(a)

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Terms Used In Tennessee Code 56-3-905

  • Clearing corporation: means :
    (i) A corporation as defined in §. See Tennessee Code 56-3-902
  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-3-902
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Custodian: means a national bank, state bank, federal home loan bank, trust company or broker/dealer that participates in a clearing corporation. See Tennessee Code 56-3-902
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Securities: means instruments as defined in §. See Tennessee Code 56-3-902
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(1) Securities eligible for deposit under the insurance laws of this state relating to deposit of securities by an insurance company as a condition of commencing or continuing to do any insurance business in this state may be deposited with a clearing corporation.
(2) Securities deposited with a clearing corporation 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requirements under the insurance laws of this state shall be under the control of the commissioner and shall not be withdrawn by the insurance company without the approval of the commissioner.
(b) Any insurance company holding such securities as provided in subsection (a), shall provide to the commissioner evidence issued by its custodian in order to establish that:

(1) The securities are actually recorded in an account in the name of the custodian; and
(2) The records of the custodian reflect that such securities are subject to the order of the commissioner.
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