Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. CS for SB 2522
                        Barcode 584358
                            CHAMBER ACTION
              Senate                               House
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 1           Comm: FAV             .                    
       04/25/2006 09:22 PM         .                    
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 3         Floor: 3/AD/2R          .                    
       05/02/2006 02:15 PM         .                    
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11  The Committee on Judiciary (Baker) recommended the following
12  amendment:
13  
14         Senate Amendment (with title amendment) 
15         On page 3, between lines 11 and 12,
16  
17  insert:  
18         Section 5.  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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    1:08 PM   04/24/06                           s2522c1c-ju20-e0c

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. CS for SB 2522 Barcode 584358 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 2 1:08 PM 04/24/06 s2522c1c-ju20-e0c
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. CS for SB 2522 Barcode 584358 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 19 (Redesignate subsequent sections.) 20 21 22 ================ T I T L E A M E N D M E N T =============== 23 And the title is amended as follows: 24 On page 1, line 13, after the semicolon 25 26 insert: 27 amending s. 628.511, F.S.; redefining the terms 28 "clearing corporation" and "custodian"; 29 deleting definitions of the terms "book entry 30 system" and "member bank" and making conforming 31 changes; 3 1:08 PM 04/24/06 s2522c1c-ju20-e0c