Title 36a — Title 36a: The Banking Law of Connecticut

Sec. 36a-55. (Formerly Sec. 36-7). Derogatory statements affecting banks, out-of-state banks or credit unions. Any person who, wilfully and maliciously, makes, circulates or transmits to another any false statement, rumor or suggestion, written, printed or oral, which is, directl…

Sec. 36a-56. (Formerly Sec. 36-7a). False statement or report or overvaluing land, property or security. Any person who knowingly makes any false statement or report, or wilfully overvalues any land, property or security, with intent to defraud and for the purpose of influencing …

Sec. 36a-56a. Use of name or trademark of bank or credit union prohibited in commercial advertisements that may mislead consumers. Enforcement action. (a) No person shall use the name or trademark of a bank or any of its affiliates or any Connecticut credit union or federal credi…

Sec. 36a-57. (Formerly Sec. 36-8). Penalties for violation of banking law. (a) Any person who violates any provision of the banking law for which no other penalty is provided by law shall be fined not less than twenty-five dollars nor more than one thousand dollars for each offen…

Sec. 36a-58. (Formerly Sec. 36-9). Civil liability of officers. Any director or officer of a financial institution who violates or assents to a violation of any provision of this title shall be liable to the institution concerned for any loss resulting therefrom. (1949 Rev., S. 5…

Sec. 36a-59. Authority of commissioner to enter into stipulations, agreements, memoranda of understanding and consent orders and issue preliminary warning letters. (a) The commissioner may enter into one or more stipulations and agreements, memoranda of understanding or consent o…

Sec. 36a-60. Deposit of fines or civil penalties in General Fund. Any fines or civil penalties imposed by the Banking Commissioner or ordered by a court of competent jurisdiction in accordance with section 36a-50, 36a-53, 36b-27 or 36b-72 and any late fees received by the commiss…

Secs. 36a-61 to 36a-64. Reserved for future use. PART V FEES AND CHARGES

Sec. 36a-65. (Formerly Sec. 36-12a). Assessment of expenses of Department of Banking. State Banking Fund. Fees. (a)(1) Except as provided in subsection (e) of this section, the commissioner shall annually, on or after July first for the fiscal year commencing on said July first, …

Secs. 36a-66 to 36a-69. Reserved for future use.

Sec. 36a-70. (Formerly Sec. 36-53). Organization of Connecticut banks. Interim banks. Expedited Connecticut banks. Bankers' banks. Community banks. Community development banks. Innovation banks. (a) One or more persons may organize a Connecticut bank. (b) Except as otherwise prov…

Sec. 36a-71. (Formerly Sec. 36-54). Franchise not transferable; forfeiture. The right of any Connecticut bank to conduct the business for which it was organized shall not be transferable. This right shall be forfeited when such bank voluntarily ceases to conduct the business for …

Sec. 36a-72. (Formerly Sec. 36-61). General statutes to prevail. The provisions of the general statutes shall prevail over any inconsistent charter provision of any Connecticut bank. (1949 Rev., S. 5785; P.A. 94-122, S. 37, 340.) History: P.A. 94-122 made technical changes, effec…

Sec. 36a-73. Applicability of title 33. The provisions of this title shall prevail over any inconsistent provision of title 33 governing the corporate administration and procedure of a Connecticut bank. The provisions of said title 33, unless inapplicable by their terms, shall go…

Secs. 36a-74 to 36a-79. Reserved for future use. PART II CORPORATE FORM. ADMINISTRATION

Sec. 36a-80. (Formerly Sec. 36-62). Bylaws. Amendment to certificate of incorporation. Upon the adoption of the bylaws or of any amendment or repeal of such bylaws or any amendment to the certificate of incorporation by any Connecticut bank, a copy of the bylaws, amendment or rep…

Sec. 36a-81. (Formerly Sec. 36-64). Relocation of main office. (a) With the approval of the commissioner, a Connecticut bank may relocate its main office anywhere within the state. (b) The commissioner, before granting an approval under subsection (a) of this section, shall consi…

