Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1480
Barcode 713220
CHAMBER ACTION
Senate House
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11 The Committee on Banking and Insurance (Baker) recommended the
12 following amendment to amendment (510474):
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14 Senate Amendment (with title amendment)
15 On page 5, line 23,
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17 insert:
18 Section 2. Section 628.511, Florida Statutes, is
19 amended to read:
20 628.511 Clearing corporations Book entry accounting
21 system.--
22 (1) The purpose of this section is to authorize
23 domestic insurers to utilize modern systems for holding and
24 transferring securities without physical delivery of
25 securities certificates, subject to appropriate rules of the
26 commission.
27 (2) The following terms are defined for use in this
28 section:
29 (a) "Securities" means instruments as defined in s.
30 678.1021.
31 (b) "Clearing corporation" means a clearing
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1480
Barcode 713220
1 corporation as defined in s. 678.1021. The term "clearing
2 corporation" also includes "Treasury/Reserve Automated Debt
3 Entry Securities System" and "Treasury Direct" book-entry
4 securities systems established pursuant to 31 U.S.C. ss. 3100
5 et seq., 12 U.S.C. 391 and 5 U.S.C. 301.
6 (c) "Custodian" "Direct participant" means a national
7 bank, state bank, or trust company, or broker/dealer that
8 which maintains an account in its name in a clearing
9 corporation and through which an insurance company
10 participates in a clearing corporation.
11 (d) "Federal Reserve book-entry system" means the
12 computerized systems sponsored by the United States Department
13 of the Treasury and agencies and instrumentalities of the
14 United States for holding and transferring securities of the
15 United States Government and such agencies and
16 instrumentalities, respectively, in Federal Reserve banks
17 through banks which are members of the Federal Reserve System
18 or which otherwise have access to such computerized systems.
19 (e) "Member bank" means a national bank, state bank or
20 trust company which is a member of the Federal Reserve System
21 and through which an insurer participates in the Federal
22 Reserve book-entry system.
23 (3) Notwithstanding any other provision of law, a
24 domestic insurer may deposit or arrange for the deposit of
25 securities held in or purchased for its general account and
26 its separate accounts in a clearing corporation or in the
27 Federal Reserve book-entry system. When securities are
28 deposited with a clearing corporation, certificates
29 representing securities of the same class of the same issuer
30 may be merged and held in bulk in the name of the nominee of
31 such clearing corporation with any other securities deposited
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11:41 AM 04/25/05 s1480c-bi20-e0y
Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1480
Barcode 713220
1 with such clearing corporation by any person, regardless of
2 the ownership of such securities, and certificates
3 representing securities of small denominations may be merged
4 into one or more certificates of larger denominations. The
5 records of any custodian bank through which an insurer holds
6 securities in the Federal Reserve book-entry system, and the
7 records of any custodian banks through which an insurer holds
8 securities in a clearing corporation, shall at all times show
9 that such securities are held for such insurer and for which
10 accounts thereof. Ownership of, and other interests in, such
11 securities may be transferred by bookkeeping entry on the
12 books of such clearing corporation or in the Federal Reserve
13 book-entry system without, in either case, physical delivery
14 of certificates representing such securities.
15 (4) The commission may adopt rules governing the
16 deposit by insurers of securities with clearing corporations
17 and in the Federal Reserve book-entry system.
18 Section 3. This act shall take effect October 1, 2005.
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22 And the title is amended as follows:
23 On page 6, line 3, after the semicolon,
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25 insert:
26 amending s. 628.511, F.S.; revising the
27 definitions of the terms "clearing corporation"
28 and "custodian"; deleting definitions of the
29 terms "book entry system" and "member bank" and
30 making conforming changes; providing an
31 effective date.
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