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Substitute Senate Bill No. 316

PUBLIC ACT NO. 96-8

AN ACT CONCERNING COMMUNITY REINVESTMENT BY FINANCIAL INSTITUTIONS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 36a-30 of the general statutes, as amended by section 5 of public act 95-155, is repealed and the following is substituted in lieu thereof:

(a) [For the purposes of] AS USED IN sections 36a-30 to 36a-33, inclusive, ["bank"] AS AMENDED BY THIS ACT, UNLESS THE CONTEXT OTHERWISE REQUIRES (1) "BANK" means any bank or out-of-state bank that maintains in this state a branch as defined in section 36a-410, AS AMENDED [but] "BANK" does not include [any such institution that engages solely in correspondent banking business or trust company business, acts solely as a clearing agent or does not perform commercial or retail banking services in this state] SPECIAL PURPOSE BANKS THAT DO NOT PERFORM COMMERCIAL OR RETAIL BANKING SERVICES IN WHICH CREDIT IS GRANTED TO THE PUBLIC IN THE ORDINARY COURSE OF BUSINESS, OTHER THAN AS AN INCIDENT TO THEIR SPECIALIZED OPERATIONS, INCLUDING, BUT NOT LIMITED TO, BANKER'S BANKS AND BANKS THAT ENGAGE ONLY IN ONE OR MORE OF THE FOLLOWING ACTIVITIES: PROVIDING CASH MANAGEMENT CONTROLLED DISBURSEMENT SERVICES OR SERVING AS CORRESPONDENT BANKS, TRUST COMPANIES OR CLEARING AGENTS. (2) "FEDERAL CRA" MEANS (A) THE FEDERAL COMMUNITY REINVESTMENT ACT OF 1977, 12 USC SECTION 2901 ET SEQ., AS FROM TIME TO TIME AMENDED, AND (B) THE REGULATIONS IMPLEMENTING SAID ACT ADOPTED BY THE FEDERAL FINANCIAL SUPERVISORY AGENCIES AS SET FORTH IN 12 CFR PART 25, 12 CFR PART 228, 12 CFR PART 345 AND 12 CFR PART 563e, AS FROM TIME TO TIME AMENDED, AND AS APPLICABLE TO THE SPECIFIC TYPE OF BANK. (3) "FEDERAL FINANCIAL SUPERVISORY AGENCY" MEANS THE OFFICE OF THE COMPTROLLER OF THE CURRENCY, THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE OFFICE OF THRIFT SUPERVISION AND ANY SUCCESSOR TO ANY OF THE FOREGOING AGENCIES, AS APPLICABLE TO THE SPECIFIC TYPE OF BANK.

(b) The commissioner shall assess the record of each bank in satisfying its continuing and affirmative obligations to help meet the credit needs of its local communities, including low and moderate-income neighborhoods, consistent with the safe and sound operation of such banks, and shall provide for the consideration of such records in connection with any application listed in subsection [(b)](c) of section 36a-32 AS AMENDED BY SECTION 3 OF THIS ACT.

[(c) Each bank shall prepare and, at least annually, review a delineation of the local community or communities that comprise its entire community within this state, without excluding low and moderate-income neighborhoods. Maps shall be used to portray community delineations. The commissioner shall review the reasonableness of such delineations. For purposes of sections 36a-30 to 36a-33, inclusive, a local community shall consist of the contiguous areas surrounding each office or group of offices of the bank, including any low and moderate-income neighborhoods in such areas. More than one office of a bank may be included in the same local community. A community delineation need not take into account a satellite device that receives deposits for more than one bank unless the commissioner determines otherwise. In preparing its delineation of a local community, a bank shall use any one of the following: (1) Existing boundaries such as those of metropolitan statistical areas or counties in which the bank's office or offices are located. Where appropriate, portions of adjacent areas should be included. The bank may make adjustments in the case of areas divided by state borders or significant geographic barriers, or areas that are extremely large or of unusual configuration. In addition, a small bank may delineate those portions of metropolitan statistical areas or counties it reasonably may be expected to serve; (2) The local area or areas around each office or group of offices where such bank makes a substantial portion of its loans, and all other areas equidistant from its offices as those areas. Adjustments such as those provided in subdivision (1) of this subsection may be made; or (3) Any other reasonably delineated local area that meets the purposes of this section and does not exclude low and moderate-income neighborhoods.]

(c) EACH BANK SHALL, IN ACCORDANCE WITH THE PROVISIONS OF FEDERAL CRA AND WITHOUT EXCLUDING LOW AND MODERATE-INCOME NEIGHBORHOODS, DELINEATE THE LOCAL COMMUNITY OR COMMUNITIES THAT COMPRISE ITS ENTIRE COMMUNITY WITHIN THIS STATE OR DELINEATE ONE OR MORE ASSESSMENT AREAS, AS APPLICABLE, WITHIN WHICH THE COMMISSIONER SHALL EVALUATE THE BANK'S RECORD OF HELPING TO MEET THE CREDIT NEEDS OF ITS ENTIRE COMMUNITY IN THIS STATE. THE COMMISSIONER SHALL REVIEW THE DELINEATION FOR COMPLIANCE WITH FEDERAL CRA AND THIS SUBSECTION IN CONNECTION WITH AN EXAMINATION OF THE BANK UNDER SECTION 36a-17.

