Sec. 36a-428n. Involuntary liquidation of business and property of foreign banks having a state branch or state agency.
Sec. 36a-428n. Involuntary liquidation of business and property of foreign
banks having a state branch or state agency. (a) As used in this section:
(1) "Branch or agency net payment entitlement" means, with respect to a qualified
financial contract, the amount, if any, that would have been owed by a party to a foreign
bank after netting only those transactions entered into by the branch or agency of the
foreign bank in this state and such party under such qualified financial contract.
(2) "Branch or agency net payment obligation" means, with respect to a qualified
financial contract, the amount, if any, that would have been owed by the foreign bank
to a party after netting only those transactions entered into by the branch or agency of
the foreign bank in this state and such party under such qualified financial contract.
(3) "Business and property in this state" includes, but is not limited to, all property
of the foreign bank, real, personal or mixed, whether tangible or intangible, (A) wherever
situated, constituting part of the business of the state agency or state branch of the foreign
bank in this state and appearing on its books as such, and (B) situated within this state
whether or not constituting part of the business of such state agency or state branch in
this state or so appearing on its books.
(4) "Global net payment entitlement" means the amount, if any, owed by a party
or that would be owed if the relevant agreements provided for payments to either party,
upon termination thereof under any and all circumstances, to the foreign bank as a whole
after giving effect to the netting provisions of a qualified financial contract with respect
to all transactions subject to netting under such qualified financial contract.
(5) "Global net payment obligation" means the amount, if any, owed by the foreign
bank as a whole to a party after giving effect to the netting provisions of a qualified
financial contract with respect to all transactions subject to netting under such qualified
financial contract.
(6) "Qualified financial contract" means any securities contract, commodity contract, forward contract including any spot and forward foreign exchange, repurchase
agreement, swap agreement, and any similar agreement, any option to enter into any
such agreement, including any combination of the foregoing, and any master agreement
for such agreements. Such master agreement, together with all supplements thereto,
shall be treated as one qualified financial contract, provided, such contract, option or
agreement, or combination of contracts, options or agreements is reflected in the books,
accounts or records of the foreign bank or a party provides documentary evidence of
such agreement. The commissioner may by regulation or order determine any other
agreement to be a qualified financial contract.
(b) The commissioner may, by order, immediately take possession of the business
and property in this state of any foreign bank with a state branch or state agency in
this state upon the commissioner's determination that such action is necessary for the
protection of the interests of the creditors of such foreign bank's business in this state
or for the protection of the public interest, and that such foreign bank: (1) Has violated
any applicable law, regulation or order; (2) is conducting its business in an unauthorized
or unsafe manner; (3) is in an unsafe or unsound condition to transact its business; (4)
cannot with safety and expediency continue business; (5) has ceased to operate its state
branch or state agency in this state; (6) has an impairment of its capital; (7) has suspended
payment of its obligations, made an assignment for the benefit of its creditors, or admitted
in writing its inability to pay its debts as they become due; (8) has neglected, refused
or failed to take or continue proceedings for voluntary liquidation in accordance with
section 36a-428k; (9) is insolvent in that it has ceased to pay its debts in the ordinary
course of business, cannot pay its debts as they become due, or has liabilities exceeding
its assets; (10) has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy, reorganization, insolvency or moratorium
law, or, that any person has applied for any such relief under any such law against the
foreign bank, and the foreign bank has by any affirmative act approved of or consented
to such action or such relief has been granted; (11) is no longer in existence or its authority
to transact banking business under the laws of the place where it is domiciled has been
suspended or terminated; (12) is in liquidation, receivership or conservatorship at its
domicile or elsewhere, or that any proceeding for appointment of a liquidator, receiver
or conservator or any similar proceeding has been initiated against it, or there is reason
to doubt its ability or willingness to pay in full the claims of creditors; (13) has otherwise
had its license revoked, suspended, cancelled, terminated or otherwise not renewed
pursuant to the provisions of section 36a-428j; or (14) is in a condition, or facts or
circumstances relating to such foreign bank exist, which, if existing at the time such
foreign bank applied for its license to establish a state branch or state agency in this
state, would have been grounds for denying such application.
