Connecticut 2025 Regular Session

Connecticut Senate Bill SB01256 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	LCO 1 of 17
	3	+	LCO No. 4115 1 of 18
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5		-	General Assembly ~~Substitute~~ Bill No. 1256
	5	+	General Assembly Raised Bill No. 1256
6	6		January Session, 2025
	7	+	LCO No. 4115
7	8
	9	+
	10	+	Referred to Committee on BANKING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(BA)
8	15
9	16
10	17
11	18
12	19		AN ACT CONCERNING THE ORGANIZATION, ADMINISTRATION AND
13	20		RECEIVERSHIP OF CERTAIN FINANCIAL INSTITUTIONS.
14	21		Be it enacted by the Senate and House of Representatives in General
15	22		Assembly convened:
16	23
17	24		Section 1. Subparagraph (H) of subdivision (1) of subsection (d) of 1
18	25		section 36a-65 of the general statutes is repealed and the following is 2
19	26		substituted in lieu thereof (Effective July 1, 2025): 3
20	27		(H) Organization of any Connecticut bank under section 36a-70, as 4
21	28		amended by this act, including the conditional preliminary approval for 5
22	29		an expedited bank, [fifteen] twenty thousand dollars, except no fee shall 6
23	30		be required for the organization of an interim Connecticut bank. 7
24	31		Sec. 2. Subsections (h) to (u), inclusive, of section 36a-70 of the general 8
25	32		statutes are repealed and the following is substituted in lieu thereof 9
26	33		(Effective July 1, 2025): 10
27	34		(h) (1) The application shall be approved if the approving authority 11
28	35		determines that: (A) The interest of the public will be served to 12
29	36		advantage by the establishment of the proposed Connecticut bank; (B) 13
30	37		the proposed bank shows reasonable promise of successful operation; 14
	38	+	Raised Bill No. 1256
	39	+
	40	+
	41	+
	42	+	LCO No. 4115 2 of 18
	43	+
31	44		and (C) the proposed directors and officers possess the capacity, 15
32	45		character and experience for the duties and responsibilities with which 16
33		-	they will be charged. 17 Substitute Bill No. 1256
	46	+	they will be charged. 17
	47	+	(2) In determining whether the public will be served to advantage 18
	48	+	under subdivision (1) of this subsection, the approving authority shall 19
	49	+	consider the following factors in light of the proposed business plan of 20
	50	+	the proposed Connecticut bank: (A) The [population of the area to be 21
	51	+	served by the proposed Connecticut bank; (B) the] competitive effect of 22
	52	+	the proposed Connecticut bank on the availability and quality of 23
	53	+	services in the market area to be served; [(C)] (B) the likely impact of the 24
	54	+	proposed Connecticut bank on other financial institutions in the market 25
	55	+	area to be served; and [(D)] (C) the convenience and needs of the market 26
	56	+	area to be served. 27
	57	+	(3) Except as otherwise provided in subsections (p), (q), (r), (s) and (t) 28
	58	+	of this section, the approving authority shall be, in the case of an 29
	59	+	application to organize a bank and trust company or a capital stock 30
	60	+	savings bank, a majority of the commissioner, State Treasurer, and State 31
	61	+	Comptroller, and, in the case of an application to organize a mutual 32
	62	+	savings bank or a mutual or capital stock savings and loan association, 33
	63	+	the commissioner acting alone. 34
	64	+	(i) If the application is approved by the approving authority, a 35
	65	+	temporary certificate of authority, valid for eighteen months, shall be 36
	66	+	issued to the organizers authorizing them to complete the organization 37
	67	+	of the Connecticut bank. The organizers shall thereupon file one copy of 38
	68	+	the temporary certificate of authority and one copy of the certificate of 39
	69	+	incorporation with the Secretary of the State. The commissioner may, 40
	70	+	upon the application of the organizers and after a hearing thereon, 41
	71	+	extend, for cause, the period for which the temporary certificate of 42
	72	+	authority is valid. 43
	73	+	(j) If the application is not approved by the approving authority, the 44
	74	+	approving authority shall, in writing, so notify the organizers. An 45
	75	+	Raised Bill No. 1256
34	76
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37	78
38		-	(2) (A) In determining whether the public will be served to advantage 18
39		-	under subdivision (1) of this subsection, the approving authority shall 19
40		-	consider the following factors in light of the proposed business plan of 20
41		-	the proposed Connecticut bank: [(A) The] (i) Except as provided in 21
42		-	subparagraph (B) of this subdivision, the population of the area to be 22
43		-	served by the proposed Connecticut bank; [(B)] (ii) the competitive 23
44		-	effect of the proposed Connecticut bank on the availability and quality 24
45		-	of services in the market area to be served; [(C)] (iii) the likely impact of 25
46		-	the proposed Connecticut bank on other financial institutions in the 26
47		-	market area to be served; and [(D)] (iv) the convenience and needs of 27
48		-	the market area to be served. 28
49		-	(B) The provisions of subparagraph (A)(i) of this subdivision shall not 29
50		-	apply to an innovation bank organized pursuant to subsection (t) of this 30
51		-	section. 31
52		-	(3) Except as otherwise provided in subsections (p), (q), (r), (s) and (t) 32
53		-	of this section, the approving authority shall be, in the case of an 33
54		-	application to organize a bank and trust company or a capital stock 34
55		-	savings bank, a majority of the commissioner, State Treasurer, and State 35
56		-	Comptroller, and, in the case of an application to organize a mutual 36
57		-	savings bank or a mutual or capital stock savings and loan association, 37
58		-	the commissioner acting alone. 38
59		-	(i) If the application is approved by the approving authority, a 39
60		-	temporary certificate of authority, valid for eighteen months, shall be 40
61		-	issued to the organizers authorizing them to complete the organization 41
62		-	of the Connecticut bank. The organizers shall thereupon file one copy of 42
63		-	the temporary certificate of authority and one copy of the certificate of 43
64		-	incorporation with the Secretary of the State. The commissioner may, 44
65		-	upon the application of the organizers and after a hearing thereon, 45
66		-	extend, for cause, the period for which the temporary certificate of 46
67		-	authority is valid. 47
68		-	(j) If the application is not approved by the approving authority, the 48
69		-	approving authority shall, in writing, so notify the organizers. An 49 Substitute Bill No. 1256
	79	+	LCO No. 4115 3 of 18
	80	+
	81	+	appeal from the decision approving or disapproving the application 46
	82	+	may be taken in accordance with chapter 54. 47
	83	+	(k) (1) Prior to the issuance of a final certificate of authority, the 48
	84	+	organizers may (A) with the approval of the commissioner, amend the 49
	85	+	proposed certificate of incorporation to change (i) the name or the type 50
	86	+	of the Connecticut bank, (ii) the town in which the main office of the 51
	87	+	Connecticut bank is to be located, (iii) in the case of a capital stock 52
	88	+	Connecticut bank, the amount, authorized number and par value, if any, 53
	89	+	of shares of its capital stock, or (iv) the name of an organizer or 54
	90	+	prospective initial director of the Connecticut bank; (B) with the 55
	91	+	approval of the approving authority, amend a material provision of the 56
	92	+	proposed business plan, or amend the proposed certificate of 57
	93	+	incorporation to change the minimum amount of equity capital with 58
	94	+	which the Connecticut bank shall commence business, which amount 59
	95	+	may be less than its authorized capital but not less than that required by 60
	96	+	subsection (b) of this section; or (C) file notice with the commissioner to 61
	97	+	amend the proposed certificate of incorporation to change the 62
	98	+	occupation or residence, post office or business address of any organizer 63
	99	+	or prospective initial director of the Connecticut bank. 64
	100	+	(2) Upon receipt of an application to change the name of a 65
	101	+	Connecticut bank under subparagraph (A)(i) of subdivision (1) of this 66
	102	+	subsection, the commissioner shall cause notice of the filing of such 67
	103	+	application to be published in the department's weekly bulletin. The 68
	104	+	notice shall state that written objections to such application may be 69
	105	+	made, for a period of thirty days from the date of publication of the 70
	106	+	bulletin, on the grounds that the name selected will tend to confuse the 71
	107	+	public. If, in the opinion of the commissioner, the name selected by the 72
	108	+	organizers will not tend to confuse the public and if no objection is filed, 73
	109	+	the commissioner shall approve such change of name. If, in the opinion 74
	110	+	of the commissioner, the name selected will tend to confuse the public 75
	111	+	or if an objection is filed, the commissioner shall order a hearing to be 76
	112	+	held not less than twenty or more than thirty days from the date 77
	113	+	originally set for the filing of objections to the application for change of 78
	114	+	Raised Bill No. 1256
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71	116
72		-	LCO 3 of 17
73	117
74		-	appeal from the decision approving or disapproving the application 50
75		-	may be taken in accordance with chapter 54. 51
76		-	(k) (1) Prior to the issuance of a final certificate of authority, the 52
77		-	organizers may (A) with the approval of the commissioner, amend the 53
78		-	proposed certificate of incorporation to change (i) the name or the type 54
79		-	of the Connecticut bank, (ii) the town in which the main office of the 55
80		-	Connecticut bank is to be located, (iii) in the case of a capital stock 56
81		-	Connecticut bank, the amount, authorized number and par value, if any, 57
82		-	of shares of its capital stock, or (iv) the name of an organizer or 58
83		-	prospective initial director of the Connecticut bank; (B) with the 59
84		-	approval of the approving authority, amend a material provision of the 60
85		-	proposed business plan, or amend the proposed certificate of 61
86		-	incorporation to change the minimum amount of equity capital with 62
87		-	which the Connecticut bank shall commence business, which amount 63
88		-	may be less than its authorized capital but not less than that required by 64
