SB 5017 - H AMD 469 ADOPTED 4-9-97

By Representatives Smith and L. Thomas

On page 11, after line 18, insert the following:

ANEW SECTION. Sec. 7. A new section is added to chapter 48.16 RCW to read as follows:

In addition to the authority given the commissioner in RCW 48.16.070, the commissioner may designate any solvent trust company or other solvent financial institution having trust powers as the commissioner's depositary to receive and hold any deposit of securities. Any deposit so held shall be at the expense of the insurer. Any solvent financial institution having trust powers, the deposits of which are insured by the Federal Deposit Insurance Corporation, may be designated as the commissioner's depositary to receive and hold any deposit of funds. All funds deposited shall be fully insured by the Federal Deposit Insurance Corporation. For purposes of this section, "solvent financial institution" means any national or state-chartered commercial bank or trust company, savings bank, or savings association, or branch or branches thereof, having trust powers located in this state and lawfully engaged in business.@

Renumber remaining sections consecutively and correct internal references and the title accordingly.

EFFECT: The Insurance Commissioner can use an out-of-state bank, savings bank, or savings association with a branch in Washington that has trust powers as a depository.