(1)(a) The commissioner
shall give receipts for all securities deposited with the commissioner, as required or
permitted by law, to the company depositing them.
(b)If the company depositing securities in accordance with paragraph (a) of
this subsection (1) is adjudged insolvent, such deposit shall be released only upon
the entry of an order of a court acting in accordance with the provisions of part 5 of
this article. If a company that has not been adjudged insolvent elects to dissolve,
the commissioner may release securities under joint control upon a showing by the
insurance company satisfactory to the commissioner that all debts, obligations, and
liabilities of the insurance company have been paid and discharged, or adequate
provisions for payment and discharge have been mad
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(1) (a) The commissioner
shall give receipts for all securities deposited with the commissioner, as required or
permitted by law, to the company depositing them.
(b) If the company depositing securities in accordance with paragraph (a) of
this subsection (1) is adjudged insolvent, such deposit shall be released only upon
the entry of an order of a court acting in accordance with the provisions of part 5 of
this article. If a company that has not been adjudged insolvent elects to dissolve,
the commissioner may release securities under joint control upon a showing by the
insurance company satisfactory to the commissioner that all debts, obligations, and
liabilities of the insurance company have been paid and discharged, or adequate
provisions for payment and discharge have been made, and upon return of the
company's certificate of authority to the commissioner.
(c) (Deleted by amendment, L. 2004, p. 1061, � 8, effective July 1, 2004.)
(d) If the company depositing securities in accordance with paragraph (a) of
this subsection (1) remains solvent, the commissioner shall permit such company, or
its assigns, to:
(I) Collect and receive the interest and dividends on deposited securities; and
(II) Withdraw any deposited securities if the company simultaneously
deposits other securities to replace those withdrawn.
(e) The provisions of this subsection (1) shall not apply to securities subject
to part 12 of this article.
(2) (a) (I) Notwithstanding any other provision of law, the securities qualified
for deposit under this section may be deposited as provided in part 12 of this article
with a clearing corporation or held in the federal reserve book-entry system.
(II) Securities deposited with a clearing corporation or held in the federal
reserve book-entry system and used to meet the deposit requirements set forth in
this section shall be under the control of the commissioner and shall not be
withdrawn by the company without the approval of the commissioner.
(b) The commissioner may prescribe or approve reasonable arrangements
and safeguards under which a solvent company may sell a particular deposited
security if the company:
(I) Immediately reinvests the proceeds of the sale in other securities eligible
for deposit under this article; and
(II) Deposits other securities to replace those securities that were sold.
(c) Any owner, nominee owner, depository, or custodian of securities held in
accordance with paragraph (a) of this subsection (2) shall not sell, claim against, or
otherwise dispose of said securities without written permission of the
commissioner.
(d) Any company holding securities in accordance with paragraph (a) of this
subsection (2) shall provide to the commissioner evidence issued by its custodian or
member bank through which such company has deposited such securities in a
clearing corporation or through which such securities are held in the federal
reserve book-entry system, respectively, in order to establish that the securities are
actually recorded in an account in the name of the custodian or other direct
participant or member bank and that the records of the custodian, other participant,
or member bank reflect that such securities are held subject to the order of the
commissioner.
(e) If the company depositing securities in accordance with paragraph (a) of
this subsection (2) remains solvent, the commissioner shall permit such company, or
its assigns, to:
(I) Collect and receive the interest and dividends on those deposited
securities; and
(II) Withdraw any deposited securities if the company simultaneously
deposits other securities to replace those withdrawn.
(f) If the company depositing securities in accordance with paragraph (a) of
this subsection (2) is adjudged insolvent, such deposit shall be released only upon
the entry of an order of a court acting in accordance with the provisions of part 5 of
this article. If a company that has not been adjudged insolvent elects to dissolve,
the commissioner may release securities under joint control upon a showing
satisfactory to the commissioner that all debts, obligations, and liabilities of the
insurance company have been paid and discharged, or adequate provisions for
payment and discharge have been made, and upon return of the company's
certificate of authority to the commissioner.
(g) (I) The commissioner may designate any solvent national bank, state
bank, or trust company located in the city and county of Denver as the
commissioner's depository for receiving and holding as custodian any deposit of
securities in accordance with paragraph (a) of this subsection (2).
(II) Any deposit received and held pursuant to this subsection (2) shall be
received and held at the expense of the company.