Sec. 32-530. Definitions.
Sec. 32-530. Definitions. As used in sections 32-530 to 32-540, inclusive:
(1) "Exempt company" means a corporation organized pursuant to the laws of this
state or qualified to do business as a foreign corporation in this state and which (A) does
not engage in the active conduct of a trade or business anywhere in the United States,
except as provided in sections 32-530 to 32-540, inclusive, (B) elects to be an exempt
company in accordance with said sections, (C) has its headquarters in and conducts all
of its exempt activities in the United States, to the extent such activities are permitted
under said sections, from locations within the Insurance and Financial Services Export
Zone, (D) is an exempt banking company, an exempt insurer or an exempt investment
company, and (E) includes the initials "IFSEZ" or the words "Insurance and Financial
Services Export Zone" in its corporate name;
(2) "Internal revenue code" means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time
amended;
(3) "Exempt banking company" means an exempt company that is a majority-owned subsidiary of a bank, out-of-state bank or foreign bank, as defined in section
36a-2, whose customers are non-United-States persons and which is not authorized to
make loans or borrow money in the United States and which conducts no business other
than that of an exempt company;
(4) "Exempt insurer" means an exempt company which is an alien insurer or domestic insurer, as defined in section 38a-1, whose policy holders are non-United-States
persons and which only insures risks located outside of the United States and which
conducts no business other than that of an exempt company;
(5) "Exempt investment company" means (A) a mutual fund investment company
that is an exempt company the principal business of which is trading in stocks or securities for its own account whose customers are non-United-States persons and which
conducts no business other than that of an exempt company, or (B) a mutual fund management company that is an exempt company which develops, services and manages
mutual funds for non-United-States persons or exempt mutual fund investment companies and which conducts no business other than that of an exempt company;
(6) "Exempt activities" means activities undertaken by an exempt company from
within the boundaries of the Insurance and Financial Services Export Zone with non-United-States persons, including, but not limited to, the earnings or receipt of interest
on deposits with banks or on amounts held by an insurance company under an agreement
to pay interest thereon, the earnings or receipt of interest or dividends from another
exempt company and the realization of gain or loss from the sale or exchange or other
disposition of the stock of another exempt company, activities within the state provided
the activities are a required part of the business of the exempt company and includes,
without limitation, the following: (A) Communicating with depositors, customers or
policy holders, all of which are non-United-States persons or shareholders, including
the furnishing of financial reports, providing services or managing customer accounts;
(B) communicating with the general public; (C) soliciting sales of its own stock; (D)
accepting the subscriptions of non-United-States persons as new stockholders; (E) maintaining its principal corporate records and books of accounts; (F) auditing its books of
accounts; (G) publishing or furnishing the offering and redemption price of the shares
of stock issued by it; (H) disbursing payments of dividends, legal fees, accounting fees
and salaries of officers and directors; (I) conducting meetings of its shareholders and
board of directors; (J) making redemptions of its own stock; and (K) engaging in what
would otherwise be nonexempt activities, provided such activities are ordinary, necessary and intended to carry out exempt activities;
(7) "Insurance and Financial Services Export Zone" means the geographic area
designated pursuant to section 32-531; and
(8) "Non-United-States person" means anyone other than a United States person,
as defined in Section 957(c) of the Internal Revenue Code.
(P.A. 96-253, S. 1, 12.)
History: P.A. 96-253 effective July 1, 1996, and applicable to (1) income years of corporations under chapter 208
commencing on or after January 1, 1996, (2) income years of insurance companies under chapter 207 commencing on or
after January 1, 1996, (3) taxable years of taxpayers under chapter 229 commencing on or after January 1, 1996, or (4)
sales occurring on and after January 1, 1996, as the case may be.