The Department of Banking News Bulletin

Bulletin # 1823
Week Ending January 29, 1999

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to John P. Burke, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Bank Examination Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

Pursuant to the provisions of Section 36a-600 of the Connecticut General Statutes, on January 28, 1999, Vigo Remittance Corp. filed an application to engage in the business of receiving money for transmitting the same.

On January 29, 1999, pursuant to Section 36a-181 of the Connecticut General Statutes, approval was granted to Cornerstone Bank, a capital stock Connecticut bank, to organize Cornerstone Bancorp, Inc., a Connecticut corporation, as a holding company.

On January 27, 1999, an application was filed by Citigroup Inc., a Delaware corporation, to establish an office of its subsidiaries, Commercial Credit Corporation, a Maryland corporation, and Commercial Credit Loans, Inc., a Delaware corporation, at 1131 Tolland Turnpike, The Plaza at Burr Corners, Manchester, Connecticut.

Attached to this issue of the Bulletin is a copy of adopted regulations concerning community reinvestment act compliance, consumer protection law compliance and community reinvestment plan requirements for certain transaction applications. Such regulations became effective on January 29, 1999.

Sec.1.  The Regulations of Connecticut State Agencies are amended by adding Sections 36a-34-1 to 36a-3, inclusive, as follows:

     (a) As used in sections 36a-34-1 to 36a-34-3, inclusive, of the Regulations of Connecticut State Agencies:
     (1) "Connecticut holding company" shall have the same meaning as set forth in section 36a-410 of the Connecticut General Statutes.
     (2) "Entity" shall have the same meaning as set forth in subsection (a) of section 36a-34 of the Connecticut General Statutes.
     (3) "Federal CRA" shall have the same meaning as set forth in subsection (a) of section 36a-30 of the Connecticut General Statutes.
     (4) "Resulting entity" shall have the same meaning as set forth in subsection (a) of section 36a-34 of the Connecticut General Statutes.
     (5) "State CRA" means sections 36a-30 to 36a-33, inclusive, of the Connecticut General Statutes.
     (b) Terms used in sections 36a-34-1 to 36a-34-3, inclusive, of the Regulations of Connecticut State Agencies that are defined in section 36a-2 of the Connecticut General Statutes shall have the same meaning as set forth in section 36a-2 unless the context otherwise requires.

