Substitute Senate Bill No. 899
          Substitute Senate Bill No. 899

               PUBLIC ACT NO. 97-33


AN    ACT    CONCERNING   COMMUNITY   REINVESTMENT
REQUIREMENTS FOR CERTAIN TRANSACTIONS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  36a-34  of  the  general  statutes is
repealed and the following is substituted in  lieu
thereof:
    (a)   As   used  in  subsection  (b)  of  this
section:
    (1)    "Entity"   means   the   applicant   or
applicants except,  [:  (A)  In  the  case  of  an
approval  pursuant  to  section  36a-181, "entity"
means the subsidiaries of the parent  corporation,
if  any,  and  the  parent corporation, if it is a
bank or out-of-state bank; and (B)] in the case of
an  approval pursuant to section 36a-411, "entity"
means the subsidiaries of  the  applicant  holding
company.
    (2)  "Resulting entity" means: (A) In the case
of an approval pursuant  to  section  36a-145  AND
SUBDIVISION  (2)  OF  SUBSECTION  (a)  OF  SECTION
36a-412, the applicant; (B)  in  the  case  of  an
approval   pursuant   to   section   36a-125,  the
resulting Connecticut bank; (C) in the case of  an
approval   pursuant   to   section   36a-181,  the
[subsidiary] Connecticut bank; (D) in the case  of
an  approval  pursuant  to  section  36a-411,  the
[institution] BANK to be acquired or  established;
and  (E)  in  the  case of an approval pursuant to
SUBDIVISION  (1)  OF  SUBSECTION  (a)  OF  section
36a-412,  the bank to be acquired or the resulting
bank.
    (3)  "Federal CRA" shall have the same meaning
as set forth in subsection (a) of section 36a-30.
    (b)  The  commissioner  shall  not  grant  any
approval under section 36a-125,  subsections  (b),
[and]  (c)  AND  (d)  of  section 36a-145, section
36a-181, SECTION 36a-411 or SUBDIVISIONS  (1)  AND
(2)  OF  SUBSECTION  (a) OF SECTION 36a-412 unless
the  commissioner  finds,   in   accordance   with
regulations  adopted  pursuant to chapter 54, that
(1)  BASED   ON   THE   MOST   RECENT   APPLICABLE
PERFORMANCE EVALUATION AND ANY RELATED INFORMATION
REQUIRED BY THE COMMISSIONER,  the  entity  has  a
record  of  compliance  with  the  requirements of
federal CRA, sections 36a-30 to 36a-33, inclusive,
to  the extent applicable, and applicable consumer
protection  laws;  and  [that]   (2)   EXCEPT   AS
OTHERWISE  PROVIDED  IN  THIS  SUBSECTION,  IF THE
ENTITY, AND IN THE CASE OF AN APPROVAL PURSUANT TO
SECTION  36a-411,  THE BANK OR ANY SUBSIDIARY BANK
OF THE CONNECTICUT HOLDING COMPANY,  RECEIVED  ANY
OVERALL  RATING  OTHER  THAN AN ASSIGNED RATING OF
"OUTSTANDING"  ON  ITS  MOST   RECENT   APPLICABLE
COMMUNITY REINVESTMENT PERFORMANCE EVALUATION, the
resulting entity will provide adequate services to
meet the banking needs of all community residents,
including low-income residents and moderate-income
residents  to the extent permitted by its charter,
in  accordance  with  a  plan  submitted  by   the
applicant  to  the  commissioner, in such form and
containing such information  as  the  commissioner
may    require,   or,   if   acceptable   to   the
commissioner,  in  accordance  with  an   approved
strategic  plan prepared under federal CRA, or the
relevant portion thereof, that is submitted by the
applicant  to the commissioner. Upon receiving any
such plan, the commissioner shall  make  the  plan
available for public inspection and comment at the
Department of Banking  and  cause  notice  of  its
submission  and  availability  for  inspection and
comment to be published in the department's weekly
bulletin.    With    the    concurrence   of   the
commissioner, the applicant  or  applicants  shall
publish, in the form of a legal advertisement in a
newspaper having a substantial circulation in  the
area,   notice   of  such  plan's  submission  and
availability for public  inspection  and  comment.
The  notice  shall  state  that the inspection and
comment period will last for a  period  of  thirty
days   from   the   date   of   publication.   The
commissioner shall not make such finding until the
expiration  of  such  thirty-day period. In making
such  finding,  the  commissioner  shall,   unless
clearly   inapplicable,   consider,   among  other
factors,  whether  the  plan  identifies  specific
unmet  credit  and  consumer  banking needs in the
local community and specifies how such needs  will
be satisfied, provides for sufficient distribution
of banking services among  branches  or  satellite
devices,    or   both,   located   in   low-income
neighborhoods, contains adequate  assurances  that
banking    services   will   be   offered   on   a
nondiscriminatory   basis   and   demonstrates   a
commitment  to  extend  credit  for housing, small
business  and  consumer  purposes  in   low-income
neighborhoods.  THE  SUBMISSION OF SUCH PLAN SHALL
NOT BE REQUIRED IN THE CASE OF AN  APPROVAL  UNDER
SUBSECTION  (d)  OF SECTION 36a-145, PROVIDED, THE
COMMISSIONER  MAY  REQUIRE  THE  FILING  OF   SUCH
INFORMATION  IN LIEU OF A PLAN AS THE COMMISSIONER
DEEMS  APPROPRIATE.  Except  with  respect  to  an
approval  pursuant  to  [section] SECTIONS 36a-145
AND 36a-181, the commissioner  shall  not  approve
the transaction if the transaction would result in
a monopoly, or would  be  in  furtherance  of  any
combination or conspiracy to monopolize or attempt
to monopolize the  business  of  banking  in  this
state  or  if the commissioner determines that the