Sec. 36a-82. (Formerly Sec. 36-87). Change of name. (a) Any capital stock Connecticut bank, after an affirmative vote of at least two-thirds of the issued and outstanding stock of each class at a meeting noticed and called for the purpose of changing its name, as certified by the…

Sec. 36a-83. (Formerly Sec. 36-90). Examination by shareholders. The shareholders of any capital stock Connecticut bank may examine the records of such bank in accordance with section 33-946. (1949 Rev., S. 5809; P.A. 85-188, S. 5; 85-379, S. 11; P.A. 94-122, S. 42, 340; P.A. 96-…

Sec. 36a-84. (Formerly Sec. 36-117a). Amendment of charter of mutual savings banks. The charter of a mutual savings bank granted by a special act of the General Assembly may be amended in the manner provided under part XII of chapter 602 for the amendment of the certificate of in…

Sec. 36a-85. (Formerly Sec. 36-175). Savings and loans' depositors' votes. No depositor of any savings and loan association shall be entitled to more than one vote in any meeting of such association. (1949 Rev., S. 5897; P.A. 78-121, S. 41, 113; P.A. 94-122, S. 44, 340.) History:…

Sec. 36a-86. (Formerly Sec. 36-128). Audit by accountants; governing board liability. Subsidiaries of holding companies; consolidated reports. (a) The governing board of each Connecticut bank shall annually procure an audit or examination by certified public accountants or holder…

Secs. 36a-87 to 36a-94. Reserved for future use. PART III DIRECTORS AND OFFICERS

Sec. 36a-95. (Formerly Sec. 36-9c). Interlocking directors. With the approval of the commissioner, a Connecticut bank or a holding company that controls a Connecticut bank may have as an officer, employee or director a person who serves as an officer, employee, or director of any…

Sec. 36a-96. (Formerly Sec. 36-9e). Bonds of officers and employees. The governing board of each Connecticut bank, or out-of-state bank other than a federally-chartered out-of-state bank that maintains in this state a branch as defined in section 36a-410, shall require that each …

Sec. 36a-97. (Formerly Sec. 36-9ee). Limitation on liability of directors of banks and credit unions. The certificate of incorporation or charter of a bank, Connecticut credit union or federal credit union may contain a provision limiting the personal liability of a director to t…

Sec. 36a-98. (Formerly Sec. 36-69). Compensation for attending committee meetings, auditing and appraising. Compensation to director or trustee for endorsing paper, recommending loans and selling Connecticut bank stocks and securities prohibited. (a) The governing board of any Co…

Sec. 36a-99. (Formerly Sec. 36-121). Removal of corporator of a mutual savings bank. A corporator of a mutual savings bank may be removed at the annual meeting of the corporators, provided written notice is given to the corporators at least ten days before the meeting at which su…

Sec. 36a-250. Powers of Connecticut banks. (a) Except as otherwise provided in subsection (b) of this section, a Connecticut bank may: (1) Transact a general banking business and exercise by its governing board or duly authorized officers or agents, subject to applicable law, all…

Sec. 36a-250a. Connecticut banks and Connecticut credit unions. Funds deposited by licensees and state agencies. Any Connecticut bank or Connecticut credit union, each as defined in section 36a-2, may accept and store funds deposited by any entity licensed by the Department of Ba…

Sec. 36a-251. Transactions requiring commissioner's approval. Maximum aggregate investments. Section 36a-251 is repealed. (P.A. 94-122, S. 116, 340; P.A. 95-70, S. 1, 8; P.A. 96-44, S. 9.)

Sec. 36a-251a. Actions taken pursuant to commissioner's discretionary powers. Annual report. The commissioner shall submit an annual report to the joint standing committee of the General Assembly having cognizance of matters relating to banks and credit unions no later than Janua…

Secs. 36a-252 and 36a-252a. Transferred to Chapter 664c, Part II, Secs. 36a-139 and 36a-139a.

