Sec. 36a-145. (Formerly Sec. 36-59). Branches, limited branches and mobile branches. Establishment, operation, conversion, closing, relocation, consolidation and sale.
Sec. 36a-145. (Formerly Sec. 36-59). Branches, limited branches and mobile
branches. Establishment, operation, conversion, closing, relocation, consolidation
and sale. (a) As used in this section:
(1) "Branch" means any office at a fixed location of a Connecticut bank, other than
the main office, at which deposits are received, checks paid and money lent and which,
at a minimum, is open for banking business Monday through Friday, except as provided
in subsection (a) of section 36a-23.
(2) "Commercial activities" means activities in which a bank holding company, as
defined in 12 USC 1841(a)(1), a financial holding company, as defined in 12 USC
1841(p), a national banking association established under 12 USC 21, or a financial
subsidiary of a national bank established under 12 USC 24a, may not engage under
federal law.
(3) "Consolidate" means to combine within the same neighborhood, without substantially affecting the nature of the business or customers served, (A) two or more
branches into a single branch; (B) one or more branches and one or more limited branches
into a single branch or limited branch; (C) two or more limited branches into a single
limited branch; or (D) one or more branches or limited branches into a main office.
(4) "Limited branch" means any office at a fixed location of a Connecticut bank
at which banking business is conducted other than the main office, branch or mobile
branch.
(5) "Mobile branch" means any office of a Connecticut bank at which banking
business is conducted which is in fact moved or transported to one or more predetermined
locations in accordance with a predetermined schedule.
(6) "Relocate" means to move within the same immediate neighborhood without
substantially affecting the nature of the business or customers served.
(b) (1) With the approval of the commissioner, any Connecticut bank may establish
a branch in this state. The commissioner shall not approve the establishment of a branch
under this subsection unless the commissioner considers whether: (A) Establishment
of the branch is consistent with safe and sound banking practices; and (B) the branch
will promote the public convenience and advantage. The commissioner shall not approve
the establishment of any branch under this subsection unless the commissioner makes the
findings required under section 36a-34. No Connecticut bank may establish or maintain a
branch in this state on the premises or property of an affiliate of such bank if the affiliate
engages in commercial activities.
(2) For a period of three years following the issuance of its final certificate of authority pursuant to subsection (l) of section 36a-70, a Connecticut bank may, with thirty
days' prior notice to the commissioner, establish a branch in this state if the proposed
branch was approved as part of the application to organize such bank, unless the commissioner requires an approval pursuant to subdivision (1) of this subsection.
(3) With the approval of the commissioner, any Connecticut bank may convert a
limited branch in this state to a branch. The commissioner shall not approve a conversion
under this subdivision unless the commissioner considers such factors and makes such
findings under subdivision (1) of this subsection as the commissioner deems applicable.
(c) (1) With the approval of the commissioner, any Connecticut bank may establish
in this state a limited branch that provides limited services or is open for limited time
periods. The commissioner shall not approve the establishment of a limited branch under
this subdivision unless the commissioner considers such factors and makes such findings
under subdivision (1) of subsection (b) of this section as the commissioner deems applicable. The commissioner shall approve such establishment if the commissioner determines that: (A) The interest of the neighborhood where the limited branch is to be located
will be served to advantage by the establishment of the proposed branch, and (B) the
proposed products, services and banking hours are appropriate to meet the convenience
and needs of the neighborhood. No Connecticut bank may establish or maintain a limited
branch in this state on the premises or property of an affiliate of such bank if the affiliate
engages in commercial activities.
(2) For a period of three years following the issuance of its final certificate of authority pursuant to subsection (l) of section 36a-70, a Connecticut bank may, with thirty
days' prior notice to the commissioner, establish a limited branch in this state if the
proposed limited branch was approved as part of the application to organize such bank,
unless the commissioner requires an approval pursuant to subdivision (1) of this subsection.