89		-	subsection (b) of this section; or (C) file notice with the commissioner to 65
90		-	amend the proposed certificate of incorporation to change the 66
91		-	occupation or residence, post office or business address of any organizer 67
92		-	or prospective initial director of the Connecticut bank. 68
93		-	(2) Upon receipt of an application to change the name of a 69
94		-	Connecticut bank under subparagraph (A)(i) of subdivision (1) of this 70
95		-	subsection, the commissioner shall cause notice of the filing of such 71
96		-	application to be published in the department's weekly bulletin. The 72
97		-	notice shall state that written objections to such application may be 73
98		-	made, for a period of thirty days from the date of publication of the 74
99		-	bulletin, on the grounds that the name selected will tend to confuse the 75
100		-	public. If, in the opinion of the commissioner, the name selected by the 76
101		-	organizers will not tend to confuse the public and if no objection is filed, 77
102		-	the commissioner shall approve such change of name. If, in the opinion 78
103		-	of the commissioner, the name selected will tend to confuse the public 79
104		-	or if an objection is filed, the commissioner shall order a hearing to be 80
105		-	held not less than twenty or more than thirty days from the date 81
106		-	originally set for the filing of objections to the application for change of 82
107		-	name, and notice of such hearing shall be published in the department's 83 Substitute Bill No. 1256
	118	+	LCO No. 4115 4 of 18
	119	+
	120	+	name, and notice of such hearing shall be published in the department's 79
	121	+	weekly bulletin at least fourteen days prior to the hearing. At the 80
	122	+	hearing, the commissioner shall hear all persons desiring to be heard 81
	123	+	and shall make a ruling within fifteen days. 82
	124	+	(3) The organizers shall file with the Secretary of the State any 83
	125	+	approval issued pursuant to this subsection, and the approved 84
	126	+	amendment shall become effective upon such filing. In the case of an 85
	127	+	amendment notice pursuant to subparagraph (C) of subdivision (1) of 86
	128	+	this subsection, the organizers shall file such amendment with the 87
	129	+	Secretary of the State, and such amendment shall become effective upon 88
	130	+	such filing. 89
	131	+	(l) The approving authority shall cause to be made an examination of 90
	132	+	the proposed Connecticut bank upon notice from the organizers that the 91
	133	+	following conditions have occurred: (1) The proposed bank has been 92
	134	+	fully organized according to law; (2) the State Treasurer has been paid 93
	135	+	the franchise tax and filing fee specified in subsection (o) of this section; 94
	136	+	(3) the proposed bank has raised the minimum equity capital required; 95
	137	+	and (4) in the case of a proposed capital stock Connecticut bank, a 96
	138	+	certified list of each subscriber who will own at least five per cent of any 97
	139	+	class of voting securities of the proposed bank, showing the number of 98
	140	+	shares owned by each, has been filed with the commissioner. If all 99
	141	+	provisions of law have been complied with, a final certificate of 100
	142	+	authority to commence the business for which the bank was organized 101
	143	+	shall be issued by the approving authority. One copy of the final 102
	144	+	certificate shall be filed with the Secretary of the State, one copy shall be 103
	145	+	retained by the bank, and one copy shall be retained by the 104
	146	+	commissioner. 105
	147	+	(m) The reasonable charges and expenses of organization or 106
	148	+	reorganization of a capital stock Connecticut bank, and the reasonable 107
	149	+	expenses of any compensation or discount for the sale, underwriting or 108
	150	+	purchase of its shares, may be paid or allowed by such bank out of the 109
	151	+	par value received by it for its shares, or in the case of shares without 110
	152	+	Raised Bill No. 1256
108	153
109	154
110		-	LCO 4 of 17
111	155
112		-	weekly bulletin at least fourteen days prior to the hearing. At the 84
113		-	hearing, the commissioner shall hear all persons desiring to be heard 85
114		-	and shall make a ruling within fifteen days. 86
115		-	(3) The organizers shall file with the Secretary of the State any 87
116		-	approval issued pursuant to this subsection, and the approved 88
117		-	amendment shall become effective upon such filing. In the case of an 89
118		-	amendment notice pursuant to subparagraph (C) of subdivision (1) of 90
119		-	this subsection, the organizers shall file such amendment with the 91
120		-	Secretary of the State, and such amendment shall become effective upon 92
121		-	such filing. 93
122		-	(l) The approving authority shall cause to be made an examination of 94
123		-	the proposed Connecticut bank upon notice from the organizers that the 95
124		-	following conditions have occurred: (1) The proposed bank has been 96
125		-	fully organized according to law; (2) the State Treasurer has been paid 97
126		-	the franchise tax and filing fee specified in subsection (o) of this section; 98
127		-	(3) the proposed bank has raised the minimum equity capital required; 99
128		-	and (4) in the case of a proposed capital stock Connecticut bank, a 100
129		-	certified list of each subscriber who will own at least five per cent of any 101
130		-	class of voting securities of the proposed bank, showing the number of 102
131		-	shares owned by each, has been filed with the commissioner. If all 103
132		-	provisions of law have been complied with, a final certificate of 104
133		-	authority to commence the business for which the bank was organized 105
134		-	shall be issued by the approving authority. One copy of the final 106
135		-	certificate shall be filed with the Secretary of the State, one copy shall be 107
136		-	retained by the bank, and one copy shall be retained by the 108
137		-	commissioner. 109
138		-	(m) The reasonable charges and expenses of organization or 110
139		-	reorganization of a capital stock Connecticut bank, and the reasonable 111
140		-	expenses of any compensation or discount for the sale, underwriting or 112
141		-	purchase of its shares, may be paid or allowed by such bank out of the 113
142		-	par value received by it for its shares, or in the case of shares without 114
143		-	par value, out of the stated capital received by it for its shares, without 115
144		-	rendering such shares not fully paid and nonassessable. 116 Substitute Bill No. 1256
	156	+	LCO No. 4115 5 of 18
	157	+
	158	+	par value, out of the stated capital received by it for its shares, without 111
	159	+	rendering such shares not fully paid and nonassessable. 112
	160	+	(n) The Connecticut bank shall not commence business until: (1) A 113
	161	+	final certificate of authority has been issued in accordance with 114
	162	+	subsection (l) of this section, (2) except in the case of a trust bank, an 115
	163	+	interim Connecticut bank organized pursuant to subsection (p) of this 116
	164	+	section, or an innovation bank organized pursuant to subsection (t) of 117
	165	+	this section, until its insurable accounts or deposits are insured by the 118
	166	+	Federal Deposit Insurance Corporation or its successor agency, and (3) 119
	167	+	it has complied with the requirements of subsection (u) of this section, 120
	168	+	if applicable. The acceptance of subscriptions for deposits by a mutual 121
	169	+	savings bank or mutual savings and loan association as may be 122
	170	+	necessary to obtain insurance by the Federal Deposit Insurance 123
	171	+	Corporation or its successor agency shall not be considered to be 124
	172	+	commencing business. No Connecticut bank other than a trust bank 125
	173	+	may exercise any of the fiduciary powers granted to Connecticut banks 126
	174	+	by law until express authority therefor has been given by the 127
	175	+	commissioner. 128
	176	+	(o) Prior to the issuance of a final certificate of authority to commence 129
	177	+	business in accordance with subsection (l) of this section, the 130
	178	+	Connecticut bank shall pay to the State Treasurer a franchise tax, 131
	179	+	together with a filing fee of twenty dollars for the required papers. The 132
	180	+	franchise tax for a mutual savings bank and mutual savings and loan 133
	181	+	association shall be thirty dollars. The franchise tax for all capital stock 134
	182	+	Connecticut banks shall be one cent per share up to and including the 135
	183	+	first ten thousand authorized shares, one-half cent per share for each 136
	184	+	authorized share in excess of ten thousand shares up to and including 137
	185	+	one hundred thousand shares, one-quarter cent per share for each 138
	186	+	authorized share in excess of one hundred thousand shares up to and 139
	187	+	including one million shares and one-fifth cent per share for each 140
	188	+	authorized share in excess of one million shares. 141
	189	+	(p) (1) One or more persons may organize an interim Connecticut 142
	190	+	Raised Bill No. 1256
145	191
146	192
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148	193
149		-	(n) The Connecticut bank shall not commence business until: (1) A 117
150		-	final certificate of authority has been issued in accordance with 118
151		-	subsection (l) of this section, (2) except in the case of a trust bank, an 119
152		-	interim Connecticut bank organized pursuant to subsection (p) of this 120
153		-	section, or an innovation bank organized pursuant to subsection (t) of 121
154		-	this section, until its insurable accounts or deposits are insured by the 122
155		-	Federal Deposit Insurance Corporation or its successor agency, and (3) 123
156		-	it has complied with the requirements of subsection (u) of this section, 124
157		-	if applicable. The acceptance of subscriptions for deposits by a mutual 125
158		-	savings bank or mutual savings and loan association as may be 126
159		-	necessary to obtain insurance by the Federal Deposit Insurance 127
160		-	Corporation or its successor agency shall not be considered to be 128
161		-	commencing business. No Connecticut bank other than a trust bank 129
162		-	may exercise any of the fiduciary powers granted to Connecticut banks 130
163		-	by law until express authority therefor has been given by the 131
164		-	commissioner. 132
165		-	(o) Prior to the issuance of a final certificate of authority to commence 133
