Title 64. Public Lands
§641. Commissioners of Land Office Personnel.
The Governor, Lieutenant Governor, State Auditor and Inspector, Superintendent of Public Instruction, and the President of the Board of Agriculture, shall constitute the Commissioners of the Land Office, who shall have charge of the sale, rental, disposal, and managing of the school lands and other public lands of the state, and of the funds and proceeds derived therefrom, under the rules and regulations prescribed by the Legislature.
Laws 1933, c. 91, p. 162, § 2; Laws 1979, c. 30, § 36, emerg. eff. April 6, 1979.
§641.1. Administration of state school lands Powers and duties.
In order that the state school lands may be administered in a manner to assure their preservation as well as the appreciation of the trust estate and the maximum return from the use of state school lands for the support and maintenance of the common schools of the state, the Commissioners of the Land Office, as trustees of the state school lands, are hereby authorized and empowered:
1. To categorize the state school lands as agricultural or commercial according to the use which the Commissioners of the Land Office determine from time to time to be most beneficial to the interest of the present and future beneficiaries of the state. In making such a determination, the Commissioners of the Land Office may take into account the potential of such lands in creating job opportunities through development as economic development parks as set forth in Section 11 of this title;
2. To sell, at public auction after appraisement, the surface interest in any state school land categorized by the Commissioners of the Land Office to be excess; and
3. To institute projects to develop and improve those state school lands which are categorized as commercial lands. Provided however, no funds under the control or jurisdiction of the Commissioners shall be spent on such projects unless approved by the Legislature.
Added by Laws 1985, c. 196, § 13, emerg. eff. June 26, 1985. Amended by Laws 1986, c. 64, § 1, emerg. eff. April 1, 1986; Laws 1989, c. 173, § 1, operative July 1, 1989.
§641.2. Administration of public lands Powers and duties.
A. In order that the public lands of this state are administered in a manner to assure that said lands are utilized in such a manner to produce the maximum benefit to the citizens of this state, the Commissioners of the Land Office, as trustees of said public lands, are hereby authorized and empowered to categorize public lands which would be suitable for consideration for development of economic development parks.
B. Land owned by political subdivisions of this state or Indian lands located within the state may be nominated to the Commissioners of the Land Office for consideration for development of such economic development parks. If such nominated land was suitable for such development, designation as an economic development park would be contingent upon the sale of such land to the State of Oklahoma.
C. When such public land is interspersed with privately owned land, the Commissioners of the Land Office may exchange parcels of public land for parcels of privately owned land which has at least an equivalent value of such public land exchanged for.
Added by Laws 1986, c. 64, § 2, emerg. eff. April 1, 1986. Amended by Laws 1989, c. 173, § 5, operative July 1, 1989.
§641.3. Trust lands Commercial leases.
A. The Commissioners of the Land Office may acquire by exchange, gift, or grant all property necessary for the purposes of utilizing trust lands for the development of commercial leases to maximize trust income.
B. The Commissioners of the Land Office may exchange any real property of the trust for any other real property of equal or greater value, in accordance with and under the safeguards of trust requirements and to maximize income.
Added by Laws 1989, c. 173, § 2, operative July 1, 1989. Amended by Laws 2004, c. 433, § 1, eff. July 1, 2004.
§64-1.4. Public project and programs using federal, state or local funds, nonprofit rural water districts and certain rural water districts - Easements.
A. The Commissioners of the Land Office may grant easements to entities with power of eminent domain pursuant to the policies of Section 13 of Title 27 of the Oklahoma Statutes.
B. The Commissioners shall, upon written application, grant easements to:
1. Nonprofit rural water districts organized pursuant to Section 863 of Title 18 of the Oklahoma Statutes;
2. Rural water districts organized pursuant to the Rural Water, Sewer, Gas and Solid Waste Management Districts Act; or
3. Rural electric cooperatives organized pursuant to Section 437 of Title 18 of the Oklahoma Statutes, for the purpose of laying a water or power line upon the property.
C. Prior to the granting of such easement, an appraisal shall be conducted to determine the fair market value of the easement. The district or cooperative requesting the easement shall petition the District Court in the county in which the easement is located to determine the fair market value of the easement. The court shall appoint three disinterested persons who are residents of that county who shall first take an oath to fairly and impartially appraise the value of the easement. The appraisers shall meet and determine the fair market value of the easement, in writing, and return the same under their signatures to the court. Said appraisal shall show the fair market value of the easement. Appraiser's fees shall be set by the court and charged to the requesting district or cooperative as costs. The district or cooperative shall enclose a certified copy of the appraisal and payment in the amount of the appraised value with its written request for easement to the Commissioners of the Land Office. Except for the amount received for the granting of an easement, no additional fees or other charges shall be assessed by Commissioners of the Land Office for the granting of such easement.
D. The granting of easements pursuant to this section shall be timely and shall not exceed sixty (60) days from date that the appraisal is submitted to the district court.
E. Easements shall run concurrently with the life of the facilities installed.
Added by Laws 1989, c. 173, § 3, operative July 1, 1989. Amended by Laws 1992, c. 244, § 1, eff. Sept. 1, 1992; Laws 1994, c. 339, § 4, emerg. eff. June 8, 1994.
§64-1.5. Retention of realtors to secure tenants in commercial leasing trust property.
