House Bill No. 6671

Public Act No. 99-18

An Act Concerning a Failure of the Critical Functions of Computer-Based Information Systems Maintained by Banks and Credit Unions.

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

Section 1. (NEW) (a) As used in this section, (1) "depository institution" means a Connecticut bank, an out-of-state bank that maintains in this state a branch, as defined in section 36a-410 of the general statutes, a Connecticut credit union or an out-of-state credit union doing business in this state, and (2) "information system" means (A) a computer-based information system owned or used by a depository institution including, but not limited to, any such system used for the management of loan or investment portfolios, savings or time deposits, general ledgers or personnel records, or (B) any critical interface or bridge to any such computer-based information system.

(b) From the effective date of this act to July 1, 2000, if the Commissioner of Banking finds that it is not reasonably possible for a depository institution to avoid, or to effectively protect itself against, a failure of one or more of the critical functions of an information system because (1) the depository institution has failed to develop adequate testing plans to resolve any date change problems related to the years 1999 and 2000, (2) the depository institution has failed to develop adequate contingency plans to ensure the ability of such depository institution to conduct business in the event of a failure of one or more of such critical functions, or (3) the implementation of adequate testing plans with respect to such information system has resulted in a failure of one or more of such critical functions and the depository institution has failed to develop adequate contingency plans to address such failure, the commissioner may seek any applicable remedy provided under sections 36a-50, 36a-52, 36a-53 and 36a-220, and subsection (e) of section 36a-464 of the general statutes, provided the limitations set forth in subdivisions (2) and (3) of subsection (c) of section 36a-53 of the general statutes do not apply to any action taken by the commissioner pursuant to this section. Any finding made by the commissioner pursuant to this section shall be considered a violation of this section for the purposes of sections 36a-50, 36a-52 and 36a-53 of the general statutes.

Sec. 2. This act shall take effect from its passage.

Approved May 12, 1999

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