166		-	business in accordance with subsection (l) of this section, the 134
167		-	Connecticut bank shall pay to the State Treasurer a franchise tax, 135
168		-	together with a filing fee of twenty dollars for the required papers. The 136
169		-	franchise tax for a mutual savings bank and mutual savings and loan 137
170		-	association shall be thirty dollars. The franchise tax for all capital stock 138
171		-	Connecticut banks shall be one cent per share up to and including the 139
172		-	first ten thousand authorized shares, one-half cent per share for each 140
173		-	authorized share in excess of ten thousand shares up to and including 141
174		-	one hundred thousand shares, one-quarter cent per share for each 142
175		-	authorized share in excess of one hundred thousand shares up to and 143
176		-	including one million shares and one-fifth cent per share for each 144
177		-	authorized share in excess of one million shares. 145
178		-	(p) (1) One or more persons may organize an interim Connecticut 146
179		-	bank solely (A) for the acquisition of an existing bank, whether by 147
180		-	acquisition of stock, by acquisition of assets, or by merger or 148
181		-	consolidation, or (B) to facilitate any other corporate transaction 149
182		-	authorized by this title in which the commissioner has determined that 150 Substitute Bill No. 1256
	194	+	LCO No. 4115 6 of 18
	195	+
	196	+	bank solely (A) for the acquisition of an existing bank, whether by 143
	197	+	acquisition of stock, by acquisition of assets, or by merger or 144
	198	+	consolidation, or (B) to facilitate any other corporate transaction 145
	199	+	authorized by this title in which the commissioner has determined that 146
	200	+	such transaction has adequate regulatory supervision to justify the 147
	201	+	organization of an interim Connecticut bank. Such interim Connecticut 148
	202	+	bank shall not accept deposits or otherwise commence business. 149
	203	+	Subdivision (2) of subsection (c) and subsections (d), (f), (g), (h) and (o) 150
	204	+	of this section shall not apply to the organization of an interim bank, 151
	205	+	provided the commissioner may, in the commissioner's discretion, 152
	206	+	order a hearing under subsection (e) or require that the organizers 153
	207	+	publish or mail the proposed certificate of incorporation or both. The 154
	208	+	approving authority for an interim Connecticut bank shall be the 155
	209	+	commissioner acting alone. If the approving authority determines that 156
	210	+	the organization of the interim Connecticut bank complies with 157
	211	+	applicable law, the approving authority shall issue a temporary 158
	212	+	certificate of authority conditioned on the approval by the appropriate 159
	213	+	supervisory agency of the corporate transaction for which the interim 160
	214	+	Connecticut bank is formed. 161
	215	+	(2) (A) Notwithstanding any provision of this title, for the period 162
	216	+	from June 13, 2011, to September 30, 2013, inclusive, one or more 163
	217	+	persons may apply to the commissioner for the conditional preliminary 164
	218	+	approval of one or more expedited Connecticut banks organized 165
	219	+	primarily for the purpose of assuming liabilities and purchasing assets 166
	220	+	from the Federal Deposit Insurance Corporation when the Federal 167
	221	+	Deposit Insurance Corporation is acting as receiver or conservator of an 168
	222	+	insured depository institution. The application shall be made on a form 169
	223	+	acceptable to the commissioner and shall be executed and 170
	224	+	acknowledged by the applicant or applicants. Such application shall 171
	225	+	contain sufficient information for the commissioner to evaluate (i) the 172
	226	+	amount, type and sources of capital that would be available to the bank 173
	227	+	or banks; (ii) the ownership structure and holding companies, if any, 174
	228	+	over the bank or banks; (iii) the identity, biographical information and 175
	229	+	Raised Bill No. 1256
183	230
184	231
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186	232
187		-	such transaction has adequate regulatory supervision to justify the 151
188		-	organization of an interim Connecticut bank. Such interim Connecticut 152
189		-	bank shall not accept deposits or otherwise commence business. 153
190		-	Subdivision (2) of subsection (c) and subsections (d), (f), (g), (h) and (o) 154
191		-	of this section shall not apply to the organization of an interim bank, 155
192		-	provided the commissioner may, in the commissioner's discretion, 156
193		-	order a hearing under subsection (e) or require that the organizers 157
194		-	publish or mail the proposed certificate of incorporation or both. The 158
195		-	approving authority for an interim Connecticut bank shall be the 159
196		-	commissioner acting alone. If the approving authority determines that 160
197		-	the organization of the interim Connecticut bank complies with 161
198		-	applicable law, the approving authority shall issue a temporary 162
199		-	certificate of authority conditioned on the approval by the appropriate 163
200		-	supervisory agency of the corporate transaction for which the interim 164
201		-	Connecticut bank is formed. 165
202		-	(2) (A) Notwithstanding any provision of this title, for the period 166
203		-	from June 13, 2011, to September 30, 2013, inclusive, one or more 167
204		-	persons may apply to the commissioner for the conditional preliminary 168
205		-	approval of one or more expedited Connecticut banks organized 169
206		-	primarily for the purpose of assuming liabilities and purchasing assets 170
207		-	from the Federal Deposit Insurance Corporation when the Federal 171
208		-	Deposit Insurance Corporation is acting as receiver or conservator of an 172
209		-	insured depository institution. The application shall be made on a form 173
210		-	acceptable to the commissioner and shall be executed and 174
211		-	acknowledged by the applicant or applicants. Such application shall 175
212		-	contain sufficient information for the commissioner to evaluate (i) the 176
213		-	amount, type and sources of capital that would be available to the bank 177
214		-	or banks; (ii) the ownership structure and holding companies, if any, 178
215		-	over the bank or banks; (iii) the identity, biographical information and 179
216		-	banking experience of each of the initial organizers and prospective 180
217		-	initial directors, senior executive officers and any individual, group or 181
218		-	proposed shareholders of the bank that will own or control ten per cent 182
219		-	or more of the stock of the bank or banks; (iv) the overall strategic plan 183
220		-	of the organizers and investors for the bank or banks; and (v) a 184 Substitute Bill No. 1256
	233	+	LCO No. 4115 7 of 18
	234	+
	235	+	banking experience of each of the initial organizers and prospective 176
	236	+	initial directors, senior executive officers and any individual, group or 177
	237	+	proposed shareholders of the bank that will own or control ten per cent 178
	238	+	or more of the stock of the bank or banks; (iv) the overall strategic plan 179
	239	+	of the organizers and investors for the bank or banks; and (v) a 180
	240	+	preliminary business plan outlining intended product and business 181
	241	+	lines, retail branching plans and capital, earnings and liquidity 182
	242	+	projections. The commissioner, acting alone, shall grant conditional 183
	243	+	preliminary approval of such application to organize if the 184
	244	+	commissioner determines that the organizers have available sufficient 185
	245	+	committed funds to invest in the bank or banks; the organizers and 186
	246	+	proposed directors possess capacity and fitness for the duties and 187
	247	+	responsibilities with which they will be charged; the proposed bank or 188
	248	+	banks have a reasonable chance of success and will be operated in a safe 189
	249	+	and sound manner; and the fee for investigating and processing the 190
	250	+	application has been paid in accordance with subparagraph (H) of 191
	251	+	subdivision (1) of subsection (d) of section 36a-65, as amended by this 192
	252	+	act. Such preliminary approval shall be subject to such conditions as the 193
	253	+	commissioner deems appropriate, including the requirements that the 194
	254	+	bank or banks not commence the business of a Connecticut bank until 195
	255	+	after their bid or application for a particular insured depository 196
	256	+	institution is accepted by the Federal Deposit Insurance Corporation, 197
	257	+	that the background checks are satisfactory, and that the organizers 198
	258	+	submit, for the safety and soundness review by the commissioner, more 199
	259	+	detailed operating plans and current financial statements as potential 200
	260	+	acquisition transactions are considered, and such plans and statements 201
	261	+	are satisfactory to the commissioner. The commissioner may alter, 202
	262	+	suspend or revoke the conditional preliminary approval if the 203
	263	+	commissioner deems any interim development warrants such action. 204
	264	+	The conditional preliminary approval shall expire eighteen months 205
	265	+	from the date of approval, unless extended by the commissioner. 206
	266	+	(B) The commissioner shall not issue a final certificate of authority to 207
	267	+	commence the business of a Connecticut bank or banks under this 208
	268	+	Raised Bill No. 1256
221	269
222	270
223		-	LCO 7 of 17
224	271
225		-	preliminary business plan outlining intended product and business 185
226		-	lines, retail branching plans and capital, earnings and liquidity 186
227		-	projections. The commissioner, acting alone, shall grant conditional 187
228		-	preliminary approval of such application to organize if the 188
229		-	commissioner determines that the organizers have available sufficient 189
230		-	committed funds to invest in the bank or banks; the organizers and 190
231		-	proposed directors possess capacity and fitness for the duties and 191
232		-	responsibilities with which they will be charged; the proposed bank or 192
233		-	banks have a reasonable chance of success and will be operated in a safe 193
234		-	and sound manner; and the fee for investigating and processing the 194
235		-	application has been paid in accordance with subparagraph (H) of 195
236		-	subdivision (1) of subsection (d) of section 36a-65, as amended by this 196
