1999 Banking and Related Legislation
In 1999, the General Assembly enacted six Department of Banking proposals concerning banks, credit unions, consumer credit and securities into law. Brief summaries of these public acts are provided below. The summaries present certain key legal points for public information and do not represent complete statements of the law. Copies of the complete public acts may be found on the Connecticut General Assembly web site by following the links at the summaries. All references on this page are to sections and titles of the Connecticut General Statutes, unless otherwise noted
Public Act Number 99-18
H.B. 6671 - An Act Concerning a Failure of the Critical Functions of Computer-Based Information Systems Maintained by Banks and Credit Unions
Effective Date: On Passage
Statement of Purpose:
To clarify the authority of the Commissioner of Banking to take enforcement action against a bank or credit union that is not reasonably expected to avoid or protect itself against a failure of one or more of the critical functions of its computer-based information system.
Previous Law:
Section 36a-220 requires the Banking Commissioner to apply to the Superior Court for the appointment of a conservator or for a receiver to wind up the affairs of any Connecticut bank or out-of-state bank that maintains in this state a branch if, among other things, such bank is insolvent or it is unsafe or unsound for such bank to continue business.
Subsection (e) of Section 36a-464 allows the Commissioner to terminate the corporate existence of any Connecticut credit union if the Commissioner certifies, in writing, that no other reasonable alternatives are available to protect the members and creditors of such credit union and it appears, among other things, that the Connecticut credit union, through insolvency, repeated gross mismanagement or repeated neglect in the conduct of its operations, is no longer able to carry out the purpose for which it was formed.
Effect of H.B. 6671:
Section 1.
This bill adds a new provision which provides that for a period commencing on the effective date of the act and ending on July 1, 2000, if the Commissioner finds that it is not reasonably possible for a Connecticut bank, out-of-state bank that maintains in this state a branch, Connecticut credit union or out-of-state credit union doing business in this state to avoid, or effectively protect itself against a failure of one or more of the critical functions of a computer-based information system owned or used by such bank or credit union based on (1) the failure of such bank or credit union to develop an adequate testing plan to resolve any date change problems related to the year 2000 or a related contingency plan or (2) the implementation of adequate testing plans has resulted in such failure and such bank or credit union has failed to develop adequate contingency plans, then the Commissioner may, among other remedies, seek the appointment of a receiver or conservator for a Connecticut bank and terminate the corporate existence of a Connecticut credit union, seek to impose a civil penalty under Sections 36a-50 to 36a-53, and issue orders to cease and desist under Sections 36a-52 and 36a-53, provided the limitations upon imposing a civil penalty under Section 36a-50, which include having to find that the violation is part of a pattern of misconduct, shall not apply.
Section 2.
This section provided that the bill would take effect on passage.
Banking Commissioner's Position:
This was a Department of Banking proposal. Although banks and credit unions are testing and implementing their "Year 2000" conversion programs, some may not reasonably be able to avoid or effectively protect themselves against a failure of one or more critical functions, in which case it is vitally important that the statutes are clear as to the enforcement powers of the Banking Commissioner in order to protect the public.
Public Act Number 99-22
s.S.B. 1030 - An Act Concerning Connecticut Credit Union Membership and Connecticut Credit Union and Out-of-State Credit Union Net Worth Restoration Plans
Effective Date: On Passage
Statement of Purpose:
To provide for the organization of Connecticut credit unions whose field of membership may consist of multiple common bonds of occupation or association, subject to certain limitations, to provide a mechanism for the inclusion of additional groups in the field of membership of Connecticut credit unions and to require Connecticut credit unions and out-of-state credit unions doing business in this state to file a copy of any net worth restoration plan with the commissioner.
Previous Law:
Section 36a-3 contains cross-references to defined terms used in Title 36a.
Section 36a-435 contains, among other definitions, a definition for the term "groups having a common bond of occupation or association".
Section 36a-438 limited the membership of Connecticut credit unions to (1) groups having a common bond of occupation or association or groups within a well-defined neighborhood, community or rural district and (2) members of the immediate family of all persons within such groups.
Section 36a-439 permits the Banking Commissioner to approve a change in the field of membership of any Connecticut credit union without regard for the common bond, subject to certain determinations by the Commissioner.
Subsection (a) of Section 36a-445 contains definitions for terms used in Section 36a-445.
