A. “Agent” shall mean a national, state bank or trust company that maintains an account in its name in a clearing corporation or which 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, except that with respect to securities issued by institutions organized or existing under the laws of any 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 which is organized or existing under the laws of any foreign country and which is legally qualified under such laws to accept custody of securities.

B. “Commissioner” shall mean the Insurance Commissioner for the State of Arkansas.

C. “Clearing Corporation” shall mean a corporation as defined in Ark. Code Ann. § 4-8-102(a)(5) which 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 any 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, “clearing corporations” may include a corporation which is organized or existing under the laws of any foreign country and which is legally qualified under such laws to effect transactions in securities by computerized book-entry.

D. “Custodian” shall mean a national bank, state bank or trust company which has at all times aggregate capital, surplus and undivided profits of not less than $10,000,000 and which is regulated by either state banking laws or is a member of the Federal Reserve System and which 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 any 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 similar institution which has at all times aggregate capital, surplus and undivided profits of not less than the equivalent of $10,000,000 and which is legally qualified to accept custody of securities. Within the sole discretion of the Commissioner, a national bank, state bank or trust company that falls short of the aforementioned monetary capital requirements can nevertheless be approved as a custodian if its parent bank holding company has a substantial net worth and issues a guarantee or letter of indemnification for all of the obligations of its subsidiary custodian. Securities broker dealers may be a custodian if approved by the Commissioner and if it meets the requirements of § 23-69-134 and the definition of “securities broker-dealer” as contained herein.

E. “Direct Participant” means a bank or other institution that maintains an account in its name in a clearing corporation and through which an insurance company participates in a clearing corporation.

F. “Federal Reserve book-entry system” shall mean the computerized systems sponsored by the United States Department of the Treasury and certain agencies and instrumentalities of the United States for holding and transferring securities of the United States government and such agencies and instrumentalities, respectively, in Federal Reserve Banks through banks which are members of the Federal Reserve System or which otherwise have access to such computerized systems.

G. “Insurer” means an insurance company, hospital and medical service corporation farmers mutual aid association or health maintenance organization.

H. “Member bank” means a national bank, state bank or trust company that is a member of the Federal Reserve System and through which an insurer participates in the Federal Reserve book-entry system.

I. “Securities” shall mean certificated securities and uncertificated securities as defined in Ark. Code Ann. § 4-8-102.

J. “Securities Broker-Dealer” means any person engaged in the business of effecting transactions of securities for the account of others or for his own account with certain exclusions as set forth in § 23-42-102, and, in addition, shall meet all statutory requirements set forth in § 23-69-134. Securities broker-dealers must have tangible net worth equal to or greater than one hundred million dollars ($100,000,000) and regulatory net capital in an amount determined by the commissioner; or tangible net worth equal to or greater than fifty million dollars ($50,000,000), along with regulatory net capital in an amount determined by the commissioner; and Securities Investor Protection Corporation excess insurance coverage equal to and greater than the market value of the insurers' securities held by the custodian and in the form approved by the commissioner.