(c) Title to such business and property in this state of a foreign bank shall vest by
operation of law in the commissioner and his successors upon taking possession, without
the execution of any instruments of conveyance, assignment, transfer or endorsement.
The commissioner shall promptly apply to the superior court for the judicial district of
Hartford for appointment as receiver of such foreign bank with effect from the time of
taking possession, and the superior court shall make such appointment. Thereafter, except as otherwise provided in this section, the commissioner shall liquidate or otherwise
deal with such business and property in this state of a foreign bank in accordance with
the provisions of sections 36a-221a and 36a-223 to 36a-239, inclusive, provided, (1)
"debts", "liabilities", "deposits", "claims" and other similar terms used in sections 36a-221a and 36a-223 to 36a-239, inclusive, refer to the claims that the commissioner shall
accept pursuant to subsection (e) of this section; (2) "creditors" and "depositors", as
used in said sections, refer to the owners of such accepted claims; (3) except as the
context otherwise requires, "Connecticut bank", as used in said sections, refers to the
state branches or state agencies in this state; and (4) "officer", as used in said sections,
includes any person in charge of or who is an officer of such state branches and the
agent or other person in charge of such state agencies. Notwithstanding any contrary
provision of law, including chapters 55a and 67, the commissioner may employ or
contract with such legal counsel and expert assistants under such titles as the commissioner may assign to them and may retain such of the officers or employees of such
foreign bank as the commissioner deems necessary in the liquidation and distribution
of the assets of such foreign bank, without the prior approval of any other state agency
or elective officers. The commissioner shall be entitled to the appointment of a single
judge to supervise the liquidation upon request to the administrative judge of the superior
court for the judicial district of Hartford. Said judge shall have the power to order expedited or simplified procedures whenever necessary to resolve a matter in such liquidation.
(d) At any time within ten days after the commissioner has taken possession of the
business and property in this state of a foreign bank, such foreign bank may apply to
the superior court for the judicial district of Hartford for an order requiring the commissioner to show cause why the commissioner should not be enjoined from continuing
such possession. The court may, upon good cause shown, direct the commissioner to
refrain from further proceedings and to surrender such possession.
(e) (1) The only claims that the commissioner shall accept for payment out of such
business and property in this state of a foreign bank as provided in this section are claims
of creditors of such foreign bank arising out of transactions entered into by such creditors
with its state branches or state agencies in this state that still exist as liabilities of such
state branches and state agencies as shown in the books and records of such state branches
and state agencies at the time the commissioner takes possession of the business and
property of the foreign bank. Acceptance or rejection of such claims by the commissioner
shall not prejudice such creditors' rights to otherwise share in the assets of such foreign
bank. The following claims shall not be accepted by the commissioner for payment out
of such business and property in this state of a foreign bank: (A) Claims which would
not represent an enforceable legal obligation against such state branch or state agency
if such branch or agency were a separate and independent legal entity; and (B) amounts
due and other liabilities to other offices, agencies, branches and affiliates of such foreign
bank. All wages actually owing to the employees of a foreign bank in the possession of
the commissioner for services rendered within three months prior to the date when
possession was taken, not exceeding two thousand dollars to each employee, shall be
paid prior to the payment of every other debt or claim, and in the discretion of the
commissioner may be paid as soon as practicable after taking possession, except that
at all times the commissioner shall reserve such funds as will in the commissioner's
opinion be sufficient for the expenses of administration.
(2) Nothing in this section shall be construed to adversely affect a valid lien or
perfected security interest of a federal reserve bank or the United States Department of
the Treasury in the business and property in this state of a foreign bank.
(f) Whenever the accepted claims, together with interest thereon, and the expenses
of the liquidation have been paid in full or properly provided for, the commissioner,
upon the order of the superior court for the judicial district of Hartford, shall pay, from
the remaining assets, other offices of the foreign bank that are being liquidated in the
United States, upon the request of the liquidators of such offices, in amounts which the
liquidators of such offices demonstrate to the commissioner are needed to pay the claims
accepted by such liquidators and any expenses incurred by such liquidators in liquidating
such offices of the foreign bank. After such payments, if any, have been made, the
commissioner shall turn over any remaining assets of the foreign bank to the principal
office of such foreign bank, or to the duly appointed domiciliary liquidator or receiver
of such foreign bank.
