Sec. 36a-334. (Formerly Sec. 36-387). Procedure upon loss.
Sec. 36a-334. (Formerly Sec. 36-387). Procedure upon loss. When the commissioner determines that a loss has occurred, the commissioner shall as soon as possible
make payment to the proper public officers of all public deposits subject to such loss,
pursuant to the following procedure: (1) For the purposes of determining the sums to
be paid, the commissioner or receiver shall, within twenty days after issuance of a restraining order or taking possession of any qualified public depository, ascertain the
amount of public deposits held by the depository as disclosed by its records and the
amount thereof covered by deposit insurance and certify the amounts to each public
depositor having public funds on deposit in the depository; (2) within ten days after
receipt of such certification, each such public depositor shall furnish to the commissioner
verified statements of its deposits in the depository as disclosed by its records plus
information concerning any letters of credit issued to the public depositor pursuant to
section 36a-337; (3) upon receipt of such certificate and statements, the commissioner
shall ascertain and fix the amount of such public deposits, net after deduction of any
deposit insurance and any amount received or to be received by the public depositor
pursuant to a letter of credit issued in accordance with section 36a-337, and assess the
same against the depository in which the loss occurred; (4) the assessment made by the
commissioner shall be payable on the second business day following demand, and in
case of the failure of the qualified public depository so to pay, the commissioner shall
immediately take possession of the eligible collateral, if any, segregated by the depository pursuant to sections 36a-330 to 36a-338, inclusive, and liquidate the same for the
purpose of paying such assessment; (5) upon receipt of the assessment, the commissioner
shall reimburse the public depositors of the depository in which the loss occurred to the
extent of the depository's net deposit liability to them.
(1967, P.A. 517, S. 6; P.A. 77-614, S. 158, 610; P.A. 87-9, S. 2, 3; P.A. 91-245, S. 5; P.A. 92-12, S. 79; P.A. 94-122,
S. 159, 340; P.A. 08-39, S. 2.)
History: P.A. 77-614 replaced bank commissioner with banking commissioner and references to Public Deposit Protection Commission with references to said commissioner, effective January 1, 1979; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 91-245 deleted
provisions re assessment of loss against all other qualified public depositories in proportion to their maximum liability
and made technical changes; P.A. 92-12 redesignated Subdivs; P.A. 94-122 made technical changes, effective January 1,
1995; Sec. 36-387 transferred to Sec. 36a-334 in 1995; P.A. 08-39 amended Subdiv. (2) to add requirement re information
concerning letters of credit and Subdiv. (3) to add requirement re amount received or to be received pursuant to letter of
credit and made a technical change in Subdiv. (4).