Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-69 - REQUIREMENTS FOR INSURANCE COMPANY CUSTODIAL ACCOUNTS › Rule 120-2-69-.06 - Severability

Current through Rules and Regulations filed through June 27, 2024
If any provision of this Regulation Chapter or the
				  application thereof to any particular person or any particular circumstances is
				  held invalid by a court of competent jurisdiction, the remainder of the
				  Regulation Chapter or the applicability of such provision to other persons or
				  other circumstances shall not be affected.
EXHIBIT A
CUSTODIAN AFFIDAVIT
[For use by a custodian bank where securities entrusted to
				  its care have not been redeposited elsewhere.]
STATE OF _______________)
) SS:
COUNTY OF ______________)
_______________________________________________, being duly
				  sworn deposes and says that he or she is __________________ of
				  _________________________________, a banking corporation organized under and
				  pursuant to the laws of the ___________ with the principal place of business at
				  ___________________ (hereinafter called the "bank"):
That his or her duties involve supervision of activities of
				  the bank as custodian and records relating thereto;
That the bank is custodian for certain securities of ______
				  having a place of business ________________ at (hereinafter called the
				  "insurance company") pursuant to an agreement between the bank and the
				  insurance company;
That the schedule attached hereto is a true and complete
				  statement of securities (other than those caused to be deposited with The
				  Depository Trust Company or like entity or a Federal Reserve Bank under the
				  Federal Reserve book-entry procedure) which were in the custody of the bank for
				  the account of the insurance company as of the close of business on
				  ________________________________; that, unless otherwise indicated on the
				  schedule, the next maturing and all subsequent coupons were then either
				  attached to coupon bonds or in the process of collection; and that, unless
				  otherwise shown on the schedule, all such securities were in bearer form or in
				  registered form in the name of the insurance company or its nominee or of the
				  bank or its nominee, or were in the process of being registered in such
				  form;
That the bank as custodian has the responsibility for the
				  safekeeping of such securities as that responsibility is specifically set forth
				  in the agreement between the bank as custodian and the insurance company; and
				  that, to the best of his or her knowledge and belief, unless otherwise shown on
				  the schedule, the securities were the property of the insurance company and
				  were free of all liens, claims or encumbrances whatsoever.
Subscribed and sworn to before me this ______ day
				  _____________________________________ (L.S.) of _________, 19 ___. Vice
				  President [or other authorized officer]
EXHIBIT B
CUSTODIAN AFFIDAVIT
[For use in instances where a custodian bank maintains
				  securities on deposit with The Depository Trust Company or like entity.]
STATE OF _______________)
) SS:
COUNTY OF ______________)
_______________________________________________, being duly
				  sworn deposes and says that he or she is __________________ of
				  _________________________________, a banking corporation organized under and
				  pursuant to the laws of the ___________ with the principal place of business at
				  ___________________ ___________________________(hereinafter called the
				  "bank"):
That his or her duties involve supervision of activities of
				  the bank as custodian and records relating thereto;
That the bank is custodian for certain securities of ______
				  having a place of business at _____________________________ (hereinafter called
				  the "insurance company") pursuant to an agreement between the bank and the
				  insurance company;
That the bank has caused certain of such securities to be
				  deposited with ________________________________________ and that the schedule
				  attached hereto is a true and complete statement of the securities of the
				  insurance company of which the bank was custodian as of the close of business
				  on _____________________________________, and which were so deposited on such
				  date;
That the bank as custodian has the responsibility for the
				  safekeeping of the securities both in the possession of the bank or deposited
				  with ____________________________________ as is specifically set forth in the
				  agreement between the bank as custodian and the insurance company; and
That, to the best of his or her knowledge and belief, unless
				  otherwise shown on the schedule, the securities were the property of the
				  insurance company and were free of all liens, claims or encumbrances
				  whatsoever.
Subscribed and sworn to before me this ______ day
				  _____________________________________ (L.S.) of _________, 19 ___ . Vice
				  President [or other authorized officer]
EXHIBIT C
CUSTODIAN AFFIDAVIT
[For use where ownership is evidenced by book-entry at
				  a
Federal Reserve Bank.]
