Sec. 36a-2. (Formerly Sec. 36-2). Definitions.
Sec. 36a-2. (Formerly Sec. 36-2). Definitions. As used in this title, unless the
context otherwise requires:
(1) "Affiliate" of a person means any person controlling, controlled by, or under
common control with, that person;
(2) "Applicant" with respect to any license or approval provision pursuant to this
title means a person who applies for that license or approval;
(3) "Automated teller machine" means a stationary or mobile unattended device,
including a satellite device but excluding a point of sale terminal, at which banking
transactions, including, but not limited to, deposits, withdrawals, advances, payments
or transfers, may be conducted;
(4) "Bank" means a Connecticut bank or a federal bank;
(5) "Bank and trust company" means an institution chartered or organized under
the laws of this state as a bank and trust company;
(6) "Bank holding company" has the meaning given to that term in 12 USC Section
1841(a), as amended from time to time, except that the term "bank", as used in 12 USC
Section 1841(a) includes a bank or out-of-state bank that functions solely in a trust or
fiduciary capacity;
(7) "Capital stock" when used in conjunction with any bank or out-of-state bank
means a bank or out-of-state bank that is authorized to accumulate funds through the
issuance of its capital stock;
(8) "Client" means a beneficiary of a trust for whom the Connecticut bank acts as
trustee, a person for whom the Connecticut bank acts as agent, custodian or bailee, or
other person to whom a Connecticut bank owes a duty or obligation under a trust or other
account administered by such Connecticut bank, regardless of whether such Connecticut
bank owes a fiduciary duty to the person;
(9) "Club deposit" means deposits to be received at regular intervals, the whole
amount deposited to be withdrawn by the owner or repaid by the bank in not more than
fifteen months from the date of the first deposit, and upon which no interest or dividends
need to be paid;
(10) "Commissioner" means the Banking Commissioner and, with respect to any
function of the commissioner, includes any person authorized or designated by the commissioner to carry out that function;
(11) "Company" means any corporation, joint stock company, trust, association,
partnership, limited partnership, unincorporated organization, limited liability company
or similar organization, but does not include (A) any corporation the majority of the
shares of which are owned by the United States or by any state, or (B) any trust which
by its terms shall terminate within twenty-five years or not later than twenty-one years
and ten months after the death of beneficiaries living on the effective date of the trust;
(12) "Connecticut bank" means a bank and trust company, savings bank or savings
and loan association chartered or organized under the laws of this state;
(13) "Connecticut credit union" means a cooperative, nonprofit financial institution
that (A) is organized under chapter 667 and the membership of which is limited as
provided in section 36a-438a, (B) operates for the benefit and general welfare of its
members with the earnings, benefits or services offered being distributed to or retained
for its members, and (C) is governed by a volunteer board of directors elected by and
from its membership;
(14) "Connecticut credit union service organization" means a credit union service
organization that is incorporated under the laws of this state, located in this state and
established by at least one Connecticut credit union;
(15) "Consolidation" means a combination of two or more institutions into a new
institution; all institutions party to the consolidation, other than the new institution, are
"constituent" institutions; the new institution is the "resulting" institution;
(16) "Control" has the meaning given to that term in 12 USC Section 1841(a), as
amended from time to time;
(17) "Credit union service organization" means an entity organized under state or
federal law to provide credit union service organization services primarily to its members, to Connecticut credit unions, federal credit unions and out-of-state credit unions
other than its members, and to members of any such other credit unions;
(18) "Customer" means any person using a service offered by a financial institution;
(19) "Demand account" means an account into which demand deposits may be
made;
(20) "Demand deposit" means a deposit that is payable on demand, a deposit issued
with an original maturity or required notice period of less than seven days or a deposit
representing funds for which the bank does not reserve the right to require at least seven
days' written notice of the intended withdrawal, but does not include any time deposit;
(21) "Deposit" means funds deposited with a depository;
(22) "Deposit account" means an account into which deposits may be made;
(23) "Depositor" includes a member of a mutual savings and loan association;
(24) "Director" means a member of the governing board of a financial institution;
(25) "Equity capital" means the excess of a Connecticut bank's total assets over
its total liabilities, as defined in the instructions of the federal Financial Institutions
