56-3-112 - Deposit of securities in clearing corporation or federal reserve bank.
56-3-112. Deposit of securities in clearing corporation or federal reserve bank.
(a) (1) Notwithstanding any other law, any insurance company, with respect to its general account or separate accounts, is authorized to deposit or arrange for the deposit of securities that it may own in a clearing corporation as defined in § 47-8-102, in Euroclear or in a federal reserve bank under book-entry system. When the securities are so deposited, 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 the clearing corporation with any other securities deposited in the clearing corporation by any person, regardless of the ownership of the securities, and securities of small denominations may be merged into one (1) or more certificates of larger denominations.
(2) Title to the securities may be transferred by bookkeeping entry on the books of the clearing corporation or federal reserve bank without physical delivery of certificates representing the securities.
(b) The commissioner is authorized to promulgate rules and regulations governing the deposit by insurance companies of securities in clearing corporations and in federal reserve banks.
(c) This section applies to any insurance company holding securities with respect to its general account or separate accounts on or after March 4, 1980.
[Acts 1980, ch. 503, § 1; 1995, ch. 363, § 9.]