STATE OF _______________)
) SS:
COUNTY OF ______________)
______________________________________________, being duly
				  sworn deposes and says that he or she is __________________ of
				  ________________________________, a banking corporation organized under and
				  pursuant to the laws of the
				  ___________________________________________________________ with the principal
				  place of business at ___________________ (hereinafter called the
				  "bank"):
That his or her duties involve supervision of activities of
				  the bank as custodian and records relating thereto;
That the bank is custodian for certain securities of ______
				  having a place of business at _____________________________ (hereinafter called
				  the "insurance company") pursuant to an agreement between the bank and the
				  insurance company;
That the bank has caused certain securities to be credited to
				  its book-entry account with the Federal Reserve Bank of ___________________
				  under the Federal Reserve book-entry procedure and that the schedule attached
				  hereto is a true and complete statement of the securities of the insurance
				  company of which the bank was custodian as of the close of business on
				  _____________________________________________, which were in a "general"
				  book-entry account maintained in the name of the bank on the books and records
				  of the Federal Reserve Bank _____________________________ of at such
				  date;
That the bank has the responsibility for the safekeeping of
				  such securities both in the possession of the bank or in the "general"
				  book-entry account as is specifically set forth in the agreement between the
				  bank as custodian and the insurance company; and
That, to the best of his or her knowledge and belief, unless
				  otherwise shown on the schedule, the securities were the property of the
				  insurance company and were free of all liens, claims or encumbrances
				  whatsoever.
Subscribed and sworn to before me this ______ day
				  _____________________________________ (L.S.) of _________, 19 ___ . Vice
				  President [or other authorized officer]
EXHIBIT D
MODEL CUSTODIAN AGREEMENT
[For use by a custodian bank who holds all or a majority of
				  the assets of a domestic insurer.]
GEORIGA ____________ COUNTY
THIS AGREEMENT, made and entered into between ________
				  ___________________________________________________________ ______________,
				  incorporated under the laws of the State of Georgia (hereinafter referred to as
				  "Principal"), and _____ _________________________, _______________________
				  County, Georgia (hereinafter called "Custodian").
WITNESSETH:
WHEREAS, Principal is the owner of certain property,
				  including book-entry securities, identified in Exhibit "1" attached hereto and
				  made a part hereof which property Principal wishes to place in custody of
				  Custodian in order that such properties may be preserved and serviced in the
				  manner hereinafter specified, and Custodian is willing to undertake to preserve
				  and service the same as hereinafter provided;
NOW THEREFORE, it is agreed between the parties hereto as
				  follows:
1.
Powers and
				Duties of Custodian
. Custodian shall:
(a) Hold and safekeep the assets either in
				its custody and control or, for a reasonable time, in the custody and control
				of an agent bank whenever the Custodian determines that custody by an agent
				bank will expedite the delivery of securities when purchased or sold. The
				record of all assets held in the custody and control of Custodian shall at all
				times be identified separately and apart from all other assets held by the
				Custodian, and such records must clearly identify these assets as belonging
				solely to the Principal.
Notwithstanding the foregoing:
(i) Custodian may deposit or arrange for the
				deposit of securities with a Federal Reserve Bank or with the Depository Trust
				Company or any other clearing corporation approved for this purpose by the
				Commissioner of Insurance of the State of Georgia ("Commissioner") and by the
				Securities and Exchange Commission, notwithstanding that such securities may be
				commingled in a book-entry account with, or may be merged and held in bulk in
				the name of such depository or its nominee with, other similar securities not
				belonging to Principal or held by Custodian.
(ii) Custodian shall have liability or
				responsibility for any losses incurred with respect to securities deposited
				with a Federal Reserve Bank, approved clearing corporation or agent bank
				pursuant to the foregoing clause only to the extent provided in Paragraph
				5.
(iii) Custodian shall be
				entitled to rely on receipts, confirmations, statements, reports and other
				documentation concerning securities so deposited which Custodian shall receive
				from such Federal Reserve Bank, approved clearing corporation or agent bank
				electronically and shall have no responsibility to inquire into the validity or
				accuracy of such documentation unless it is reasonably apparent from the face
				thereof that such documentation is invalid or inaccurate, or that there is a
				possibility of invalidity or inaccuracy which reasonably warrants further
				inquiry.
(iv) Custodian shall not
				be required to hold securities which would otherwise be within its custody or
				control or within the custody or control of an agent bank when such securities
				are in transit as a result of a sale, purchase or corporate action, and in the
				normal course of business would temporarily not be in the actual possession of
				Custodian. Custodian shall be required to insure such securities as they may be
				required to deliver during the period such securities are in transit.
(v) Custodian shall be authorized to deposit
				and hold assets consisting of securities of foreign issuers and obligators in
				the custody and control of subcustodian agents appointed by Custodian upon such
				terms as Custodian may reasonably agree with such subcustodian agents,
				including terms granting to subcustodian agents the power to deposit and hold
				securities in the custody and control of other subcustodians selected by
				subcustodian agents appointed by Custodian.