# COMAR 31.04.09.02: COMAR 31.04.09.02. Custody Agreement; Filing with Commissioner

> Maryland · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_09_02

## Section

- **Citation:** COMAR 31.04.09.02
- **Heading:** COMAR 31.04.09.02. Custody Agreement; Filing with Commissioner
- **Jurisdiction:** Maryland
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Code of Maryland Regulations / Title 31 MARYLAND INSURANCE ADMINISTRATION / Subtitle 04 INSURERS / Chapter 09 Custody Agreements and the Use of Clearing Corporations / COMAR 31.04.09.02

## Text

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 “Assets—Not Admitted”.

## Nearby sections

- [COMAR 31.04.09.01 COMAR 31.04.09.01. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_09_01.md)
- [COMAR 31.04.09.02 COMAR 31.04.09.02. Custody Agreement; Filing with Commissioner](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_09_02.md)
- [COMAR 31.04.09.03 COMAR 31.04.09.03. Terms of Custody Agreement](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_09_03.md)
- [COMAR 31.04.09.04 COMAR 31.04.09.04. Existing Agreements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_09_04.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_04_09_02. Check the current official text before relying on it. Not legal advice.