Regulation .01 Definitions.
Regulation .01 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
Agent.
(a)
“Agent” means:
(i)
A qualified bank or qualified broker/dealer that maintains an account in its name in a clearing corporation or that is a member of the Federal Reserve System and through which a custodian participates in a clearing corporation; or
(ii)
With respect to securities issued by institutions organized or existing under the laws of a foreign country or securities used to meet the deposit requirements pursuant to the laws of a foreign country as a condition of doing business in the foreign country, a corporation that is organized or existing under the laws of a foreign country and that is legally qualified under those laws to accept custody of securities.
(b)
“Agent” includes a subcustodian.
(2)
“Carrier” means:
(a)
A domestic insurer;
(b)
A nonprofit health service plan;
(c)
A dental plan organization;
(d)
A health maintenance organization; or
(e)
A managed care organization.
(3)
Clearing Corporation.
(a)
“Clearing corporation” means:
(i)
A corporation, as defined in Commercial Law Article, §8-102(a)(5), Annotated Code of Maryland, that is organized for the purpose of effecting transactions in securities by computerized book-entry; or
(ii)
With respect to securities issued by institutions organized or existing under the laws of a foreign country or securities used to meet the deposit requirements pursuant to the laws of a foreign country as a condition of doing business in the foreign country, a corporation that is organized or existing under the laws of a foreign country and that is legally qualified under those laws to effect transactions in securities by computerized book-entry.
(b)
“Clearing corporation” includes:
(i)
Treasury Direct; and
(ii)
The Treasury/Reserve Automated Debt Entry System.
(4)
“Custodian” means a qualified bank, qualified broker/dealer, or clearing corporation that:
(a)
Accepts deposits of securities from carriers; and
(b)
Safeguards, holds, and reports on the securities under a written custodial agreement with the carrier.
(5)
“Custodied securities” means securities held:
(a)
By a custodian or its agent; or
(b)
In a clearing corporation.
(6)
“Qualified bank” means:
(a)
A bank, trust company, or federal home loan bank that:
(i)
At all times during which it acts as a custodian under this chapter is not less than adequately capitalized as determined by the standards adopted by United States banking regulators;
(ii)
Is regulated by either state banking laws or is a member of the Federal Reserve System; and
(iii)
Is legally qualified to accept custody of securities in accordance with this chapter; or
(b)
With respect to securities issued by institutions organized or existing under the laws of a foreign country or securities used to meet the deposit requirements pursuant to the laws of a foreign country as a condition of doing business in the foreign country, a bank or trust company incorporated or organized under the laws of a country other than the United States that:
(i)
Is regulated as a bank or trust company by that country's government or an agency of that country's government;
(ii)
At all times during which it acts as a custodian under this chapter is not less than adequately capitalized as determined by the standards adopted by international banking authorities; and
(iii)
Is legally qualified to accept custody of securities.
(7)
“Qualified broker/dealer” means a securities firm that:
(a)
Has a tangible net worth of at least $250,000,000 as evidenced by its most recent audited financial statement;
(b)
Is registered with and subject to the jurisdiction of the Securities and Exchange Commission; and
(c)
Maintains at all times Securities Investor Protection Corporation excess insurance coverage equal to or greater than the market value of the carriers' securities maintained with the broker/dealer.
(8)
“Registered form” has the meaning stated in Commercial Law Article, §8-102(a)(13), Annotated Code of Maryland.
(9)
Security.
(a)
“Security” has the meaning stated in Commercial Law Article, §8-102(a)(15), Annotated Code of Maryland.
(b)
“Security” includes:
(i)
A certificated security as defined by Commercial Law Article, §8-102(a)(4), Annotated Code of Maryland; and
(ii)
An uncertificated security as defined by Commercial Law Article, §8-102(a)(18), Annotated Code of Maryland.
(10)
“Treasury Direct” means the book-entry securities system:
(a)
Established pursuant to 5 U.S.C. §301, 12 U.S.C. §391, and 31 U.S.C. Subtitle III, Chapter 31; and
(b)
Governed by 31 CFR Part 357, Subpart C.
(11)
“Treasury/Reserve Automated Debt Entry System (TRADES)” means the book-entry securities system:
(a)
Established pursuant to 5 U.S.C. §301, 12 U.S.C. §391, and 31 U.S.C. Subtitle III, Chapter 31; and
(b)
Governed by 31 CFR Part 357, Subpart B.