The Commissioners of the Land Office may retain realtors for the purpose of securing tenants in the commercial leasing of trust property. Realtors shall be chosen by a solicitation of proposals on a competitive bid basis pursuant to standards set by the Commissioners. The process of selecting realtors shall be exempt from the Oklahoma Central Purchasing Act. The Commission may pay realtors retained to secure tenants for trust property on a commission basis.
Added by Laws 2004, c. 433, § 2, eff. July 1, 2004.
§642. Commissioners of Land Office - Secretary - Duties.
The Department of the Commissioners of the Land Office shall be administered under the supervision of the Commissioners of the Land Office by the Secretary who shall be appointed by the Governor with the advice and consent of the Commissioners of the Land Office. It shall be the duty of the Secretary to execute, under the supervision of the Commissioners of the Land Office, all laws pertaining to the Department of the Commissioners of the Land Office and to carry into execution the will of the Commissioners of the Land Office not in conflict with such laws.
Laws 1935, p. 108, § 1, emerg. eff. May 14, 1935.
§643. Commissioners of Land Office - Secretary - Employees.
The Land Office shall be administered under the supervision of the Commissioners of the Land Office, by the Secretary of the Commission, who shall be appointed by the Governor.
Providing that the Governor of the State of Oklahoma shall be designated as chairman ex officio, and the Commissioners shall elect from their body a vicechairman whose duty it shall be to act as chairman in the absence of the chairman or in case of his failure, neglect, or refusal to act as chairman.
The Secretary shall select such employees as may be deemed necessary properly to operate the Land Office under the terms of this act, except the attorneys and appraisers, who shall be selected by a majority of the Commission; provided further, that the Commissioners of the Land Office shall appoint not exceeding seven (7) appraisers to make appraisements for loans provided herein and assist in the collection of loans and interest thereon, and the rents from agricultural and grazing lands belonging to the Department, and such other duties as may be assigned to them by the Secretary of the Commission, who shall direct in each case their services; provided further that the Commissioners of the Land Office shall appoint one Title Examiner and not more than two Assistant Title Examiners to attend to any legal matters which the School Land Commission is charged to administer and enforce, and such other duties as may be assigned to them by the Secretary of the Commission, who shall direct in each case their services.
The employees of the Land Office whose duties require them to handle funds, or securities, of the Department, shall be required to give bond in an amount sufficient to protect the Department against loss by reason of their negligence or willful misappropriation of such funds and securities.
The Commissioners, by a majority vote, may remove the Secretary or any appraiser, or any attorney, of the Land Office, and the Secretary may discharge and remove any employee, selected by him.
Laws 1933, c. 91, p. 168, § 13; Laws 1933, c. 184, p. 406, § 2.
§64-4. Repealed by Laws 1941, p. 464, § 7.
§64-5. Repealed by Laws 1975, c. 163, § 1, emerg. eff. May 20, 1975.
§646. Supervision of division heads.
The head of each division in the Department of the Commissioners of the Land Office shall be under the immediate supervision and command, in the administration of their divisions, of the Secretary.
Laws 1935, p. 108, § 3, emerg. eff. May 14, 1935.
§64-7. Repealed by Laws 1941, p. 466, § 16.
§64-8. Repealed by Laws 1941, p. 466, § 16.
§649. Employees - Bonds.
All employees in the office of the Commissioners of the Land Office whose duties require them to handle funds or securities shall be required to give a bond in an amount sufficient to protect the Department against loss by reason of their negligence or willful misappropriation of such funds and securities.
Laws 1935, p. 109, § 6, emerg. eff. May 14, 1935.
§6410. Accounting system.
It is hereby made the mandatory duty of the Secretary and the Auditor for the Commissioners of the Land Office, to install modern forms and equipment for a system of accounting to properly protect, preserve and account for all transactions made by the Department of the Commissioners of the Land Office; the installation of all forms and equipment shall be under the supervision of the State Banking Department, which shall prescribe all records, forms and equipment to be installed and the Commissioners of the Land Office are hereby authorized and directed to approve such records, forms and equipment as may be prescribed by the State Banking Department. All books, forms and other necessary equipment and supplies for the installation and maintaining a proper system of accounting shall be paid for from the revolving fund for the Commissioners of the Land Office.
Laws 1935, p. 109, § 7, emerg. eff. May 14, 1935.
§6411. Evaluating public and school lands as sites for economic development parks.
For purposes of identifying school and public lands as potential sites for development as economic development parks, such land should be evaluated on the basis of suitability of locating the following types of parks on such land:
1. Regional industrial parks Such parks would provide a network of major industrial sites throughout the state but would be limited to a maximum of twenty such parks. Characteristics to be considered for suitability would include transportation access, industrial and solid waste disposal capabilities, percolation rates of soils, access to water resources, topography, geology and proximity to other regional industrial park sites.
2. Recreational theme parks Such parks would have the potential to attract major private sector investments for such purposes due to factors such as location, uniqueness of setting, traffic patterns and proximity to other recreational attractions.
3. Regional commercial parks Such parks would provide a network of major commercial sites throughout the state. Characteristics to be considered for suitability would include location, traffic patterns and proximity to other regional commercial parks.
Added by Laws 1986, c. 64, § 3, emerg. eff. April 1, 1986.
§6412. Categorization of school lands Report.
