Plain Text Law

Regulation .02 Custody Agreement; Filing with Commissioner.

Regulation .02 Custody Agreement; Filing with Commissioner.Copy Citation

A.
Custody Agreement.
(1)
A carrier may not register securities in the name of a nominee or deposit securities with a custodian unless the carrier provides for the custody of the securities by entering into a written agreement with the custodian that:
(a)
Is filed with the Commissioner pursuant to §B of this regulation; and
(b)
Complies with Regulation .03 of this chapter.
(2)
The agreement shall be:
(a)
In writing; and
(b)
Authorized by a resolution of the board of directors of the carrier or of an authorized committee of the board.
(3)
The securities may be held:
(a)
By the custodian or its agent; or
(b)
In a clearing corporation.
B.
Filing Agreement with the Commissioner.
(1)
A carrier that enters into a written agreement with a custodian shall file the agreement with the Commissioner within 30 days after the execution of the agreement.
(2)
If the Commissioner determines that a written agreement filed after execution does not comply with the requirements in Regulation .03 of this chapter, the carrier shall cure the noncompliance within:
(a)
60 days after notification by the Commissioner; or
(b)
An extended cure period authorized by the Commissioner.
(3)
If the written agreement is not cured within the time allowed by the Commissioner, the Commissioner may:
(a)
Take any action authorized by Insurance Article, §4-113, Annotated Code of Maryland; or
(b)
Require the carrier to report the securities held by the custodian in accordance with the terms of the noncompliant custody agreement as “Assets—Not Admitted”.