237		-	act. Such preliminary approval shall be subject to such conditions as the 197
238		-	commissioner deems appropriate, including the requirements that the 198
239		-	bank or banks not commence the business of a Connecticut bank until 199
240		-	after their bid or application for a particular insured depository 200
241		-	institution is accepted by the Federal Deposit Insurance Corporation, 201
242		-	that the background checks are satisfactory, and that the organizers 202
243		-	submit, for the safety and soundness review by the commissioner, more 203
244		-	detailed operating plans and current financial statements as potential 204
245		-	acquisition transactions are considered, and such plans and statements 205
246		-	are satisfactory to the commissioner. The commissioner may alter, 206
247		-	suspend or revoke the conditional preliminary approval if the 207
248		-	commissioner deems any interim development warrants such action. 208
249		-	The conditional preliminary approval shall expire eighteen months 209
250		-	from the date of approval, unless extended by the commissioner. 210
251		-	(B) The commissioner shall not issue a final certificate of authority to 211
252		-	commence the business of a Connecticut bank or banks under this 212
253		-	subdivision until all conditions and preopening requirements and 213
254		-	applicable state and federal regulatory requirements have been met and 214
255		-	the fee for issuance of a final certificate of authority for an expedited 215
256		-	Connecticut bank has been paid in accordance with subparagraph (M) 216
257		-	of subdivision (1) of subsection (d) of section 36a-65. The commissioner 217
258		-	may waive any requirement under this title or regulations adopted 218 Substitute Bill No. 1256
	272	+	LCO No. 4115 8 of 18
	273	+
	274	+	subdivision until all conditions and preopening requirements and 209
	275	+	applicable state and federal regulatory requirements have been met and 210
	276	+	the fee for issuance of a final certificate of authority for an expedited 211
	277	+	Connecticut bank has been paid in accordance with subparagraph (M) 212
	278	+	of subdivision (1) of subsection (d) of section 36a-65. The commissioner 213
	279	+	may waive any requirement under this title or regulations adopted 214
	280	+	under this title that is necessary for the consummation of an acquisition 215
	281	+	involving an expedited Connecticut bank if the commissioner finds that 216
	282	+	such waiver is advisable and in the interest of depositors or the public, 217
	283	+	provided the commissioner shall not waive the requirement that the 218
	284	+	institution's insurable accounts or deposits be federally insured. Any 219
	285	+	such waiver granted by the commissioner under this subparagraph 220
	286	+	shall be in writing and shall set forth the reason or reasons for the 221
	287	+	waiver. The commissioner may impose conditions on the final certificate 222
	288	+	of authority as the commissioner deems necessary to ensure that the 223
	289	+	bank will be operated in a safe and sound manner. The commissioner 224
	290	+	shall cause notice of the issuance of the final certificate of authority to be 225
	291	+	published in the department's weekly bulletin. 226
	292	+	(q) (1) As used in this subsection, "bankers' bank" means a 227
	293	+	Connecticut bank that is (A) owned exclusively by (i) any combination 228
	294	+	of banks, out-of-state banks, Connecticut credit unions, federal credit 229
	295	+	unions, or out-of-state credit unions, or (ii) a bank holding company that 230
	296	+	is owned exclusively by any such combination, and (B) engaged 231
	297	+	exclusively in providing services for, or that indirectly benefit, other 232
	298	+	banks, out-of-state banks, Connecticut credit unions, federal credit 233
	299	+	unions, or out-of-state credit unions and their directors, officers and 234
	300	+	employees. 235
	301	+	(2) One or more persons may organize a bankers' bank in accordance 236
	302	+	with the provisions of this section, except that subsections (g) and (h) of 237
	303	+	this section shall not apply. The approving authority for a bankers' bank 238
	304	+	shall be the commissioner acting alone. Before granting a temporary 239
	305	+	certificate of authority in the case of an application to organize a 240
	306	+	bankers' bank, the approving authority shall consider (A) whether the 241
	307	+	Raised Bill No. 1256
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262	310
263		-	~~under this title that is necessary for the consummation~~ of ~~an acquisition 219~~
264		-	~~involving an expedited Connecticut bank if the commissioner finds that 220~~
265		-	~~such waiver is advisable and in~~ the ~~interest~~ of ~~depositors or the public,~~ ~~221~~
266		-	~~provided the commissioner shall not waive the requirement that the 222~~
267		-	~~institution's insurable accounts~~ or ~~deposits~~ be ~~federally insured.~~ ~~Any 223~~
268		-	~~such waiver granted by~~ the ~~commissioner under this subparagraph 224~~
269		-	~~shall be in writing~~ and ~~shall set forth~~ the ~~reason or reasons for the 225~~
270		-	~~waiver.~~ The ~~commissioner may impose conditions on~~ the ~~final certificate 226~~
271		-	~~of authority as~~ the ~~commissioner deems necessary to ensure that the 227~~
272		-	bank ~~will be operated in a safe~~ and ~~sound manner.~~ The ~~commissioner 228~~
273		-	~~shall cause notice of~~ the ~~issuance of the final certificate of authority to be 229~~
274		-	~~published in the department's weekly bulletin~~. ~~230~~
275		-	(q) ~~(1) As used in this subsection, "~~bankers' bank~~" means a 231~~
276		-	Connecticut bank ~~that is (A) owned exclusively by (i) any combination 232~~
277		-	~~of banks~~, ~~out-of-state banks,~~ ~~Connecticut credit unions,~~ ~~federal credit 233~~
278		-	~~unions, or out-of-state credit unions,~~ ~~or (ii) a bank holding company that 234~~
279		-	~~is owned exclusively by any such combination~~, ~~and (B) engaged 235~~
280		-	~~exclusively in providing services for,~~ ~~or that indirectly benefit,~~ ~~other 236~~
281		-	~~banks, out-of-state~~ banks~~, Connecticut credit unions, federal credit 237~~
282		-	~~unions,~~ or ~~out-of-state credit unions~~ and ~~their directors,~~ ~~officers and 238~~
283		-	~~employees. 239~~
284		-	~~(2) One or more persons may organize a~~ bankers' bank ~~in accordance 240~~
285		-	~~with~~ the ~~provisions of this section,~~ ~~except that subsections (g) and (h) of 241~~
286		-	~~this section~~ shall ~~not apply.~~ ~~The approving authority~~ for ~~a bankers'~~ ~~bank 242~~
287		-	~~shall be~~ the commissioner ~~acting alone.~~ ~~Before granting a temporary 243~~
288		-	~~certificate~~ of ~~authority in the case of an application to organize a 244~~
289		-	~~bankers' bank~~, ~~the approving authority shall consider (A) whether the 245~~
290		-	~~proposed bankers'~~ bank ~~will facilitate the provision of services~~ that ~~such 246~~
291		-	~~banks, out-~~of~~-state banks,~~ ~~Connecticut credit unions,~~ ~~federal credit 247~~
292		-	~~unions, or out-of-state credit unions would not otherwise be able to 248~~
293		-	~~readily obtain, and~~ (B) ~~the character and experience of the proposed 249~~
294		-	~~directors and officers.~~ The ~~application to organize a bankers'~~ ~~bank shall 250~~
295		-	~~be approved if the approving authority determines that the interest~~ of ~~251~~
296		-	~~the public will be directly or indirectly served to advantage by the 252 Substitute~~ Bill No. 1256
	311	+	LCO No. 4115 9 of 18
	312	+
	313	+	proposed bankers' bank will facilitate the provision of services that such 242
	314	+	banks, out-of-state banks, Connecticut credit unions, federal credit 243
	315	+	unions, or out-of-state credit unions would not otherwise be able to 244
	316	+	readily obtain, and (B) the character and experience of the proposed 245
	317	+	directors and officers. The application to organize a bankers' bank shall 246
	318	+	be approved if the approving authority determines that the interest of 247
	319	+	the public will be directly or indirectly served to advantage by the 248
	320	+	establishment of the proposed bankers' bank, and the proposed 249
	321	+	directors possess capacity and fitness for the duties and responsibilities 250
	322	+	with which they will be charged. 251
	323	+	(3) A bankers' bank shall have all of the powers of and be subject to 252
	324	+	all of the requirements applicable to a Connecticut bank under this title 253
	325	+	which are not inconsistent with this subsection, except to the extent the 254
	326	+	commissioner limits such powers by regulation. Upon the written 255
	327	+	request of a bankers' bank, the commissioner may waive specific 256
	328	+	requirements of this title and the regulations adopted thereunder if the 257
	329	+	commissioner finds that (A) the requirement pertains primarily to banks 258
	330	+	that provide retail or consumer banking services and is inconsistent 259
	331	+	with this subsection, and (B) the requirement may impede the ability of 260
	332	+	the bankers' bank to compete or to provide desired services to its market 261
	333	+	provided, any such waiver and the commissioner's findings shall be in 262
	334	+	writing and shall be made available for public inspection. 263
	335	+	(4) The commissioner may adopt regulations, in accordance with 264
	336	+	chapter 54, to administer the provisions of this subsection. 265
	337	+	(r) (1) As used in this subsection and section 36a-139, "community 266
	338	+	bank" means a Connecticut bank that is organized pursuant to this 267
	339	+	subsection and is subject to the provisions of this subsection and section 268
	340	+	36a-139. 269
	341	+	(2) One or more persons may organize a community bank in 270
	342	+	accordance with the provisions of this section, except that subsection (g) 271
	343	+	of this section shall not apply. Any such community bank shall 272
	344	+	Raised Bill No. 1256
297	345
298	346
299		-	LCO 9 of 17
300	347
301		-	establishment of the proposed bankers' bank, and the proposed 253
302		-	directors possess capacity and fitness for the duties and responsibilities 254
303		-	with which they will be charged. 255
304		-	(3) A bankers' bank shall have all of the powers of and be subject to 256
305		-	all of the requirements applicable to a Connecticut bank under this title 257
306		-	which are not inconsistent with this subsection, except to the extent the 258