A. The Commissioners of the Land Office shall complete the categorization of school lands, as authorized by paragraphs 1 and 3 of Section 1.1 of Title 64 of the Oklahoma Statutes, and of public lands, as authorized by Section 2 of this act, and shall submit a written report by July 1, 1987, to the Speaker of the House of Representatives and the President Pro Tempore of the Senate detailing the categorization of school lands and public lands of this state.
B. In order to fulfill the requirements of subsection A of this section, the Commissioners of the Land Office may utilize employees of other state agencies who are specially skilled in evaluating the potential uses of land pursuant to the State Personnel Interchange Program.
Added by Laws 1986, c. 64, § 4, emerg. eff. April 1, 1986.
§6413. Retention of mineral interests in school and public lands.
The Commissioners of the Land Office shall retain all mineral interests to any school lands or public lands which are designated as economic development parks as provided for by law and which are leased for such purposes.
Added by Laws 1986, c. 64, § 5, emerg. eff. April 1, 1986.
§64-14. Abolition of Depletion, Management and Sale Fund - Transfer and deposit of balance.
A. The Depletion, Management and Sale Fund is hereby abolished.
B. All unencumbered balances contained in the Depletion, Management and Sale Fund as of July 1, 1992, shall be deposited to the credit of the Commissioners of the Land Office Fund. The Director of State Finance shall be authorized to transfer the unencumbered balance described by this subsection to the Commissioners of the Land Office Fund.
C. Any unexpended balance contained in the Depletion, Management and Sale Fund as of November 15, 1992, shall be transferred and deposited to the credit of the Commissioners of the Land Office Fund. The Director of State Finance shall be authorized to transfer the unexpended balance described by this subsection to the Commissioners of the Land Office Fund.
Added by Laws 1992, c. 324, § 1, eff. July 1, 1992.
§64-15. Commissioners of the Land Office Fund - Deposit of funds - Use of funds.
A. There is hereby created in the State Treasury a fund to be designated the Commissioners of the Land Office Fund. The fund shall be subject to legislative appropriations and certification by the Board of Equalization. The fund shall consist of revenues deposited to the fund pursuant to subsection B of this section and other revenues deposited to the fund by law. The fund shall be a continuing fund, not subject to fiscal year limitations.
B. Beginning July 1, 1992, the Commissioners of the Land Office shall deposit six percent (6%) of the revenue generated from the Common School Fund, the Education Institutions Fund, the University of Oklahoma Fund, the University Preparatory School Fund, the Oklahoma State University Fund, the Normal Schools Fund, the Langston University Fund, the Public Building Fund, and the Greer 33 Fund to the credit of the Commissioners of the Land Office Fund.
C. Funds in the Commissioners of the Land Office Fund shall be used exclusively for carrying out the duties of the Commissioners of the Land Office as the law may prescribe.
Added by Laws 1992, c. 324, § 2, eff. July 1, 1992. Amended by Laws 1997, c. 118, § 1, eff. July 1, 1997.
§64-16. Employee real estate appraiser license - Payment of fee.
The Commissioners of the Land Office shall be responsible for and pay the fee for obtaining a real estate appraiser license for any employee who is required to obtain such license to perform job duties.
Added by Laws 2003, c. 205, § 3, eff. July 1, 2003.
§64-31. Repealed by Laws 1941, p. 464, § 4.
§64-31a. Repealed by Laws 1941, p. 467, § 18.
§64-31b. Repealed by Laws 1975, c. 163, § 1, emerg. eff. May 20, 1975.
§64-32. Repealed by Laws 1941, p. 464, § 4.
§64-33. Repealed by Laws 1941, p. 464, § 4.
§64-34. Repealed by Laws 1941, p. 464, § 4.
§6441. Revolving fund created Payments into fund Payments from fund.
There is hereby created a revolving fund for the Department of the Commissioners of the Land Office, into which fund shall be paid by the Secretary to the Commissioners of the Land Office all fees that may be collected by the Commissioners of the Land Office, from which shall be made the payment for all books, forms, and other necessary equipment and supplies for the installation and maintenance of a modern system of accounting; provided however, no patented accounting system wherein copyrighted or patented forms or books are used shall be bought, installed, or used, and from which fund shall also be paid the expense of all necessary printing, foreclosure abstracts, and other expenses incidental to foreclosure and the acceptance of warranty deeds, and from which fund shall also be paid necessary communication and traveling expenses incurred by the employees of the Department of the Commissioners of the Land Office. Provided further, that the Commissioners of the Land Office are also authorized to incur out of said revolving fund any expenses of the Land Office for personal services, including old-age and survivor insurance, operating expenses and the purchase of equipment necessary to carry out the function of the Land Office. The Commissioners of the Land Office are prohibited from expending any funds for rental, lease, or use of any building, office, or space.
Laws 1935, p. 109, § 8, emerg. eff. May 14, 1935; Laws 1937, p. 125, § 1, emerg. eff. March 29, 1937; Laws 1961, p. 490, § 1, emerg. eff. July 12, 1961; Laws 1961, p. 649, § 4, emerg. eff. July 31, 1961; Laws 1989, c. 353, § 14, emerg. eff. June 3, 1989.
§64-42. Repealed by Laws 1941, p. 465, § 11.
§6443. Fees.
The Commissioners of the Land Office, by formal resolution adopted by a majority vote of the members of said Commission, shall fix a schedule of fees to be charged for services rendered by the Department and except as otherwise provided by law, said fees shall be collected and deposited in the revolving fund for the Department of the Commissioners of the Land Office. Transfer of all fees earned and collected each month shall be made on or before the tenth day of the succeeding month.