(g) After taking possession of the business and property in this state of any foreign
bank: (1) The commissioner shall immediately give notice of such fact to all persons
known to the commissioner to hold any assets of such foreign bank. No person having
notice or knowledge that the commissioner has taken possession of the business and
property in this state of such foreign bank, shall have a lien or charge for any payment,
advance or clearance thereafter made against any of the assets of such foreign bank for
liability thereafter incurred. (2) Upon the written demand of the commissioner, any
person holding assets of such foreign bank shall deliver such assets to the commissioner
and shall thereupon be discharged from liability with respect to any claim upon such
assets, provided, such demand shall not affect the right of a secured creditor with a
perfected security interest, or other valid lien or security interest enforceable against
third parties, to retain collateral, including any right of such secured creditor under any
security arrangement related to a qualified financial contract to retain collateral and
apply such collateral in accordance with this section. Nothing in this section shall affect
any right of set-off permitted under applicable law, provided, no person may set off the
business and property in this state of a foreign bank against liabilities of such foreign
bank other than those that arise out of transactions entered into by such person with the
state branch or state agency of the foreign bank in this state, which liabilities shall be
deemed to include in the case of qualified financial contracts the lesser of the two
amounts calculated with respect to any such qualified financial contract pursuant to
subdivision (2) of subsection (i) of this section.
(h) (1) The commissioner shall, after taking possession of the business and property
in this state of a foreign bank, cause to be mailed or sent to each person claiming to be,
or appearing upon the books of such foreign bank to be (A) the owner of any personal
property in the custody or possession of such foreign bank as bailee or depositary for
hire or otherwise, including securities, whether held in custody directly or in book-entry
form by such foreign bank, its nominee, subcustodian, clearing corporation or similar
entity, and the contents of any safe, vault or box opened for nonpayment of rental in
accordance with the provisions of this subsection, or (B) the lessee of any safe, vault
or box, a notice in writing sent by registered mail, return receipt requested, or by any
express delivery carrier that provides a dated delivery receipt, to such person at such
person's last address as it appears on the books of such foreign bank or at such person's
last known address if no address appears on such books, notifying such person to remove
all such property or the contents of any such safe, vault or box, within a period stated
in such notice, which period shall be not less than sixty days from the date of such notice,
and further notifying such person of the terms and provisions of this subsection and any
regulations that may be adopted under this section by the commissioner pursuant to
chapter 54. The contract of bailment or of deposit for hire, or the lease of such safe,
vault or box, if any, between the person to whom such notice is mailed and such foreign
bank shall terminate upon the date for removal fixed in such notice. Such person shall
have a claim against such foreign bank for the amount of unearned rent or charges, if
any, paid by such person from the date fixed in such notice if the property or contents
are removed on or before such date, or from the date of actual removal if the property
or contents are removed after such date.
(2) If such property or contents are not removed, and all accrued rental or storage
and other charges, if any, are not paid, within the time fixed by such notice, the commissioner shall inventory and deal with such property and contents in accordance with any
regulations that may be adopted under this section by the commissioner pursuant to
chapter 54. The commissioner shall deal with such property and contents at the expense
and risk of the person in whose name it stands. The commissioner shall be held harmless
and shall not be liable to any subsequent claimant for any delivery or transfer made by
the commissioner in good faith to the claimant appearing to be entitled to such property
from the records available to the commissioner. If the commissioner is in doubt concerning the person entitled to property in the possession of the commissioner, or there are
conflicting claims thereto, the commissioner may require of the claimant an order of the
superior court of the judicial district of Hartford authorizing and directing the delivery of
such property.
