Substitute Senate Bill No. 320

Public Act No. 00-28

An Act Permitting A Bankers' Bank To Provide Service To And To Receive Investments From Credit Unions.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Subsection (q) of section 36a-70 of the general statutes, as amended by section 4 of public act 99-158, is repealed and the following is substituted in lieu thereof:

(q) (1) As used in this subsection, "bankers' bank" means a Connecticut bank that is (A) owned exclusively by any combination of banks, [or] out-of-state banks, Connecticut credit unions, federal credit unions, or out-of-state credit unions having their principal office in Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island or Vermont and (B) organized to engage exclusively in providing services for such other banks, [or] out-of-state banks, Connecticut credit unions, federal credit unions, or out-of-state credit unions and their directors, officers and employees.

(2) One or more persons may organize a bankers' bank in accordance with the provisions of this section, except that subsections (g) and (h) of this section shall not apply. The approving authority for a bankers' bank shall be the commissioner acting alone. Before granting a temporary certificate of authority in the case of an application to organize a bankers' bank, the approving authority shall consider (A) whether the proposed bankers' bank will facilitate the provision of services that such banks, [or] out-of-state banks, Connecticut credit unions, federal credit unions, or out-of-state credit unions would not otherwise be able to readily obtain, and (B) the character and experience of the proposed directors and officers. The application to organize a bankers' bank shall be approved if the approving authority determines that the interest of the public will be directly or indirectly served to advantage by the establishment of the proposed bankers' bank, and the proposed directors possess capacity and fitness for the duties and responsibilities with which they will be charged.

(3) A bankers' bank shall have all of the powers of and be subject to all of the requirements applicable to a Connecticut bank under this title which are not inconsistent with this subsection, except: (A) A bankers' bank may provide services only for other banks, [or] out-of-state banks, Connecticut credit unions, federal credit unions, or out-of-state credit unions having their principal office in Maine, Massachusetts, New Hampshire, New York, Rhode Island or Vermont and for the directors, officers and employees of such banks, [or] out-of-state banks, Connecticut credit unions, federal credit unions, or out-of-state credit unions; (B) only such other banks, [or] out-of-state banks, [or both] Connecticut credit unions, federal credit unions, or out-of-state credit unions, may own the capital stock of or otherwise invest in a bankers' bank; (C) upon the written request of the organizers of a bankers' bank, the commissioner may waive specific requirements of this title and the regulations adopted thereunder if the commissioner finds that (i) the requirement pertains primarily to banks that provide retail or consumer banking services and is inconsistent with this subsection, and (ii) the requirement may impede the ability of the bankers' bank to compete or to provide desired services to its market provided, any such waiver and the commissioner's findings shall be in writing and shall be made available for public inspection; and (D) the commissioner may, by regulation, limit the powers that may be exercised by a bankers' bank.

(4) The commissioner may adopt regulations, in accordance with chapter 54, to administer the provisions of this subsection.