307		-	commissioner limits such powers by regulation. Upon the written 259
308		-	request of a bankers' bank, the commissioner may waive specific 260
309		-	requirements of this title and the regulations adopted thereunder if the 261
310		-	commissioner finds that (A) the requirement pertains primarily to banks 262
311		-	that provide retail or consumer banking services and is inconsistent 263
312		-	with this subsection, and (B) the requirement may impede the ability of 264
313		-	the bankers' bank to compete or to provide desired services to its market 265
314		-	provided, any such waiver and the commissioner's findings shall be in 266
315		-	writing and shall be made available for public inspection. 267
316		-	(4) The commissioner may adopt regulations, in accordance with 268
317		-	chapter 54, to administer the provisions of this subsection. 269
318		-	(r) (1) As used in this subsection and section 36a-139, "community 270
319		-	bank" means a Connecticut bank that is organized pursuant to this 271
320		-	subsection and is subject to the provisions of this subsection and section 272
321		-	36a-139. 273
322		-	(2) One or more persons may organize a community bank in 274
323		-	accordance with the provisions of this section, except that subsection (g) 275
324		-	of this section shall not apply. Any such community bank shall 276
325		-	commence business with a minimum equity capital of at least three 277
326		-	million dollars. The approving authority for a community bank shall be 278
327		-	the commissioner acting alone. In addition to the considerations and 279
328		-	determinations required by subsection (h) of this section, before 280
329		-	granting a temporary certificate of authority to organize a community 281
330		-	bank, the approving authority shall determine that (A) each of the 282
331		-	proposed directors and proposed executive officers, as defined in 283
332		-	subparagraph (D) of subdivision (3) of this subsection, possesses 284 Substitute Bill No. 1256
	348	+	LCO No. 4115 10 of 18
	349	+
	350	+	commence business with a minimum equity capital of at least three 273
	351	+	million dollars. The approving authority for a community bank shall be 274
	352	+	the commissioner acting alone. In addition to the considerations and 275
	353	+	determinations required by subsection (h) of this section, before 276
	354	+	granting a temporary certificate of authority to organize a community 277
	355	+	bank, the approving authority shall determine that (A) each of the 278
	356	+	proposed directors and proposed executive officers, as defined in 279
	357	+	subparagraph (D) of subdivision (3) of this subsection, possesses 280
	358	+	capacity and fitness for the duties and responsibilities with which such 281
	359	+	director or officer will be charged, and (B) there is satisfactory 282
	360	+	community support for the proposed community bank based on 283
	361	+	evidence of such support provided by the organizers to the approving 284
	362	+	authority. If the approving authority cannot make such determination 285
	363	+	with respect to any such proposed director or proposed executive 286
	364	+	officer, the approving authority may refuse to allow such proposed 287
	365	+	director or proposed executive officer to serve in such capacity in the 288
	366	+	proposed community bank. 289
	367	+	(3) A community bank shall have all of the powers of and be subject 290
	368	+	to all of the requirements and limitations applicable to a Connecticut 291
	369	+	bank under this title which are not inconsistent with this subsection, 292
	370	+	except: (A) No community bank may (i) exercise any of the fiduciary 293
	371	+	powers granted to Connecticut banks by law until express authority 294
	372	+	therefor has been given by the approving authority, (ii) establish and 295
	373	+	maintain one or more mutual funds, (iii) invest in derivative securities 296
	374	+	other than mortgage-backed securities fully guaranteed by 297
	375	+	governmental agencies or government sponsored agencies, (iv) own 298
	376	+	any real estate for the present or future use of the bank unless the 299
	377	+	approving authority finds, based on an independently prepared 300
	378	+	analysis of costs and benefits, that it would be less costly to the bank to 301
	379	+	own instead of lease such real estate, or (v) make mortgage loans 302
	380	+	secured by nonresidential real estate the aggregate amount of which, at 303
	381	+	the time of origination, exceeds ten per cent of all assets of such bank; 304
	382	+	(B) the aggregate amount of all loans made by a community bank shall 305
	383	+	Raised Bill No. 1256
333	384
334	385
335		-	LCO 10 of 17
336	386
337		-	capacity and fitness for the duties and responsibilities with which such 285
338		-	director or officer will be charged, and (B) there is satisfactory 286
339		-	community support for the proposed community bank based on 287
340		-	evidence of such support provided by the organizers to the approving 288
341		-	authority. If the approving authority cannot make such determination 289
342		-	with respect to any such proposed director or proposed executive 290
343		-	officer, the approving authority may refuse to allow such proposed 291
344		-	director or proposed executive officer to serve in such capacity in the 292
345		-	proposed community bank. 293
346		-	(3) A community bank shall have all of the powers of and be subject 294
347		-	to all of the requirements and limitations applicable to a Connecticut 295
348		-	bank under this title which are not inconsistent with this subsection, 296
349		-	except: (A) No community bank may (i) exercise any of the fiduciary 297
350		-	powers granted to Connecticut banks by law until express authority 298
351		-	therefor has been given by the approving authority, (ii) establish and 299
352		-	maintain one or more mutual funds, (iii) invest in derivative securities 300
353		-	other than mortgage-backed securities fully guaranteed by 301
354		-	governmental agencies or government sponsored agencies, (iv) own 302
355		-	any real estate for the present or future use of the bank unless the 303
356		-	approving authority finds, based on an independently prepared 304
357		-	analysis of costs and benefits, that it would be less costly to the bank to 305
358		-	own instead of lease such real estate, or (v) make mortgage loans 306
359		-	secured by nonresidential real estate the aggregate amount of which, at 307
360		-	the time of origination, exceeds ten per cent of all assets of such bank; 308
361		-	(B) the aggregate amount of all loans made by a community bank shall 309
362		-	not exceed eighty per cent of the total deposits held by such bank; (C) (i) 310
363		-	the total direct or indirect liabilities of any one obligor, whether or not 311
364		-	fully secured and however incurred, to any community bank, exclusive 312
365		-	of such bank's investment in the investment securities of such obligor, 313
366		-	shall not exceed at the time incurred ten per cent of the equity capital 314
367		-	and reserves for loan and lease losses of such bank, and (ii) the 315
368		-	limitations set forth in subsection (a) of section 36a-262 shall apply to 316
369		-	this subparagraph; and (D) the limitations set forth in subsection (a) of 317
370		-	section 36a-263 shall apply to all community banks, provided, a 318 Substitute Bill No. 1256
	387	+	LCO No. 4115 11 of 18
	388	+
	389	+	not exceed eighty per cent of the total deposits held by such bank; (C) (i) 306
	390	+	the total direct or indirect liabilities of any one obligor, whether or not 307
	391	+	fully secured and however incurred, to any community bank, exclusive 308
	392	+	of such bank's investment in the investment securities of such obligor, 309
	393	+	shall not exceed at the time incurred ten per cent of the equity capital 310
	394	+	and reserves for loan and lease losses of such bank, and (ii) the 311
	395	+	limitations set forth in subsection (a) of section 36a-262 shall apply to 312
	396	+	this subparagraph; and (D) the limitations set forth in subsection (a) of 313
	397	+	section 36a-263 shall apply to all community banks, provided, a 314
	398	+	community bank may (i) make a mortgage loan to any director or 315
	399	+	executive officer secured by premises occupied or to be occupied by 316
	400	+	such director or officer as a primary residence, (ii) make an educational 317
	401	+	loan to any director or executive officer for the education of any child of 318
	402	+	such director or executive officer, and (iii) extend credit to any director 319
	403	+	or executive officer in an amount not exceeding ten thousand dollars for 320
	404	+	extensions of credit not otherwise specifically authorized in this 321
	405	+	subparagraph. The aggregate amount of all loans or extensions of credit 322
	406	+	made by a community bank pursuant to this subparagraph shall not 323
	407	+	exceed thirty-three and one-third per cent of the equity capital and 324
	408	+	reserves for loan and lease losses of such bank. As used in this 325
	409	+	subparagraph, "executive officer" means every officer of a community 326
	410	+	bank who participates or has authority to participate, other than in the 327
	411	+	capacity of a director, in major policy-making functions of the bank, 328
	412	+	regardless of whether such officer has an official title or whether such 329
	413	+	officer serves without salary or other compensation. The vice president, 330
	414	+	chief financial officer, secretary and treasurer of a community bank are 331
	415	+	presumed to be executive officers unless, by resolution of the governing 332
	416	+	board or by the bank's bylaws, any such officer is excluded from 333
	417	+	participation in major policy-making functions, other than in the 334
	418	+	capacity of a director of the bank, and such officer does not actually 335
	419	+	participate in major policy-making functions. 336
	420	+	(4) The audit and examination requirements set forth in section 36a-337
	421	+	86 shall apply to each community bank. 338
	422	+	Raised Bill No. 1256
371	423
372	424
373		-	LCO 11 of 17
374	425
375		-	community bank may (i) make a mortgage loan to any director or 319
376		-	executive officer secured by premises occupied or to be occupied by 320
377		-	such director or officer as a primary residence, (ii) make an educational 321
378		-	loan to any director or executive officer for the education of any child of 322