Examination Council for consolidated reports of condition and income;
(26) "Executive officer" means every officer of a Connecticut bank who participates
or has authority to participate, otherwise than in the capacity of a director, in major
policy-making functions of such bank, regardless of whether such officer has an official
title or whether that title contains a designation of assistant and regardless of whether
such officer is serving without salary or other compensation. The president, vice president, secretary and treasurer of such bank are deemed to be executive officers, unless,
by resolution of the governing board or by such bank's bylaws, any such officer is
excluded from participation in major policy-making functions, otherwise than in the
capacity of a director of such bank, and such officer does not actually participate in such
policy-making functions;
(27) "Federal agency" has the meaning given to that term in 12 USC Section 3101,
as amended from time to time;
(28) "Federal bank" means a national banking association, federal savings bank or
federal savings and loan association having its principal office in this state;
(29) "Federal branch" has the meaning given to that term in 12 USC Section 3101,
as amended from time to time;
(30) "Federal credit union" means any institution chartered or organized as a federal
credit union pursuant to the laws of the United States having its principal office in
this state;
(31) "Fiduciary" means a person undertaking to act alone or jointly with others
primarily for the benefit of another or others in all matters connected with its undertaking
and includes a person acting in the capacity of trustee, executor, administrator, guardian,
assignee, receiver, conservator, agent, custodian under the Connecticut Uniform Gifts
to Minors Act or the Uniform Transfers to Minors Act, and acting in any other similar
capacity;
(32) "Financial institution" means any Connecticut bank, Connecticut credit union,
or other person whose activities in this state are subject to the supervision of the commissioner, but does not include a person whose activities are subject to the supervision of
the commissioner solely pursuant to chapter 672a, 672b or 672c or any combination
thereof;
(33) "Foreign bank" has the meaning given to that term in 12 USC Section 3101,
as amended from time to time;
(34) "Foreign country" means any country other than the United States and includes
any colony, dependency or possession of any such country;
(35) "Governing board" means the group of persons vested with the management
of the affairs of a financial institution irrespective of the name by which such group is
designated;
(36) "Holding company" means a bank holding company or a savings and loan
holding company, except, as used in sections 36a-180 to 36a-191, inclusive, "holding
company" means a company that controls a bank;
(37) "Insured depository institution" has the meaning given to that term in 12 USC
Section 1813, as amended from time to time;
(38) "Licensee" means any person who is licensed or required to be licensed pursuant to the applicable provisions of this title;
(39) "Loan" includes any line of credit or other extension of credit;
(40) "Merger" means the combination of one or more institutions with another
which continues its corporate existence; all institutions party to the merger are "constituent" institutions; the merging institution which upon the merger continues its existence
is the "resulting" institution;
(41) "Mutual" when used in conjunction with any institution that is a bank or out-of-state bank means any such institution without capital stock;
(42) "Mutual holding company" means a mutual holding company organized under
sections 36a-192 to 36a-199, inclusive, and unless otherwise indicated, a subsidiary
holding company controlled by a mutual holding company organized under sections
36a-192 to 36a-199, inclusive;
(43) "Nationwide Mortgage Licensing System" means the nation-wide mortgage
licensing system implemented pursuant to a uniform mortgage licensing project under
the auspices of the Conference of State Bank Supervisors and the American Association
of Residential Mortgage Regulators;
(44) "Out-of-state" includes any state other than Connecticut and any foreign
country;
(45) "Out-of-state bank" means any institution that engages in the business of banking, but does not include a bank, Connecticut credit union, federal credit union or out-of-state credit union;
(46) "Out-of-state credit union" means any credit union other than a Connecticut
credit union or a federal credit union;
(47) "Out-of-state trust company" means any company chartered to act as a fiduciary but does not include a company chartered under the laws of this state, a bank, an
out-of-state bank, a Connecticut credit union, a federal credit union or an out-of-state
credit union;
(48) "Person" means an individual, company, including a company described in
subparagraphs (A) and (B) of subdivision (11) of this section, or any other legal entity,
including a federal, state or municipal government or agency or any political subdivision
thereof;