Laws 1935, p. 109, § 9, emerg. eff. May 14, 1935.
§64-44. Repealed by Laws 1941, p. 464, § 6.
§64-51. Investment of permanent school funds and other educational funds.
A. 1. The permanent school funds and other educational funds may be invested in first mortgages upon good and improved farm lands within the state (and in no case shall more than fifty percent (50%) of the reasonable value of the lands, without improvements, be loaned upon any tract).
2. Sufficient monies shall be kept on hand at all times by the Commissioners of the Land Office to close all approved applications for first mortgage loans, as may be approved from time to time by the Commissioners of the Land Office.
B. 1. The Commissioners of the Land Office shall be responsible for the investment of the permanent school funds, other educational funds and public building funds solely in the best interests of the beneficiaries. The Commissioners of the Land Office shall make such investments:
a. for the exclusive purpose of:
(1) providing maximum benefits to current and future beneficiaries, and
(2) defraying reasonable expenses of administering the trust funds,
b. with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like enterprise of a like character and with like aims would use, and
c. by diversifying the investments of the trust funds so as to minimize the risk of large losses.
2. The permanent school fund and other educational funds may only be invested in bonds issued in the United States and United States dollar denominated or other investments settled in United States dollars or traded on the United States exchange markets. Until July 1, 2001, the Commissioners of the Land Office shall not invest more than fifty percent (50%) of the permanent common school fund, other educational funds and public building funds in equity securities. On and after July 1, 2001, the investment in equity securities may be increased by five percent (5%) each year until the investment in equity securities reaches a maximum of sixty percent (60%).
3. The Commissioners shall establish an investment committee. The investment committee shall be composed of not more than three (3) members of the Commissioners of the Land Office or their designee. The committee shall make recommendations to the Commissioners of the Land Office on all matters related to the choice of managers of the assets of the funds, on the establishment of investment and fund management guidelines, and in planning future investment policy. The committee shall have no authority to act on behalf of the Commissioners of the Land Office in any circumstances whatsoever. No recommendations of the committee shall have effect as an action of the Commissioners of the Land Office or take effect without the approval of the Commissioners as provided by law. The Commissioners shall promulgate and adopt on an annual basis an investment plan. The investment plan shall state the criteria for selecting investment managers, the allocation of assets among investment managers, and established standards of investment and fund management.
4. The Commissioners shall retain qualified investment managers to provide for investment of the fund monies pursuant to the investment plan. Investment managers shall be chosen by a solicitation of proposals on a competitive bid basis pursuant to standards set by the Commissioners. Subject to the investment plan, each investment manager shall have full discretion in the management of the funds allocated to said investment managers. The funds allocated to investment managers shall be actively managed by them, which may include selling investments and realizing losses if such action is considered advantageous to longer term return maximization. Because of the total return objective, no distinction shall be made for management and performance evaluation purposes between realized and unrealized capital gains and losses.
5. The Commissioners shall take such measures as they deem appropriate to safeguard custody of securities and other assets of the Trusts.
6. By August 1 of each year, the Commissioners shall develop a written investment plan for the trust funds.
7. The Commissioners shall compile a quarterly financial report showing the performance of all the combined funds under their control on a fiscal year basis. The report shall contain a list of all investments made by the Commissioners and a list of any commissions, fees or payments made for services regarding such investments for that reporting period. The report shall be based on market values and shall be compiled pursuant to uniform reporting standards prescribed by the Oklahoma State Pension Commission for all state retirement systems. The report shall be distributed to the Oklahoma State Pension Commission, the Cash Management and Investment Oversight Commission, and the Legislative Service Bureau.
8. Before October 1 of each year, the Commissioners shall publish an annual report of all Trust operations, presented in a simple and easily understood manner to the extent possible. The report shall be submitted to the Governor, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, the State Department of Education and each higher education beneficiary. The annual report shall cover the operation of the Trusts during the past fiscal year, including income, disbursements and the financial condition of the Trusts at the end of each fiscal year on a cash basis. The annual report shall also contain a summary of each Trust's assets and current market value as of the report date.
9. The Cash Management and Investment Oversight Commission shall review reports prepared by the Commissioners of the Land Office pursuant to this subsection and shall make such recommendations regarding the investment strategies and practices, the development of internal auditing procedures and practices and such other matters as determined necessary and applicable.
10. The Commissioners of the Land Office shall select one custodial bank to settle transactions involving the investment of the funds under the control of the Commissioners of the Land Office. The Commissioners of the Land Office shall review the performance of the custodial bank at least once every year. The Commissioners of the Land Office shall require a written competitive bid every five (5) years. The custodial bank shall have a minimum of Five Hundred Million Dollars ($500,000,000.00) in assets to be eligible for selection. Any out-of-state custodial bank shall have a service agent in the State of Oklahoma so that service of summons or legal notice may be had on such designated agent as is now or may hereafter be provided by law. In order to be eligible for selection, the custodial bank shall allow electronic access to all transaction and portfolio reports maintained by the custodial bank involving the investment of state funds under control of the Commissioners of the Land Office and to the Cash Management and Investment Oversight Commission. The requirement for electronic access shall be incorporated into any contract between the Commissioners of the Land Office and the custodial bank. Neither the Commissioners of the Land Office nor the custodial bank shall permit any of the funds under the control of the Commissioners of the Land Office or any of the documents, instruments, securities or other evidence of a right to be paid money to be located in any place other than within a jurisdiction or territory under the control or regulatory power of the United States government.
