{"data":{"id":"us-ky/krs-304.7-360","jurisdiction":"us-ky","citation":"KRS 304.7-360","heading":"Definitions -- Deposits allowed -- Commingling of certain securities --","body":"Records -- Administrative regulations.\n(1) As used in this section:\n(a) \"Clearing corporation\" shall be defined as provided in KRS 355.8 -102 except\nthat, with res pect to securities issued by institutions organized or existing\nunder the laws of any foreign country or securities used to meet the deposit\nrequirements pursuant to the laws of a foreign country as a condition of doing\nbusiness therein, \"clearing corporat ion\" may include a corporation organized\nor existing under the laws of any foreign country which is legally qualified\nunder such laws to effect transactions in securities by computerized book\nentry;\n(b) \"Custodian bank\" means a national bank, state bank, o r trust company which\nis a member of the Federal Reserve System which acts as custodian of all or\nany part of an insurance company's securities;\n(c) \"Direct participant\" means a bank, trust company, or other institution which\nmaintains an account in its na me in a clearing corporation and through which\nan insurance company participates in a clearing corporation;\n(d) \"Federal reserve book -entry system\" means the computerized systems\nsponsored by the United States Department of the Treasury and certain\nagencies and instrumentalities of the United States for holding and\ntransferring securities of the United States government and such agencies and\ninstrumentalities, respectively, in federal reserve banks through banks which\nare members of the Federal Reserve Syst em or which otherwise have access\nto such computerized systems;\n(e) \"Member bank\" means a national bank, state bank, or trust company which is\na member of the Federal Reserve System through which an insurance\ncompany participates in the federal reserve book-entry system;\n(f) \"Security\" means a certificated security or an uncertificated security;\n(g) \"Certificated security\" means a share, participation, or other interest in\nproperty or an enterprise of the issuer or an obligation of the issuer which is\nrepresented by an instrument issued in bearer or registered form, of a type\ncommonly dealt in on securities exchanges or markets or commonly\nrecognized in any area in which it is issued or dealt in as a medium for\ninvestment, and either one (1) of a class or se ries or by its terms divisible into\na class or series of shares, participations, interests, or obligations; and\n(h) \"Uncertificated security\" means a share, participation, or other interest in\nproperty or an enterprise of the issuer or an obligation of the  issuer which is\nnot represented by an instrument and the transfer of which is registered upon\nbooks maintained for that purpose by or on behalf of the issuer, of a type\ncommonly dealt in on securities exchanges or markets; and either one (1) of a\nclass or  series or by its terms divisible into a class or series of shares,\nparticipations, interests, or obligations.\n(2) Notwithstanding any other provision of law, an insurance company or its custodian\nbank may deposit or arrange for the deposit of securities h eld in or purchased for\nthe general account and the separate accounts of such insurance company in a\nclearing corporation or the federal reserve book -entry system. When securities are\ndeposited with a clearing corporation, certificates representing securit ies of the\nsame class of the same issuer may be merged and held in bulk in the name of the\nnominee of such clearing corporation with any other securities deposited with such\nclearing corporation by any person, regardless of the ownership of such securities ,\nand certificates representing securities of small denominations may be merged into\none (1) or more certificates of larger denominations. The records of any member\nbank through which an insurance company holds securities in the federal reserve\nbook-entry system, and the records of any direct participant through which an\ninsurance company holds securities in a clearing corporation, shall at all times show\nthat such securities are held for such insurance company or its custodian bank and\nfor which accounts t hereof. Ownership of, and other interests in, such securities\nmay be transferred by bookkeeping entry on the books of such clearing corporation\nor in the federal reserve book-entry system without, in either case, physical delivery\nof certificates representing such securities.\n(3) Notwithstanding any other provision o f law, an insurance company may deposit\nsecurities held in or purchased for its general account and its separate accounts in a\ncustodial account with a custodian bank approved by, and under a custodial\nagreement approved by, the commissioner. When securiti es are deposited in such\ncustodial account, certificates representing securities of the same class of the same\nissuer may be merged and held in bulk in the name of the custodian bank or its\nnominee with any other securities held in the custody of the custo dian bank or its\nnominee by any person, regardless of the ownership of such securities, and\ncertificates representing securities of small denominations may be merged into one\n(1) or more certificates of larger denominations. The records of the custodian ba nk\nwhich holds securities for an insurance company in a custodial account shall at all\ntimes show that such securities are held for such insurance company and for which\naccounts thereof. Ownership of, and other interests in, such securities may be\ntransferred by bookkeeping entry on the books of such custodian bank without\nphysical delivery of certificates representing such securities.\n(4) The same bank or trust company may act as direct participant, member bank, and\ncustodian bank for an insurance company.\n(5) The commissioner of insurance shall promulgate administrative regulations\ngoverning the deposit by insurance companies of securities with clearing\ncorporations and in the federal reserve book-entry system and with custodian banks.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55734","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"c4d225c93a0342a341258d979f5a5ca661855820850b7ac069fbf09991d73ccb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-350","next":"us-ky/krs-304.7-361"},"notice":"GroundRules: Original legal text. Not legal advice."}