New York Laws
Article 4-A - Investments of Public Pension Funds
178-A - Custody and Nominee Registration of Stock and Securities.

(i) a banking institution or trust company holding securities itself
or in a securities depository or clearing agency which acts as a
securities depository; or
(ii) a securities depository or clearing agency which acts as a
securities depository.
(b) For purposes of the appointment of a foreign entity as agent, the
term "banking institution or trust company" shall mean an entity which
is:
(i) regulated by the relevant regulatory authority in that
jurisdiction and has shareholders equity of not less than one hundred
million dollars; or
(ii) a branch of, or a majority-owned direct or indirect subsidiary
of, a domestic bank, trust company or private banker eligible to be
authorized to have custody of securities under this section.
(c) For purposes of the appointment of a foreign entity as agent, the
term "securities depository or clearing agency which acts as a
securities depository" shall mean an entity which:
(i) is regulated by the relevant national regulatory authority in that
jurisdiction;
(ii) is operated pursuant to the charter and by-laws of any company or
association organized as a securities depository or clearing agency
which operates a system for the central handling of securities or
equivalent book entries; or
(iii) may be used as a securities depository or clearing agency which
acts as a securities depository by an investment company (as defined by
an act of congress entitled the "Investment Company Act of 1940").
(d) Registration of foreign securities may be in the name of any such
foreign entity or its nominee, provided that the books and records of
the domestic bank, trust company or private banker which made the
appointment of the foreign entity shall show, at all times, the
beneficial ownership of the fund.
(e) A domestic bank, trust company or private banker which has custody
of foreign securities of such fund shall be absolutely liable for any
loss with respect to such securities which is occasioned by its acts,
the acts of its agent, the acts of its nominee or its agent's nominee or
the acts of any foreign entity appointed by it or any such foreign
entity's agent or nominee.