Added by Laws 1963, c. 90, § 1, emerg. eff. May 22, 1963. Amended by Laws 1968, c. 308, § 1, emerg. eff. May 7, 1968; Laws 1969, c. 186, § 1, emerg. eff. April 17, 1969; Laws 1986, c. 64, § 6, emerg. eff. April 1, 1986; Laws 1987, c. 21, § 1, emerg. eff. April 14, 1987; Laws 1994, c. 347, § 1, eff. Sept. 1, 1995; Laws 1995, c. 26, § 1, eff. Nov. 1, 1995; Laws 1995, c. 212, § 3, eff. July 1, 1995; Laws 1999, c. 116, § 1, eff. July 1, 1999; Laws 2001, c. 96, § 1, eff. July 1, 2001.
§64-51.1. Investment of permanent school funds in real property owned or acquired by state or Tourism and Recreation Department and under jurisdiction of Tourism and Recreation Commission.
A. The Commissioners of the Land Office may invest the permanent school funds in real property owned or acquired by the State of Oklahoma or the Oklahoma Tourism and Recreation Department and under the jurisdiction of the Oklahoma Tourism and Recreation Commission. The Commissioners of the Land Office shall not invest more than three percent (3%) of the total value of the permanent school funds in connection with this investment.
B. The Commissioners of the Land Office are authorized to acquire, exchange, and grant any real property under its jurisdiction as is necessary to carry out the investment in the real property.
C. The Commissioners of the Land Office may carry out the investment as authorized in this section only if the investment complies with all provisions of the Oklahoma Constitution related to preservation and use of the permanent school fund and with all other trust requirements under law related to investment of the fund.
D. Any investment in or acquisition, exchange or grant of any real property by the Commissioners of the Land Office relating to the Texoma State Park, Lake Texoma Lodge or any real property in the area owned by the Oklahoma Tourism and Recreation Department shall be subject to the following provisions:
1. Employees at Texoma State Park and/or Lake Texoma Lodge who have a minimum of two (2) years’ continuous service with the Oklahoma Tourism and Recreation Department at Texoma State Park and/or Lake Texoma Lodge on the date of the facilities’ closure shall have the opportunity to obtain employment with any successor operator of a resort or park facility located on the lands held by the Oklahoma Tourism and Recreation Department on the effective date of this act, provided such employees are qualified and eligible for any such employment. Further, the Oklahoma Tourism and Recreation Department is hereby directed to develop a severance package for all such employees affected by any closure of facilities as provided for in this section;
2. Any investment in or acquisition, exchange or grant of real property authorized by this section shall ensure a fair return to the Oklahoma Tourism and Recreation Department to be distributed as provided for in paragraph 3 of this subsection;
3. All proceeds to the Oklahoma Tourism and Recreation Department from any such investment in or acquisition, exchange or grant of state property in the park shall be reinvested in the Texoma area in projects that enhance the visitor experience or augment the public facilities available to visitors as provided for in Section 1852.3 of Title 74 of the Oklahoma Statutes;
4. Any such investment in or acquisition, exchange or grant of state property must lead to the highest and best use of the property;
5. Existing concessionaires in and around the park shall be consulted and given opportunities to participate in any and all business opportunities and improvements resulting from such investment in or acquisition, exchange or grant of real property. The private investments of existing concessionaires in and around the park shall be given due consideration by any state agency that is a party to any investment in or acquisition, exchange or grant of real property authorized by this act; and
6. Any such investment in or acquisition, exchange or grant of any real property shall include a provision to ensure the Oklahoma Department of Tourism and Recreation grants to the Lake Texoma Association the real property that includes the association’s headquarters and that the association be allowed to remain at its current location.
Added by Laws 2004, c. 394, § 1, emerg. eff. June 3, 2004.
§64-51.2. Appraisals and determining fair market value.
The Commissioners of the Land Office shall utilize the procedures set forth in Section 129.4 of Title 74 of the Oklahoma Statutes that are applicable for purposes of obtaining appraisals and determining fair market value whenever the Commissioners acquire real property from any department, board, commission, institution or agency of this state. For purposes of this section, fair market value shall be either the average or the median of the appraisals, whichever is lower.
Added by Laws 2007, c. 190, § 1, eff. July 1, 2007.
§6452. Investments in farm mortgages Rules and regulations.
Investments of the permanent funds and other educational funds in farm mortgages shall be made under the following rules and regulations:
(a) Such investments shall be made in first mortgages upon good and improved farm lands located within the State of Oklahoma, the cash value of which, disregarding all improvements, is at least double the amount of the loan, and the fair rental value of which is equal to the annual payments which are to be made by the borrower, and not to exceed One Hundred Fifty Thousand Dollars ($150,000.00), shall be loaned to any individual or family.
(b) Persons to be eligible for a new loan from funds held by the Commissioners of the Land Office shall be citizens of the State of Oklahoma and shall be the owners of legal or equitable title, as determined by the Marketable Record Title Act, to the land offered as security for such loan on the date of filing application for said loan. The provisions of this act shall not prohibit the Commissioners of the Land Office from renewing or increasing existing loans at the current rate of interest in cases where the applicant offers adequate security to justify a renewal.
