CT
Connecticut Senate Bill SB01399

Connecticut 2025 Regular Session

Connecticut Senate Bill SB01399 Compare Versions

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3-LCO 1 of 1
3+LCO No. 5384 1 of 4
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5-General Assembly Substitute Bill No. 1399
5+General Assembly Raised Bill No. 1399
66 January Session, 2025
7+LCO No. 5384
8+
9+
10+Referred to Committee on BANKING
11+
12+
13+Introduced by:
14+(BA)
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11-
12-AN ACT CONCERNING A STUDY REGARDING THE
13-ESTABLISHMENT OF LIMITED PURPOSE TRUST COMPANIES.
19+AN ACT CONCERNING LIMITED PURPOSE TRUST COMPANIES.
1420 Be it enacted by the Senate and House of Representatives in General
1521 Assembly convened:
1622
17-Section 1. (Effective from passage) The Department of Banking shall 1
18-conduct a study regarding the establishment of limited purpose trust 2
19-companies in the state. Not later than December 1, 2025, the department 3
20-shall submit a report, in accordance with the provisions of section 11-4a 4
21-of the general statutes, concerning the results of such study to the joint 5
22-standing committee of the General Assembly having cognizance of 6
23-matters relating to banking. Such report shall include, but need not be 7
24-limited to, recommendations for legislation necessary to authorize the 8
25-establishment of limited purpose trust companies in the state. 9
23+Section 1. (NEW) (Effective October 1, 2025) (a) As used in this section: 1
24+(1) "Connecticut bank" has the same meaning as provided in section 2
25+36a-2 of the general statutes; 3
26+(2) "Federal bank" has the same meaning as provided in section 36a-4
27+2 of the general statutes; 5
28+(3) "Out-of-state bank" has the same meaning as provided in section 6
29+36a-2 of the general statutes; 7
30+(4) "Representative trust office" means an office established by a 8
31+limited purpose trust company to provide marketing, business 9
32+solicitation and administrative services to the company, but at which 10
33+licensed business activity of the company is not conducted; and 11
34+(5) "Trust office" means the business office of a limited purpose trust 12
35+company at which the company's licensed business activity is 13
36+Raised Bill No. 1399
37+
38+
39+
40+LCO No. 5384 2 of 4
41+
42+transacted. 14
43+(b) Any person may apply to form a limited purpose trust company 15
44+by delivering to the Banking Commissioner a notice and application 16
45+pursuant to subsection (c) of this section. 17
46+(c) (1) A person applying to form a limited purpose trust company 18
47+pursuant to this section shall deliver to the Banking Commissioner a 19
48+notice and application for a certificate, in a form and manner prescribed 20
49+by the commissioner, and a fee, as determined by the commissioner. The 21
50+application shall include the following: (A) The name under which the 22
51+limited purpose trust company will conduct business; (B) the name of 23
52+each officer of the limited purpose trust company; (C) the location of the 24
53+principal office of the limited purpose trust company within the state; 25
54+(D) the purpose for which the limited purpose trust company is to be 26
55+formed and the nature of the business to be transacted; (E) the amount 27
56+and classes of the limited purpose trust company's capital stock and the 28
57+number of shares into which any class is to be divided; and (F) such 29
58+other information as the commissioner deems necessary. 30
59+(2) The Banking Commissioner may hold a hearing upon the matters 31
60+included in the notice and application. 32
61+(d) The Banking Commissioner may, under such terms and 33
62+conditions as the commissioner may require, if satisfied that the public 34
63+convenience and advantage will be promoted and that competition 35
64+among financial institutions will not be unreasonably affected, grant a 36
65+certificate to establish a limited purpose trust company for the purpose 37
66+of conducting trust and fiduciary business authorized under chapter 665 38
67+of the general statutes and any other law applicable to a Connecticut 39
68+bank, provided (1) the limited purpose trust company shall have 40
69+sufficient capital to support such limited purpose trust company's 41
70+business operations, and (2) any such limited purpose trust company 42
71+shall not accept deposits, make loans or otherwise carry on the business 43
72+of a Connecticut bank, federal bank, out-of-state bank or any other 44
73+Raised Bill No. 1399
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75+
76+
77+LCO No. 5384 3 of 4
78+
79+banking business in the state. 45
80+(e) After receiving a certificate to establish a limited purpose trust 46
81+company from the Banking Commissioner, the company may file the 47
82+company's articles of organization with the Secretary of the State. Upon 48
83+filing such articles of organization, the company shall be eligible to 49
84+conduct business, except that the certificate shall be deemed to be 50
85+revoked if the company does not commence business within one year 51
86+after the date the commissioner issues the certificate. 52
87+(f) A limited purpose trust company may establish and maintain a 53
88+trust office or a representative trust office in any state other than this 54
89+state. A limited purpose trust company intending to establish an out-of-55
90+state trust office or representative trust office shall file a notice with the 56
91+Banking Commissioner. The notice shall be in a form and manner 57
92+prescribed by the commissioner and shall contain the name and address 58
93+of the limited purpose trust company and the location of the proposed 59
94+office, and be accompanied by a copy of a resolution of the company's 60
95+board of directors authorizing the establishment of the out-of-state 61
96+office. The company may commence business at the out-of-state trust 62
97+office or representative trust office upon the expiration of thirty days 63
98+after the date such notice is received by the commissioner, except that 64
99+such thirty-day period may be extended if the commissioner provides 65
100+written notice to the company disclosing that additional information is 66
101+required. 67
102+(g) A limited purpose trust company established under the laws of 68
103+another state, or an institution established under the laws of another 69
104+state that the Banking Commissioner determines to be substantially 70
105+similar to a limited purpose trust company, may establish and maintain 71
106+an office in this state if the commissioner determines that the laws under 72
107+which such out-of-state company or similar institution was established 73
108+expressly authorize, under conditions not more restrictive than the 74
109+conditions imposed by the laws of this state, a limited purpose trust 75
110+company established under this section to establish and maintain an 76
111+Raised Bill No. 1399
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113+
114+
115+LCO No. 5384 4 of 4
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117+office in the state where such out-of-state company or similar institution 77
118+was established. 78
119+(h) A limited purpose trust company may be merged, consolidated, 79
120+converted, liquidated or dissolved, or cause such company's charter to 80
121+cease to exist, in such a manner as the commissioner may prescribe and 81
122+subject to any terms or conditions the commissioner may impose. 82
123+(i) This section shall not apply to an attorney licensed to practice law 83
124+in the state or to a person exercising trust or fiduciary powers in the state 84
125+under lawful authority. 85
126+(j) The commissioner may adopt regulations in accordance with the 86
127+provisions of chapter 54 of the general statutes to carry out the 87
128+provisions of this section. Such regulations may govern the affairs of a 88
129+limited purpose trust company, provide for examinations of a limited 89
130+purpose trust company, establish procedures for such examinations and 90
131+specify which provisions of the general statutes, including, but not 91
132+limited to, title 36a of the general statutes, shall apply to a limited 92
133+purpose trust company. 93
26134 This act shall take effect as follows and shall amend the following
27135 sections:
28136
29-Section 1 from passage New section
137+Section 1 October 1, 2025 New section
30138
31-BA Joint Favorable Subst.
139+Statement of Purpose:
140+To authorize the establishment of limited purpose trust companies.
141+
142+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
143+that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
144+underlined.]
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