Section 36a-463, among other things, mandates the filing of certain reports by Connecticut credit unions with the Commissioner.
Section 36a-473, among other things, mandates the filing of certain reports by out-of-state credit unions doing business in this state with the Commissioner.
Effect of s.S.B. 1030:
Section 1.
This section amends Section 36a-3 to add cross-references to the terms "multiple common bond membership" and "single common bond membership" contained in Section 36a-435, as amended by Section 2 of this proposal.
Section 2.
This section adds new definitions for the terms "multiple common bond membership" and "single common bond membership" to Section 36a-435.
Section 3.
This section amends Section 36a-438 to change the limitations on the field of membership of Connecticut credit unions to (1) a single common bond membership, (2) multiple common bond membership, provided only a group with less than 3,000 members at the time the group is first included in the field of membership of the Connecticut credit union shall be eligible to be included in such field of membership, (3) persons within a well-defined local community, neighborhood or rural district and members of the immediate family or household of all persons within the three types of field of membership permissible for Connecticut credit unions.
This section provides certain exceptions to the 3000 numerical limitation for credit unions with multiple common bonds memberships and amends Section 36a-438 to require the Commissioner to make certain determinations in writing, prior to approving any amendment to the certificate of organization of a Connecticut credit union to expand its membership.
Section 4.
This section amends Section 36a-439 to permit the Commissioner to also approve a change in field of membership of any Connecticut credit union without regard to the numerical limitation of less than 3,000 whenever the Commissioner determines that a merger with another credit union is not feasible and that continued operation may result in liquidation.
Section 5.
This section makes technical changes to subsection (a) of Section 36a-455.
Section 6.
This section amends Section 36a-463 to require any Connecticut credit union that is required under federal law to submit a net worth restoration plan to the Board of the National Credit Union Administration to simultaneously submit a final signed copy to the Commissioner.
Section 7.
This section amends Section 36a-473 to require any out-of-state credit union doing business in Connecticut that is required under federal law to submit a net worth restoration plan to the Board of the National Credit Union Administration to simultaneously submit a final signed copy to the Commissioner.
Section 8.
This section provided that the bill would take effect on passage.
Banking Commissioner's Position:
This was a Department of Banking proposal. The bill was necessary in order to permit Connecticut credit unions to continue to compete with federal credit unions following enactment of the federal Credit Union Membership Access Act on August 7, 1998, which, among other things, expressly permits federal credit unions to have multiple common bond memberships and permits persons in the household of a person within a federal credit union's field of membership to be eligible for membership.
Public Act Number 99-33
s.S.B. 1031 - An Act Concerning the Reciprocity Requirement for the Establishment of Certain De Novo Branches by Out-of-State Banks
Effective Date: On Passage
Statement of Purpose:
To provide a standard for the Commissioner of Banking to waive the reciprocity of laws requirement for the establishment of a de novo branch by an out-of-state bank the activities of which are limited to the exercise of fiduciary or trust powers, and to make certain conforming technical changes.
Previous Law:
Subdivision (2) of subsection (a) of Section 36a-412 provides that any out-of-state bank, other than a foreign bank may, with the approval of the Banking Commissioner, and in accordance with Section 36a-412(a)(2), establish a de novo branch in this state. The establishment of such de novo branch may not take place unless the Commissioner determines that there is reciprocity of laws with the home state of the out-of-state bank, provided the Commissioner may waive such reciprocity requirement for such de novo branch, the activities of which are limited to the exercise of fiduciary or trust powers.
Subsection (b) of Section 36a-428a contained a definition for the term "net new benefits" for the purpose of processing applications and granting licenses under Section 36a-428a.
Effect of s.S.B. 1031:
Section 1.
This section amended subdivision (2) of subsection (a) of Section 36a-412 to provide that the Commissioner may waive the reciprocity of laws requirement with respect to the establishment of a de novo branch, the activities of which are limited to the exercise of fiduciary or trust powers if the Commissioner finds that such establishment will result in "net new benefits" to this state and adds a definition for "net new benefits". The amendment also requires that any request for such waiver must include a detailed statement of the reason for the request and statistical and other information in support of net new benefits.
Section 2.
This section amended subsection (b) of Section 36a-428a to clarify that the net new benefits must inure to this state, and amended the definition of "net new benefits".
Section 3.