(c) All farm loans made by the Commissioners of the Land Office of the State of Oklahoma from the trust funds under their jurisdiction and control, as otherwise provided by the laws of this state, shall bear interest at the rate of eight and onehalf percent (8 1/2%) per annum, payable annually or semiannually, until paid. All delinquent installments, both principal and interest, shall bear interest at a rate of ten percent (10%) per annum until paid. All such loans shall be paid in the manner and within such period of time as may be required by the Commissioners of the Land Office; provided, the entire amount of any loan shall be paid within a period of not to exceed thirtythree (33) years from the date of the loan. Provided, further, that persons receiving fifty percent (50%) or more of their total annual income from the operation of a farm shall be given preference by the Commissioners in approval of any loans made under the provisions of this act.
(d) The Commissioners of the Land Office shall prepare applications for loans, appraisers' reports, notes and mortgages in conformity with these rules and regulations for use in making such loans. No application shall be accepted unless the Commission has funds available for timely closing of such loans. The necessary services incident to the making and closing of loans shall be rendered as nearly as practicable in the order in which applications are filed.
(e) No loan shall be made until the applicant furnishes a duly certified abstract of title, showing that he is the owner of title to the security offered, and before any loan is paid out to a borrower a final certificate of the title examiner of the Commissioners shall be made approving the title. Before any loan can be closed, the records held by the loan division must show that state's mortgage is a first and superior lien on the lands described therein and that all prior liens have been subordinated or released of record. All abstracts furnished may be retained and filed in the Department or returned to the borrower when said loan is completed. In case of default and foreclosure the abstract shall be forfeited to and become the property of the School Land Department.
(f) When an application for a loan is filed and a deposit made of the required fees, the application shall be referred to an appraiser who shall view and appraise the land and improvements thereon and make his report to the Commissioners, setting forth the value of the security offered, together with his estimate of the annual rental value thereof, and his recommendations as to the necessary steps that should be taken to protect said land from erosion, wastage, and depletion, and such additional information as the Commissioners may require. If the report shows the security to be of sufficient value, said report shall be considered by the Commissioners at their next meeting following the filing of said report, and they shall either approve or reject said application; provided an applicant shall pay a loan fee on the basis of the amount of loan actually disbursed. The Commissioners are hereby given authority to, and shall, before completing any approved application, require the applicant to take any steps found necessary to properly conserve and protect the land from erosion, wastage, or depletion. After the Commissioners approve any application for a loan, the abstract of title shall be presented to the title examiners for examination. The title examiners of the School Land Commission shall recognize and be bound by the title examination standards of the Oklahoma Bar Association, and the applicable curative statutes, in making title examinations for loan purposes. Provided, further, that, in lieu of furnishing a duly certified abstract of title showing that he is the owner of title to the security offered, any such applicant for loan from the Commissioners of the Land Office may furnish, at his cost, mortgage guaranty of title or mortgage title insurance. The instruments of guaranty or insurance shall be on forms approved by the Commissioners of the Land Office and issued by a title insurance company or title guaranty company authorized to transact title guaranty or title insurance business in the State of Oklahoma and approved by the Commissioners of the Land Office.
The guarantor or insurer shall be liable to the state for any and all damages or losses of the loan which the state may sustain by reason of any defect or irregularity in the chain of title to the subject land or encumbrance against said land covered by the state's mortgage, unless such defect or irregularity is shown as an exception in the guaranty or policy.
All instruments of guaranty or insurance in connection with any loan shall be retained by the Commissioners of the Land Office until such loan is liquidated. The abstracts used to write the title guaranty or insurance shall be retained by the title underwriter until possession thereof is required by the Commissioners of the Land Office.
(g) No loans shall be made to any state official, either legislative, executive, or judicial, whether elected or appointed, during his or her term of office or during his or her candidacy for an elective office; provided, that this rule and regulation shall not affect existing loans, nor hereafter to loans made to persons eligible therefor and who are elected after securing said loans.
(h) No loan shall be made on a tract of land of less than twenty (20) acres and in no case shall more than an average of Three Hundred Fifty Dollars ($350.00) per acre be loaned, regardless of value.
(i) The Commissioners shall permit payment of a loan in part or in whole at any time, provided, the borrower shall have the right at any time to pay all or any part of delinquent payments. The cashier in all cases, upon receipt of any payments of whatever nature, shall issue a receipt to the payer at the time said payment is made. Diligent effort shall be made to collect all matured installments of both interest and principal. When a loan is liquidated, the Commissioners of the Land Office shall issue a release of their mortgage to be filed and recorded in the office of the county clerk, at the expense of the mortgagors. No settlement shall be made by the Commissioners of the Land Office or any employee with any borrower for less than the amount due upon his obligation; provided, that in all cases where the Commissioners have heretofore accepted deeds to land in satisfaction of loans, such transactions are hereby confirmed and title in and to said lands is hereby validated and confirmed.
(j) It shall be the duty of the Commissioners of the Land Office to authorize and approve all loans made and see to it that same are made in strict conformity to this act, and to authorize and approve all investments made from funds under their management and control.
(k) The duties of the officers comprising the Commissioners of the Land Office when acting as such Commissioners shall be deemed to be a part of the official duties of the several offices to which they are elected and by reason whereof they are members of said Commission. If any Commissioner or employee of the School Land Department knowingly permits, consents to, or participates in any act or transaction which is in violation of these rules, he shall be deemed guilty of a misdemeanor and shall be subject to removal from office, and shall be liable on his bond for any loss occasioned thereby.