(3) After the expiration of one year from the date of mailing the notice required by
subdivision (1) of this subsection, the commissioner may apply to the superior court for
the judicial district of Hartford for an order authorizing the commissioner to sell, destroy
or otherwise dispose of any personal property which had been in the custody or possession of such foreign bank as bailee or depositary for hire or otherwise and which remains
in the possession of the commissioner. The court may require that the commissioner
provide notice to the person in whose name such property stands and to any other person
claiming or appearing to have an interest therein, by publication, mailing or in such
other manner as the court may prescribe. Whenever the commissioner is given the power
to sell such property, such power to sell shall be deemed a power to sell in satisfaction
of a lien for nonpayment of accrued rental or storage charges and all other charges and
expenses paid or incurred to the date of sale with respect to such property. Such power
to sell, destroy or otherwise dispose of, when authorized pursuant to this subsection or
any regulations that may be adopted under this section by the commissioner pursuant
to chapter 54, shall be deemed to include the power to sell, destroy or otherwise dispose
of any bonds, stock certificates, promissory notes, choses in action or other securities,
and any other tangible or intangible property contained in any package, regardless of
whether or not it shall appear from such securities or properties that the person in whose
name the package stands possesses title to or interest in such securities or other properties
or the power to transfer such title or interest, and any sale of such securities or properties
pursuant to this subsection shall vest good title thereto in the purchaser thereof.
(4) The provisions of this subsection shall not (A) affect or preclude any other
remedy, by civil action or otherwise, for the enforcement of the claims or rights of the
commissioner or of such foreign bank against the person in whose name any property,
or any safe, vault, box, package, parcel or receptacle stands, or (B) affect or bar the right
of the commissioner or the foreign bank to recover, before sale, any debt or claim due
the commissioner or such foreign bank, or, after sale, the portion of the debt or claim
that was not paid by the proceeds of the sale.
(i) (1) Except as otherwise provided in this subsection, after taking possession of
the business and property in this state of a foreign bank, the commissioner may assume
or repudiate any contract, including an unexpired lease, of such foreign bank, relating
to the business and property in this state of such foreign bank and to which such foreign
bank is a party, the performance of which the commissioner determines to be burdensome and the repudiation of which the commissioner determines will promote the orderly administration of the foreign bank's affairs in this state. After the expiration of
ninety days from the date that the commissioner takes possession, any party to a contract
with the foreign bank relating to the business and property in this state of such foreign
bank may demand in writing that the commissioner assume or repudiate such contract.
If the commissioner has not assumed or repudiated the contract within fifteen days from
the date of receipt of the demand, the affected party may bring an action in the superior
court for the judicial district of Hartford to obtain an order requiring the commissioner
to decide whether to assume or repudiate such contract. If the commissioner has not
assumed or repudiated a contract not later than one month before the last date for filing
claims against such foreign bank established pursuant to section 36a-225, such contract
shall be deemed repudiated. Notwithstanding the provisions of this subdivision, with
respect to an unexpired lease of the foreign bank for the rental of real property under
which the foreign bank was a lessee, if the commissioner remains in possession of the
leasehold, the commissioner shall not be required to assume or repudiate such lease and
may continue in possession of such leasehold for the remainder of the term of the lease
in accordance with the terms of the lease, provided, if the commissioner later repudiates
the lease before the end of the lease term, any amounts that may be due the lessor as a
result of such repudiation shall be calculated according to the provisions of subparagraph
(A) of subdivision (3) of this subsection. Notwithstanding any contrary provision of
this subsection, in liquidating a state branch or state agency of a foreign bank in this
state, the commissioner shall not assume or repudiate any qualified financial contract
that such state branch or state agency entered into which is subject to a multibranch
netting agreement or arrangement that provides for netting present or future payment
obligations or payment entitlements, including termination or closeout values relating
to the obligations or entitlements, among the parties to the contract, agreement or arrangement, and the commissioner shall not be required to assume or repudiate any other
qualified financial contract that such state branch or state agency entered into, provided,
upon any repudiation of any qualified financial contract or the termination or liquidation
of any qualified financial contract in accordance with its terms, the liability under such
qualified financial contract shall be determined in accordance with subparagraph (B)
of subdivision (2) of this subsection.
(2) (A) Except as otherwise provided in this subsection, upon the repudiation or
termination of any contract pursuant to subdivision (1) of this subsection, liability shall
be limited to the actual direct compensatory damages of the parties to the contract,
determined as of the date the commissioner took possession. The commissioner shall
not be liable for any future wages, other than reasonable severance payments, or for
payments for future services, costs of cover, any consequential, punitive or exemplary
damages, damages for lost profits or lost opportunity, or any other damages except as
allowed by this subparagraph.