379		-	such director or executive officer, and (iii) extend credit to any director 323
380		-	or executive officer in an amount not exceeding ten thousand dollars for 324
381		-	extensions of credit not otherwise specifically authorized in this 325
382		-	subparagraph. The aggregate amount of all loans or extensions of credit 326
383		-	made by a community bank pursuant to this subparagraph shall not 327
384		-	exceed thirty-three and one-third per cent of the equity capital and 328
385		-	reserves for loan and lease losses of such bank. As used in this 329
386		-	subparagraph, "executive officer" means every officer of a community 330
387		-	bank who participates or has authority to participate, other than in the 331
388		-	capacity of a director, in major policy-making functions of the bank, 332
389		-	regardless of whether such officer has an official title or whether such 333
390		-	officer serves without salary or other compensation. The vice president, 334
391		-	chief financial officer, secretary and treasurer of a community bank are 335
392		-	presumed to be executive officers unless, by resolution of the governing 336
393		-	board or by the bank's bylaws, any such officer is excluded from 337
394		-	participation in major policy-making functions, other than in the 338
395		-	capacity of a director of the bank, and such officer does not actually 339
396		-	participate in major policy-making functions. 340
397		-	(4) The audit and examination requirements set forth in section 36a-341
398		-	86 shall apply to each community bank. 342
399		-	(5) The commissioner may adopt regulations, in accordance with 343
400		-	chapter 54, to administer the provisions of this subsection and section 344
401		-	36a-139. 345
402		-	(s) (1) As used in this subsection, "community development bank" 346
403		-	means a Connecticut bank that is organized to serve the banking needs 347
404		-	of a well-defined neighborhood, community or other geographic area as 348
405		-	determined by the commissioner, primarily, but not exclusively, by 349
406		-	making commercial loans in amounts of one hundred fifty thousand 350
407		-	dollars or less to existing businesses or to persons seeking to establish 351 Substitute Bill No. 1256
	426	+	LCO No. 4115 12 of 18
	427	+
	428	+	(5) The commissioner may adopt regulations, in accordance with 339
	429	+	chapter 54, to administer the provisions of this subsection and section 340
	430	+	36a-139. 341
	431	+	(s) (1) As used in this subsection, "community development bank" 342
	432	+	means a Connecticut bank that is organized to serve the banking needs 343
	433	+	of a well-defined neighborhood, community or other geographic area as 344
	434	+	determined by the commissioner, primarily, but not exclusively, by 345
	435	+	making commercial loans in amounts of one hundred fifty thousand 346
	436	+	dollars or less to existing businesses or to persons seeking to establish 347
	437	+	businesses located within such neighborhood, community or 348
	438	+	geographic area. 349
	439	+	(2) One or more persons may organize a community development 350
	440	+	bank in accordance with the provisions of this section, except that 351
	441	+	subsection (g) of this section shall not apply. The approving authority 352
	442	+	for a community development bank shall be the commissioner acting 353
	443	+	alone. Any such community development bank shall commence 354
	444	+	business with a minimum equity capital determined by the 355
	445	+	commissioner to be appropriate for the proposed activities of such bank, 356
	446	+	provided, if such proposed activities include accepting deposits, such 357
	447	+	minimum equity capital shall be sufficient to enable such deposits to be 358
	448	+	insured by the Federal Deposit Insurance Corporation or its successor 359
	449	+	agency. 360
	450	+	(3) The state, acting through the State Treasurer, may be the sole 361
	451	+	organizer of a community development bank or may participate with 362
	452	+	any other person or persons in the organization of any community 363
	453	+	development bank, and may own all or a part of any capital stock of 364
	454	+	such bank. No application fee shall be required under subparagraph (H) 365
	455	+	of subdivision (1) of subsection (d) of section 36a-65, as amended by this 366
	456	+	act, and no franchise tax shall be required under subsection (o) of this 367
	457	+	section for any community development bank organized by or in 368
	458	+	participation with the state. 369
	459	+	Raised Bill No. 1256
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409	461
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411	462
412		-	businesses located within such neighborhood, community or 352
413		-	geographic area. 353
414		-	(2) One or more persons may organize a community development 354
415		-	bank in accordance with the provisions of this section, except that 355
416		-	subsection (g) of this section shall not apply. The approving authority 356
417		-	for a community development bank shall be the commissioner acting 357
418		-	alone. Any such community development bank shall commence 358
419		-	business with a minimum equity capital determined by the 359
420		-	commissioner to be appropriate for the proposed activities of such bank, 360
421		-	provided, if such proposed activities include accepting deposits, such 361
422		-	minimum equity capital shall be sufficient to enable such deposits to be 362
423		-	insured by the Federal Deposit Insurance Corporation or its successor 363
424		-	agency. 364
425		-	(3) The state, acting through the State Treasurer, may be the sole 365
426		-	organizer of a community development bank or may participate with 366
427		-	any other person or persons in the organization of any community 367
428		-	development bank, and may own all or a part of any capital stock of 368
429		-	such bank. No application fee shall be required under subparagraph (H) 369
430		-	of subdivision (1) of subsection (d) of section 36a-65, as amended by this 370
431		-	act, and no franchise tax shall be required under subsection (o) of this 371
432		-	section for any community development bank organized by or in 372
433		-	participation with the state. 373
434		-	(4) In addition to the considerations and determinations required by 374
435		-	subsection (h) of this section, before granting a temporary certificate of 375
436		-	authority to organize a community development bank, the approving 376
437		-	authority shall determine that (A) each of the proposed directors and 377
438		-	proposed executive officers possesses capacity and fitness for the duties 378
439		-	and responsibilities with which such director or officer will be charged, 379
440		-	and (B) there is satisfactory community support for the proposed 380
441		-	community development bank based on evidence of such support 381
442		-	provided by the organizers to the approving authority. If the approving 382
443		-	authority cannot make such determination with respect to any such 383
444		-	proposed director or proposed executive officer, the approving 384 Substitute Bill No. 1256
	463	+	LCO No. 4115 13 of 18
	464	+
	465	+	(4) In addition to the considerations and determinations required by 370
	466	+	subsection (h) of this section, before granting a temporary certificate of 371
	467	+	authority to organize a community development bank, the approving 372
	468	+	authority shall determine that (A) each of the proposed directors and 373
	469	+	proposed executive officers possesses capacity and fitness for the duties 374
	470	+	and responsibilities with which such director or officer will be charged, 375
	471	+	and (B) there is satisfactory community support for the proposed 376
	472	+	community development bank based on evidence of such support 377
	473	+	provided by the organizers to the approving authority. If the approving 378
	474	+	authority cannot make such determination with respect to any such 379
	475	+	proposed director or proposed executive officer, the approving 380
	476	+	authority may refuse to allow such proposed director or proposed 381
	477	+	executive officer to serve in such capacity in the proposed community 382
	478	+	development bank. As used in this subdivision, "executive officer" 383
	479	+	means every officer of a community development bank who 384
	480	+	participates or has authority to participate, other than in the capacity of 385
	481	+	a director, in major policy-making functions of the bank, regardless of 386
	482	+	whether such officer has an official title or whether such officer serves 387
	483	+	without salary or other compensation. The vice president, chief financial 388
	484	+	officer, secretary and treasurer of a community development bank are 389
	485	+	presumed to be executive officers unless, by resolution of the governing 390
	486	+	board or by the bank's bylaws, any such officer is excluded from 391
	487	+	participation in major policy-making functions, other than in the 392
	488	+	capacity of a director of the bank, and such officer does not actually 393
	489	+	participate in major policy-making functions. 394
	490	+	(5) Notwithstanding any contrary provision of this title: (A) The 395
	491	+	commissioner may limit the powers that may be exercised by a 396
	492	+	community development bank or impose conditions on the exercise by 397
	493	+	such bank of any power allowed by this title as the commissioner deems 398
	494	+	necessary in the interest of the public and for the safety and soundness 399
	495	+	of the community development bank, provided, any such limitations or 400
	496	+	conditions, or both, shall be set forth in the final certificate of authority 401
	497	+	issued in accordance with subsection (l) of this section; and (B) the 402
	498	+	Raised Bill No. 1256
445	499
446	500
447		-	LCO 13 of 17
448	501
449		-	authority may refuse to allow such proposed director or proposed 385
450		-	executive officer to serve in such capacity in the proposed community 386
451		-	development bank. As used in this subdivision, "executive officer" 387
452		-	means every officer of a community development bank who 388
453		-	participates or has authority to participate, other than in the capacity of 389
454		-	a director, in major policy-making functions of the bank, regardless of 390
455		-	whether such officer has an official title or whether such officer serves 391
456		-	without salary or other compensation. The vice president, chief financial 392
