40-229a.Security deposits; deposit with financialinstitution; custodianand arrangements acceptable to commissioner; release and exchange of assets;income; forms prescribed and provided by commissioner; facsimile signaturesnot recognized; inspection of securities on deposit; no liability of state orofficers or employees for default of institution; deposit of real estate; auditof deposits with commissioner; title to assets; redeposit with clearingcorporation; security and safety of deposits, rules and regulations.(a) (1) (A) All cash, securities, real estate deeds, mortgages orother assets deposited with the commissioner of insurance pursuant to theprovisions of the insurance code of the state of Kansas shall be deposited withany Kansas financial institution acceptable to the commissioner through which acustodial or controlled account, a joint custody receipt arrangement or anycombination of these or other measures that are acceptable to the commissioneris used.
(B) All suchdeposits shall be held by such financial institution on behalf of thecommissioner in trust for the use and benefit of such company and suchcompany's policyholders and creditors. Such assets shall be released from suchdeposits only upon written approval of the commissioner.
(C) All income fromdeposits belong to the depositing organization and shall be paid toit asit becomes available. The commissioner, upon written approval, may direct thefinancial institution to permit exchange of securities or assets upon depositof specified substituted securities or assets.
(D) All forms for deposit,withdrawal or exchange shall be prescribed, preparedand furnished by the commissioner and no facsimile signatures shall be used orrecognized.
(E) The commissioner or assistant commissioner of insurance orinsurance department employee authorized by thecommissioner may at any time inspect thesecurities on deposit in any such financial institution.
(F) Nothing in this actshall be construed to hold the state of Kansas, the commissioner, assistantcommissioner or authorized employee liable either personally or officially forany default of such financial institution.
(2) Real estate shall be deposited with the commissioner by thedepositingorganization executing a deed or assignment conveying title thereto to thecommissioner, in trust for the use and benefit of such company. Such deeds orassignment shall be recorded in the office of the register of deeds of thecounty in which such real estate is situated. When the depositing organizationis authorized to withdraw real estate from deposit, the commissioner shallexecute deeds to such organization or such other persons, companies orcorporations as directed by such organization. The costsof registering suchdeeds shall be paid by the depositing organization.
(3) All deposits made with the commissioner shall be audited by thecommissionerand the state treasurer not less frequently than once each three years. Thecommissioner may accept an audit performed by another governmental agencyacceptable to the commissioner, in lieu of this audit requirement.
(b) Assets, except real estate assets, deposited pursuant to this sectionshall be held by thecustodian on behalf of the commissioner as in trust for the use and benefit ofthe depositing organization. Such assets shall remain the specific property ofthe organization and shall not be subject to the claim of any third partyagainst the custodian.
(c) The custodian is authorized to redeposit such assets with a clearingcorporation as defined in K.S.A. 84-8-102 and amendments thereto, ifsuch clearing corporationis domiciled in the United States. The custodian is authorized to holdsuch assets through the federal reserve bank book-entry system.
(d) The commissioner shall adopt rules and regulations toestablish requirementsrelating to deposits under this section appropriate toassure the securityand safety of such deposits, including but not limited to the following:
(1) Capital and surplus of the custodian;
(2) title in which deposited assets are held;
(3) records to be kept by the custodian and the commissioner's accessthereto;
(4) periodic reports by the custodian to the commissioner;
(5) responsibility of the custodian to indemnify thedepositor for loss ofdeposited assets;
(6) withdrawal or exchange of deposited assets; and
(7) authority of the commissioner to terminate the deposit if the conditionof the custodian should threaten the security of the deposited assets.
(e) As used in this section:
(1) "Commissioner" means the commissioner of insurance; and
(2) "financial institution" means a federal home loan bank, asavings and loan association and savings bank organized under the laws of theUnited States or another state, anational bank, state bank ortrustcompany, which have main or branch offices in this state, shall at all timesduring which suchfederal home loan bank, savings and loan association, savings bank,national bank, state bank or trust company acts as acustodian be:
(A) No less than adequately capitalized as determined by the standardsadopted by the regulator chargedwith establishing standards for, and assessing, the institution's solvency;
(B) regulated by either state or federal banking laws, the federal homeloan bank act, as amended or is a member of thefederalreserve system; and
(C) legally qualified to accept custody of securities.
(3) "Main office" and "branch" shall have the meanings ascribed to such termsin K.S.A. 9-1408 and amendments thereto.
