South Dakota § 58-27-78 - Nominee holding investments--Definitions.

§ 58-27-78. Nominee holding investments--Definitions.

Terms used in §§ 58-27-78 to 58-27-84, inclusive, mean:

(1)    "Clearing corporation," a corporation as defined in subdivision 57A-8-102(5);

(2)    "Custodian bank," any bank or trust company which is supervised or examined by a state or federal authority having supervision over banks and which may act as custodian for an insurer;

(3)    "Member bank," a national bank, state bank, or trust company which is a member of the United States Federal Reserve System;

(4)    "Securities lending transaction," a transaction in which securities are loaned by an insurer to an institution that is obligated to return equivalent or substantially similar securities to the insurer, either within a specified period of time or upon demand;

(5)    "Reverse repurchase transaction," a transaction in which an insurer sells securities to an institution and is obligated to repurchase equivalent or substantially similar securities from the institution at a specified price, either within a specified period of time or upon demand;

(6)    "Repurchase transaction," a transaction in which an insurer purchases securities from an institution that is obligated to repurchase equivalent or substantially similar securities from the insurer at a specified price, either within a specified period of time or upon demand;

(7)    "Dollar roll transaction," two simultaneous transactions with different settlement dates no more than ninety-six days apart, so that in the transaction with the earlier settlement date, an insurer sells to an institution, and in the other transaction, the insurer is obligated to purchase from the same institution, substantially similar securities of the following type:

(a)    Securities issued, assumed, or guaranteed by the Government National Mortgage Association, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation, or their respective successors;

(b)    Securities referred to in Section 106 of Title I of the Secondary Mortgage Market Enhancement Act of 1984 (15 U.S.C. § 77r-1), as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26;

(c)    Any other securities approved by the director;

(8)    "Substantially similar securities," securities of the same issuer having similar features that meet all criteria for substantially similar or equivalent securities specified in the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26; and

(9)    "Securities," any investment of the type authorized or permitted under chapter 58-27.

Source: SL 1983, ch 377, § 1; SL 1997, ch 294, § 20; SL 2017, ch 214, § 3.