This section provided that the bill would take effect on passage.
Banking Commissioner's Position:
This was a Department of Banking proposal. Since the reciprocity of laws requirement may be waived by the Banking Commissioner only for the establishment of a de novo branch the activities of which are limited to the exercise of fiduciary trust powers, and not for a full-service de novo branch, it is important to provide the Commissioner with a statutory standard for granting any such waiver.
Public Act Number 99-38
s.S.B. 1039 - An Act Concerning the Securities and Business Investments Law of Connecticut
Effective Date: October 1, 1999
Statement of Purpose:
To conform the state definition of "investment adviser agent" to the federal definition; to create a rebuttable presumption that records withheld or concealed in an investigation or examination are material records; to allow securities registrations and investment company notice filings to be filed with a multistate computerized filing depository; to clarify that the registration exemption for securities listed in a nationally recognized securities manual applies to nonexchange listed securities; to prohibit the making of materially false statements during various examinations and investigations; to include dishonest or unethical practices as a basis for issuing an administrative cease and desist order; to clarify control person liability in certain cases; to allow the commissioner to cooperate with other regulatory bodies to achieve uniform regulation and enforcement of the state's securities laws; and to increase the time a purchaser may void a contract for a business opportunity from one to two years.
Previous Law:
Subdivision (11) of Section 36b-3 defines the term "investment adviser agent" and provides exclusions from the definition for purposes of the Connecticut Uniform Securities Act (the "Act").
Subparagraph (L) of subdivision (2) of subsection (a) of Section 36b-15 provides that the Commissioner may deny, suspend or revoke any registration of any applicant or registrant if, in connection with an investigation or examination conducted under the Act, such applicant or registrant has made any misrepresentation to the Commissioner, withheld or concealed material information from, or refused to furnish material information to the Commissioner.
Subsection (a) of Section 36b-19 provides that a registration statement for a security may be filed by the issuer, any other person on whose behalf the offering is to be made or a registered broker-dealer. Section 36b-21 provides those securities and securities transactions that are exempt from the registration requirements of the Act.
Section 36b-23 prohibits any person from making false and misleading statements in any document filed with the Commissioner or in any proceeding under the Act.
Section 36b-27 sets forth the enforcement powers of the Commissioner, including the power to issue cease and desist orders and restitution orders, disgorgement orders and orders imposing administrative fines. The section also allows the Commissioner to enter into written consent orders with persons charged with violating the Act in lieu of adjudicative hearings.
Section 36b-31 allows the Commissioner to make, amend and rescind regulations, forms and orders under certain circumstances.
Subsection (a) of Section 36b-74 provides that a purchaser of a business opportunity may void any contract entered into with the seller within one year in the event of untrue and misleading statements, nondisclosure or substantial nonperformance of the seller.
Section 36b-80 prohibits the making or filing of false and misleading statements with the Commissioner in any proceeding under the Connecticut Business Opportunity and Investment Act.
Effect of s.S.B. 1039:
Section 1.
This section amends subparagraph (B) of subdivision (11) of Section 36b-3 to conform the exclusions from the definition of "investment adviser agent" to the federal definition of "investment adviser representative", and deletes language that is obsolete as a result of the change.
Section 2.
This section amends subparagraph (L) of subdivision (2) of subsection (a) of Section 36b-15 to create a presumption that records withheld or concealed during an investigation or examination are material for purposes of the Act, unless rebutted by substantial evidence.
Section 3.
This section amends subsection (a) of Section 36b-19 to streamline the filing of securities registrations with the state by permitting filing through an electronic multistate filing depository.
Section 4.
This section amends subsection (b) of Section 36b-21 to provide that the registration exemption for securities listed in a nationally recognized securities manual applies to non-exchange listed securities where the issuer has an established operating history or specific asset size and has otherwise met the requirements for the exemption, and amends subsection (c) of Section 36b-21 to streamline the filing of investment company notice filings with the state by permitting filing through an electronic multistate filing depository.
Section 5.
This section amends Section 36b-23 to prohibit the making of any statement that is false or misleading in a material respect in any examination or investigation conducted under the Act, as well as in any document filed with the Commissioner or in any proceeding.
Section 6.
