1.1.................... moves to amend H.F. No. 2853 as follows:
1.2Page 14, after line 4, insert:

1.3    "Sec. 5. Minnesota Statutes 2012, section 61A.282, subdivision 1, is amended to read:
1.4    Subdivision 1. Requirements. A company's investments shall be held in its
1.5corporate name or its nominee name, except that:
1.6(a) Investments may be held in the name of a clearing corporation or of a custodian
1.7bank or in the name of the nominee of either under the following conditions:
1.8(1) The clearing corporation, custodian bank, or nominee must be legally authorized
1.9to hold the particular investment for the account of others;
1.10(2) Where the investment is evidenced by a certificate and held in the name of a
1.11custodian bank or the nominee of a custodian bank, a written agreement shall provide that
1.12certificates so deposited shall at all times be kept separate and apart from other deposits
1.13with the depository, so that at all times they may be identified as belonging solely to the
1.14company making the deposit; or
1.15(3) Where a clearing corporation is to act as depository, the investment may be
1.16merged or held in bulk in the clearing corporation's name, or in the name of its nominee,
1.17together with any other investments deposited with the clearing corporation by any other
1.18person, if a written agreement provides that adequate evidence of the deposit will be
1.19obtained and retained by the company or a custodian bank.
1.20As used in this subdivision, the term "custodian bank" means a bank or trust
1.21company licensed by the United States or any state thereof.
1.22(b) A company may participate, through a bank or trust company which is a member
1.23of the Federal Reserve System, in the Federal Reserve's book-entry system, if the records
1.24of the member bank or trust company at all times show that the investments are held for
1.25the company and/or for specific accounts of the company.
1.26(c) If an investment consists of an individual interest in a pool of obligations, or of a
1.27fractional interest in a single obligation, the certificate of participation or interest, or the
2.1confirmation of participation or interest in the investment, shall be held in the manner set
2.2forth in paragraph (a) or held in the name of the company.
2.3(d) Where an investment is not evidenced by a certificate, except as provided in
2.4paragraph (b), adequate evidence of the company's investment shall be obtained from the
2.5issuer or its transfer or recording agent and retained by the company, a custodian bank, or
2.6clearing corporation. Adequate evidence, for purposes of this section, shall mean a written
2.7receipt or other verification issued by the depository or issuer or a custodian bank which
2.8shows that the investment is held for the company. Transfers of ownership of investments
2.9held as described in paragraphs (a)(3), (b), and (c) may be evidenced by bookkeeping
2.10entry on the books of the issuer of the investment or its transfer or recording agent or
2.11the clearing corporation without physical delivery of certificates, if any, evidencing the
2.12company's investment.
2.13(e) Investments or cash posted as collateral or variation margin (other than initial
2.14margin amounts) in connection with qualified financial contracts, as defined in section
2.1560B.03, subdivision 22, are not subject to this subdivision."