(49) "Point of sale terminal" means a device located in a commercial establishment
at which sales transactions can be charged directly to the buyer's deposit, loan or credit
account, but at which deposit transactions cannot be conducted;
(50) "Prepayment penalty" means any charge or penalty for paying all or part of
the outstanding balance owed on a loan before the date on which the principal is due
and includes computing a refund of unearned interest by a method that is less favorable
to the borrower than the actuarial method, as defined by Section 933(d) of the Housing
and Community Development Act of 1992, 15 USC 1615(d), as amended from time
to time;
(51) "Reorganized savings bank" means any savings bank incorporated and organized in accordance with sections 36a-192 and 36a-193;
(52) "Reorganized savings and loan association" means any savings and loan association incorporated and organized in accordance with sections 36a-192 and 36a-193;
(53) "Reorganized savings institution" means any reorganized savings bank or reorganized savings and loan association;
(54) "Representative office" has the meaning given to that term in 12 USC Section
3101, as amended from time to time;
(55) "Reserves for loan and lease losses" means the amounts reserved by a Connecticut bank against possible loan and lease losses as shown on the bank's consolidated
reports of condition and income;
(56) "Retail deposits" means any deposits made by individuals who are not "accredited investors", as defined in 17 CFR 230.501(a);
(57) "Satellite device" means an automated teller machine which is not part of an
office of the bank, Connecticut credit union or federal credit union which has established
such machine;
(58) "Savings account" means a deposit account, other than an escrow account
established pursuant to section 49-2a, into which savings deposits may be made and
which account must be evidenced by periodic statements delivered at least semiannually
or by a passbook;
(59) "Savings and loan association" means an institution chartered or organized
under the laws of this state as a savings and loan association;
(60) "Savings bank" means an institution chartered or organized under the laws of
this state as a savings bank;
(61) "Savings deposit" means any deposit other than a demand deposit or time
deposit on which interest or a dividend is paid periodically;
(62) "Savings and loan holding company" has the meaning given to that term in 12
USC Section 1467a, as amended from time to time;
(63) "Share account holder" means a person who maintains a share account in a
Connecticut credit union, federal credit union or out-of-state credit union that maintains
in this state a branch, as defined in section 36a-435b;
(64) "State" means any state of the United States, the District of Columbia, any
territory of the United States, Puerto Rico, Guam, American Samoa, the trust territory
of the Pacific Islands, the Virgin Islands and the Northern Mariana Islands;
(65) "State agency" has the meaning given to that term in 12 USC Section 3101,
as amended from time to time;
(66) "State branch" has the meaning given to that term in 12 USC Section 3101, as
amended from time to time;
(67) "Subsidiary" has the meaning given to that term in 12 USC Section 1841(d),
as amended from time to time;
(68) "Subsidiary holding company" means a stock holding company, controlled by
a mutual holding company, that holds one hundred per cent of the stock of a reorganized
savings institution;
(69) "Supervisory agency" means: (A) The commissioner; (B) the Federal Deposit
Insurance Corporation; (C) the Resolution Trust Corporation; (D) the Office of Thrift
Supervision; (E) the National Credit Union Administration; (F) the Board of Governors
of the Federal Reserve System; (G) the United States Comptroller of the Currency; and
(H) any successor to any of the foregoing agencies or individuals;
(70) "Time account" means an account into which time deposits may be made;
(71) "Time deposit" means a deposit that the depositor or share account holder does
not have a right and is not permitted to make withdrawals from within six days after the
date of deposit, unless the deposit is subject to an early withdrawal penalty of at least
seven days' simple interest on amounts withdrawn within the first six days after deposit,
subject to those exceptions permissible under 12 CFR Part 204, as amended from time
to time;
(72) "Trust bank" means a Connecticut bank organized to function solely in a fiduciary capacity; and
(73) "Uninsured bank" means a Connecticut bank that does not accept retail deposits
and for which insurance of deposits by the Federal Deposit Insurance Corporation or
its successor agency is not required.
(1949 Rev., S. 5732; 1967, P.A. 461, S. 6; 1969, P.A. 199, S. 1; P.A. 77-614, S. 161, 610; P.A. 78-121, S. 9, 113; P.A.
80-482, S. 233, 345, 348; P.A. 83-406, S. 2, 11; P.A. 87-9, S. 2, 3; P.A. 88-65, S. 6; P.A. 92-12, S. 1; P.A. 94-122, S. 2,
340; Oct. Sp. Sess. P.A. 94-1, S. 14, 21; P.A. 95-155, S. 2, 29; P.A. 97-223, S. 1, 8; P.A. 98-258, S. 1; P.A. 00-2, S. 1, 3;
P.A. 02-47, S. 1; 02-73, S. 1; P.A. 03-84, S. 23; 03-196, S. 1; P.A. 04-136, S. 1; P.A. 06-196, S. 216; P.A. 07-156, S. 2;
P.A. 08-176, S. 31, 33.)