     (a) In connection with any application for an approval pursuant to section 36a-125, subsections (b), (c) and (d) of section 36a-145, section 36a-181, section 36a-411 or subdivisions (1) and (2) of subsection (a) of section 36a-412 of the Connecticut General Statutes, the applicant or applicants shall submit to the commissioner to the extent applicable, except as waived by the commissioner, the following information with respect to each entity:
     (1) A copy of the entity's most recent Federal CRA performance evaluation, including the composite Federal CRA rating;
     (2) Copies of any decision or order issued during the last two years by any federal financial supervisory agency concerning the entity's compliance with Federal CRA;
     (3) An opinion of counsel addressing the entity's record of compliance with applicable consumer protection laws during the last two years, if requested by the commissioner in any case where the commissioner is unable to determine such record of compliance based on state or federal reports of examination prepared within the last two years and other documentation filed by the applicant or applicants, or is not satisfied with the contents of such reports and documentation; and
     (4) Copies of any administrative or judicial decision or order concerning the entity's compliance with applicable consumer protection laws.
     (b)(1)(A) Except as otherwise provided in subparagraph (B) of this subdivision, if the entity, and in the case of an approval pursuant to section 36a-411 of the Connecticut General Statutes, the bank or any subsidiary bank of the Connecticut holding company, received any overall rating other than an assigned rating of "outstanding" on its most recent applicable community reinvestment performance evaluation, the applicant or applicants shall submit to the commissioner a written plan detailing the manner in which the resulting entity will provide adequate services to meet the banking needs of all community residents, including low-income residents and moderate-income residents, to the extent permitted by its charter.
     (B) In any case where the resulting entity is not subject to the requirements of Federal CRA and State CRA, and the commissioner determines that such resulting entity is not authorized by its charter to provide consumer banking services, or in any case where the commissioner deems the provisions of this subsection to be inapplicable to the establishment of a limited branch pursuant to subsection (c) of section 36a-145 of the Connecticut General Statutes, the commissioner may waive the submission of a plan under this subsection. The submission of a plan shall not be required under subsection (d) of section 36a-145 of the Connecticut General Statutes, provided the commissioner may require the filing of such information in lieu of a plan as the commissioner deems appropriate.
     (2) Unless clearly inapplicable, the plan shall: (A) Identify any specific unmet credit and consumer banking needs in the local community that are known to the resulting entity or the applicant or applicants, and specify how such needs will be satisfied; (B) describe the proposed distribution of banking services among branches and satellite devices located in low-income neighborhoods; (C) contain assurances that banking services will be offered on a nondiscriminatory basis; (D) demonstrate a commitment to extending credit for housing, small business and consumer purposes in low-income neighborhoods; and (E) contain any other factors required by the commissioner.
     (3) The plan may consist of or incorporate any document or combination of documents that satisfy the criteria set forth in subdivision (2) of this subsection, including, but not limited to: (A) (i) The resulting entity's most recent State CRA performance evaluation or Federal CRA performance evaluation, or both, if prepared within the last two years and the resulting entity received a composite rating of "satisfactory" or higher, (ii) the resulting entity's current or proposed community reinvestment statement or policy, and (iii) written assurances of the governing board or management committee or executive officers appropriately designated by the governing board, of each applicant or the resulting entity, as applicable, that the resulting entity will continue to provide adequate services to meet the banking needs of all community residents, including low-income residents and moderate-income residents, as described in the performance evaluation or evaluations and the community reinvestment statement or policy; or (B) if acceptable to the commissioner, the resulting entity's currently effective strategic plan, or the relevant portion thereof, prepared and approved under applicable provisions of Federal CRA and State CRA. The plan shall adequately identify the provisions contained in any such document or combination of documents that correspond to the criteria set forth in subdivision (2) of this subsection.
     (4) The plan shall be certified by the secretary of each applicant as having been duly adopted by the governing board or management committee or executive officers appropriately designated by the governing board, of each applicant by vote of at least a majority of all the members thereof, provided, in the case of an application for an approval pursuant to section 36a-125 of the Connecticut General Statutes, unless otherwise required by the commissioner, the plan shall be certified by the secretaries of the constituent banks as having been duly adopted by the vote of at least a majority of the governing board or management committee or executive officers appropriately designated by the governing board, of each constituent final bank and of all the organizers of each constituent temporary bank.
     (c) In connection with any plan submitted or to be submitted under subsection (b) of this section, the applicant or applicants shall file with the commissioner a preliminary draft of the legal advertisement required by subsection (b) of section 36a-34 of the Connecticut General Statutes. The applicant or applicants shall not publish such legal advertisement in accordance with subsection (b) of section 36a-34 without the prior review and verbal concurrence of the commissioner. No such legal advertisement shall be published unless the plan to which it pertains has been filed with the commissioner.