(3) With the approval of the commissioner, any Connecticut bank may convert a
branch in this state to a limited branch. The commissioner shall not approve a conversion
under this subdivision unless the commissioner considers such factors and makes such
findings under subdivision (1) of subsection (b) of this section as the commissioner
deems applicable, and the commissioner determines that alternative banking services
are available in the neighborhood so that any reduction in services will not result in
unmet banking needs.
(4) With the approval of the commissioner, any Connecticut bank may establish in
this state a special need limited branch that provides limited services or is open for
limited time periods in order to meet a special need of the neighborhood in which such
limited branch is to be located. The commissioner shall not approve the establishment
of a special need limited branch under this subdivision unless the commissioner considers such factors and makes such findings and determinations under subdivision (1) of
this subsection as the commissioner deems necessary.
(5) A limited branch shall be conspicuously identified as a branch of the Connecticut
bank. The commissioner may condition the approval of such branch with any other
requirement that the commissioner deems necessary or appropriate for the protection
of depositors or the Connecticut bank.
(d) (1) With the approval of the commissioner for each predetermined location,
any Connecticut bank may establish in this state a mobile branch. The commissioner
shall not approve the establishment of a mobile branch under this subsection unless the
commissioner makes the considerations, findings and determinations required under
subdivision (1) of subsection (c) of this section, provided that in the case of a mobile
branch established in order to meet a special need of the neighborhood in which such
mobile branch is to be located, the commissioner shall not approve such establishment
unless the commissioner makes the considerations and determinations required under
subdivision (4) of subsection (c) of this section.
(2) A mobile branch shall be conspicuously identified as a branch of the Connecticut
bank. The commissioner may condition approval of such mobile branch with any other
requirement that the commissioner deems necessary or appropriate for the protection
of depositors or the Connecticut bank.
(e) Nothing in this section shall prohibit a Connecticut bank from establishing or
operating a branch, limited branch or mobile branch in the same or approximately the
same location as another depository institution, or continuing to operate as a branch,
limited branch or mobile branch in this state in the same or approximately the same
location, the business of any other depository institution which has been acquired by
the Connecticut bank.
(f) (1) A Connecticut bank which proposes to close any branch or limited branch
shall submit to the commissioner a notice of the proposed closing not later than the first
day of the ninety-day period ending on the date proposed for that closing. The notice
shall include a detailed statement of the reasons for the decision to close the branch or
limited branch and the statistical and other information in support of such reasons. After
receipt of the notice, the commissioner may require the Connecticut bank to submit any
additional information.
(2) The Connecticut bank shall provide notice of the proposed closing to its customers by:
(A) Posting a notice in a conspicuous manner on the premises of the branch or
limited branch proposed to be closed during a period not less than the thirty-day period
ending on the date proposed for that closing; and
(B) Including a notice in at least one of any regular account statements mailed to
customers of the branch or limited branch proposed to be closed or in a separate mailing,
by not later than the beginning of the ninety-day period ending on the date proposed for
that closing.
(3) (A) A Connecticut bank which proposes to close any mobile branch shall submit
to the commissioner a notice of the proposed closing not later than thirty days prior to
the date proposed for such closing. The notice shall include a detailed statement of the
reasons for the decision to close the mobile branch and the statistical and other information in support of such reasons. After receipt of the notice, the commissioner may require
the Connecticut bank to submit any additional information.
(B) A Connecticut bank which proposes to close any predetermined location of a
mobile branch shall notify the commissioner prior to the closing of such location.
(g) Any Connecticut bank may relocate within this state any branch or limited
branch established in this state in accordance with such notice to customers and other
requirements as the commissioner may prescribe, provided the bank submits written
notice to the commissioner not later than thirty days prior to the date of such relocation.
(h) Any Connecticut bank may consolidate within this state any branch, limited
branch or main office established in this state in accordance with such notice to customers
and other requirements as the commissioner may prescribe, provided the bank submits
written notice to the commissioner not later than thirty days prior to the date of such
consolidation.