This section amends Section 36b-27 to allow the Commissioner to issue orders to cease and desist and order restitution and disgorgement of sums obtained in violation of the Act when a dishonest or unethical practice in the securities or commodities business has been committed. The section also clarifies the liability of controlling persons under the administrative restitution and disgorgement penalty provisions, and the requirements for consent orders entered into by the Commissioner.
Section 7.
This section amends Section 36b-31 to add a new subsection (c), allowing the Commissioner to cooperate with various regulatory organizations, agencies and commissions in efforts to encourage uniform interpretations of the Act and effective securities regulation and enforcement. To achieve this goal, the Commissioner will be able to establish central depositories for the registration of securities and securities industry personnel, conduct joint examinations and investigations, share personnel, share and exchange information, and execute joint agreements, memoranda of understanding and orders.
Section 8.
This section amends subsection (a) of Section 36b-74 of the Connecticut Business Opportunity Investment Act to extend the time period within which a purchaser-investor of a business opportunity may void a contract with the seller from one year to two years, under certain circumstances.
Section 9.
This section amends Section 36b-80 to prohibit the making of any statement that is false or misleading in a material respect in any examination or investigation conducted under the Connecticut Business Opportunity Investment Act, as well as in any document filed with the Commissioner or in any proceeding.
Banking Commissioner's Position:
This was a Department of Banking proposal. The National Securities Markets Improvement Act of 1996 ("NSMIA") limits the state's ability to require registration of investment adviser representatives to those who have a place of business in Connecticut and prevents the state from regulating covered securities. Therefore, in order to conform the Act to NSMIA, it is important to clarify the exclusions from the definition of "investment adviser agent" under the Act. In addition, since it is impossible for the Commissioner to deduce the materiality of information that has been concealed or withheld from examiners, the bill creates a presumption of materiality in Section 36b-15(a)(2)(L), which can be rebutted by substantial evidence to the contrary. The amendment to Sections 36b-19(a) and one of the amendments to 36b-21(c) will permit the filing of securities registrations and investment company notice filings with a multistate computerized filing depository as the Commissioner may designate. The other amendment to Section 36b-21(c)(1) will result in the elimination of the notice filing requirement for offerings of SEC-regulated investment companies that are made only to banks and certain other institutional buyers as well as those made pursuant to dividend reinvestment plans. The amendment to Section 36b-21(b) addresses a current ambiguity in the subsection to clarify that the registration exemption for securities listed in a nationally recognized securities manual applies to non-exchange listed securities where the issuer has been engaged in continuous business for at least three years or has a certain asset size. The amendments to Sections 36b-23 and 36b-80 expand the prohibition against the making or filing of false or misleading statements to include investigations and examinations under the Act and the Connecticut Business Opportunity Investment Act. In addition, the Commissioner can currently deny, revoke or suspend a registration if the applicant or registrant engages in a dishonest or unethical business practice; the amendment to Section 36b-27 would also allow for the issuance of a cease and desist order in these cases. The addition of subsection (c) to Section 36b-31 will allow the state to cooperate with securities agencies on both the federal, state and international levels to provide uniform administration and enforcement of securities laws. Finally, the amendment to subsection (a) of Section 36b-74 will provide additional protection to purchasers of business opportunities in the event of untrue and misleading statements, statutory disclosure violations or contractual nonperformance by the seller.
Public Act Number 99-63
s.H.B. 6663 - An Act Concerning the Advertisements by Licensed Mortgage Lenders and Brokers
Effective Date: October 1, 1999
Statement of Purpose:
To regulate false, misleading or deceptive statements or representations in advertisements by licensed mortgage lenders and brokers by prohibiting licensees from using simulated checks or any language or symbols indicating that the licensee's communication was sent by a government agency and by requiring that licensees disclose the assumptions being made regarding existing debt when examples or comparisons of loan payments are included in the advertisement and further disclose the prerequisites necessary to qualify for the loan when the advertisement contains representations such as the recipient has been "verified as eligible", "eligible", "preapproved" or "prequalified".
Previous Law:
Section 36a-3 contains cross-references to terms that are defined in various provisions of Title 36a.
Section 36a-485 contains, among other definitions, a definition of "first mortgage loan" for purposes of the laws governing nondepository first mortgage lenders and brokers.
Section 36a-497 prohibits a person licensed as a first mortgage loan lender or broker from advertising any loan in which such person intends to act as a mortgage broker, unless the advertisement includes the statement "BROKER ONLY, NOT A LENDER".
