Interim Banking, Credit Union,
Consumer Credit and Landlord-Tenant Advisory Opinions


2006December

2007:  February | March | June | August | October | November | December

2008:  January | February | March | April | May | June | July | August


The following list shows the most recent advisory opinions concerning banking, credit union, consumer credit and landlord-tenant issues that have arisen under Title 36a of the Connecticut General Statutes, the regulations implementing Title 36a, and other statutes and regulations under the jurisdiction of the Department of Banking. It also shows those decisions which are the actual approvals and denials issued by the Banking Commissioner with respect to various banking and credit union transactions.

Please note: At this time, the text of individual advisory opinions or decisions is not available on-line. If you locate a particular opinion or decision of interest and would like to obtain a hard copy, please contact the Department at (860) 240-8142 or by E-mail.  Please provide your name, mailing address and telephone number if making a request via E-mail. The fee charged by the Department of Banking for copies of a public record is $0.25 per page.  Dates under headings below are listed in a month/date/year format.

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December 2006

DEPARTMENT OF BANKING—Decisions
12/7/2006D
Approval pursuant to §§ 36a-412(b) and 36a-125 of the merger of Westbank with and into NewAlliance Bank.
(Cites:  36a-2(12), 36a-2(44), 36a-125, 36a-412(b))

MERGERS AND ACQUISITIONS
12/1/2006
Reallocation of shares to family trusts for the purpose of estate planning would not require the acquirors to file an acquisition statement under § 36a-184 since the acquisition is the result of a transfer by gift which is exempted from the filing requirement under § 36a-190(5).
(Cites:  36a-2, 36a-184, 36a-190, 36a-190(5))

February 2007

DEPARTMENT OF BANKING—Decisions
2/14/2007D
Approval pursuant to §§ 36a-412(b) and 36a-210(b) of the application of Salisbury Bank and Trust Company to acquire and continue to operate a branch at One Pathmark Plaza, Mount Vernon, New York; approval pursuant to § 36a-145(j) for Salisbury Bank and Trust Company to establish a branch at 5 Dover Village Plaza, Suite #1, Dover Plains, New York.
(Cites:  36a-2(4), 36a-2(12), 36a-2(44), 36a-145(j), 36a-210, 36a-210(b), 36a-410(1), 36a-412(b))

March 2007

DEPARTMENT OF BANKING—Decisions
3/30/2007D
Approval pursuant to §§ 36a-412(a)(2) and 36a-145(c)(1) for Mellon Trust of New England, N.A., to establish a de novo limited branch to operate under the name Mellon Private Wealth Management at 406 Farmington Avenue, Farmington, to engage in trust services and fiduciary activities.
(Cites:  36a-2(44), 36a-145(c)(1), 36a-410(4), 36a-412(a)(2))

DEPARTMENT OF BANKING—Decisions
3/23/2007D
Approval pursuant to § 36a-185 of the acquisition by New England Bankshares, Inc., and New England Bankshares Acquisition, Inc., of 100% of the issued and outstanding voting securities of First Valley Bancorp, Inc.
(Cites:  36a-184, 36a-184(c), 36a-184(c)(3), 36a-185, 36a-185(c)(3))

June 2007

SECTION 36a-425—“Transacting Business”
6/15/2007
A foreign banking corporation would not be deemed to be transacting business in Connecticut when it conducts loan production activity for insurance premium finance loans in Connecticut.
(Cites:  36a-425, 36a-425(a))

August 2007

LANDLORD/TENANT ISSUES
8/29/2007
An out-of-state national bank with only a sales office in Connecticut is not a “financial institution” as defined in § 47a-21(a)(4) and, therefore, may not offer tenant escrow services to landlords in Connecticut.
(Cites:  1-2z, 47a-21, 47a-21(a)(4), 47a-21(h))

DEPARTMENT OF BANKING—Decisions
8/21/2007D
Approval pursuant to § 36a-412(a)(1) of the mergers of Citizens Bank of Connecticut with and into Citizens Bank, National Association, and of RBS National Bank with and into Citizens Bank, National Association.
(Cites:  36a-2(4), 36a-2(12), 36a-2(28), 36a-2(44), 36a-410(5), 36a-412(a)(1))

DEPARTMENT OF BANKING—Decisions
8/16/2007D
Approval pursuant to § 36a-181 of the Agreement and Plan of Reorganization of The Bank of New Canaan to organize BNC Financial Group, Inc., as a holding company.
(Cites:  36a-181)