(i) With the approval of the commissioner, a Connecticut bank may sell a branch,
limited branch or mobile branch established in this state to any bank, Connecticut credit
union or federal credit union. The selling Connecticut bank must have been in existence
and continuously operating for at least five years unless the commissioner waives this
requirement. The commissioner shall not approve such sale if such acquiring bank or
credit union, including all insured depository institutions which are affiliates of the bank
or credit union, upon consummation of the sale, would control thirty per cent or more
of the total amount of deposits of insured depository institutions in this state, unless
the commissioner permits a greater percentage of such deposits. Approval under this
subsection shall not be required if approval under section 36a-210 is required for
such sale.
(j) With the approval of the commissioner, a Connecticut bank may establish a
branch, limited branch or mobile branch outside of this state in accordance with applicable law. The commissioner shall not grant such approval, unless: (1) The commissioner
finds, in accordance with regulations adopted pursuant to chapter 54, that the Connecticut bank has a record of compliance with the requirements of the Community Reinvestment Act of 1977, 12 USC 2901 et seq., as from time to time amended, sections 36a-30 to 36a-33, inclusive, to the extent applicable, and applicable consumer protection
laws; (2) the Connecticut bank is adequately capitalized and the commissioner determines that it will continue to be adequately capitalized; and (3) the Connecticut bank
is adequately managed and the commissioner determines that it will continue to be
adequately managed. The commissioner may examine and supervise the out-of-state
branches of any such Connecticut bank and may enter into agreements with other state
or federal banking regulators or similar regulators in a foreign country concerning such
examinations or supervision. Any such agreement may include provisions concerning
the assessment or sharing of fees for such examination or supervision.
(k) Any Connecticut bank may relocate outside of this state any branch or limited
branch established outside of this state in accordance with such notice to customers
and other requirements as the commissioner may prescribe, provided the bank submits
written notice to the commissioner not later than thirty days prior to the date of such
relocation.
(l) Any Connecticut bank may consolidate outside of this state any branch or limited
branch established outside of this state in accordance with such notice to customers
and other requirements as the commissioner may prescribe, provided the bank submits
written notice to the commissioner not later than thirty days prior to the date of such
consolidation.
(m) With the approval of the commissioner, a Connecticut bank may sell a branch,
limited branch or mobile branch established outside of this state. The selling Connecticut
bank must have been in existence and continuously operating for at least five years
unless the commissioner waives this requirement. Approval under this subsection shall
not be required if approval under section 36a-210 is required for such sale.
(1949 Rev., S. 5783; 1951, 1955, S. 2651d; 1957, P.A. 88; 1959, P.A. 278; 1967, P.A. 318; 1969, P.A. 633, S. 1; 1971,
P.A. 224; P.A. 79-247, S. 1; P.A. 81-207, S. 1; P.A. 86-176, S. 1; P.A. 87-9, S. 2, 3; 87-205, S. 1, 6; P.A. 88-65, S. 53;
P.A. 90-2, S. 9, 20; 90-64, S. 1, 4; P.A. 92-12, S. 24; 92-17, S. 1, 7; P.A. 93-59, S. 3, 8; P.A. 94-122, S. 67, 340; Oct. Sp.
Sess. P.A. 94-1, S. 16, 21; P.A. 95-155, S. 12, 29; P.A. 96-191, S. 1, 6; P.A. 01-183, S. 5, 11; P.A. 02-47, S. 10; P.A. 03-196, S. 5; P.A. 05-39, S. 5; 05-47, S. 2; P.A. 07-14, S. 1.)
