210 Neb. Admin. Code, ch. 81, § 002

Current through September 17, 2024

Section 210-81-002 - Definitions

002.01 Agent

"Agent" means a national bank, state bank, trust company, or broker/dealer that maintains an account in its name in a clearing corporation or that is a member of the Federal Reserve Systems and through which a custodian participates in a clearing corporation, including the Treasury/Reserve Automated Debit Entry Securities Systems (TRADES) or Treasury Direct systems, except that with respect to securities issued by institutions organized or existing under the laws of a foreign country or securities used to meet the deposit requirements pursuant to the laws of a foreign country as a condition of doing business therein, "agent" may include a corporation that is organized or existing under the laws of a foreign country and that is legally qualified under those laws to accept custody of securities.

002.02 Clearing corporation

"Clearing corporation" means a corporation as defined in subdivision 8-102(a) (5) of the Uniform Commercial Code that is organized for the purpose of effecting transactions in securities by computerized book-entry, except that with respect to securities issued by institutions organized or existing under the laws of a foreign country or securities used to meet deposit requirements pursuant to the laws of a foreign country as a condition of doing business therein, "clearing corporation" may include a corporation that is organized or existing under the laws of a foreign country and which is legally qualified under those laws to effect transactions in securities by computerized book-entry. Clearing corporation also includes "Treasury/Reserve Automated Debt Entry Securities System" and "Treasury Direct" book-entry securities systems established pursuant to 31 U.S.C. § 3100et seq., 12 U.S.C. pt. 391 and 5 U.S.C. pt. 301.

002.03 Custodian

"Custodian" means:

002.03(a) A national bank, state bank or trust company that shall at all times during which it acts as a custodian pursuant to the Insurers Investment Act be no less than adequately capitalized as determined by the standards adopted by United States banking regulators and that is regulated by either state banking laws or is a member of the Federal Reserve System and that is legally qualified to accept custody of securities in accordance with the standards set forth below, except that with respect to securities issued by institutions organized or existing under the laws of a foreign country, or securities used to meet the deposit requirements pursuant to the laws of a foreign country as a condition of doing business therein, "custodian" may include a bank or trust company incorporated and organized under the laws of a country other than the United States that is regulated as such by that country's government or an agency thereof that shall at all times during which it acts as a custodian pursuant to this regulation be no less than adequately capitalized as determined by the standards adopted by international banking authorities and that is legally qualified to accept custody of securities; or

002.03(b) A broker/dealer that shall be registered with and subject to jurisdiction of the Securities and Exchange Commission, maintains membership in the Securities Investor Protection Corporation, and has a tangible net worth equal to or greater than two hundred fifty million dollars ($250,000,000).

002.04 Custodied securities

"Custodied securities" means securities held by the custodian or its agent or in a clearing corporation, including the Treasury/Reserve Automated Debt Equity Securities System (TRADES) or Treasury Direct systems.

002.05 Securities' certificate

"Securities' certificate" has the same meaning as that defined in Section 8-102(a) (16) of the Uniform Commercial Code.

002.06 Security

"Security" has the same meaning as that defined in Section 8-102(a) (15) of the Uniform Commercial Code.

002.07 Tangible net worth

"Tangible net worth" means shareholders equity, less intangible assets, as reported in the broker/dealer's most recent Annual or Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (S.E.C. Form 10-K) filed with the Securities and Exchange Commission.

002.08 Treasury/Reserve Automated Debt Entry Securities System ("TRADES") and "Treasury Direct"

"Treasury/Reserve Automated Debt Entry Securities System ("TRADES") and "Treasury Direct" mean the book-entry securities systems established pursuant to 31 U.S.C. § 3100et seq., 12 U.S.C. pt. 391 and 5 U.S.C. pt 301. The operation of TRADES and Treasury Direct are subject to 31 C.F.R. pt. 357 et seq.

002.09 The remaining definitions of Neb. Rev. Stat. § 44-5103 apply for purposes of this chapter.

210 Neb. Admin. Code, ch. 81, § 002