Section 36a-510 contains definitions for purposes of the laws governing secondary mortgage lenders.
Section 36a-524 prohibits a person licensed as a secondary mortgage loan lender or broker from advertising any loan in which such person intends to act as a mortgage broker, unless the advertisement includes the statement "BROKER ONLY, NOT A LENDER".
Effect of s.H.B. 6663:
Section 1.
This section amends Section 36a-3 to add cross-references to the definitions of "advertise" and "simulated check" contained in Sections 2 and 4 of this bill.
Section 2.
This section adds new definitions for the terms "advertise" and "simulated check" to Section 36a-485 and amends the definition of "first mortgage loan" to clarify that such loan includes an extension of credit, in order to make it parallel to the definition of "secondary mortgage loan" in Section 36a-510.
Section 3.
This section prohibits licensees, in connection with an advertisement for a first mortgage loan in Connecticut, from using: (1) a simulated check; (2) a comparison between the loan payments under the loan offered and the loan payments under a hypothetical loan or extension of credit, unless the advertisement includes the following information with respect to the hypothetical loan or extension of credit and the loan being offered: the interest rate, the loan balance, the total amount of finance charges and the total number of payments and the amount paid on a monthly basis that would be required to pay off the outstanding balance shown; (3) words or phrases such as "verified as eligible", "eligible", "preapproved" or "prequalified" or similar phrases, without also disclosing, in immediate proximity to and in similar size print, language which sets forth prerequisites to qualify for the loan or extension of credit, such as income verification, credit check, and a property appraisal or evaluation; or (4) any words or symbols in the advertisement or on the envelope containing the advertisement which give the appearance that the mailing was sent by a government agency.
Section 4.
This section adds new definitions for the terms "advertise" and "simulated check" to Section 36a-510.
Section 5.
This section provides the same prohibitions in connection with an advertisement for a secondary mortgage loan in Connecticut as was provided in Section 3 of this bill for first mortgage loans.
Banking Commissioner's Position:
This was a Department of Banking proposal. The bill protects residents in this state from false, misleading or deceptive statements in advertisements used by first and second mortgage lenders or brokers licensed in this state. Specifically, the bill prohibits advertisements for loans in this state which include simulated checks, which are defined to be documents which imitate or resemble checks, but are not negotiable. The bill also prohibits advertisements that include examples indicating the reduction in monthly payments on outstanding debts that the recipient might obtain from taking the advertiser's loan and paying off existing debts, without providing information regarding the assumptions being made in the example. In addition, the bill prohibits the use of words or phrases that would indicate that the recipient is eligible or preapproved for a loan, when there are prerequisites to qualifying for a loan which are not disclosed, and words or symbols that would give the false appearance that the advertisements might have come from a government agency.
Public Act Number 99-158
H.B. 6817 - An Act Concerning Bank Powers, Uninsured Banks, the Enforcement Authority of the Commissioner of Banking and the Limitation of Interest Rates for Certain Commercial Loans.
Effective Date: October 1, 1999
Statement of Purpose:
To authorize a new form of Connecticut bank to be known as an uninsured bank and to authorize Connecticut banks to engage in certain closely related activities and activities permitted under federal law for federally chartered banks. Imposes a floating cap on the interest rate on unlicensed nonbank lenders' business loans between $10,000 and $250,000. Sets the cap at the deposit index, published annually by the Banking Commissioner, plus 17 percent.
Previous Law:
Section 36a-3 contains cross-references to terms that are defined in various provisions of Title 36a.
Section 36a-53(c) sets forth the provisions concerning the imposition of a civil penalty against a Connecticut bank, Connecticut credit union or an officer or director of a Connecticut bank or Connecticut credit union.
Title 36a does not prohibit the making of false or misleading statements to the Banking Commissioner.
Section 36a-70, which sets forth the requirements for organizing various forms of Connecticut banks, does not authorize the organization of an uninsured bank.
Section 36a-250 sets forth the powers of a Connecticut bank.
Section 36a-412(a)(4) provides that the branches in Connecticut of out-of-state state-chartered banks may exercise the powers of Connecticut banks and are subject to the Connecticut laws applicable to branches of Connecticut banks. Branches of federally-chartered out-of-state banks, on the other hand, with certain exceptions, are subject to Connecticut laws that are applicable to in-state federally-chartered banks.
