§ 22-127. General powers.

In addition to other powers granted in this article, the board of trustees shall have the power to:

(1)

Compel witnesses to attend and testify before it upon all matters connected with the operations of this article, and in the same manner as, or may be, provided by law for the taking of testimony before notaries public. The chairman or any member of the board may administer oaths to witnesses;

(2)

Provide for the payment from the pension funds of all necessary expenses of the board, and pay for actuarial, legal and such other services as shall be required to transact the business of the police pension and retirement system. No compensation or emolument shall be paid to any member of the board for any duties performed under this article;

(3)

Provide all rules and regulations needful for its guidance, in conformity with the provisions of this article;

(4)

Invest and reinvest any funds of the police pension and retirement system, and contract for the management and investment of said funds with a national or state chartered bank or trust company authorized to do trust business in the state, or an investment advisor registered with the Securities and Exchange Commission under the Investment Advisors Act of 1940 (15 U.S.C. § 80a—1 et seq.), or registered under the Oklahoma Securities Act of 1959 (74 O.S. 1971, § 1 et seq.), or a broker-dealer who is a member of a recognized securities exchange and is registered under the Oklahoma Securities Act of 1959, in any or all of the following types of securities, which shall be the only legal investments for said funds:

a.

Bonds, notes, warrants and other evidences of indebtedness which are direct obligations of the United States of America or for which the full faith and credit of the United States is pledged for the payment of principal and interest;

b.

Bonds and other evidence or indebtedness which are direct obligations of or which are secured or guaranteed as to principal and interest by this state or any other state of the United States or the District of Columbia where there exists the power to levy taxes for the prompt payment of the principal and interest of such bonds or other evidences of indebtedness, provided that no such bonds or other evidence of indebtedness shall be in default as to either principal or interest at the time of such investment;

c.

Bonds, equipment trust certificates and other evidences of indebtedness issued by any solvent corporation, provided that the corporation issuing such evidences of indebtedness shall have paid the prescribed interest thereon during each of the last five (5) years next preceding the date of such investment, or the tenure of such issue if issued less than five (5) years prior to such investment, provided, that any such bond or other evidence of indebtedness shall be rated at the time of purchase in any of the three (3) highest classifications by at least one standard rating service recognized by the comptroller of the currency in determining the eligibility of securities for purchase by national banks;

d.

Equities, stocks, mutual stock plans at the local option of the board of trustees, provided that such investments in no event exceed one-third of the pension funds available for investment at the time of the investment and that no such investment in any one stock exceeds one (1) percent of the total pension funds at the time of such investment; and provided further that such investments may not be made in the common stock of a corporation unless such corporation has earned during any three (3) years of the five (5) year period next preceding the date of the investments, a sum applicable to dividends equal in the aggregate to not less than nine (9) percent of the par value (or, in the case of shares having no par value, the issued value) of its outstanding shares, or if such shares have been issued less than five (5) years and have earned a sum applicable to dividends during the tenure of such issue, equal to not less than six (6) percent per annum based upon the purchase price of the shares acquired; and provided further that such investments are made upon the advice of a professional investment counselor and that such trustees making such investments in such equities or stocks shall exercise the judgment and care in the circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital;

e.

Certificates of deposit of an institution insured by the federal government in amounts not to exceed the limit of federal insurability;

(5)

Hold, purchase, sell, assign, transfer or dispose of any of the securities and investments in which any of such funds shall have been invested, as well as of the proceeds of said investments and any moneys belonging to said funds.

The board, at all times, shall keep on deposit in one or more banks and trust companies what it considers an adequate amount of cash for the purpose of meeting disbursements for pensions and other payments.

No trustee and no employee of the board shall have any direct interest in the gains or profits of any investment made by the board of trustees, nor as such receive any pay or emolument for his services.

No trustee or employee of the board, directly or indirectly, for himself or as an agent, in any manner shall use the assets of the pension and retirement system except to make such current and necessary payments as are authorized by the board of trustees.

No trustee or employee of the board shall become an endorser or surety or become in any manner an obligor for moneys loaned by or borrowed from the board of trustees.

(Ord. No. 742, § 12, 12-20-65)

State law reference

Similar provisions, 11 O.S. Supp. 1978, § 50-106.