§ 10-3-1203 — Book-entry system

(1) Notwithstanding any provision of law, a
domestic insurance company may deposit or arrange for the deposit of securities
held in or purchased for its general account and its separate accounts in a clearing
corporation or the federal reserve book-entry system. When securities are
deposited with a clearing corporation, certificates representing securities of the
same class of the same issuer may be merged and held in bulk in the name of the
nominee of such clearing corporation with any other securities deposited with such
clearing corporation by any person, regardless of the ownership of such securities,
and certificates representing securities of small denominations may be merged into
one or more certificates of larger denominations. The records of any member bank
through which an insurance company holds securities in the federal reserve book-entry system and the records of any custodian banks through which an insurance
company holds securities in a clearing corporation shall, at all times, show that
such securities are held for such insurance company and for which accounts
thereof. Ownership of, and other interests in, such securities may be transferred by
bookkeeping entry on the books of such clearing corporation or in the federal
reserve book-entry system without, in either case, physical delivery of certificates
representing such securities.

(2) The commissioner is authorized to promulgate rules and regulations
governing the deposit by insurance companies of securities with clearing
corporations and in the federal reserve book-entry system.

Legislative History

Source: L. 83: Entire part added, p. 452, � 2, effective May 3.