Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-077 - CUSTODIAL AGREEMENTS AND USE OF CLEARING CORPORATIONS BY DOMESTIC INSURANCE COMPANIES › Section 482-1-077-.03 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
The following definitions shall apply for the purposes of this
				chapter:
(a) AGENT. A national bank,
			 state bank or trust company that maintains an account in its name in a clearing
			 corporation or that is a member of the Federal Reserve System and through which
			 a custodian participates in a clearing corporation or the Federal Reserve
			 book-entry system, except that with respect to securities issued by
			 institutions organized or existing under the laws of a foreign country or
			 securities used to meet the deposit requirements pursuant to the laws of a
			 foreign country as a condition of doing business therein, "agent" may include a
			 corporation that is organized or existing under the laws of a foreign country
			 and that is legally qualified under those laws to accept custody of
			 securities.
(b) CLEARING
			 CORPORATION. A corporation as defined in
Code of Ala.
			 1975
, §
								7-8-102(a)(5),
			 that is organized for the purpose of effecting transactions in securities by
			 computerized book-entry, except that with respect to securities issued by
			 institutions organized or existing under the laws of a foreign country or
			 securities used to meet the deposit requirements pursuant to the laws of a
			 foreign country as a condition of doing business therein, "clearing
			 corporation" may include a corporation that is organized or existing under the
			 laws of a foreign country and which is legally qualified under those laws to
			 effect transactions in securities by computerized book-entry. Clearing
			 corporation also includes "Treasury/Reserve Automated Debt Entry Securities
			 System" and "Treasury Direct" book-entry securities systems established
			 pursuant to 31 USC §§ 3100, et seq., 12 USC pt. 391, and 5 USC pt.
			 301.
(c) CUSTODIAN.
1. A national bank, state bank, federal home
			 loan bank, or trust company that shall at all times during which it acts as a
			 custodian pursuant to this chapter be no less than adequately capitalized as
			 determined by the standards adopted by the regulator charged with establishing
			 standards for, and assessing, the institution's solvency and that is regulated
			 by either federal or state banking laws or the Federal Home Bank Act, as
			 amended, or is a member of the Federal Reserve System and that is legally
			 qualified to accept custody of securities in accordance with the standards set
			 forth below, except that with respect to securities issued by institutions
			 organized or existing under the laws of a foreign country, or securities used
			 to meet the deposit requirements pursuant to the laws of a foreign country as a
			 condition of doing business therein, "custodian" may include a bank or trust
			 company incorporated or organized under the laws of a country other than the
			 United States that is regulated as such by that country's government or an
			 agency thereof that shall at all times during which it acts as a custodian
			 pursuant to this chapter be no less than adequately capitalized as determined
			 by the standards adopted by international banking authorities and that is
			 legally qualified to accept custody of securities.
2. A broker/dealer that shall be registered
			 with and subject to jurisdiction of the Securities and Exchange Commission,
			 maintains membership in the Securities Investor Protection Corporation, and has
			 a tangible net worth equal to or greater than two hundred fifty million dollars
			 ($250,000,000).