A. Custody Agreement.
(1) A carrier may not register securities in the name of a nominee or deposit securities with a custodian unless the carrier provides for the custody of the securities by entering into a written agreement with the custodian that:
(a) Is filed with the Commissioner pursuant to §B of this regulation; and
(b) Complies with Regulation .03 of this chapter.
(2) The agreement shall be:
(a) In writing; and
(b) Authorized by a resolution of the board of directors of the carrier or of an authorized committee of the board.
(3) The securities may be held:
(a) By the custodian or its agent; or
(b) In a clearing corporation.
B. Filing Agreement with the Commissioner.
(1) A carrier that enters into a written agreement with a custodian shall file the agreement with the Commissioner within 30 days after the execution of the agreement.
(2) If the Commissioner determines that a written agreement filed after execution does not comply with the requirements in Regulation .03 of this chapter, the carrier shall cure the noncompliance within:
(a) 60 days after notification by the Commissioner; or
(b) An extended cure period authorized by the Commissioner.
(3) If the written agreement is not cured within the time allowed by the Commissioner, the Commissioner may:
(a) Take any action authorized by Insurance Article, §4-113, Annotated Code of Maryland; or
(b) Require the carrier to report the securities held by the custodian in accordance with the terms of the noncompliant custody agreement as "AssetsNot Admitted".