16                 Charitable Fiduciary Act and the Oklahoma General

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17                 Corporation Act, and

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18  b. the trust departments of banks authorized to engage in

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19                 the trust company business.

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20  SECTION 2. This act shall become effective November 1, 2025.

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21

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22  60-1-1560      CAD  1/19/2025 5:43:16 AM

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    Req. No. 1560                                          Page 15
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