Connecticut 2010 Regular Session

Connecticut Senate Bill SB00271 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		General Assembly Raised Bill No. 271
2	2		February Session, 2010 LCO No. 1509
3		-	_____~~SB00271BA~~__~~__031710___~~_
	3	+	01509_______BA_
4	4		Referred to Committee on Banks
5	5		Introduced by:
6	6		(BA)
7	7
8	8		General Assembly
9	9
10	10		Raised Bill No. 271
11	11
12	12		February Session, 2010
13	13
14	14		LCO No. 1509
15	15
16		-	_____~~SB00271BA~~__~~__031710___~~_
	16	+	01509_______BA_
17	17
18	18		Referred to Committee on Banks
19	19
20	20		Introduced by:
21	21
22	22		(BA)
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24	24		AN ACT CONCERNING THE TREASURER'S TRUST PREFERRED SECURITY PURCHASE PROGRAM.
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26	26		Be it enacted by the Senate and House of Representatives in General Assembly convened:
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28	28		Section 1. (NEW) (Effective October 1, 2010) (a) As used in this section:
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30	30		(1) "Commissioner" means the Banking Commissioner;
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32	32		(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;
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34	34		(3) "Eligible institution" means those banks and their respective holding companies certified by the commissioner as being qualified to issue Connecticut trust preferred securities;
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36	36		(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;
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38	38		(5) "Issuing trust" means the business trust formed by an eligible institution for the purpose of issuing Connecticut trust preferred securities;
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40	40		(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
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42	42		(7) "Trust funds" means those trust funds listed in section 3-13c of the general statutes;
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44	44		(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.
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46	46		(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.
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48	48		(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.
49	49
50	50		(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.
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52	52		(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.
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54	54
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57	57		This act shall take effect as follows and shall amend the following sections:
58	58		Section 1 October 1, 2010 New section
59	59
60	60		This act shall take effect as follows and shall amend the following sections:
61	61
62	62		Section 1
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64	64		October 1, 2010
65	65
66	66		New section
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	68	+	Statement of Purpose:
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	70	+	To expand a bank's ability to raise capital and ensure the continuous delivery of lending products to such bank's communities by enhancing the ability of the trust funds to purchase long-term Connecticut trust preferred securities issued by the bank.
69	71
70		-	BA Joint Favorable
71		-
72		-	BA
73		-
74		-	Joint Favorable
	72	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]