Substitute House Bill No. 5017

Public Act No. 00-61

An Act Concerning The Enforcement And Examination Authority Of The Banking Commissioner.

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

Section 1. Subsection (e) of section 36a-428b of the general statutes is repealed and the following is substituted in lieu thereof:

(e) For purposes of section 36a-65 the commissioner shall [take into account only] annually, on or after July first for the fiscal year commencing on said July first, assess each foreign bank that has established a state branch or state agency in this state, taking into consideration (1) the assets of such foreign bank relative to the assets of other foreign banks with a state branch or state agency in this state provided only the assets of the state branches or state agencies located in this state shall be considered, (2) the cost of any examination under section 36a-428l, (3) the amount allocated to each Connecticut bank and each Connecticut credit union under section 36a-65, and (4) any other factor the commissioner deems appropriate to the administration of sections 36a-428 to 36a-428n, inclusive, as amended.

Sec. 2. Subsection (b) of section 36a-494 of the general statutes, as amended by section 29 of public act 99-36, is repealed and the following is substituted in lieu thereof:

(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-485 to 36a-498, inclusive, or any regulation adopted pursuant thereto, or any licensee has failed to perform any agreement with a borrower, the commissioner may take action against such person or licensee in accordance with section 36a-50.

Sec. 3. Section 36a-517 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) The commissioner may suspend, revoke or refuse to renew any license, in accordance with section 36a-51 for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-510 to 36a-524, inclusive, or if the commissioner finds that the licensee or any owner, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following: (1) Made any material misstatement in the application; (2) committed any fraud or misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any secondary mortgage loan transaction, including disclosures required by part III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled to such information; (3) violated any of the provisions of sections 36a-510 to 36a-524, inclusive, parts I, III and V of chapter 669, sections 46a-65 to 46a-67, inclusive, or section 46a-98, or of any regulations adopted pursuant thereto; or (4) failed to perform [a written] any agreement with a borrower.

(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-510 to 36a-524, inclusive, or any licensee has failed to perform any agreement with a borrower, the commissioner may take action against such person or licensee in accordance with section 36a-50.

Sec. 4. Section 36a-545 of the general statutes is repealed and the following is substituted in lieu thereof:

Each applicant or licensee shall have established bookkeeping methods and shall keep books and records at the place of business specified in the license in a form and manner satisfactory to the commissioner, or shall make such books and records available at such place of business not later than five business days after requested by the commissioner. All such books and records shall be preserved for at least two years after the making of the final entry therein.

Sec. 5. Section 36b-23 of the general statutes, as amended by section 5 of public act 99-38, is repealed and the following is substituted in lieu thereof:

No person shall make or cause to be made orally or in any document filed with the commissioner or in any proceeding, investigation or examination under sections 36b-2 to 36b-33, inclusive, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.

Sec. 6. Section 36b-80 of the general statutes, as amended by section 9 of public act 99-38, is repealed and the following is substituted in lieu thereof:

No person shall make or cause to be made orally or in any document filed with the commissioner or in any proceeding, investigation or examination under sections 36b-60 to 36b-80, inclusive, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.

Sec. 7. (NEW) No licensee shall, in connection with the activity for which such person is licensed: (1) Employ any device, scheme or artifice to defraud; (2) make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading, or (3) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.

Sec. 8. Section 3 of public act 99-158 is repealed and the following is substituted in lieu thereof:

No person shall make or cause to be made orally or in any document filed with the commissioner or in any proceeding, investigation or examination under this title, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.

Sec. 9. This act shall take effect July 1, 2000.

Approved May 16, 2000