     (a) In connection with any acquisition statement filed pursuant to section 36a-184 of the Connecticut General Statutes:
     (1) If the acquiring person is a holding company, the acquiring person shall submit to the commissioner to the extent applicable, except as waived by the commissioner, the following information regarding the acquiring person's subsidiaries:
     (A) A copy of the subsidiaries' most recent Federal CRA performance evaluation including the composite Federal CRA rating;
     (B) Copies of any decision or order issued during the last two years by any federal financial supervisory agency concerning the subsidiaries' compliance with Federal CRA;
     (C) An opinion of counsel addressing the subsidiaries' record of compliance with applicable consumer protection laws during the last two years, if requested by the commissioner in any case where the commissioner is unable to determine such record of compliance based on state or federal reports of examination prepared within the last two years and other documentation filed by the acquiring person, or is not satisfied with the contents of such reports and documentation; and
     (D) Copies of any administrative or judicial decision or order concerning the subsidiaries' compliance with applicable consumer protection laws.
     (2) If the acquiring person is a bank or out-of-state bank, the acquiring person shall submit to the commissioner to the extent applicable, except as waived by the commissioner, the following information in addition to any information required by subdivision (1) of this subsection:
     (A) A copy of the acquiring person's most recent Federal CRA performance evaluation including the composite Federal CRA rating;
     (B) Copies of any decision or order issued during the last two years by any federal financial supervisory agency concerning the acquiring person's compliance with Federal CRA;
     (C) An opinion of counsel addressing the acquiring person's record of compliance with applicable consumer protection laws during the last two years, if requested by the commissioner in any case where the commissioner is unable to determine such record of compliance based on state or federal reports of examination prepared within the last two years and other documentation filed by the acquiring person, or is not satisfied with the contents of such reports and documentation; and
     (D) Copies of any administrative or judicial decision or order concerning the acquiring person's compliance with applicable consumer protection laws.
     (b)(1) Except as otherwise provided in this subsection, if (A) the acquiring person is not a natural person or the acquiring person is a natural person who would be the beneficial owner of twenty-five per cent or more of any class of voting securities of the bank or holding company referred to in the acquisition statement, and (B) the bank or any banking subsidiary of the holding company received any overall rating other than an assigned rating of "outstanding" on its most recent applicable community reinvestment performance evaluation, the acquiring person shall submit to the commissioner a written plan detailing the manner in which such bank or such holding company's banking subsidiaries in this state will provide adequate services to meet the banking needs of all community residents, including low-income residents and moderate-income residents, to the extent permitted by its charter or their charters.
     (2) Unless clearly inapplicable, the plan shall: (A) Identify any specific unmet credit and consumer banking needs in the local community that are known to such bank or banking subsidiaries or to the acquiring person, and specify how such needs will be satisfied; (B) describe the proposed distribution of banking services among branches and satellite devices located in low-income neighborhoods; (C) contain assurances that banking services will be offered on a nondiscriminatory basis; (D) demonstrate a commitment to extending credit for housing, small business and consumer purposes in low-income neighborhoods; and (E) contain any other factors required by the commissioner.
     (3) The plan may consist of or incorporate any document or combination of documents that satisfy the criteria set forth in subdivision (2) of this subsection, including, but not limited to: (A) (i) Such bank's or such banking subsidiaries' most recent State CRA performance evaluation or Federal CRA performance evaluation, or both, if prepared within the last two years and the bank or banking subsidiary received a composite rating of "satisfactory" or higher, (ii) such bank's or such banking subsidiaries' current or proposed community reinvestment statement or policy, and (iii) written assurances of the governing board or management committee or executive officers appropriately designated by the governing board, of such bank or such banking subsidiaries that such bank or banking subsidiaries will continue to provide adequate services to meet the banking needs of all community residents, including low-income residents and moderate-income residents, as described in the performance evaluation or evaluations and the community reinvestment statement or policy; or (B) if acceptable to the commissioner, such bank's or such banking subsidiaries' currently effective strategic plan, or the relevant portion thereof, prepared and approved under applicable provisions of Federal CRA and State CRA. The plan shall adequately identify the provisions contained in any such document or combination of documents that correspond to the criteria set forth in subdivision (2) of this subsection.
     (4) If the acquiring person is not a natural person, the plan shall be certified by the secretary of the acquiring person as having been duly adopted by the governing board or management committee or executive officers appropriately designated by the governing board, of the acquiring person by vote of at least a majority of all the members thereof. If the acquiring person is a natural person who would be the beneficial owner of twenty-five per cent or more of any class of voting securities of the bank or holding company referred to in the acquisition statement, the plan shall be signed by the acquiring person.
     (5) In connection with any plan submitted or to be submitted under this subsection, the acquiring person shall file with the commissioner a preliminary draft of the legal advertisement required by subsection (c) of section 36a-34 of the Connecticut General Statutes. The acquiring person shall not publish such legal advertisement in accordance with subsection (c) of section 36a-34 without the prior review and verbal concurrence of the commissioner. No such legal advertisement shall be published unless the plan to which it pertains has been filed with the commissioner.
     (c) If the acquiring person is a natural person who would be the beneficial owner of less than twenty-five per cent of all classes of voting securities of the bank or holding company referred to in the acquisition statement and such bank or any banking subsidiary of such holding company received any overall rating other than an assigned rating of "outstanding" on its most recent applicable community reinvestment performance evaluation, in lieu of the plan required by subsection (b) of this section, the acquiring person shall submit to the commissioner a written statement expressing the commitment of the acquiring person to use the acquiring person's best efforts to cause the bank or the banking subsidiaries of the holding company referred to in the acquisition statement to provide adequate services to meet the banking needs of all community residents, including low-income residents and moderate-income residents, to the extent permitted by its charter or their charters. The statement shall be signed by the acquiring person.
     (d)(1) In any case where the bank referred to in the acquisition statement is not subject to the requirements of Federal CRA and State CRA, and the commissioner determines that such bank is not authorized by its charter to provide consumer banking services, the commissioner may waive the submission of a plan under subsection (b) of this section or the submission of a statement under subsection (c) of this section. (2) In any case where a banking subsidiary in this state of the holding company referred to in the acquisition statement is not subject to the requirements of Federal CRA and State CRA, and the commissioner determines that such banking subsidiary is not authorized by its charter to provide consumer banking services, the commissioner may waive the submission of a plan under subsection (b) of this section or the submission of a statement under subsection (c) of this section with respect to such banking subsidiary.