effect of  the  proposed  transaction  may  be  to
substantially lessen competition, or would tend to
create a monopoly, or would  be  in  restraint  of
trade,  unless  the  commissioner  finds  that the
anticompetitive   effects    of    the    proposed
transaction  are  clearly outweighed in the public
interest by the probable effect of the transaction
in  meeting  the  convenience  and  needs  of  the
community to be served.
    (c)   The   commissioner   shall  not  make  a
determination stating that the  commissioner  does
not  disapprove  an  offer,  invitation,  request,
agreement  or  acquisition  pursuant  to   section
36a-185   unless   the   commissioner   finds,  in
accordance with regulations  adopted  pursuant  to
chapter  54,  that  (1)  BASED  ON THE MOST RECENT
APPLICABLE PERFORMANCE EVALUATION AND ANY  RELATED
INFORMATION  REQUIRED  BY  THE  COMMISSIONER,  the
acquiring person, if such  person  is  a  bank  or
out-of-state  bank,  and  the  acquiring  person's
subsidiaries, if such person is a holding company,
has  a  record of compliance with the requirements
of  federal  CRA,  sections  36a-30   to   36a-33,
inclusive,   to   the   extent   applicable,   and
applicable consumer protection  laws;  and  [that]
(2)  IF the bank or [the banking subsidiaries] ANY
BANKING SUBSIDIARY of the holding company referred
to  in  the  acquisition  statement  RECEIVED  ANY
OVERALL RATING OTHER THAN AN  ASSIGNED  RATING  OF
"OUTSTANDING"   ON   ITS  MOST  RECENT  APPLICABLE
COMMUNITY  REINVESTMENT  PERFORMANCE   EVALUATION,
SUCH  BANK  OR  BANKING  SUBSIDIARY  will  provide
adequate services to meet the banking needs of all
community    residents,    including    low-income
residents and  moderate-income  residents  to  the
extent permitted by its charter or their charters.
If the acquiring person is not a  natural  person,
or if the acquiring person is a natural person who
would be the beneficial owner of  twenty-five  per
cent  or more of any class of voting securities of
the bank or holding company  referred  to  in  the
acquisition  statement,  the  finding  as  to  the
adequacy of services to be provided shall be based
on a plan submitted by the acquiring person to the
commissioner, in such  form  and  containing  such
information  as  the commissioner may require, or,
if acceptable to the commissioner,  in  accordance
with  an  approved  strategic  plan prepared under
federal CRA, or the relevant portion thereof, that
is  submitted  by  the  acquiring  person  to  the
commissioner. Upon receiving any  such  plan,  the
commissioner  shall  make  the  plan available for
public inspection and comment at the Department of
Banking  and  cause  notice  of its submission and
availability for  inspection  and  comment  to  be
published  in  the  department's  weekly bulletin.
With the  concurrence  of  the  commissioner,  the
acquiring  person  shall publish, in the form of a
legal  advertisement  in  a  newspaper  having   a
substantial  circulation  in  the  area, notice of
such plan's submission and availability for public
inspection  and  comment.  The  notice shall state
that the inspection and comment period  will  last
for  a  period  of  thirty  days  from the date of
publication. The commissioner shall not make  such
finding  until  the  expiration of such thirty-day
period. In making such finding,  the  commissioner
shall  consider,  among other factors, whether the
plan identifies specific unmet credit and consumer
banking needs in the local community and specifies
how such needs will  be  satisfied,  provides  for
sufficient  distribution of banking services among
branches or satellite devices, or both, located in
low-income    neighborhoods,   contains   adequate
assurances that banking services will  be  offered
on  a  nondiscriminatory  basis and demonstrates a
commitment to extend  credit  for  housing,  small
business   and  consumer  purposes  in  low-income
neighborhoods.  If  the  acquiring  person  is   a
natural  person  who would be the beneficial owner
of less than twenty-five per cent of  all  classes
of  voting  securities  of  the  bank  or  holding
company referred to in the acquisition  statement,
the  commissioner  shall  make  the  finding as to
adequacy of services to be provided based  on  the
commitment  of  the  acquiring  person  to use the
acquiring person's best efforts to cause such bank
or banking subsidiaries of such holding company to
provide such services. The commissioner shall  not
make a determination stating that the commissioner
does  not  disapprove  such   offer,   invitation,
request,  agreement  or acquisition if such offer,
invitation,  request,  agreement  or   acquisition
would  result  in  a  monopoly,  or  would  be  in
furtherance of any combination  or  conspiracy  to
monopolize  or  attempt to monopolize the business
of banking in this state or  if  the  commissioner
should  determine  that the effect of the proposed
offer,   invitation,   request,    agreement    or
acquisition   may   be   to  substantially  lessen
competition, or would tend to create  a  monopoly,
or  would  be  in  restraint  of trade, unless the
commissioner  finds   that   the   anticompetitive
effects  of  the  proposed transaction are clearly
outweighed in the public interest by the  probable
effect   of   the   transaction   in  meeting  the
convenience and  needs  of  the  community  to  be
served.

Approved May 6, 1997