Current through Register Vol. XLI, No. 48, November 27, 2024
Section 174-5-2 - Definitions2.1. "Addendum" means the form required to be submitted to the Commission to comply with the provisions of § 30-40-18(j) by any Broker utilizing a cash sweep product and opening a cash sweep account in accordance with the provisions of this rule.2.2. "Broker" has the definition set forth in § 30-40-4.2.3. "Cash sweep account" means the account that is established by agreement between the broker and a financial institution where the Broker has a trust fund account, which shall be in accordance with the provisions of this rule.2.4. "Cash sweep product" means the product that is contracted for by a financial institution to offer to its depositors that allows for the temporary transfer and custodial deposit of funds from a trust fund account in accordance with the cash sweep account agreement entered into between the broker and a financial institution where the Broker has a trust fund account.2.5. "Commission" has the definition set forth in § 30-40-4.2.6. "Excess funds" or "exceed the amount that is insured against loss" means more than the amount that is insured against loss by a financial institution insured against loss by an agency of the federal government which, as of the effective date of this section, is the Federal Deposit Insurance Corporation (FDIC), which insures losses up to $250,000 of the total amount on deposit by a Broker in that financial institution.2.7. "Relationship institution" means a financial institution where the Broker has both a trust fund account and a cash sweep account and also means the financial institution serving as the custodian of the cash sweep account.