History: 1959 act amended (3) by changing "six months" to "three years"; 1967 act required that limited-power branch
cease operation within four rather than three years after opening of new state bank and trust company or national banking
association in Subsec. (3); 1969 act replaced previous provision re closing of limited-power branch with provision specifying that branch is not required to cease operation for "two years from July 1, 1969," provided the commissioner grants
his approval; 1971 act deleted requirement that branch bank must be backed by same amount as required to establish a
state bank and trust company in Subsec. (1)(b); P.A. 79-247 deleted requirement that capital and surplus of bank and
trust company desiring to operate a branch must exceed $1,000,000 in Subsec. (1)(b), deleted reference to acquisition by
consolidation or merger in Subsec. (1)(c) and specified applicability to acquisition by purchase under any provision of
statutes "other than section 36-30" and inserted new Subsecs. (4) and (5), renumbering former Subsec. (4) accordingly;
P.A. 81-207 added Subsec. (7) to define "banking institution"; P.A. 86-176 added Subsec. (8) to phase out home office
protection over a three-year period; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially
by the Revisors to "commissioner of banking"); P.A. 87-205 made a technical correction to Subsec. (6) by adding the
reference "or unless authorized under the provisions of chapter 662c"; P.A. 88-65 deleted an obsolete reference in Subsec.
(3) re the closing of limited power branches; P.A. 90-2 added Subsec. (9) re factors the commissioner of banking must
consider, and findings the commissioner must make, prior to approving any branch; P.A. 90-64 added Subsec. (10) re
establishment of coexisting branches; P.A. 92-12 redesignated Subsecs., Subdivs. and Subparas., and made technical
changes; P.A. 92-17 added provisions re the establishment and operation of limited service and limited hour branches,
deleted requirement for a combined capital and surplus of not less than $1,000,000 and related provisions, deleted former
Subsecs. (2) to (5) and (8), redesignated former Subsec. (1) as Subsec. (a) and deleted references to establishment of one
or more branches in certain towns in former Subdivs. (a) and (b), redesignated former Subsec. (7) as Subsec. (c), redesignated
former Subsec. (9) as Subsec. (d), redesignated former Subsec. (10) as Subsec. (e), and redesignated former Subsec. (6)
as Subsec. (f); P.A. 93-59 added new Subsec. (g) authorizing state bank and trust company to sell a branch to any state or
federal banking institution located in the state with the approval of the commissioner, effective May 10, 1993; P.A. 94-122 added new Subsec. (a) defining "branch", renumbered former Subsec. (a) as Subsec. (b), deleted Subsec. (a)(2) re the
standard for establishing limited branches, added Subsec. (b)(2) and (3) and Subsec. (c) re branch establishment, renumbered
former Subsec. (b) as Subsec. (c)(3), deleted Subsecs. (c) and (d), renumbered former Subsec. (e) as Subsec. (d), added
new Subsecs. (e) and (f) re branch closing and relocation, and renumbered former Subsecs. (f) and (g) as Subsecs. (g) and
(h), effective January 1, 1995; Oct. Sp. Sess. P.A. 94-1 transferred the language in former Subsec. (h) concerning the sale
of branches and limited branches to Subsec. (g) and designated former Subsec. (g), which prohibits out-of-state banks
from maintaining offices within the state, as Subsec. (h)(1) and added a new Subdiv. (2) excluding from the out-of-state
bank prohibitions in Subdiv. (1) a foreign bank establishing and maintaining a federal branch or state branch, provided
the foreign bank elects this state as its home state under the International Banking Act of 1978, or a federal agency, state
agency or representative office, effective January 1, 1995; Sec. 36-59 transferred to Sec. 36a-145 in 1995; P.A. 95-155
amended Subsec. (b)(2) and (d) to change references to banks and credit unions to "depository institutions", amended
Subsec. (g) to add five-year requirement and requirement re control of deposits, added new Subsec. (h) re a Connecticut
bank's establishing a branch or limited branch outside this state, renumbered former Subsec. (h) as (i), and made technical
change in Subsec. (a), effective June 27, 1995; P.A. 96-191 redefined "branch" and "limited branch" to refer to offices at
fixed locations, defined "mobile branch" and established provisions re mobile bank branches, and deleted former Subsec.
(i) re out-of-state banks, effective June 3, 1996; P.A. 01-183 added Subsec. (b)(4) re conversion of a limited branch to a
branch, added reference to special need in Subsec. (c)(2), and amended Subsec. (f) by adding provisions re additional
information required by the commissioner in Subdiv. (1) and deleting provision re notice and other requirements and
adding Subparas. (A) and (B) re submission of notice and closure of predetermined location of a mobile branch in Subdiv.
