General Assembly Raised Bill No. 271
February Session, 2010 LCO No. 1509
*_____SB00271BA____031710____*
Referred to Committee on Banks
Introduced by:
(BA)
General Assembly
Raised Bill No. 271
February Session, 2010
LCO No. 1509
*_____SB00271BA____031710____*
Referred to Committee on Banks
Introduced by:
(BA)
AN ACT CONCERNING THE TREASURER'S TRUST PREFERRED SECURITY PURCHASE PROGRAM.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2010) (a) As used in this section:
(1) "Commissioner" means the Banking Commissioner;
(2) "Connecticut trust preferred securities" means trust preferred securities of eligible institutions that are issued in a pooled arrangement and qualify at each participating eligible institution as Tier 1 capital pursuant to the provisions of the statutes, rules, regulations and interpretations that govern the Federal Reserve Board;
(3) "Eligible institution" means those banks and their respective holding companies certified by the commissioner as being qualified to issue Connecticut trust preferred securities;
(4) "Independent trustee" shall include any trust company or bank having the powers of a trust company, within or without this state, that is (A) appointed by the issuing trust as trustee under the agreement or indenture that creates the reserve fund, and (B) approved by the Treasurer, and includes any successor trust company or bank having the powers of a trust company, within or without this state, succeeding a prior trust company or bank as trustee so appointed and approved;
(5) "Issuing trust" means the business trust formed by an eligible institution for the purpose of issuing Connecticut trust preferred securities;
(6) "Tier 1 capital" means the core measure of a bank's financial strength from a regulator's point of view and includes core capital, which consists primarily of common stock and disclosed reserves; and
(7) "Trust funds" means those trust funds listed in section 3-13c of the general statutes;
(b) The Treasurer, as principal trustee of trust funds, shall be authorized to purchase and acquire Connecticut trust preferred securities issued pursuant to this section.
(c) Eligible institutions may form an issuing trust for purposes of issuing Connecticut trust preferred securities for purchase by the Treasurer on behalf of trust funds pursuant to such terms and conditions as the Treasurer may prescribe.
(d) The terms of Connecticut trust preferred securities shall be established pursuant to an indenture or other agreement between the issuing trust and an independent trustee approved by the Treasurer. Such indenture or agreement shall include any other covenants, representations or issuing requirements imposed by the Treasurer or by the statutes, rules, regulations and interpretations governing the Federal Reserve Board. Such indenture or agreement may also include covenants to pay the fees and expenses of the independent trustee and any other provisions that the Treasurer deems necessary or appropriate to secure payment of the Connecticut trust preferred securities.
(e) If the issuing trust defers the payment of dividends on the Connecticut trust preferred securities pursuant to such indenture or other agreement and as permitted under the statutes, rules, regulations and interpretations governing the Federal Reserve Board, the amount so deferred shall be deemed appropriated from the General Fund and paid to the trust funds. The trust funds shall repay the amount of the deferred payments to the General Fund at such times as set forth in the indenture or other agreement delivered in connection with the Connecticut trust preferred securities.
(f) The commissioner may adopt regulations in accordance with chapter 54 of the general statutes to govern the determination of eligible institutions under this section.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2010 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2010
New section
BA Joint Favorable
BA
Joint Favorable