Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 105 - Regulation Number 83-Domestic Insurer's Use of Custodial Agreements and the Use of Clearing Corporations › Section XIII-10501 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. When used in
				this regulation, the term:
Agent-
a national bank, state bank, trust
				  company or broker/dealer 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, including the
				  Treasury/Reserve Automated Debt Entry Securities System (TRADES) or treasury
				  direct systems, 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.
Clearing Corporation
- a corporation, as
				  defined in Section 8-102(a)(5) of the Uniform Commercial Code, 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 U.S.C. §3100  et seq., 12 U.S.C. pt. 391 and 5 U.S.C. pt.
				  301.
Custodian
-
a. a national bank, state bank or trust company that shall at
				  all times during which it acts as a custodian pursuant to this regulation be no
				  less than adequately capitalized as determined by the standards adopted by
				  United States banking regulators and that is regulated by either state banking
				  laws 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 regulation 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; or
b. a broker/dealer that shall be a member of the National
				  Association of Security Dealers, registered with and subject to jurisdiction of
				  the Securities and Exchange Commission, maintains membership in the Securities
				  Investor Protection Corporation, has an agency office in this state and has a
				  tangible net worth equal to or greater than $250,000,000.
Custodied Securities
- securities held by the
				  custodian or its agent or in a clearing corporation, including the
				  Treasury/Reserve Automated Debt Equity Securities System (TRADES) or treasury
				  direct systems.
Securities' Certificate
-has the same meaning
				  as that defined in Section 8-102(a)(16) of the Uniform Commercial Code.
Security
-has the same meaning as that
				  defined in Section 8-102(a)(15) of the Uniform Commercial Code.
Tangible Net Worth
-shareholders equity, less
				  intangible assets, as reported in the broker/dealer's most recent annual or
				  transition report pursuant to Section 13 of the Securities Exchange Act of 1934
				  (S.E.C. Form 10-K) filed with the Securities and Exchange Commission.
Treasury/Reserve Automated Debt Entry Securities
				  System (TRADES) and Treasury Direct
-the book entry securities systems
				  established pursuant to  31 U.S.C. §3100  et seq., 12 U.S.C. pt. 391 and 5 U.S.C.
				  pt. 301. The operation of TRADES and treasury direct are subject to 31 C.F.R.
				  pt. 357 et seq.
AUTHORITY NOTE:
				  Promulgated in accordance with Act 342 of the 2004 Louisiana Regular
				  Legislative Session;
				  R.S.
				  22:39(D); and the Louisiana
				  Administrative Procedure Act,
				  R.S.
				  49:950 et
				  seq.