40-229a.Security deposits; deposit with financialinstitution; custodianand arrangements acceptable to commissioner; release and exchange of assets;income; forms prescribed and provided by commissioner; facsimile signaturesnot recognized; inspection of securities on deposit; no liability of state orofficers or employees for default of institution; deposit of real estate; auditof deposits with commissioner; title to assets; redeposit with clearingcorporation; security and safety of deposits, rules and regulations.(a) (1) (A) All cash, securities, real estate deeds, mortgages orother assets deposited with the commissioner of insurance pursuant to theprovisions of the insurance code of the state of Kansas shall be deposited withany Kansas financial institution acceptable to the commissioner through which acustodial or controlled account, a joint custody receipt arrangement or anycombination of these or other measures that are acceptable to the commissioneris used.
(B) All suchdeposits shall be held by such financial institution on behalf of thecommissioner in trust for the use and benefit of such company and suchcompany's policyholders and creditors. Such assets shall be released from suchdeposits only upon written approval of the commissioner.
(C) All income fromdeposits belong to the depositing organization and shall be paid toit asit becomes available. The commissioner, upon written approval, may direct thefinancial institution to permit exchange of securities or assets upon depositof specified substituted securities or assets.
(D) All forms for deposit,withdrawal or exchange shall be prescribed, preparedand furnished by the commissioner and no facsimile signatures shall be used orrecognized.
(E) The commissioner or assistant commissioner of insurance orinsurance department employee authorized by thecommissioner may at any time inspect thesecurities on deposit in any such financial institution.
(F) Nothing in this actshall be construed to hold the state of Kansas, the commissioner, assistantcommissioner or authorized employee liable either personally or officially forany default of such financial institution.
(2) Real estate shall be deposited with the commissioner by thedepositingorganization executing a deed or assignment conveying title thereto to thecommissioner, in trust for the use and benefit of such company. Such deeds orassignment shall be recorded in the office of the register of deeds of thecounty in which such real estate is situated. When the depositing organizationis authorized to withdraw real estate from deposit, the commissioner shallexecute deeds to such organization or such other persons, companies orcorporations as directed by such organization. The costsof registering suchdeeds shall be paid by the depositing organization.
(3) All deposits made with the commissioner shall be audited by thecommissionerand the state treasurer not less frequently than once each three years. Thecommissioner may accept an audit performed by another governmental agencyacceptable to the commissioner, in lieu of this audit requirement.
(b) Assets, except real estate assets, deposited pursuant to this sectionshall be held by thecustodian on behalf of the commissioner as in trust for the use and benefit ofthe depositing organization. Such assets shall remain the specific property ofthe organization and shall not be subject to the claim of any third partyagainst the custodian.
(c) The custodian is authorized to redeposit such assets with a clearingcorporation as defined in K.S.A. 84-8-102 and amendments thereto, ifsuch clearing corporationis domiciled in the United States. The custodian is authorized to holdsuch assets through the federal reserve bank book-entry system.
(d) The commissioner shall adopt rules and regulations toestablish requirementsrelating to deposits under this section appropriate toassure the securityand safety of such deposits, including but not limited to the following:
(1) Capital and surplus of the custodian;
(2) title in which deposited assets are held;
(3) records to be kept by the custodian and the commissioner's accessthereto;
(4) periodic reports by the custodian to the commissioner;
(5) responsibility of the custodian to indemnify thedepositor for loss ofdeposited assets;
(6) withdrawal or exchange of deposited assets; and
(7) authority of the commissioner to terminate the deposit if the conditionof the custodian should threaten the security of the deposited assets.
(e) As used in this section:
(1) "Commissioner" means the commissioner of insurance; and
(2) "financial institution" means a federal home loan bank, asavings and loan association and savings bank organized under the laws of theUnited States or another state, anational bank, state bank ortrustcompany, which have main or branch offices in this state, shall at all timesduring which suchfederal home loan bank, savings and loan association, savings bank,national bank, state bank or trust company acts as acustodian be:
(A) No less than adequately capitalized as determined by the standardsadopted by the regulator chargedwith establishing standards for, and assessing, the institution's solvency;
(B) regulated by either state or federal banking laws, the federal homeloan bank act, as amended or is a member of thefederalreserve system; and
(C) legally qualified to accept custody of securities.
(3) "Main office" and "branch" shall have the meanings ascribed to such termsin K.S.A. 9-1408 and amendments thereto.
