40-2a20. Adoption of nominee name; designation of bank as trustee.
40-2a20
40-2a20. Adoption of nominee name; designation ofbank as trustee.(a) Any insurance company other than lifeorganizedunder any law of this state, with the direction or approval of a majorityof its board of directors or authorized committee thereof, may:
(1) Adopt a nominee name unique to such insurance company inwhich suchinsurance company's securities may be registered;
(2) designate a state or national bank or a federal home loan bankhaving trust powers toobtaina nominee name for such insurance company in which such insurance company'ssecurities may be registered; or
(3) designate a state or national bank having trust powers astrusteeto make any investment authorized by this act in the name of such trusteeor such trustee's nominee.
(b) Under the provisions of paragraphs (2)and (3) of subsection (a), the designated state or national bankor the federal home loan bank may arrange for such securities to be heldin aclearing corporation. Such arrangement must be in accordance with a writtenagreement, approved by the commissioner of insurance, between the insurancecompany and its designated bank and must impose the same degree ofresponsibilityon the bank as if such securities were held in definitive form by such bank.
(c) As used in this section "clearing corporation" means: (1) Acorporation defined in subsection (5) ofK.S.A. 84-8-102, and amendmentsthereto;
(2) any organization or system for clearance and settlement of securitiestransactions which is operated or owned by a bank, trust company or otherentity that is subject to regulation by the United States federal reserve boardor the United States comptroller of the currency; or
(3) any clearing agency registered with the securities and exchangecommission pursuant to the securities exchange act of 1934, section 17A, andamendments thereto.
History: L. 1975, ch. 240, § 1;L. 1986, ch. 176, § 1;L. 1996, ch. 81, § 1;L. 1996, ch. 202, § 90;L. 2009, ch. 83, § 23; July 1.