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section 36a-65 of the general statutes is repealed and the following is 2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statutes are repealed and the following is substituted in lieu thereof 9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