40-2b20. Adoption of nominee name; designation of bank as trustee; defining clearing corporation.
40-2b20
40-2b20. Adoption of nominee name; designation ofbank as trustee;defining clearing corporation.(a) Any life insurance company organized underanylaw of this state, with the direction or approval of a majority of itsboard of directors, 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 stateor national bank or the federal home loan bank may arrange for suchsecurities to be held in 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 ofresponsibility on the bank as if such securities were held in definitive formby such bank.
(c) As used in this section "clearing corporation" means: (1) Acorporation defined in subsection (3) of K.S.A. 84-8-102, and amendmentsthereto;
(2) any organization or system forthe clearance and settlement of securities transactions which is operated orowned by a bank, trust company or other entity that is subject to regulation bythe United States federal reserve board or the United States comptroller of thecurrency; 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. 1972, ch. 179, § 20; L. 1983, ch. 156, § 11;L. 1986, ch. 176, § 2;L. 1995, ch. 87, § 1;L. 2009, ch. 83, § 24; July 1.