457		-	officer, secretary and treasurer of a community development bank are 393
458		-	presumed to be executive officers unless, by resolution of the governing 394
459		-	board or by the bank's bylaws, any such officer is excluded from 395
460		-	participation in major policy-making functions, other than in the 396
461		-	capacity of a director of the bank, and such officer does not actually 397
462		-	participate in major policy-making functions. 398
463		-	(5) Notwithstanding any contrary provision of this title: (A) The 399
464		-	commissioner may limit the powers that may be exercised by a 400
465		-	community development bank or impose conditions on the exercise by 401
466		-	such bank of any power allowed by this title as the commissioner deems 402
467		-	necessary in the interest of the public and for the safety and soundness 403
468		-	of the community development bank, provided, any such limitations or 404
469		-	conditions, or both, shall be set forth in the final certificate of authority 405
470		-	issued in accordance with subsection (l) of this section; and (B) the 406
471		-	commissioner may waive in writing any requirement imposed on a 407
472		-	community development bank under this title or any regulation 408
473		-	adopted under this title if the commissioner finds that such requirement 409
474		-	is inconsistent with the powers that may be exercised by such 410
475		-	community development bank under its final certificate of authority. 411
476		-	(6) The commissioner may adopt regulations, in accordance with 412
477		-	chapter 54, to carry out the provisions of this subsection. 413
478		-	(t) (1) One or more persons may organize an innovation bank in 414
479		-	accordance with the provisions of this section, except that subsection (g) 415
480		-	of this section shall not apply. The approving authority for an 416
481		-	innovation bank shall be the commissioner acting alone. Any such 417 Substitute Bill No. 1256
	502	+	LCO No. 4115 14 of 18
	503	+
	504	+	commissioner may waive in writing any requirement imposed on a 403
	505	+	community development bank under this title or any regulation 404
	506	+	adopted under this title if the commissioner finds that such requirement 405
	507	+	is inconsistent with the powers that may be exercised by such 406
	508	+	community development bank under its final certificate of authority. 407
	509	+	(6) The commissioner may adopt regulations, in accordance with 408
	510	+	chapter 54, to carry out the provisions of this subsection. 409
	511	+	(t) (1) One or more persons may organize an innovation bank in 410
	512	+	accordance with the provisions of this section, except that subsection (g) 411
	513	+	of this section shall not apply. The approving authority for an 412
	514	+	innovation bank shall be the commissioner acting alone. Any such 413
	515	+	innovation bank shall commence business with a minimum equity 414
	516	+	capital of at least five million dollars unless the commissioner 415
	517	+	establishes a different minimum capital requirement for such 416
	518	+	innovation bank based upon its proposed activities. 417
	519	+	(2) An innovation bank shall have all of the powers of and be subject 418
	520	+	to all of the requirements and limitations applicable to a Connecticut 419
	521	+	bank under this title which are not inconsistent with this subsection, 420
	522	+	except no innovation bank may accept retail deposits and, 421
	523	+	notwithstanding any provision of this title, sections 36a-30 to 36a-34, 422
	524	+	inclusive, do not apply to innovation banks. 423
	525	+	(3) (A) An innovation bank shall display conspicuously, at each 424
	526	+	window or other place where deposits are usually accepted, a sign 425
	527	+	stating that deposits are not insured by the Federal Deposit Insurance 426
	528	+	Corporation or its successor agency. 427
	529	+	(B) An innovation bank shall either (i) include in boldface 428
	530	+	conspicuous type on each signature card, passbook, and instrument 429
	531	+	evidencing a deposit the following statement: "This deposit is not 430
	532	+	insured by the FDIC", or (ii) require each depositor to execute a 431
	533	+	statement that acknowledges that the initial deposit and all future 432
	534	+	deposits at the innovation bank are not insured by the Federal Deposit 433
	535	+	Raised Bill No. 1256
482	536
483	537
484		-	LCO 14 of 17
485	538
486		-	innovation bank shall commence business with a minimum equity 418
487		-	capital of at least five million dollars unless the commissioner 419
488		-	establishes a different minimum capital requirement for such 420
489		-	innovation bank based upon its proposed activities. 421
490		-	(2) An innovation bank shall have all of the powers of and be subject 422
491		-	to all of the requirements and limitations applicable to a Connecticut 423
492		-	bank under this title which are not inconsistent with this subsection, 424
493		-	except no innovation bank may accept retail deposits and, 425
494		-	notwithstanding any provision of this title, sections 36a-30 to 36a-34, 426
495		-	inclusive, do not apply to innovation banks. 427
496		-	(3) (A) An innovation bank shall display conspicuously, at each 428
497		-	window or other place where deposits are usually accepted, a sign 429
498		-	stating that deposits are not insured by the Federal Deposit Insurance 430
499		-	Corporation or its successor agency. 431
500		-	(B) An innovation bank shall either (i) include in boldface 432
501		-	conspicuous type on each signature card, passbook, and instrument 433
502		-	evidencing a deposit the following statement: "This deposit is not 434
503		-	insured by the FDIC", or (ii) require each depositor to execute a 435
504		-	statement that acknowledges that the initial deposit and all future 436
505		-	deposits at the innovation bank are not insured by the Federal Deposit 437
506		-	Insurance Corporation or its successor agency. The innovation bank 438
507		-	shall retain such acknowledgment as long as the depositor maintains 439
508		-	any deposit with the innovation bank. 440
509		-	(C) An innovation bank shall include on all of its deposit-related 441
510		-	advertising a conspicuous statement that deposits are not insured by the 442
511		-	Federal Deposit Insurance Corporation or its successor agency. 443
512		-	(4) Notwithstanding any provision of this title, an innovation bank 444
513		-	may accept and hold nonretail deposits, including, but not limited to, 445
514		-	nonretail deposits received from a corporation that owns the majority of 446
515		-	the shares of the innovation bank. An innovation bank may secure 447
516		-	deposit insurance for such nonretail deposits, including from the 448
517		-	Federal Deposit Insurance Corporation. 449 Substitute Bill No. 1256
	539	+	LCO No. 4115 15 of 18
	540	+
	541	+	Insurance Corporation or its successor agency. The innovation bank 434
	542	+	shall retain such acknowledgment as long as the depositor maintains 435
	543	+	any deposit with the innovation bank. 436
	544	+	(C) An innovation bank shall include on all of its deposit-related 437
	545	+	advertising a conspicuous statement that deposits are not insured by the 438
	546	+	Federal Deposit Insurance Corporation or its successor agency. 439
	547	+	(4) Notwithstanding any provision of this title, an innovation bank 440
	548	+	may accept and hold nonretail deposits, including, but not limited to, 441
	549	+	nonretail deposits received from a corporation that owns the majority of 442
	550	+	the shares of the innovation bank. An innovation bank may secure 443
	551	+	deposit insurance for such nonretail deposits, including from the 444
	552	+	Federal Deposit Insurance Corporation. 445
	553	+	(u) (1) Each trust bank and innovation bank shall keep assets on 446
	554	+	deposit in the amount of at least one million five hundred thousand 447
	555	+	dollars with such banks as the commissioner may approve. [, provided 448
	556	+	a trust bank or innovation bank that received its final certificate of 449
	557	+	authority prior to May 12, 2004, shall keep assets on deposit as follows: 450
	558	+	At least two hundred fifty thousand dollars no later than one year from 451
	559	+	May 12, 2004, at least five hundred thousand dollars no later than two 452
	560	+	years from said date, at least seven hundred fifty thousand dollars no 453
	561	+	later than three years from said date and at least one million dollars no 454
	562	+	later than four years from said date.] No trust bank or innovation bank 455
	563	+	shall make a deposit pursuant to this section until the bank at which the 456
	564	+	assets are to be deposited and the trust bank or innovation bank shall 457
	565	+	have executed a deposit agreement satisfactory to the commissioner. 458
	566	+	The value of such assets shall be based upon the principal amount or 459
	567	+	market value, whichever is lower. If the commissioner determines that 460
	568	+	an asset that otherwise qualifies under this section shall be valued at less 461
	569	+	than the amount otherwise provided in this subdivision, the 462
	570	+	commissioner shall so notify the trust bank or innovation bank, which 463
	571	+	shall thereafter value such asset as directed by the commissioner. 464
	572	+	Raised Bill No. 1256
518	573
519	574
520		-	LCO 15 of 17
521	575
522		-	~~(u) (1) Each trust bank and innovation bank shall keep assets on 450~~
523		-	~~deposit in the amount of at least one million five hundred thousand 451~~
524		-	~~dollars with such banks~~ as ~~the commissioner may approve. [~~, ~~provided 452~~
525		-	~~a trust bank or innovation bank that received its final certificate~~ of ~~453~~
526		-	~~authority prior to May 12~~, ~~2004~~, ~~shall keep assets on deposit as follows:~~ ~~454~~
527		-	~~At least two hundred fifty thousand dollars no later than one year from 455~~
528		-	~~May 12~~, ~~2004~~, ~~at least five hundred thousand dollars no later than two 456~~
529		-	~~years from said date~~, ~~at least seven hundred fifty thousand dollars no 457~~
530		-	~~later than three years from said date and at least one million dollars no 458~~
531		-	~~later than four years from said date.] No trust bank or innovation bank 459~~
532		-	~~shall make a deposit pursuant to this section until~~ the ~~bank at which the 460~~
533		-	~~assets are to be deposited and~~ the ~~trust bank or innovation bank shall 461~~