Sec.2. The Regulations of Connecticut State Agencies are amended by adding Section 36a-145-1 as follows:

     (a) As used in this section:
     (1) "Branch", "limited branch" and "mobile branch" shall have the same meaning as set forth in subsection (a) of section 36a-145 of the Connecticut General Statutes;
     (2) "Federal CRA" shall have the same meaning as set forth in subsection (a) of section 36a-30 of the Connecticut General Statutes;
     (3) "State CRA" means sections 36a-30 to 36a-33, inclusive, of the Connecticut General Statutes; and
     (4) Terms that are defined in section 36a-2 of the Connecticut General Statutes shall have the same meaning as set forth in section 36a-2 unless the context otherwise requires.
     (b) In connection with any application filed by a Connecticut bank to establish a branch, limited branch or mobile branch outside of this state pursuant to subsection (i) of section 36a-145 of the Connecticut General Statutes, the Connecticut bank shall submit to the commissioner the following information, except as waived by the commissioner:
     (1) A copy of the Connecticut bank's most recent Federal CRA performance evaluation, including the composite Federal CRA rating;
     (2) Copies of any decision or order issued during the last two years by any federal financial supervisory agency concerning the Connecticut bank's compliance with Federal CRA;
     (3) An opinion of counsel addressing the Connecticut bank's record of compliance with applicable consumer protection laws during the last two years, if requested by the commissioner in any case where the commissioner is unable to determine such record of compliance based on state or federal reports of examination prepared within the last two years and other documentation filed by the Connecticut bank, or is not satisfied with the contents of such reports and documentation; and
     (4) Copies of any administrative or judicial decision or order concerning the Connecticut bank's compliance with applicable consumer protection laws.

     Sec.3.  Sections 36-140-1, 36-140-2, 36-140a-1, 36-140a-2, 36-193u-1, 36-193u-2, 36-420-1, 36-420-2, 36-425-1, 36-425-2, 36-553-13, 36-553-14, 36-554-13, 36-554-14, 36-555-9, 36-555-10, 36-556-9 and 36-556-10 of the Regulations of Connecticut State Agencies are repealed.