Connecticut 2013 Regular Session

Connecticut Senate Bill SB00980 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	General Assembly Raised Bill No. 980
2	2	January Session, 2013 LCO No. 3691
3	3	03691_______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. 980
11	11
12	12	January Session, 2013
13	13
14	14	LCO No. 3691
15	15
16	16	03691_______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 DEBT SECURITY LIMITS FOR CONNECTICUT BANKS.
25	25
26	26	Be it enacted by the Senate and House of Representatives in General Assembly convened:
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28	28	Section 1. Section 36a-275 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):
29	29
30	30	(a) As used in this section, the term "debt securities" means (1) any marketable obligation evidencing indebtedness of any person in the form of direct, assumed or guaranteed bonds, notes or debentures or any security that has attributes similar to such marketable obligations; (2) any obligation identified by certificates of participation in investments described in subdivision (1) of this subsection in which a Connecticut bank could invest directly; or (3) repurchase agreements, and the term "debt mutual fund" means a partnership interest in, shares of stock of, units of beneficial interest in or other ownership interest in any one investment company registered under the Investment Company Act of 1940, as from time to time amended, commonly described as mutual funds, money market funds, investment trusts or business trusts, provided the portfolios of such investment companies consist solely of investments described in subdivision (1) of this subsection.
31	31
32	32	(b) In addition to other investments authorized by this part, any Connecticut bank may purchase or hold for its own account debt securities and debt mutual funds without regard to any other liability to the Connecticut bank of the maker, obligor, guarantor or issuer of such debt securities and debt mutual funds, provided: (1) The debt securities and debt mutual funds are rated in the three highest rating categories by a rating service of such securities recognized by the commissioner or, if not so rated, are determined by the bank's governing board to be a prudent investment; (2) unless the bank obtains the prior approval of the commissioner, the total amount of the debt securities and debt mutual funds of any one maker, obligor or issuer purchased or held by a Connecticut bank or for a Connecticut bank's account may not exceed, at any time, twenty-five per cent of its total equity capital and reserves for loan and lease losses; and (3) the total amount of any debt securities and debt mutual funds purchased or held by a Connecticut bank or for a Connecticut bank's account pursuant to this subsection may not exceed at any time twenty-five per cent of its assets.
33	33
34	34	(c) In addition to other investments authorized by this part, any Connecticut bank may purchase or hold for its own account the following debt securities and debt mutual funds without regard to any other liability to the Connecticut bank of the maker, obligor, guarantor or issuer of such debt securities and debt mutual funds, provided the debt securities and debt mutual funds are rated in the three highest rating categories by a rating service recognized by the commissioner or, if not so rated, determined by the bank's governing board to be a prudent investment:
35	35
36	36	(1) The general obligations of the United States or this state;
37	37
38	38	(2) Securities which are guaranteed fully as to principal and interest by the United States or this state or for which the full faith and credit of the United States or this state is pledged for the payment of principal and interest;
39	39
40	40	(3) Securities, including repurchase agreements, the principal and interest of which are irrevocably secured by securities described in subdivisions (1) and (2) of this subsection;
41	41
42	42	(4) General obligations of any agency of the United States, including government sponsored enterprises, which are not guaranteed fully as to principal and interest by the United States or for which the full faith and credit of the United States is not pledged for the payment of principal and interest; [and]
43	43
44	44	(5) Residential mortgage pass-through securities that are issued or guaranteed by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, provided said association or corporation is operating at the time of issuance or guarantee under the conservatorship or receivership of the Federal Housing Finance Agency;
45	45
46	46	(6) Other residential mortgage-backed securities, including collateralized mortgage obligations and real estate mortgage investment conduits, that are issued or guaranteed by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, provided said association or corporation is operating at the time of issuance or guarantee under the conservatorship or receivership of the Federal Housing Finance Agency; and
47	47
48	48	[(5)] (7) Debt mutual funds, provided the portfolios of the investment companies consist solely of investments described in subdivisions (1) to [(4)] (6), inclusive, of this subsection.
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50	50
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53	53	This act shall take effect as follows and shall amend the following sections:
54	54	Section 1 October 1, 2013 36a-275
55	55
56	56	This act shall take effect as follows and shall amend the following sections:
57	57
58	58	Section 1
59	59
60	60	October 1, 2013
61	61
62	62	36a-275
63	63
64	64	Statement of Purpose:
65	65
66	66	To permit Connecticut banks to invest in additional debt securities guaranteed or issued by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, provided said association or corporation is operating under the conservatorship or receivership of the Federal Housing Finance Agency.
67	67
68	68	[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.]