(B) Except as otherwise provided in this subsection, the liability of the commissioner upon the repudiation of any qualified financial contract, or in connection with
the termination or liquidation of any qualified financial contract in accordance with the
terms thereof, shall be limited as provided in subparagraph (A) of this subdivision,
except that compensatory damages shall be deemed to include normal and reasonable
costs of cover or other reasonable measures of damages utilized among participants in
the market for qualified financial contract claims, calculated as of the date of repudiation
or the date of the termination of such qualified financial contract in accordance with its
terms. Upon the repudiation of any qualified financial contract or in connection with
the termination or liquidation of any qualified financial contract in accordance with the
terms thereof, if the commissioner is entitled to damages, such damages shall be paid
by the party to the commissioner upon written demand pursuant to subdivision (2) of
subsection (g) of this section, notwithstanding any provision in any such contract that
purports to effect a forfeiture of such damages.
(C) In the case of the liquidation of a state branch or state agency of a foreign bank
by the commissioner, with respect to qualified financial contracts subject to netting
agreements or arrangements that provide for netting present or future payment obligations or payment entitlements, including termination or closeout values relating to the
obligations or entitlements, among the parties to the contracts and agreements or arrangements, the liability of the commissioner to any party to any such qualified financial
contract upon repudiation or in connection with the termination or liquidation of such
qualified financial contract in accordance with the terms thereof, shall be calculated as of
the date of repudiation or the date of the termination of such qualified financial contract in
accordance with its terms and shall be limited to the lesser of (i) the global net payment
obligation or (ii) the branch or agency net payment obligation. The liability of the commissioner under this subparagraph shall be reduced by any amount otherwise paid to
or received by the party in respect of the global net payment obligation pursuant to such
qualified financial contract which, if added to the liability of the commissioner under
this subdivision, would exceed the global net payment obligation. The liability of the
commissioner under this subparagraph to a party to a qualified financial contract also
shall be reduced by the fair market value or the amount of any proceeds of collateral
that secures and has been applied to satisfy the obligations of the foreign bank to the
party pursuant to such qualified financial contract. In the event that netting under any
applicable netting agreement or arrangement results in a branch or agency net payment
entitlement, notwithstanding any provision in any such contract that purports to effect
a forfeiture of such entitlement, the commissioner may make written demand upon the
party to such contract under subdivision (2) of subsection (g) of this section for an
amount not to exceed the lesser of the global net payment entitlement or the branch or
agency net payment entitlement. The liability of the party under this subparagraph shall
be reduced by any amount otherwise paid to or received by the commissioner or any
other liquidator or receiver of the foreign bank with respect to the global net payment
entitlement pursuant to such qualified financial contract which, if added to the liability
of the party under this subparagraph, would exceed the global net payment entitlement.
The liability of the party under this subparagraph to the commissioner pursuant to such
qualified financial contract shall also be reduced by the fair market value or the amount
of any proceeds of collateral that secures and has been applied to satisfy the obligations
of the party to the foreign bank pursuant to such qualified financial contract.
(D) A party to a qualified financial contract with a foreign bank whose state branch
or state agency the commissioner is liquidating, which party has a perfected security
interest in collateral or other valid lien or security interest in collateral enforceable
against third parties pursuant to a security arrangement related to such qualified financial
contract, may retain all such collateral and upon repudiation of that qualified financial
contract, or in connection with the termination or liquidation of that qualified financial
contract in accordance with its terms, apply such collateral in satisfaction of any claims
secured by the collateral, provided the total amount so applied to such claims shall not
exceed the global net payment obligation, if any.
(3) (A) If the commissioner repudiates a lease of the foreign bank for the rental of
real or personal property under which the foreign bank was a lessee, the lessor under
such lease shall be entitled to file a claim with the commissioner for whichever is the
least of: (i) The amount designated as liquidated damages contained in the agreement
between the foreign bank and the lessor, (ii) an amount equal to one year's rent under
the terms of the repudiated lease, or (iii) an amount equal to the rent for the remaining
term of the lease.
