56-2-117 - Deposit of securities in clearing corporation or federal reserve bank. - Tennessee Statutes

56-2-117. Deposit of securities in clearing corporation or federal reserve bank.

(a)  Notwithstanding any other law, securities eligible for deposit under the insurance laws of the state relating to deposit of securities by an insurance company as a condition of commencing or continuing to do an insurance business in this state may be deposited in a clearing corporation as defined in § 47-8-102 or in book-entry accounts maintained in a federal reserve bank.

(b)  Any company making deposits by means of the securities shall provide to the commissioner evidence customarily issued by federal reserve banks and clearing corporations establishing that the securities are actually recorded in a book-entry account or actually held in safekeeping by a clearing corporation.

(c)  Securities deposited in a clearing corporation or in a book-entry account and used to meet the deposit requirements under the insurance laws of this state shall be under the control of the commissioner and shall not be withdrawn by the insurance company without the approval of the commissioner.

[Acts 1980, ch. 503, § 3.]