October 2007

DEPARTMENT OF BANKING—Decisions
10/24/2007 #2D
Approval pursuant to § 36a-185 of the acquisition by Lauren E. Ruttkamp of more than 10% but less than 25% of the voting securities of The Wilton Bank.
(Cites:  36a-34(c), 36a-184, 36a-184(c), 36a-184(c)(3), 36a-185)

DEPARTMENT OF BANKING—Decisions
10/24/2007 #1D
Approval pursuant to § 36a-185 of the acquisition by Christopher J. Lavin of more than 10% but less than 25% of the voting securities of The Wilton Bank.
(Cites:  36a-34(c), 36a-184, 36a-184(c), 36a-184(c)(3), 36a-185)

DEBT COLLECTION PRACTICES
10/3/2007
Section 36a-805(a)(3) prohibits consumer collection agencies that purchase or receive assignments of debt from collecting on the debt and filing suit on such debts.  However, a debt buyer (or owner) that is not a consumer collection agency may use an affiliated entity that is a licensed consumer collection agency to collect on the debts.
(Cites:  36a-800, 36a-805(a), 36a-805(a)(3))

LOANS
10/1/2007
A Connecticut small loan licensee is authorized to conduct its small loan business in association with and in the offices where the deposit business of an out-of-state bank with branches in Connecticut is solicited, subject to certain conditions.
(Cites:  36a-561, 36a-570, 36a-570-11, 36a-570-12, 36a-570-14, 36a-570-16)

November 2007

DEBT COLLECTION PRACTICES
11/20/2007
Municipal residential water use charges are debts within the meaning of § 36a-809-3 of the Regs, and their collection would be subject to the provisions of the consumer collection agencies laws.
(Cites:  36a-800(1), 36a-800(2), 36a-801, 36a-809-3)

December 2007

MONEY TRANSMISSION
12/19/2007
A company that facilitates electronic payments is engaging in the business of money transmission under § 36a-596(7) because it may hold funds in its accounts before they are sent to their intended payees and is subject to licensure.
(Cites:  36a-596(7), 36a-597)

January 2008

CHECK HOLD POLICIES
1/31/2008 #2
A Connecticut bank may not by contract increase the funds availability period beyond that required by § 36a-302.
(Cites:  1-2z, 36-9v, 36a-302, P.A. 89-131)

LOANS—Brokers
1/31/2008 #1
A nonprofit public benefit corporation that makes loan programs available to lenders but does not make mortgage loans and provides consumer marketing, including an Internet website, is not subject to licensure as a first or secondary mortgage lender or broker.
(Cites:  1-1(a), 1-2z, 36a-485, 36a-486, 36a-487(3), 36a-487(4), 36a-488, 36a-492, 36a-494, 36a-510(7), 36a-511, 36a-513, 36a-517, P.A. 07-91)

LOANS
1/10/2008
A company that markets student loans does not have to be licensed as a small loan licensee or a mortgage lender since it does not make loans nor does it have to be licensed as a mortgage broker since the loans are not secured by a mortgage on real property.
(Cites:  No laws)

NAMES OF BANKS, CORPORATIONS AND CREDIT UNIONS
1/8/2008 #3
The Commissioner has no objection to the use of the word “bank” in the name of an out-of-state bank that wishes to engage in residential mortgage lending-related activities in Connecticut because the prohibition contained in § 35-2 regarding the use of the word “bank” in a trade name does not extend to a corporation.
(Cites:  33-655, 33-925, 35-2)

NAMES OF BANKS, CORPORATIONS AND CREDIT UNIONS
1/8/2008 #2
The prohibition contained in § 35-2 does not extend to a nonbanking corporation and Title 36a does not contain any provision limiting the use of the word “bank” by out-of-state corporations, nor does it require the Commissioner’s approval for such use.
(Cites:  33-655, 33-925, 35-2)

NAMES OF BANKS, CORPORATIONS AND CREDIT UNIONS
1/8/2008 #1
The Commissioner has no objection to the use of the word “bank” in the name of an out-of-state bank that wishes to act in a fiduciary capacity in Connecticut because the prohibition contained in § 35-2 regarding the use of the word “bank” in a trade name does not extend to a corporation.
(Cites:  33-655, 33-925, 35-2, 45a-207)

February 2008

DEPARTMENT OF BANKING—Decisions
2/29/2008D
Approval pursuant to § 36a-412(a)(1) of the merger of Superior Savings of New England, National Association, with and into Capital One National Association.
(Cites:  36a-2(4), 36a-2(28), 36a-2(44), 36a-410(5), 36a-412(a)(1), P.A. 07-14)