(B) If the commissioner repudiates a lease of the foreign bank for the rental of real
property under which the foreign bank was a lessor, and the lessee was not in default
at the time of repudiation, the lessee under such repudiated lease may either (i) treat
the lease as terminated by such repudiation and vacate the premises, or (ii) remain in
possession of the leasehold interest for the balance of the term of the lease, and for any
renewal or extension of such term that is enforceable by such lessee under applicable
law other than any law relating to insolvency, unless the lessee defaults under the terms
of the lease after the date of such repudiation. If the lessee remains in possession of the
leasehold interest, the lessee shall continue to pay to the commissioner the contractual
rent pursuant to the terms of the lease after the date of the repudiation of such lease
and may offset against such rent payment any damages which may accrue due to the
nonperformance of any obligation of the foreign bank under the lease after the date of
repudiation. The commissioner shall not be liable to the lessee for any damages arising
after such date as a result of the repudiation other than the amount of any offset allowed
under this subdivision. Nothing in this subsection shall prohibit the commissioner from
entering into a new contract with the lessee for the rental of the leasehold which was
the subject of the repudiated lease.
(4) Except as otherwise provided in this subsection, notwithstanding any provision
in an unexpired lease or other contract and notwithstanding any applicable law to the
contrary, a contract or unexpired lease of the foreign bank that is subject to assumption
or repudiation by the commissioner under this subsection may not be terminated or
modified by any party other than the commissioner without the concurrence of the
commissioner. Any right or obligation under such contract or lease may not be terminated or modified, at any time after the commissioner takes possession, solely pursuant
to a provision in such contract or lease that is conditioned on (A) the commissioner taking
possession, or (B) the insolvency, financial condition or liquidation of the foreign bank.
(5) Nothing in this subsection shall affect the right of a party to a contract of a
foreign bank to seek performance of such contract or damages thereon in any other
jurisdiction, provided, the commissioner shall not be liable for the performance of such
contract or damages thereon in any other jurisdiction.
(6) The rights granted in this subsection are in addition to any other rights available
to the commissioner under any other law.
(j) Where, by any agreement, a period of limitation is fixed for instituting an action
upon any claim or for presenting or filing any claim, proof of claim, proof of loss,
demand, notice or the like, or where, in any action or by statute or ordinance, a period
of limitation is fixed for serving or filing any claim or pleading, taking any appeal or
doing any other act, and where in any such case such period had not expired as of the
date the commissioner took possession of the business and property in this state of the
foreign bank, the commissioner may for the benefit of such foreign bank institute any
such action, serve or file any such claim or pleading, take any such appeal, or do any
such other act, required or permitted to such foreign bank within a period of one year
subsequent to the date of taking possession, or within such further period as may be
permitted by the agreement, or in the action, or by statute or ordinance, as the case may be.
(k) (1) Except as provided in this subsection, the commissioner's taking possession
of the business and property in this state of a foreign bank shall operate as a stay of and
as an injunction against the following, as of the date the commissioner takes possession:
(A) The commencement or continuation, including the issuance or employment of process, of a judicial, administrative or other action or proceeding against the foreign bank
that was or could have been commenced before the taking of possession, or to recover
a claim against the foreign bank that arose before the taking of possession; (B) the
enforcement against the foreign bank or its business and property in this state of a
judgment obtained before the taking of possession; (C) any act to obtain possession of
property of the foreign bank or of property from the foreign bank or to exercise control
over property of the foreign bank; (D) any act to create, perfect, or enforce any lien
against property of the foreign bank, including any lien that secures a claim that arose
before the taking of possession; and (E) any act to collect, assess, or recover a claim
against the foreign bank that arose before the taking of possession.