Sec. 36a-253. Definitions. Designation of trusted contact person. Suspension of transaction or disbursement re financial exploitation. Immunity. (a) As used in this section: (1) “Account” means a customer asset or liability account, including, but not limited to, a safe deposit b…

Secs. 36a-254 to 36a-259. Reserved for future use. PART II LOANS

Sec. 36a-260. Loans. Loan policies. Loan review policies. Assessment of loan reviews. (a) A Connecticut bank may make secured and unsecured loans, except as otherwise expressly limited by sections 36a-261 to 36a-266, inclusive. (b) At least once a year, the governing board of eac…

Sec. 36a-261. (Formerly Sec. 36-99). Mortgage loans. (a) As used in this section, the term “mortgage loan” means a loan, line of credit or letter of credit secured wholly or substantially by a lien on or interest in real estate, including a leasehold interest, for which the lien …

Sec. 36a-262. (Formerly Sec. 36-98b). Limitations on liabilities of any one obligor. Exemptions. (a) Except as otherwise provided in this section, the total direct or indirect liabilities of any one obligor that are not fully secured, however incurred, to any Connecticut bank, ex…

Sec. 36a-263. Insider loans. (a) As used in this section, “executive officer” has the meaning given to such term in Section 215.2 of Federal Reserve Board Regulation O, 12 CFR Part 215, as from time to time amended. With the exception of Section 215.7 of Federal Reserve Board Reg…

Sec. 36a-264. (Formerly Sec. 36-68). Loans secured by own stock or stock of holding company prohibited. Exception. A capital stock Connecticut bank shall not make any loan on or discount any paper secured by a pledge of its own stock or of the stock of a holding company of which …

Sec. 36a-265. (Formerly Sec. 36-9g). Alternative mortgage loan. (a)(1) “Mortgage loan” means a loan secured by a first mortgage on one, two, three or four family, owner-occupied residential real property; (2) “Standard mortgage loan” means a mortgage loan authorized by section 36…

Sec. 36a-266. (Formerly Sec. 36-101). Investment in loans for repairs or reconstruction of property damaged by emergency. A Connecticut bank may invest its assets in loans, the proceeds of which are to be used solely for the repair or reconstruction of property damaged as a resul…

Sec. 36a-267. Reverse annuity mortgage loans. Counseling, certification requirements. Penalties for violations. (a) No entity, including, but not limited to, any state or federally chartered bank or state or federally chartered credit union, shall accept a final and complete appl…

Secs. 36a-268 to 36a-274. Reserved for future use. PART III INVESTMENTS

Sec. 36a-275. Investments in debt securities and debt mutual funds. (a) As used in this section, the term “debt securities” means (1) any marketable obligation evidencing indebtedness of any person in the form of direct, assumed or guaranteed bonds, notes or debentures or any sec…

Sec. 36a-276. Investments in equity securities and equity mutual funds. (a) As used in this section: (1) “Equity security” means any stock or similar security, certificate of interest or participation in any profit-sharing agreement, preorganization certificate or subscription, t…

Sec. 36a-277. Social purpose investments. (a) In addition to other investments authorized by sections 36a-275, and 36a-276, this section and section 36a-280, any Connecticut bank may purchase or hold for its own account the following securities, without regard to any other liabil…

Secs. 36a-278 and 36a-279. Investment in commercial paper. Leeway. Sections 36a-278 and 36a-279 are repealed. (P.A. 94-122, S. 127, 128, 340; P.A. 95-70, S. 6, 8; P.A. 96-44, S. 9.)

Sec. 36a-280. Investment policy of bank governing board. Review by board. (a) At least once a year, the governing board of each Connecticut bank shall adopt an investment policy governing investments made pursuant to sections 36a-275 to 36a-277, inclusive. No Connecticut bank sha…

Secs. 36a-281 to 36a-284. Reserved for future use. PART IV MISCELLANEOUS POWERS. LIMITATIONS