Utah Admin. Code R590-178-3 - Definitions
Terms used in this rule are defined in Sections 31A-1-301, 31A-2-206, and 70A-8-101. Additional terms are defined as follows:
(1)
"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 System and through which a custodian participates in a
clearing corporation or the Federal Reserve book-entry system.
(2) "Clearing corporation" means a
corporation that is organized for the purpose of effecting 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. 3100 et seq.,
12
U.S.C. 391 and
5
U.S.C. 301.
(3) "Custodian" means:
(a) a national bank, state bank, or trust
company that shall at all times during which it acts as a custodian pursuant to
this rule, 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; or
(b) a
trust company with minimum net worth of $1,500,000 at all times during which it
acts as a custodian, is licensed by the United States or any state thereof as a
trust company, and is in compliance with the regulatory authority as verified
through regular examination by the regulatory authority; or
(c) 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 $250,000,000.
(4) "Custodied securities" means
securities held by the custodian or its agent, or that are being cleared or
transferred through a clearing corporation.
(5) "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 Form 10-K, filed with the Securities and Exchange
Commission.
Notes
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