(1) The terms and provisions of this act providing for making of loans shall not prevent or prohibit the Commissioners of the Land Office from making loans which are approved prior to the date this act becomes effective under the rules and regulations prescribed by the Legislature as existed on the date said loans were approved.
Laws 1963, c. 90, § 2, emerg. eff. May 22, 1963; Laws 1965, c. 402, § 1, emerg. eff. July 5, 1965; Laws 1968, c. 308, § 2, emerg. eff. May 7, 1968; Laws 1969, c. 340, § 1; Laws 1974, c. 268, § 2; Laws 1978, c. 255, § 1; Laws 1979, c. 228, § 1, eff. Oct. 1, 1979.
§64-53. Repealed by Laws 1937, p. 133, § 13.
§64-54. Repealed by Laws 1963, c. 90, § 3, eff. May 22, 1963.
§64-55. Repealed by Laws 1963, c. 90, § 3, eff. May 22, 1963.
§6456. Lien on crops Release of premises on payment.
The Commissioners of the Land Office shall have a first lien on all crops grown on the premises mortgaged to the state to secure the principal and interest installments delinquent at the time of the planting of the crops on said premises. When satisfaction of said delinquent interest and principal payments have been made said premises shall be, by the terms and provisions of this act, automatically released.
Laws 1935, p. 112, § 14, emerg. eff. May 14, 1935.
§6457. Maturity of installments.
All new loans and present loans which may be rewritten by the Commissioners of the Land Office shall be written so as to mature principal and interest installments at the time most suitable for the borrower or owner, in each instance, to meet such installments.
Laws 1935, p. 112, § 15, emerg. eff. May 14, 1935.
§64-58. Repealed by Laws 1941, p. 295, § 6.
§6458.1. Receivership in case of default Payment of costs and expenses.
In case of default in payment of any item due on any mortgage contract made with the Commissioners of the Land Office, or upon the failure of the mortgagor or his assigns to comply with any of the terms or conditions of any such mortgage agreement, it shall be the duty of any court of competent jurisdiction, upon verified application made therefor by the Commissioners of the Land Office in any pending foreclosure action, to appoint a receiver to take charge of the real estate covered by the said mortgage, except as to homesteads actually occupied by the fee simple owner thereof, in which latter event the appointment of a receiver shall be discretionary with the court, and said receiver shall be authorized to assume full dominion, possession and control of said premises, pending the final determination of any such foreclosure action as may be instituted by the Commissioners of the Land Office. Out of any funds which may be collected by such receivers, the district court, wherein such foreclosure action is pending, shall direct the receiver to pay all court costs incurred in such foreclosure action, including publication fees, mileage fees incurred by the sheriff actually and necessarily traveled, and docketing fees of the court clerk, premiums on receivers' bonds and the expense of securing such supplemental abstracts as may be required by the necessity of instituting the foreclosure action.
Laws 1941, p. 295, § 5, emerg. eff. April 17, 1941; Laws 1979, c. 221, § 15, emerg. eff. May 30, 1979.
§6459. Collection of loans Rewriting of delinquent loans Foreclosure Acceptance of warranty deeds.
Upon the passage and approval of this act, the Service Department shall take charge of collections on all loans made by the Commissioners of the Land Office; and shall have authority to make collection thereon in accordance with the terms and provisions of such mortgage agreements. The Service Division is hereby authorized to cause the appraisement of the security of all delinquent loans, and to appraise additional securities offered by the borrower or owner, with the view and for the purpose of rewriting said delinquent loans into the form of the twentyyear or thirtythreeyear amortized loan plan as herein provided. In the event a borrower or owner can give a valid first lien to the Commissioners of the Land Office, upon any property, either now securing a loan or offered in addition to the present security thereof, which property upon appraisement is valued at not less than double the amount due on such delinquent loan, then said loan shall be rewritten into the form of the twentyyear or thirtythreeyear amortized loan plan. In the event the borrower or owner does not have adequate security to justify such rewriting of the indebtedness, the Service Division may, and it is hereby authorized to accept both chattel and real estate collateral in consideration of giving a borrower or owner reasonable extensions of time in which to reduce the indebtedness to the point that would justify the rewriting thereof. In cases where the Service Division deems that no redemption is possible, the Commissioners of the Land Office are hereby authorized to cause the immediate foreclosure of such mortgages; provided, however, that in such cases the Commissioners of the Land Office are authorized to accept warranty deeds in settlement of such mortgage indebtedness, unless a foreclosure is necessary to clear the title to the lands securing such indebtedness.
Laws 1935, p. 112, § 17, emerg. eff. May 14, 1935.
§64-60. Repealed by Laws 1943, p. 153, § 1.
§6461. Appraisers Duty - Prohibited activities - Violations.
A. The appraiser for the Commissioners of the Land Office shall not appraise any land for loan purposes until after the application for the loan, together with the required fees have been received and filed in the Land Office. It shall be his duty in appraising land to personally inspect and go over each and every subdivision of every tract offered as security for the loan. The appraiser shall not at any time disclose to the applicant his valuation placed upon the land until after his appraisement is filed with the Commissioners of the Land Office.