(2) The commissioner's taking possession of the business and property in this state
of a foreign bank shall not operate as a stay of or as injunction against: (A) The filing
of a claim pursuant to subsection (e) of this section in the liquidation of the foreign
bank; the making of a demand upon the commissioner pursuant to subsection (i) of this
section to decide whether to assume or repudiate a contract of the foreign bank; the
exercise of any set-off otherwise permissible under applicable law except as limited by
subdivision (2) of subsection (g) of this section; the right of any secured creditor with
a perfected security interest or other valid lien or security interest enforceable against
third parties to retain collateral, including any right of such secured creditor under any
security arrangement related to a qualified financial contract, to retain collateral and to
apply such collateral in accordance with subparagraph (D) of subdivision (2) of subsection (i) of this section; any automatic termination in accordance with the terms of any
qualified financial contract or any right to cause the termination or liquidation of any
qualified financial contract, in accordance with the terms thereof; any right to offset or
net out any termination value, payment amount, or other transfer obligation arising under
or in connection with one or more such qualified financial contracts; or the commencement of an action under subsection (d) of this section or any other action relating to the
liquidation before the Superior Court judge overseeing the liquidation of the foreign
bank; (B) the commencement or continuation of a criminal action or proceeding against
the foreign bank; (C) the commencement or continuation of an action or proceeding by
a governmental unit to enforce such governmental unit's police or regulatory power;
(D) the enforcement of a judgment, other than a money judgment, obtained in an action
or proceeding by a governmental unit to enforce such governmental unit's police or
regulatory power; (E) the issuance to the foreign bank by a governmental unit of a notice
of tax deficiency; and (F) the commencement or continuation of a judicial action or
proceeding by a secured creditor with a perfected security interest, or other valid lien
or security interest enforceable against third parties, including any right of such secured
creditor under any security arrangement related to a qualified financial contract, to enforce such security interest or lien.
(3) Except as otherwise provided in this subsection: (A) The stay or enjoining of
an act against property of the foreign bank under this subsection shall continue until
such property is no longer the property of the commissioner in possession of the foreign
bank; and (B) the stay or enjoining of any other act under this subsection shall continue
until the commissioner has concluded the liquidation.
(4) For good cause shown, on request of a party in interest and after notice and a
hearing, the Superior Court judge overseeing the liquidation may grant relief from the
stay or injunction provided under this subsection by terminating, annulling, modifying
or conditioning such stay or injunction.
(5) In the case of any wilful violation of a stay or injunction provided in this subsection by any person or entity who has knowledge of the commissioner taking possession
of the business and property in this state of a foreign bank that is the subject of the
stay or injunction, the commissioner shall recover actual damages, including costs and
reasonable attorneys' fees and, in appropriate circumstances, may recover punitive
damages.
(l) The commissioner shall not accept any claim based on an agreement with the
foreign bank unless the agreement is either reflected on the accounts, books or records
of the foreign bank or a creditor provides documentary evidence of such agreement.
(P.A. 88-230, S. 10, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 7, 8; P.A. 95-220, S. 4-6; P.A. 97-160, S. 1, 7; P.A. 99-36, S. 3, 4; P.A. 01-48, S. 12; P.A. 03-153, S. 3; P.A. 04-8, S. 5; 04-136, S. 42.)
History: P.A. 97-160 effective June 24, 1997 (Revisor's note: P.A. 88-230, 90-98, 93-142 and 95-220 authorized
substitution of "judicial district of Hartford" for "judicial district of Hartford-New Britain" in public and special acts of
1997, effective September 1, 1998); P.A. 99-36 made technical changes in Subsec. (a)(6) and in Subsec. (c); P.A. 01-48
amended Subsec. (h)(1) by adding references to return receipt requested and express delivery; P.A. 03-153 redefined
"qualified financial contract" in Subsec. (a)(6) by replacing "forward foreign exchange contract" with "forward foreign
exchange" and making technical changes, amended Subsec. (e) by designating existing provisions as Subdiv. (1) and
amending same by limiting acceptance of claims of creditors to those existing at time commissioner takes possession of
business and property of foreign bank, deleting provision allowing commissioner to dispose of claims of not more than
$50,000 without court approval and making technical changes, and adding Subdiv. (2) re liens or security interests of
federal reserve banks or U.S. Department of Treasury, amended Subsec. (f) to add provisions re payments by commissioner
to other offices of foreign bank that are being liquidated in amounts needed for payment of claims, and amended Subsec.
(i)(2)(D) by substituting "a foreign bank whose state branch or state agency the commissioner is liquidating" for "the state
branch or state agency in this state of the foreign bank", deleting "or termination", inserting "or in connection with the
termination or liquidation of that qualified financial contract" and making technical changes, effective June 26, 2003; P.A.
04-8 made technical changes in Subsec. (c)(2), (3) and (4), effective April 16, 2004; P.A. 04-136 amended Subsec. (c) to
incorporate references to Secs. 36a-221a, 36a-226a, and 36a-237f to 36a-237h, inclusive, effective May 12, 2004.