(3), effective July 6, 2001; P.A. 02-47 moved definition of "relocate" from Subsec. (g) to Subsec. (a), amended Subsec.
(c)(1) by adding provisions re establishment of limited branch "either de novo or resulting from the conversion of a
branch" and by making technical changes in (c)(1) and (2), amended Subsecs. (g) and (h) by adding provisions re branches
"established in this state", added Subsec. (j) re relocation of branch or limited branch established outside state and added
Subsec. (k) re sale of branch, limited branch or mobile branch established outside state; P.A. 03-196 amended Subsec.
(a)(1) by redefining "branch" to delete requirement that office be open during specified hours, defining "consolidate" in
new Subdiv. (2) and redesignating existing Subdivs. (2) to (4), inclusive, as Subdivs. (3) to (5), inclusive, amended Subsec.
(b) by merging existing Subdivs. (2) and (3) into Subdiv. (1), deleting "in the town or the surrounding area" in Subdiv.
(1)(B), adding new Subdiv. (2) re establishment of a branch approved as part of application to organize a bank, and
redesignating existing Subdiv. (4) as Subdiv. (3), amended Subsec. (c) by deleting "either de novo or resulting from the
conversion of a branch" in Subdiv. (1), deleting "or conversion" in Subdiv. (1)(A), deleting Subdiv. (1)(C) re determination
of availability of alternative banking services, adding new Subdiv. (2) re establishment of a limited branch approved as
part of application to organize a bank and new Subdiv. (3) re conversion of a branch to a limited branch, redesignating
existing Subdivs. (2) and (3) as new Subdivs. (4) and (5), and amending Subdiv. (5) by deleting "or mobile branch",
amended Subsec. (d) by designating existing provisions as Subdiv. (1), amending said Subdiv. (1) by deleting provision
re full or limited services or time periods and adding Subdiv. (2) re identification and approval of mobile branch, amended
Subsec. (g) to allow Connecticut bank to relocate branch upon prior notice to commissioner rather than approval of commissioner, added new Subsecs. (h) and (l) re consolidation of branch or main office by Connecticut bank, redesignated existing
Subsecs. (h) to (j), inclusive, as new Subsecs. (i) to (k), inclusive, and redesignated existing Subsec. (k) as new Subsec.
(m), amended Subsecs. (i) and (m) by providing that approval not required if approval is required under Sec. 36a-210 for
such sale, amended Subsec. (j) by providing that agreement may include provisions re assessment or sharing of fees
for examination or supervision, amended Subsec. (k) to allow Connecticut bank to relocate branch upon prior notice to
commissioner rather than approval of commissioner, and made conforming and technical changes, effective July 1, 2003;
P.A. 05-39 amended Subsec. (b)(1) to substitute requirement that commissioner consider whether proposed branch will
promote the public convenience and advantage for requirements that commissioner consider whether establishment of
branch will result in oversaturation of depository institutions in town in which branch is to be located or in area surrounding
the town, whether the Connecticut bank intends to operate branch on a long-term basis, and whether such bank maintains
a reasonable ratio of loans made in the state to deposits received from residents of the state, and to eliminate requirement
that commissioner not consider the existence of any office established under Sec. 36a-425(d) that is situated at or near
location of branch, effective May 17, 2005; P.A. 05-47 amended Subsec. (a)(1) to add exception re Sec. 36a-23(a); P.A.
07-14 added new Subsec. (a)(2) defining "commercial activities", redesignated existing Subsec. (a)(2) to (5) as Subsec.
(a)(3) to (6), and amended Subsecs. (b)(1) and (c)(1) to prohibit a Connecticut bank from establishing or maintaining a
branch or limited branch in this state on premises or property of its affiliate if affiliate engages in commercial activities,
effective May 7, 2007.