Sec. 36a-428c. Deposit of assets by foreign bank. Holding of currency or other assets in relation to liabilities. Unusual and extraordinary circumstances; deposit of assets with banks designated by co
Sec. 36a-428c. Deposit of assets by foreign bank. Holding of currency or other
assets in relation to liabilities. Unusual and extraordinary circumstances; deposit
of assets with banks designated by commissioner. (a) Upon and after establishing a
state branch or state agency in this state, a foreign bank licensed pursuant to section 36a-428a shall keep on deposit, in accordance with regulations adopted by the commissioner,
with such banks as such foreign bank may designate and the commissioner may approve,
dollar deposits or such other assets, including securities, as the commissioner shall by
regulation permit. The commissioner may from time to time require that the assets
deposited pursuant to this subsection be maintained by the foreign bank in such amount,
and in such form and subject to such conditions as the commissioner deems necessary
or desirable for the maintenance of a sound financial condition, the protection of depositors and the public interest, and to maintain confidence in the business of each such
branch or agency.
(b) Such foreign bank shall hold in this state currency, or such assets as the commissioner shall by regulation permit, in an amount which shall bear such relationship as
the commissioner shall by regulation prescribe to liabilities of such foreign bank. As
used in this subsection, "liabilities" means liabilities appearing in the books, accounts
or records of a foreign bank's state agencies and state branches in this state as liabilities
of such agencies and branches, including acceptances and such other liabilities as the
commissioner shall determine but excluding amounts due and other liabilities to other
offices, agencies or branches of, and affiliates of such foreign bank. For purposes of this
subsection, the commissioner (1) shall value marketable securities at principal amount or
market value, whichever is lower, (2) may determine the value of any nonmarketable
bond, note, debenture, draft, bill of exchange, other evidence of indebtedness, or of any
other asset or obligation held by or owed to the foreign bank or its agency, agencies,
branch or branches within this state, and (3) in determining the ratio of assets to liabilities,
may exclude in whole or in part any particular asset. If, by reason of the existence or
potential occurrence of unusual and extraordinary circumstances, the commissioner
deems it necessary or desirable for the maintenance of a sound financial condition,
the protection of depositors, creditors and the public interest, and to maintain public
confidence in the business of any state agency or state branch of a foreign bank in this
state, the commissioner may, subject to such terms and conditions as the commissioner
may prescribe, require such foreign bank to deposit the assets required to be held in this
state pursuant to this subsection with such banks as the commissioner may designate.
(Oct. Sp. Sess. P.A. 94-1, S. 4, 21; P.A. 96-191, S. 5, 6.)
History: Oct. Sp. Sess. P.A. 94-1, S. 4, effective January 1, 1995; P.A. 96-191 amended Subsec. (b) to substitute "state
agencies and state branches" for "state agencies or state branches", effective June 3, 1996.