534		-	~~have executed a deposit agreement satisfactory to~~ the commissioner. ~~462~~
535		-	~~The value~~ of ~~such assets shall be based upon the principal amount or 463~~
536		-	~~market value~~, ~~whichever is lower.~~ If the ~~commissioner determines that 464~~
537		-	~~an asset~~ that ~~otherwise qualifies under this section shall be valued at less 465~~
538		-	~~than~~ the ~~amount otherwise provided in this subdivision,~~ ~~the 466~~
539		-	~~commissioner shall so notify~~ the ~~trust bank or innovation bank, which 467~~
540		-	~~shall thereafter value such asset as directed by the commissioner~~. ~~468~~
541		-	(2) ~~As used in this subsection,~~ ~~"assets" means:~~ ~~(A) United States dollar 469~~
542		-	~~deposits payable~~ in ~~the United States~~, ~~other than certificates of deposit; 470~~
543		-	(B) ~~bonds,~~ ~~notes, debentures or other obligations of the United States or 471~~
544		-	~~any agency or instrumentality thereof, or guaranteed by~~ the ~~United 472~~
545		-	~~States, or~~ of this ~~state or~~ of ~~a county,~~ ~~city, town,~~ ~~village, school district, 473~~
546		-	~~or instrumentality~~ of ~~this state or guaranteed by this state;~~ ~~(C) bonds, 474~~
547		-	~~notes, debentures or other obligations issued by~~ the ~~Federal Home Loan 475~~
548		-	~~Mortgage Corporation~~ and the ~~Federal National Mortgage Corporation; 476~~
549		-	~~(D) commercial paper payable in dollars in~~ the ~~United States,~~ ~~provided 477~~
550		-	~~such paper is rated in one~~ of the ~~three highest rating categories by a 478~~
551		-	~~rating service recognized by~~ the ~~commissioner.~~ In ~~the event that an issue 479~~
552		-	~~of commercial paper is rated by more than one recognized rating 480~~
553		-	~~service~~, it shall ~~be rated in one of the three highest rating categories by 481~~
554		-	~~each such rating service; (E) negotiable certificates~~ of ~~deposit that are 482~~
555		-	~~payable in the United States; (F) reserves held at a federal reserve bank; 483 Substitute~~ Bill No. 1256
	576	+	LCO No. 4115 16 of 18
	577	+
	578	+	(2) As used in this subsection, "assets" means: (A) United States dollar 465
	579	+	deposits payable in the United States, other than certificates of deposit; 466
	580	+	(B) bonds, notes, debentures or other obligations of the United States or 467
	581	+	any agency or instrumentality thereof, or guaranteed by the United 468
	582	+	States, or of this state or of a county, city, town, village, school district, 469
	583	+	or instrumentality of this state or guaranteed by this state; (C) bonds, 470
	584	+	notes, debentures or other obligations issued by the Federal Home Loan 471
	585	+	Mortgage Corporation and the Federal National Mortgage Corporation; 472
	586	+	(D) commercial paper payable in dollars in the United States, provided 473
	587	+	such paper is rated in one of the three highest rating categories by a 474
	588	+	rating service recognized by the commissioner. In the event that an issue 475
	589	+	of commercial paper is rated by more than one recognized rating 476
	590	+	service, it shall be rated in one of the three highest rating categories by 477
	591	+	each such rating service; (E) negotiable certificates of deposit that are 478
	592	+	payable in the United States; (F) reserves held at a federal reserve bank; 479
	593	+	and (G) such other assets as determined by the commissioner upon 480
	594	+	written application. 481
	595	+	Sec. 3. Subsection (b) of section 36a-81 of the general statutes is 482
	596	+	repealed and the following is substituted in lieu thereof (Effective July 1, 483
	597	+	2025): 484
	598	+	(b) The commissioner, before granting an approval under subsection 485
	599	+	(a) of this section, shall consider: (1) The population of the area to be 486
	600	+	served by the proposed relocation of the main office of the Connecticut 487
	601	+	bank; (2) the adequacy of existing banking facilities; and (3) the 488
	602	+	economic need for such proposed relocation. [; and (4) the convenience 489
	603	+	and necessity to the public of the proposed relocation.] 490
	604	+	Sec. 4. Subsection (c) of section 36a-82 of the general statutes is 491
	605	+	repealed and the following is substituted in lieu thereof (Effective July 1, 492
	606	+	2025): 493
	607	+	(c) Upon receiving such application, the commissioner shall cause 494
	608	+	notice of its submission to be published in the department's weekly 495
	609	+	Raised Bill No. 1256
556	610
557	611
558		-	LCO 16 of 17
559	612
560		-	and (G) such other assets as determined by the commissioner upon 484
561		-	written application. 485
562		-	Sec. 3. Subsection (b) of section 36a-81 of the general statutes is 486
563		-	repealed and the following is substituted in lieu thereof (Effective July 1, 487
564		-	2025): 488
565		-	(b) (1) The commissioner, before granting an approval under 489
566		-	subsection (a) of this section, shall consider: [(1)] (A) The population of 490
567		-	the area to be served by the proposed relocation of the main office of the 491
568		-	Connecticut bank; [(2)] (B) the adequacy of existing banking facilities; 492
569		-	[(3)] (C) the economic need for such proposed relocation; and [(4)] (D) 493
570		-	except as provided in subdivision (2) of this subsection, the convenience 494
571		-	and necessity to the public of the proposed relocation. 495
572		-	(2) The provisions of subparagraph (D) of subdivision (1) of this 496
573		-	subsection shall not apply to an innovation bank organized pursuant to 497
574		-	subsection (t) of section 36a-70, as amended by this act. 498
575		-	Sec. 4. Subsection (c) of section 36a-82 of the general statutes is 499
576		-	repealed and the following is substituted in lieu thereof (Effective July 1, 500
577		-	2025): 501
578		-	(c) Upon receiving such application, the commissioner shall cause 502
579		-	notice of its submission to be published in the department's weekly 503
580		-	bulletin. The notice shall state that written objections to such application 504
581		-	may be made, for a period of [thirty] fifteen days from the date of 505
582		-	publication of the bulletin, on the grounds that the name selected will 506
583		-	tend to confuse the public. At least ten days prior to the date by which 507
584		-	objections may be made, the applicant shall send a copy of the 508
585		-	application and a notice of the date by a means that provides a signature 509
586		-	as proof of delivery, including, but not limited to, registered or certified 510
587		-	mail, return receipt requested, to each bank or out-of-state bank having 511
588		-	its main office or a branch in the town or towns in which the applicant 512
589		-	has its main office or a branch. 513
590		-	Sec. 5. Subsection (b) of section 36a-223 of the general statutes is 514 Substitute Bill No. 1256
	613	+	LCO No. 4115 17 of 18
591	614
592		-
593		-	LCO 17 of 17
594		-
595		-	repealed and the following is substituted in lieu thereof (Effective July 1, 515
596		-	2025): 516
597		-	(b) [The] (1) Except as provided in subdivision (2) of this subsection, 517
598		-	the duty of the receiver shall be to place the Connecticut bank or 518
599		-	Connecticut credit union in liquidation and proceed to realize upon the 519
600		-	assets of such bank or credit union, having due regard for the conditions 520
601		-	of credit in the locality of such bank or credit union. 521
602		-	(2) For an innovation bank organized pursuant to subsection (t) of 522
603		-	section 36a-70, as amended by this act, the duty of the receiver shall be 523
604		-	to place the innovation bank in liquidation and proceed to realize upon 524
605		-	the assets of such innovation bank, having due regard for the conditions 525
606		-	of credit of such innovation bank. 526
	615	+	bulletin. The notice shall state that written objections to such application 496
	616	+	may be made, for a period of [thirty] fifteen days from the date of 497
	617	+	publication of the bulletin, on the grounds that the name selected will 498
	618	+	tend to confuse the public. At least ten days prior to the date by which 499
	619	+	objections may be made, the applicant shall send a copy of the 500
	620	+	application and a notice of the date by a means that provides a signature 501
	621	+	as proof of delivery, including, but not limited to, registered or certified 502
	622	+	mail, return receipt requested, to each bank or out-of-state bank having 503
	623	+	its main office or a branch in the town or towns in which the applicant 504
	624	+	has its main office or a branch. 505
	625	+	Sec. 5. Subsection (b) of section 36a-223 of the general statutes is 506
	626	+	repealed and the following is substituted in lieu thereof (Effective July 1, 507
	627	+	2025): 508
	628	+	(b) The duty of the receiver shall be to place the Connecticut bank or 509
	629	+	Connecticut credit union in liquidation and proceed to realize upon the 510
	630	+	assets of such bank or credit union, having due regard for the conditions 511
	631	+	of credit [in the locality] of such bank or credit union. 512
607	632		This act shall take effect as follows and shall amend the following
608	633		sections:
609	634
610	635		Section 1 July 1, 2025 36a-65(d)(1)(H)
611	636		Sec. 2 July 1, 2025 36a-70(h) to (u)
612	637		Sec. 3 July 1, 2025 36a-81(b)
613	638		Sec. 4 July 1, 2025 36a-82(c)
614	639		Sec. 5 July 1, 2025 36a-223(b)
615	640
616		-	BA Joint Favorable Subst.
	641	+	Statement of Purpose:
	642	+	To: (1) Increase the fee for investigating and processing an application
	643	+	for the organization of a Connecticut bank; (2) eliminate a factor
	644	+	considered in determining whether the public will be served to
	645	+	advantage by the establishment of a proposed Connecticut bank; (3)
	646	+	increase the amount of assets on deposit that trust banks and innovation
	647	+	banks are required to keep; (4) eliminate a factor considered in
	648	+	determining whether to approve the relocation of a Connecticut bank's
	649	+	main office; (5) reduce the period of time during which written
	650	+	Raised Bill No. 1256
	651	+
	652	+
	653	+
	654	+	LCO No. 4115 18 of 18
	655	+
	656	+	objections may be made to an application made by a bank or association
	657	+	for permission to change its name; and (6) modify the duty of a receiver
	658	+	for a Connecticut bank or Connecticut credit union.
	659	+
	660	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	661	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	662	+	underlined.]
617	663