Sec. 36a-411. (Formerly Sec. 36-553). Out-of-state holding companies: Powers re interstate acquisitions and establishment of banks and Connecticut holding companies.
Sec. 36a-411. (Formerly Sec. 36-553). Out-of-state holding companies: Powers re interstate acquisitions and establishment of banks and Connecticut holding
companies. Any out-of-state holding company may, with the approval of the commissioner, acquire and retain direct or indirect ownership or control of ten per cent or more of
the voting stock of any bank, provided such bank has been in existence and continuously
operating for at least five years, unless the commissioner waives this requirement, or
Connecticut holding company, provided the subsidiary banks of such holding company
have been in existence and continuously operating for at least five years, unless the
commissioner waives this requirement or establish a bank. The commissioner may approve such acquisition or establishment only if the laws of the home state of such out-of-state holding company authorize, under conditions no more restrictive than those
imposed by the laws of this state, as determined by the commissioner, a Connecticut
holding company to establish or acquire and retain direct or indirect ownership or control
of ten per cent or more of the voting stock of out-of-state banks or out-of-state holding
companies whose home state is such state. The acquisition or establishment shall not take
place if such out-of-state holding company, including all insured depository institutions
which are affiliates of the out-of-state holding company, upon consummation of the
acquisition or establishment, 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. Before approving any such establishment or
acquisition, the commissioner shall consider whether such establishment or acquisition
can reasonably be expected to produce benefits to the public and whether such benefits
clearly outweigh possible adverse effects, including, but not limited to, an undue concentration of resources and decreased or unfair competition. The commissioner shall not
approve such acquisition or establishment unless the commissioner considers whether:
(1) The investment and lending policies of the bank to be acquired, or the proposed
investment and lending policies of the bank to be established, are consistent with safe
and sound banking practices and will benefit the economy of this state; (2) the services
or proposed services of the bank to be acquired or established are consistent with safe
and sound banking practices and will benefit the economy of this state; (3) the acquisition
or establishment will not substantially lessen competition in the banking industry of this
state; and (4) in the case of such establishment or an acquisition and retention of ownership or control of twenty-five per cent or more of such voting stock, the out-of-state
holding company (A) has sufficient capital to ensure, and agrees to ensure, that the bank
to be acquired or established will comply with applicable minimum capital requirements,
and (B) has sufficient managerial resources to operate the bank to be acquired or established in a safe and sound manner. The commissioner shall not approve such acquisition
or establishment unless the commissioner makes the findings required by section 36a-34. Any such establishment or acquisition by an out-of-state holding company shall be
effected in accordance with the laws of this state applicable to such activities when
conducted by Connecticut holding companies.
(P.A. 83-411, S. 2, 20; P.A. 88-174, S. 2; 88-224, S. 1; P.A. 89-132, S. 2, 6; P.A. 90-2, S. 2, 20; P.A. 91-189, S. 8, 13;
P.A. 92-17, S. 6, 7; P.A. 93-24, S. 5, 9; 93-59, S. 7, 8; P.A. 94-122, S. 186, 340; P.A. 95-155, S. 26, 29; P.A 96-191, S. 2, 6.)
History: P.A. 88-174 added Subsec. (b) concerning New England savings and loan holding companies; P.A. 88-224
required the commissioner to use a balancing test before approving any establishment or acquisition and to adopt regulations;
P.A. 89-132 amended Subsecs. (a) and (b) to allow rather than require the commissioner to order divestiture prior to March
30, 1990, and to require the commissioner to order divestiture after March 30, 1990; P.A. 90-2 changed New England
bank holding company and New England savings and loan holding company to out-of-state bank holding company and
out-of-state savings and loan holding company, provided for the establishment of new Connecticut financial institutions
by out-of-state bank holding companies and savings and loan holding companies on and after February 1, 1992, added
certain criteria for the commissioner of banking to consider prior to approving any acquisition or establishment, added
certain findings to be made by the commissioner prior to granting such approval, provided that the regulations required
under Subsec. (a) apply only to establishment or acquisition by a New England bank holding company, and deleted
provisions re divestiture; P.A. 91-189 required the commissioner to consider whether the proposed acquisition or establishment will not substantially lessen competition in the banking industry, added provisions re considerations to be made by
the commissioner in the case of purchase and retention of ownership or control of 25% or more of the voting stock of the
Connecticut institution, added provisions re regulations concerning the commissioner's findings of records of compliance
with community reinvestment and consumer protection requirements and made technical changes; P.A. 92-17 added
Subsec. (c); P.A. 93-24 amended Subsec. (a) by deleting provision re adoption of regulations setting specific standards
for the approval of any establishment or acquisition by a New England banking holding company for out-of-state banking
holding companies, effective May 4, 1993; P.A. 93-59 made technical corrections to Subsec. (c), effective May 10, 1993;
P.A. 94-122 deleted the community reinvestment provisions in Subsec. (a), deleted Subsec. (b) re out-of-state savings and
loan holding companies, deleted Subsec. (c) as obsolete, made interstate banking law apply to acquisitions of 10% or more
of a Connecticut bank's stock by an out-of-state holding company, specified that for foreign country banks that have already
entered the U.S., reciprocity applies to the bank's home state under the federal International Banking Act, deleted the
requirement that reciprocity laws of other states or foreign countries be "express", deleted the reciprocity provision for de
novo establishments of in-state banks by out-of-state holding companies, and made technical changes, effective January
1, 1995; Sec. 36-553 transferred to Sec. 36a-411 in 1995; P.A. 95-155 added provisos re five-year requirement, changed
references from principal place of business and place of operations to home states, added restriction re controlling deposits,
changed "institution" to "bank" and made technical changes, effective June 27, 1995; P.A. 96-191 made change re commissioner approval, and made clear that five-year existence requirement did not apply to establishment of a bank, effective
June 3, 1996.