B. No appraiser for the Commissioners of the Land Office shall:
1. Directly or indirectly solicit or accept any compensation, gift, loan, entertainment, favor or service given for the purpose of influencing such appraiser in the discharge of his official duties;
2. Use his official position to solicit or secure special privileges or exemptions for himself or others, except as may be provided by law;
3. Disclose or offer to disclose confidential information acquired by reason of his official position to any person, group or others not entitled to receive such confidential information, nor shall he use such information for his personal gain or benefit;
4. Receive or solicit any compensation that would impair his independence of judgment for his services as an appraiser for the Commissioners of the Land Office, from any source other than the Commissioners, unless otherwise provided by law; or
5. Accept or solicit other employment which would impair his efficiency or independence of judgment in the performance of his public duties.
Any appraiser violating this section shall be deemed guilty of a misdemeanor.
Laws 1933, c. 187, p. 410, § 2, emerg. eff. July 21, 1933; Laws 1979, c. 228, § 2.
§64-62. Repealed by Laws 1970, c. 238, § 1.
§6463. Approval of loans.
Before any loan shall be finally approved by the Commissioners of the Land Office, they shall have before them the information furnished by the departmental appraiser; but, in no case shall more than fifty percent (50%) of the value of the land as appraised by the appraiser of the Commissioners of the Land Office be loaned thereon.
Laws 1933, c. 187, p. 411, § 4, emerg. eff. July 21, 1933; Laws 1943, p. 153, § 2, emerg. eff. April 13, 1941; Laws 1970, c. 238, § 2.
§64-64. False statements or affidavits - Perjury.
Any person who shall execute or make any sworn statement or affidavit containing false information in connection with any loan to be made from the funds held by the Commissioners of the Land Office shall be guilty of the felony of perjury and, upon conviction thereof, shall be punished by imprisonment in the State Penitentiary for a term not to exceed one (1) year.
Added by Laws 1933, c. 187, p. 411, § 5, emerg. eff. July 20, 1933. Amended by Laws 1997, c. 133, § 537, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, § 388, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date of Laws 1997, c. 133, § 537 from July 1, 1998, to July 1, 1999.
§6465. Loans to state officers or employees Collections.
In transactions where state officers and/or state employees are delinquent on obligations arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office, the Commissioners of the Land Office shall, without first exhausting their remedy against mortgaged security, be entitled to proceed to require the Director of State Finance to issue them warrants in an amount not greater than twentyfive percent (25%) of the monthly salary, as said salary accrues, of any state officer or state employee who is in arrears with his interest or other obligation to the Commissioners of the Land Office, arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office; the procedure to require such payment shall be as follows, to wit:
(a) Upon resolution adopted by the Commissioners of the Land Office, the Secretary to the Commissioners of the Land Office shall file an affidavit with the Director of State Finance showing the amount of delinquent interest, the length of time said interest has been delinquent, or any other delinquency and the length of time any such other delinquency has been in arrears, on any obligation due from any state officer or state employee to the Commissioners of the Land Office arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office.
(b) Upon the filing of the affidavit required under subdivision (a) of Section 1 of this act, the Director of State Finance shall cause a notice to be served by registered mail upon the state officer or state employee who is affected by the affidavit of the Secretary to the Commissioners of the Land Office, and shall state in said notice that if the delinquent interest, or other delinquency arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office, is not paid before the first day of the month following service of such notice that twentyfive percent (25%) of all of his or her future monthly salary warrants shall be issued to the Commissioners of the Land Office and credited by the Commissioners of the Land Office upon the account of such defaulting state officer or state employee, until such delinquent interest or other delinquency is satisfied in full.
Laws 1933, c. 188, p. 411, § 1, emerg. eff. July 20, 1933; Laws 1979, c. 47, § 67, emerg. eff. April 9, 1979.
§6466. Notice Service.
The notice by registered mail required under Section 1 of this act shall be served not less than ten (10) days before the first day of the month following such service.
Laws 1933, c. 188, p. 412, § 2, emerg. eff. July 20, 1933.
§6467. Legal cause against collection.
Any state officer or state employee who is affected by the affidavit filed by the Secretary to the Commissioners of the Land Office, shall have the right to show any legal cause to the Director of State Finance as to why twentyfive percent (25%) of all his future monthly salary warrants should not, as they accrue, be applied to the payment or satisfaction of his delinquent interest account or other delinquency due from him or her to the Commissioners of the Land Office, on any obligation arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office, until such time when said delinquent interest or other delinquency is satisfied in full, provided that no exemptions of any nature shall be a defense against payment to the Commissioners of the Land Office.
Laws 1933, c. 188, p. 412, § 3, emerg. eff. July 20, 1933; Laws 1979, c. 47, § 68, emerg. eff. April 9, 1979.
§6468. Order requiring payment or to show cause for nonpayment.
The Director of State Finance shall, on or before the first day of the month following the registered mail notice required under Section 1 of this act, either make an order requiring the payment of twentyfive percent (25%) of the salary, as said salary accrues, of any state officer or state employee to the delinquent interest account or other delinquency owing from such state officer or state employee on any obligation arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office, or shall make an order showing legal cause as to why such payment can not or should not be made.
Laws 1933, c. 188, p. 413, § 4, emerg. eff. July 20, 1933; Laws 1979, c. 47, § 69, emerg. eff. April 9, 1979.
§6469. Appeal from order Bond required.
Upon the filing with the Director of State Finance of a bond equal in amount to the delinquency shown by the affidavit of the Secretary to the Commissioners of the Land Office, to be due from