The Department of Banking News Bulletin

Bulletin # 2025
Week Ending December 13, 2002

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, Commissioner of Banking, 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.

CORRECTION
INTEREST RATE TO BE PAID ON MORTGAGE ESCROW ACCOUNTS,
PUBLIC SERVICE COMPANY AND ELECTRIC SUPPLIER CUSTOMER
SECURITY DEPOSITS AND TENANT SECURITY DEPOSITS

In accordance with Sections 49-2a(c), 16-262j(d) and 47a-21(i)(2) of the Connecticut General Statutes, the deposit index rate for calendar year 2003 is 1%. However, Sections 49-2a(a), 16-262j(c) and 47a-21(i)(1) provide that in no event shall the rate be less than 1.5%. Therefore, the interest rate to be paid on mortgage escrow accounts, public service company and electric supplier customer security deposits and tenant security deposits is 1.5% for the period commencing January 1, 2003 and ending December 31, 2003.

SECURITIES AND BUSINESS INVESTMENTS DIVISION
New Jersey Firm Fined $120,000 in Conjunction With
Unregistered Promissory Note Sales

On December 9, 2002, the Commissioner entered an Order Imposing Fine against Wellesley Services, LLC of 75 Chestnut Ridge Road, Montvale, New Jersey. The Order Imposing Fine resolved allegations in a September 25, 2002 Order to Cease and Desist and Notice of Intent to Fine against the company. The Order to Cease and Desist, being uncontested, had become permanent on October 21, 2002. In fining Wellesley Services, LLC $120,000, the Commissioner found that, from at least January 1999 forward, the respondent violated Sections 36b-16 and 36b-6(b) of the Connecticut Uniform Securities Act by offering and selling unregistered non-exempt promissory notes to eleven Connecticut investors through at least one unregistered agent of issuer.