Current law does not limit interest rates which an unlicensed lender may charge on a commercial transaction.
Effect of H.B. 6817:
Section 1.
This section amends Section 36a-3 to add cross-references to the definitions of "closely related activities" contained in Section 3 of this bill and "retail deposits" and "uninsured bank" contained in Section 2 of this bill.
Section 2.
This section amends Section 36a-53(c) to permit the Commissioner to impose a civil penalty in excess of $1,000 against any Connecticut bank, Connecticut credit union or any officer or director of a Connecticut bank or Connecticut credit union for making false or misleading statements to the Commissioner.
Section 3.
This section prohibits the making of any false or misleading statements in any document filed with the Commissioner or in any proceeding, investigation or examination under Title 36a.
Section 4.
This section amends Section 36a-70 to authorize the organization of an uninsured bank, which is defined as a Connecticut bank that does not accept retail deposits and for which FDIC insurance is not required. An uninsured bank must have a minimum equity capital of at least $5 million unless the Banking Commissioner establishes a different minimum capital requirement based on the bank's proposed activities. An uninsured bank would have all the powers of and be subject to all the requirements and limitations applicable to a Connecticut bank except that it could not accept retail deposits and that CRA laws would not apply to uninsured banks. This section also requires uninsured banks to make various disclosures concerning the lack of deposit insurance by the FDIC.
Section 5.
This section makes a technical amendment to Section 36a-250 to clarify a statutory cross-reference.
Section 6.
This section amends Section 36a-250(a) to permit Connecticut banks, with the prior approval of the Commissioner, directly to engage in closely related activities unless the Commissioner determines that an activity must be conducted through a subsidiary. Closely related activities are broadly defined to include activities that are closely related to or convenient and useful to the business of banking, are financial in nature or are permitted under the federal Bank Holding Company Act of 1956 or the federal Homeowner's Loan Act of 1933.
The section also authorizes Connecticut banks to engage in any activity permissible for a federal bank, other than the sale of title insurance, after giving prior notice to the Commissioner, unless the Commissioner disapproves it within 30 days after the notice is filed.
Section 7.
This section amends Section 36a-412(a)(4) to provide that the laws of Connecticut shall apply to a branch in Connecticut of any out-of-state bank to the same extent as such laws would apply if the branch were a federal bank, with certain exceptions, and that the branches in Connecticut of an out-of-state state-chartered bank may conduct any activity either permissible for a Connecticut bank branch or for a Connecticut branch of a federally-chartered out-of-state bank.
Section 8.
This section authorizes uninsured banks organized pursuant to section 2 of the bill to expand their powers to accept retail deposits with the approval of the Commissioner, and sets forth the filing and other requirements applicable to such expansion.
Section 9.
This section of the bill imposes a floating cap on the interest rate on unlicensed nonbank lenders' business loans between $10,000 and $250,000. It sets the cap at the deposit index, published annually by the Banking Commissioner, plus 17 percent. In addition, it also (1) caps the rate on revolving loan advances of less than $10,000 at the floating rate if, at the time of the advance, the borrowers total principal on all loans he owes the lender is between $10,000 and $250,000 and (2) exempts advances under $250,000 from the cap if the total principal is over $250,000.
Banking Commissioner's Position:
Sections 1 through 8 of this bill were a Department of Banking proposal. These sections enhance the state banking system by providing a new charter that would meet the needs of business and certain consumers. In addition, these sections expand the powers of Connecticut banks to permit them to engage in closely related activities, as well as activities permitted for federally-chartered banks. Giving our banks powers equivalent to those of a national bank would bring us in line with the rest of the country. Forty-three out of fifty states give their state-chartered banks parity with national banks. The additional powers granted to Connecticut banks would enable them to meet changing market demands and provide a broad array of services to consumers. The bill also prohibits the making of false or misleading statements to the Commissioner and thus gives the Commissioner the authority to take administrative action against persons who make such statements. The amendment to Section 36a-412 would conform our interstate banking laws to the federal Riegle-Neal Amendments Act of 1997, passed by Congress on January 7, 1997, which gives out-of-state state-chartered banks parity with out-of-state national banks.
This bill will also impose a floating cap on the interest rate on unlicensed nonbank lenders' business loans between $10,000 and $250,000. The cap will be set by using the deposit index, which is published annually by the Commissioner.