Custodian’s receipt; duties of custodian; rules

(1) When a custodian receives a pledge or release of securities from a qualified depository, and after receiving the approval of the State Treasurer, the custodian shall issue to the State Treasurer a custodian’s receipt that describes the securities. The custodian also shall issue a copy of the receipt to the depository. (2) A custodian shall: (a) Maintain an accurate inventory of the securities of each qualified depository described in the custodian’s receipts that the custodian issues to the State Treasurer and adjust the inventory to reflect pledges or releases of securities that the custodian previously inventoried. (b) Appraise the value of the securities added to and released from the qualified depository’s inventory and appraise the value of the depository’s entire inventory on the last day of each month and at such other times as the State Treasurer directs. (c) Provide reports to the State Treasurer that describe the type and value of each security pledged by each qualified depository and any additional information required by the State Treasurer. (3) The State Treasurer, by rule or through individual pledge agreements, may specify: (a) Additional information that must be reported related to the securities pledged; (b) The frequency with which reports required under this section must be provided; and (c) Requirements for distribution of reports to qualified depositories or other persons.