Kansas Statutes 40-2b20. Adoption of nominee name; designation of bank or trust company as trustee; defining clearing corporation
Terms Used In Kansas Statutes 40-2b20
- 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.
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
- Trustee: A person or institution holding and administering property in trust.
(a) Any life insurance company organized under any law of this state, with the direction or approval of a majority of its board of directors, may:
(1) Adopt a nominee name unique to such insurance company in which such insurance company’s securities may be registered;
(2) designate a state or national bank, a trust company or a federal home loan bank having trust powers to obtain a nominee name for such insurance company in which such insurance company’s securities may be registered; or
(3) designate a state or national bank or a trust company having trust powers as trustee to make any investment authorized by this act in the name of such trustee or such trustee’s nominee.
(b) Under the provisions of paragraphs (2) and (3) of subsection (a), the designated state or national bank, the trust company or the federal home loan bank may arrange for such securities to be held in a clearing corporation. Such arrangement must be in accordance with a written agreement, approved by the commissioner of insurance, between the insurance company and its designated bank or trust company and must impose the same degree of responsibility on the bank or trust company as if such securities were held in definitive form by such bank or trust company.
(c) As used in this section “clearing corporation” means: (1) A corporation defined in subsection (3) of Kan. Stat. Ann. § 84-8-102, and amendments thereto;
(2) any organization or system for the clearance and settlement of securities transactions which is operated or owned by a bank, trust company or other entity that is subject to regulation by the United States federal reserve board or the United States comptroller of the currency; or
(3) any clearing agency registered with the securities and exchange commission pursuant to the securities exchange act of 1934, section 17A.