History: 1967 act inserted new Subdiv. (f) defining "savings deposit", relettering former Subdivs. (f) to (h) accordingly
and adding references to savings accounts and deposits as necessary; 1969 act included deposits of savings and loan
associations in Subdiv. (c); P.A. 77-614 replaced bank commissioner with banking commissioner within the department
of business regulation and made banking department a division within that department, effective January 1, 1979; P.A.
78-121 deleted reference to moneys received by building associations in Subdiv. (a) and reference to deposits of private
bankers in Subdiv. (c); P.A. 80-482 restored banking division as independent department with banking commissioner as
its head and abolished the department of business regulation; P.A. 83-406 added definitions of "capital stock bank",
"national banking association", "capital stock savings bank", "capital stock savings and loan association", "mutual savings
bank", "eligibility record date", "eligible account holder" and "savings account"; (Revisor's note: Pursuant to P.A. 87-9
"banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 88-65 redefined
"account" and "deposit" by deleting references to industrial banks; P.A. 92-12 redesignated Subdivs; P.A. 94-122 consolidated, updated, alphabetized and added definitions, included "Connecticut bank" and "automated teller machine" and
expanded the definition of "commissioner", effective January 1, 1995; Oct. Sp. Sess. P.A. 94-1 added definitions of "federal
agency", "federal branch", "foreign bank", "representative office", "state agency" and "state branch" and renumbered
prior definitions as necessary, effective January 1, 1995; Sec. 36-2 transferred to Sec. 36a-2 in 1995; P.A. 95-155 added
the definition of "insured depository institution", redefined "state" to include any territory of the United States, Guam,
American Samoa, the trust territory of the Pacific Islands, the Virgin Islands and the Northern Mariana Island, and in the
definition of "savings and loan holding company" changed the citation from CFR to USC, effective June 27, 1995; P.A.
97-223 amended definitions of "mutual holding company", "reorganized savings bank" and "reorganized savings and loan
association" in Subdivs. (39), (45) and (46), respectively, effective June 24, 1997; P.A. 98-258 added new Subdiv. (43)
defining "out-of-state trust company" and redesignated existing Subdivs. (43) to (62) as Subdivs. (44) to (63); P.A. 00-2
made technical changes to definitions of "commissioner" in Subdiv. (9), "consolidation" in Subdiv. (13) and "merger" in
Subdiv. (37), and redefined "holding company" in Subdiv. (33) by deleting references to bank holding company and savings
and loan holding company and adding "a company that controls a bank", effective April 18, 2000; P.A. 02-47 redefined
"mutual holding company", "reorganized savings bank" and "reorganized savings and loan association", added definition of
"subsidiary holding company" and renumbered the subdivisions accordingly, effective May 9, 2002; P.A. 02-73 redefined
"Connecticut credit union" and "time deposit", added definitions of "Connecticut credit union service organization" and
"credit union service organization" and renumbered the subdivisions accordingly; P.A. 03-84 changed "Commissioner of
Banking" to "Banking Commissioner" in Subdiv. (9), effective June 3, 2003; P.A. 03-196 defined "share account holder"
in new Subdiv. (59) and redesignated existing Subdivs. (59) to (66), inclusive, as Subdivs. (60) to (67), inclusive, effective
July 1, 2003; P.A. 04-136 added definitions of "client" in new Subdiv. (8), "retail deposits" in new Subdiv. (54), "trust
bank" in new Subdiv. (70) and "uninsured bank" in new Subdiv. (71), renumbered existing Subdivs. accordingly and made
technical changes, effective May 12, 2004; P.A. 06-196 made a technical change in Subdiv. (47), effective June 7, 2006;
P.A. 07-156 added new Subdiv. (43) defining "national mortgage licensing system" and redesignated existing Subdivs.
(43) to (71) as Subdivs. (44) to (72), effective September 30, 2008; P.A. 08-176 changed effective date of P.A. 07-156, S.
2, from September 30, 2008, to July 1, 2008, changed defined term in Subdiv. (43) from "national mortgage licensing
system" to "Nationwide Mortgage Licensing System", added new Subdiv. (50) defining "prepayment penalty", renumbered
existing Subdivs. (50) to (72) as Subdivs. (51) to (73), and made technical changes, effective July 1, 2008.
See Sec. 1-1 for definitions of "banks", "savings banks" and "deposit account".