40-229a.Security deposits; deposit with financialinstitution; custodianand arrangements acceptable to commissioner; release and exchange of assets;income; forms prescribed and provided by commissioner; facsimile signaturesnot recognized; inspection of securities on deposit; no liability of state orofficers or employees for default of institution; deposit of real estate; auditof deposits with commissioner; title to assets; redeposit with clearingcorporation; security and safety of deposits, rules and regulations.(a) (1) (A) All cash, securities, real estate deeds, mortgages orother assets deposited with the commissioner of insurance pursuant to theprovisions of the insurance code of the state of Kansas shall be deposited withany Kansas financial institution acceptable to the commissioner through which acustodial or controlled account, a joint custody receipt arrangement or anycombination of these or other measures that are acceptable to the commissioneris used.
(B) All suchdeposits shall be held by such financial institution on behalf of thecommissioner in trust for the use and benefit of such company and suchcompany's policyholders and creditors. Such assets shall be released from suchdeposits only upon written approval of the commissioner.
(C) All income fromdeposits belong to the depositing organization and shall be paid toit asit becomes available. The commissioner, upon written approval, may direct thefinancial institution to permit exchange of securities or assets upon depositof specified substituted securities or assets.
(D) All forms for deposit,withdrawal or exchange shall be prescribed, preparedand furnished by the commissioner and no facsimile signatures shall be used orrecognized.
(E) The commissioner or assistant commissioner of insurance orinsurance department employee authorized by thecommissioner may at any time inspect thesecurities on deposit in any such financial institution.
(F) Nothing in this actshall be construed to hold the state of Kansas, the commissioner, assistantcommissioner or authorized employee liable either personally or officially forany default of such financial institution.
(2) Real estate shall be deposited with the commissioner by thedepositingorganization executing a deed or assignment conveying title thereto to thecommissioner, in trust for the use and benefit of such company. Such deeds orassignment shall be recorded in the office of the register of deeds of thecounty in which such real estate is situated. When the depositing organizationis authorized to withdraw real estate from deposit, the commissioner shallexecute deeds to such organization or such other persons, companies orcorporations as directed by such organization. The costsof registering suchdeeds shall be paid by the depositing organization.
(3) All deposits made with the commissioner shall be audited by thecommissionerand the state treasurer not less frequently than once each three years. Thecommissioner may accept an audit performed by another governmental agencyacceptable to the commissioner, in lieu of this audit requirement.
(b) Assets, except real estate assets, deposited pursuant to this sectionshall be held by thecustodian on behalf of the commissioner as in trust for the use and benefit ofthe depositing organization. Such assets shall remain the specific property ofthe organization and shall not be subject to the claim of any third partyagainst the custodian.
(c) The custodian is authorized to redeposit such assets with a clearingcorporation as defined in K.S.A. 84-8-102 and amendments thereto, ifsuch clearing corporationis domiciled in the United States. The custodian is authorized to holdsuch assets through the federal reserve bank book-entry system.
(d) The commissioner shall adopt rules and regulations toestablish requirementsrelating to deposits under this section appropriate toassure the securityand safety of such deposits, including but not limited to the following:
(1) Capital and surplus of the custodian;
(2) title in which deposited assets are held;
(3) records to be kept by the custodian and the commissioner's accessthereto;
(4) periodic reports by the custodian to the commissioner;
(5) responsibility of the custodian to indemnify thedepositor for loss ofdeposited assets;
(6) withdrawal or exchange of deposited assets; and
(7) authority of the commissioner to terminate the deposit if the conditionof the custodian should threaten the security of the deposited assets.
(e) As used in this section:
(1) "Commissioner" means the commissioner of insurance; and
(2) "financial institution" means a federal home loan bank, asavings and loan association and savings bank organized under the laws of theUnited States or another state, anational bank, state bank ortrustcompany, which have main or branch offices in this state, shall at all timesduring which suchfederal home loan bank, savings and loan association, savings bank,national bank, state bank or trust company acts as acustodian be:
(A) No less than adequately capitalized as determined by the standardsadopted by the regulator chargedwith establishing standards for, and assessing, the institution's solvency;
(B) regulated by either state or federal banking laws, the federal homeloan bank act, as amended or is a member of thefederalreserve system; and
(C) legally qualified to accept custody of securities.
(3) "Main office" and "branch" shall have the meanings ascribed to such termsin K.S.A. 9-1408 and amendments thereto.
