400.8-117. Deposit of securities. - Missouri Statutes

Deposit of securities.

400.8-117. 1. Notwithstanding any other provision of law, any fiduciaryholding securities in its fiduciary capacity and any insurance company withrespect to its general account or separate accounts, any bank or trust companyholding securities as a custodian or managing agent, and any bank or trustcompany holding securities as custodian for a fiduciary or insurance companyis authorized to deposit or arrange for the deposit of such securities in aclearing corporation, or in a federal reserve bank under book-entry system.When such securities are so deposited with a clearing corporation,certificates representing securities of the same class of the same issuer maybe merged and held in bulk in the name of the nominee of such clearingcorporation by any person, regardless of the ownership of such securities, andcertificates of small denomination may be merged into one or more certificatesof larger denomination. The records of such fiduciary and the records of suchbank or trust company acting as custodian, as managing agent, or as custodianfor a fiduciary or insurance company shall at all times show the name of theparty for whose account the securities are so deposited. Title to suchsecurities may be transferred by bookkeeping entry on the books of suchclearing corporation or federal reserve bank without physical delivery ofcertificates or documents representing such securities. A bank or trustcompany so depositing securities pursuant to this section shall be subject tosuch rules and regulations as the director of the division of finance, and, inthe case of national banking associations, the comptroller of the currency,may from time to time issue. An insurance company depositing securitiespursuant to this section shall be subject to such rules and regulations as thedirector of the department of insurance, financial institutions andprofessional registration may from time to time issue. A bank or trustcompany acting as custodian for a fiduciary or insurance company shall, ondemand by the fiduciary or insurance company, certify in writing to thefiduciary or insurance company the securities so deposited by such bank ortrust company in such clearing corporation or federal reserve bank for theaccount of such fiduciary or insurance company. A fiduciary shall, on demandby any party to a judicial proceeding, or on demand by the attorney for suchparty, certify in writing to such party the securities deposited by suchfiduciary in such clearing corporation or federal reserve bank for its accountas such fiduciary. This section shall apply to any fiduciary holdingsecurities in its fiduciary capacity, any insurance company with respect toits general account or separate accounts, and to any bank or trust companyholding securities as a custodian, managing agent, or custodian for afiduciary, or insurance company, acting on September 28, 1979, or who,thereafter, may act regardless of the date of the agreement, instrument, orcourt order by which it is appointed, and regardless of whether or not suchfiduciary, insurance company, custodian, managing agent, or custodian for afiduciary owns capital stock of such clearing corporation. For purposes ofthis subsection, "clearing corporation" shall also include securitiesintermediary as that term is defined in section 400.8-102(a)(14).

2. Notwithstanding any other provision of law, the state treasurer maypermit bonds standing as security for moneys deposited by him in bankinginstitutions under the provisions of chapter 30, RSMo, to be deposited inbook-entry collateral accounts maintained in a federal reserve bank or otherclearing corporation as defined in section 400.8-102, or deposited with abanking institution in safekeeping for the state treasurer under proceduresagreed upon by the governor, state auditor and state treasurer. The governor,state auditor and state treasurer shall also agree upon procedures to verifythat the bonds are actually recorded in a book-entry collateral account oractually held in safekeeping.

3. Securities, of the kind and type in which insurance companies arepermitted to invest their funds, deposited in a clearing corporation or inbook-entry accounts maintained in a federal reserve bank by an insurancecompany shall be eligible for deposit under any and all provisions of theinsurance laws of this state relating to deposit of securities with thedirector of the department of insurance, financial institutions andprofessional registration. The director shall establish procedures to verifythat the securities are actually recorded in a book-entry account or actuallyheld in safekeeping by a clearing corporation. Such procedures shall alsoprovide that said securities on deposit with the department of insurance,financial institutions and professional registration cannot be withdrawn bythe insurance company without the approval of the director.

(L. 1997 S.B. 6)