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Texas Insurance Code - Section 423.102. Deposit And Holding Of Securities

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 423.102. Deposit And Holding Of Securities

§ 423.102. DEPOSIT AND HOLDING OF SECURITIES.  (a) A 
domestic insurer that has securities held in or purchased for the 
insurer's general account or separate accounts may deposit the 
securities or arrange through an agent, broker, or dealer for 
deposit of the securities with a clearing corporation or in the 
Federal Reserve book-entry system.
	(b)  If securities are deposited directly with a clearing 
corporation or deposited indirectly through a participating 
custodian bank, certificates representing securities of the same 
class of the same issuer may be merged and held in bulk, in the name 
of a nominee of the clearing corporation, with any other securities 
deposited with the clearing corporation by any person, regardless 
of the ownership of the securities.
	(c)  Certificates under Subsection (b) that represent 
securities of small denominations may be merged into one or more 
certificates of larger denominations.
	(d)  The records of an agent, broker, dealer, or member bank 
through which an insurer holds securities in the Federal Reserve 
book-entry system and the records of a custodian bank through which 
an insurer holds securities with a clearing corporation must show 
that the securities are held for the insurer and show the accounts 
for which the securities are held.
	(e)  A bank must enter into a custodial agreement with an 
insurer to be eligible to act as a participating custodian bank for 
the insurer under this section.

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           

Last modified: August 11, 2007