Sec. 36a-603. (Formerly Sec. 36-539). Investments equal to amount of outstanding payment instruments and stored value required. Permissible investments.
Sec. 36a-603. (Formerly Sec. 36-539). Investments equal to amount of outstanding payment instruments and stored value required. Permissible investments.
(a) Each licensee shall at all times maintain permissible investments having a value,
computed in accordance with generally accepted accounting principles, at least equal
to the aggregate amount of its outstanding Connecticut payment instruments and stored
value.
(b) As used in subsection (a) of this section, "value" means the lower of book or
market value, except that with regard to debt obligations which the licensee as a matter
of policy retains until maturity, "value" means the greater of book or market value unless
the commissioner orders that for some or all investments of a particular licensee, "value"
means the lower of book or market value.
(c) Permissible investments, even if commingled with other assets of the licensee,
shall be deemed by operation of law to be held in trust for the benefit of any claimants
against the licensee to serve the faithful performance of the obligations of the licensee
with respect to the receipt, handling, transmission or payment of money or monetary
value in connection with the sale and issuance of Connecticut payment instruments or
transmission of money or monetary value in the event of the bankruptcy of the licensee,
and shall be immune from attachment by creditors or judgment creditors.
(P.A. 81-264, S. 10; P.A. 01-56, S. 10; P.A. 04-14, S. 8; P.A. 07-91, S. 10.)
History: Sec. 36-539 transferred to Sec. 36a-603 in 1995; P.A. 01-56 amended Subsec. (a) by making a technical change
and added new Subsec. (c) re permissible investments deemed to be held in trust for benefit of claimants; P.A. 04-14
amended Subsec. (a) to insert reference to "stored value", and amended Subsec. (c) to insert references to "monetary
value", effective April 16, 2004; P.A. 07-91 amended Subsecs. (a) and (c) to insert reference to "Connecticut" payment
instruments.