North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-23 - Regulation on the Use of Clearing Corporations and Federal Reserve Book-Entry System by Insurance Companies › Section 45-03-23-01 - Definitions

Current through Supplement No. 393, July, 2024
As used in this chapter, unless the context requires
				  otherwise, the term:
1. "Agent" means a national bank, state bank, trust company,
				  or broker-dealer which maintains an account in its name in a clearing
				  corporation or which 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 any 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 which is
				  organized or existing under the laws of any foreign country and which is
				  legally qualified under those laws to accept custody of securities.
2. "Clearing corporation" means a corporation as defined in
				  subsection 1 of North Dakota Century Code section 41-08-02 which 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 any 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 any 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 under 31 U.S.C. 3100 et seq., 12
				  U.S.C. pt. 391, and 5 U.S.C. pt. 301.
3. "Custodian" means:
a. A national bank, state bank, or trust company that must at
				  all times during which it acts as a custodian under this chapter be no less
				  than adequately capitalized as determined by the standards adopted by United
				  States banking regulators and which is regulated by either state banking laws
				  or is a member of the federal reserve system and which 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 any 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 of
				  that country that must be 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 which is
				  legally qualified to accept custody of securities; or
b. 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.
4. "Custodied securities" means securities held by the
				  custodian or its agent or in a clearing corporation, including the
				  treasury/reserve automated debt equity securities system or treasury direct
				  systems.
5. "Securities" means certificated securities and
				  uncertificated securities as defined in subdivisions d and r of subsection 1 of
				  North Dakota Century Code section 41-08-02.
6. "Securities certificate" means a certificate as defined in
				  subdivision p of subsection 1 of North Dakota Century Code section 41-08-02.
7. "Tangible net worth" means shareholders' equity, less
				  intangible assets, as reported in the broker-dealer's most recent annual or
				  transition report under section 13 or 15(d) of the Securities Exchange Act of
				  1934 (SEC form 10-K) filed with the securities and exchange commission.
8. "Treasury/reserve automated debt entry securities system"
				  ("TRADES") and "treasury direct" mean the book-entry securities systems
				  established under 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 systems are subject to 31
				  C.F.R. pt. 357, et seq.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
					 26.1-05-35