MONEY TRANSMISSION
2/27/2008
A company that provides a central database structure and software application tools for horsemen and race tracks that allows horsemen to give instructions to transfer funds between accounts is not engaging in the business of money transmission in Connecticut where the transfers would be handled by a licensed money transmitter.
(Cites:  36a-581, 36a-596(7), 36a-596(10), 36a-597, 36a-597(a), 36a-656, P.A. 07-91)

March 2008

INVESTMENTS
CU 3/13/2008
A Connecticut credit union must obtain the Commissioner’s approval, pursuant to § 36a-459a(e) prior to investing in Class A common stock of VISA Inc.  However, if the credit union’s governing board determines that investing in Class B common stock of VISA Inc. would be a prudent investment, the credit union may receive and retain such stock without consideration and without the prior approval of the Commissioner.
(Cites:  36a-455a, 36a-455a(4), 36a-459a, 36a-459a(c), 36a-459a(e))

LOANS—Brokers
3/7/2008
Legality of a real estate agent acting as a loan originator under certain scenarios.
(Cites:  20-325c, 36a-486, 36a-490, 36a-511, 36a-515)

April 2008

LOANS—Brokers
4/8/2008
A lead generator that has an online service that matches prospective borrowers with mortgage lenders or brokers and gets a flat fee from lenders and brokers for each application would have to be licensed as a mortgage broker if prospective borrowers who complete the online questionnaire obtain mortgage loans.
(Cites:  36a-485, 36a-510)

LOANS--Collections
4/3/2008
A corporation that attempts to collect monies owed to its sister corporation would have to be licensed as a consumer collection agency.
(Cites:  36a-800(1), 36a-800(2), 36a-809-3(a)(6))

May 2008

MONEY TRANSMISSION
5/27/2008
The Department will take a no-action position with respect to the requirement for GE Money Bank or Wal-Mart to obtain a license to engage in the business of issuing Connecticut payment instruments in order to issue prepaid cards.  On the other hand, if Green Dot obtains a license to engage in the business of money transmission and to engage in the business of issuing Connecticut payment instruments, Wal-Mart would not be required to obtain such a license to issue Green Dot load packs and to reload pre-paid cards.
(Cites:  36a-597(a), 36a-600, 36a-607(a)(2))

June 2008

NAMES OF BANKS, CORPORATIONS AND CREDIT UNIONS
6/17/2008
The prohibition contained in § 35-2 regarding the use of the word “bank” in a trade name does not extend to a corporation and does not require the Commissioner’s approval.
(Cites:  33-655, 33-925, 35-2)

SECTION 36a-425—“Office”
6/12/2008
Authority of a foreign banking corporation to make loans implicitly includes the authority to broker loans.  A location where a bank’s loan originators work but which is not held out to the public as an office, through signage, cards, advertisements or telephone listings is not an office.
(Cites:  36a-425(a), 36a-425(b))

July 2008

LOANS—Legal Lending Limit
WILD CARD/CLOSELY RELATED POWERS
7/25/2008
A Connecticut bank may, pursuant to § 36a-250(a)(41), make a loan in excess of the lending limits set forth in § 36a-262(a) where the loan is secured by a pledge of cash deposited in the bank.
(Cites:  36a-250(a)(41), 36a-262(a))

MONEY TRANSMISSION
7/23/2008
A futures commission merchant specializing in “forex” transactions is not required to obtain a license to engage in the business of money transmission.
(Cites:  36a-596(7), 36a-597(a), 36a-600)

DEPARTMENT OF BANKING--Jurisdiction
7/21/2008
Section 3-57a, which governs the escheat of property held by a banking organization, is outside the jurisdiction of the Department.
(Cites:  3-56a, 3-57a)

NAMES OF BANKS, CORPORATIONS AND CREDIT UNIONS
7/3/2008
The prohibition contained in § 35-2 regarding the use of the word “trust” in a trade name does not extend to a statutory trust and does not require the Commissioner’s approval.
(Cites:  34-531, 35-2)

August 2008

DEPARTMENT OF BANKING—Decisions
8/15/2008D
Approval pursuant to § 36a-185 of the acquisition by BNC Financial Group, Inc., of 100% of the voting securities of The Bank of Fairfield.
(Cites:  36a-184, 36a-184(c), 36a-184(c)(3), 36a-185, 36a-185(c), 36a-185(c)(1))

LOANS—Mortgage Loans
8/7/2008
An out-of-state state-chartered bank does not need a license to make residential mortgages in Connecticut.
(Cites:  36a-487(1), 36a-496, 36a-498a, 36a-675, 36a-705, 36a-715, 36a-725, 36a-726, 36a-746, 36a-755)