(d) UNTIL, BUT NOT AFTER JUNE 30, 1997, UNLESS OTHERWISE PROVIDED BY FEDERAL CRA [(d)] (1) The governing board of each bank shall adopt a community reinvestment statement for each delineated community. Each such statement shall include at least the following: (A) The delineation of the local community; (B) a list of specific types of credit within certain categories such as residential loans for one to four dwelling units, residential loans for five dwelling units and over, housing rehabilitation loans, home improvement loans, small business loans, farm loans, community development loans, commercial loans and consumer loans that the bank is prepared to extend within the local community; and (C) a copy of the community reinvestment notice as provided in section 36a-31 AS AMENDED BY SECTION 2 OF THIS ACT. (2) Each bank may include the following in each community reinvestment statement: (A) A description of how its current efforts, including special credit-related programs, help to meet community credit needs; (B) a periodic report regarding its record of helping to meet community credit needs; and (C) a description of its efforts to ascertain the credit needs of its community, including efforts to communicate with members of its community regarding credit services. ANY COMMUNITY REINVESTMENT STATEMENTS IN EFFECT DURING THE PRECEDING TWO YEARS SHALL BE PLACED IN THE BANK'S PUBLIC FILE. (3) EACH BANK'S GOVERNING BOARD SHALL REVIEW EACH COMMUNITY REINVESTMENT STATEMENT AT LEAST ANNUALLY AND SHALL ACT UPON ANY MATERIAL CHANGE MADE IN THE INTERIM AT ITS FIRST REGULAR MEETING AFTER THE CHANGE. SUCH ACTIONS SHALL BE NOTED IN ITS MINUTES. EACH CURRENT COMMUNITY REINVESTMENT STATEMENT SHALL BE READILY AVAILABLE FOR PUBLIC INSPECTION (A) AT THE MAIN OFFICE OF THE BANK, AND (B) AT EACH OFFICE OF THE BANK IN THE LOCAL COMMUNITY DELINEATED IN SUCH STATEMENT, EXCEPT SATELLITE DEVICES. COPIES OF EACH CURRENT COMMUNITY REINVESTMENT STATEMENT SHALL BE PROVIDED TO THE PUBLIC UPON REQUEST. A BANK MAY CHARGE A REASONABLE FEE NOT TO EXCEED THE COST OF COPYING AND MAILING, IF APPLICABLE.

[(e) Each bank's governing board shall review each community reinvestment statement at least annually and shall act upon any material change made in the interim at its first regular meeting after the change. Such actions shall be noted in its minutes.]

(e) EACH BANK SHALL COLLECT AND REPORT LOAN INFORMATION IN ACCORDANCE WITH THE APPLICABLE REQUIREMENTS OF FEDERAL CRA. EACH BANK SHALL FILE WITH THE COMMISSIONER A COPY OF EACH CRA DISCLOSURE STATEMENT PREPARED FOR SUCH BANK BY A FEDERAL FINANCIAL SUPERVISORY AGENCY UNDER FEDERAL CRA WITHIN THIRTY BUSINESS DAYS AFTER RECEIVING THE STATEMENT.

(f) [Each current community reinvestment statement shall be readily available for public inspection (1) at the main office of the bank, and (2) at each office of the bank in the local community delineated in such statement, except satellite devices. Copies of each current community reinvestment statement and copies of] COPIES OF the public section of the MOST RECENT community reinvestment performance evaluation prepared by the commissioner pursuant to subsection (b) of section 36a-32, AS AMENDED BY SECTION 3 OF THIS ACT [or by the appropriate federal regulatory agency pursuant to the Federal Community Reinvestment Act, Title VIII of P.L. 95-128 (12 USC Section 2901 et seq.), as from time to time amended, and any regulations thereunder, whichever evaluation was prepared most recently] shall be provided to the public upon request. A bank may charge a REASONABLE fee not to exceed the cost of [reproduction] COPYING and mailing, if applicable.

[(g) (1) Each bank shall maintain files that are readily available for public inspection of: (A) Any signed, written comments received from the public within the past two years that specifically relate to any community reinvestment statement or to the bank's performance in helping to meet the credit needs of its community or communities; (B) a copy of the public section of the community reinvestment performance evaluation prepared by the commissioner pursuant to subsection (b) of section 36a-32, or by the appropriate federal regulatory agency pursuant to the Federal Community Reinvestment Act, Title VIII of P.L. 95-128 (12 USC Section 2901 et seq.), as from time to time amended, and any regulations thereunder, whichever evaluation was prepared most recently; (C) any responses to such comments or to the performance evaluation that the bank wishes to make; and (D) any community reinvestment statements in effect during the past two years. The bank shall place a copy of the public section of the performance evaluation in such files within thirty business days after receiving the performance evaluation from the commissioner or the appropriate federal regulatory agency. The format and content of the performance evaluation may not be altered or abridged by the bank in any manner. The bank shall be required to maintain in such files only the most recent performance evaluation, whether prepared by the commissioner or the appropriate federal regulatory agency. (2) Such files shall not contain any comments or responses that reflect adversely upon the good name or reputation of any person other than the bank or the publication of which would violate specific provisions of law. Such files shall be maintained by each bank as follows: (A) All materials required by this subsection at the main office; and (B) those materials required by this subsection relating to each local community at a designated office in such community.]

(g) EACH BANK SHALL MAINTAIN A PUBLIC FILE IN ACCORDANCE WITH FEDERAL CRA. EACH BANK SHALL PLACE A COPY OF THE PUBLIC SECTION OF THE BANK'S MOST RECENT COMMUNITY REINVESTMENT PERFORMANCE EVALUATION PREPARED BY THE COMMISSIONER PURSUANT TO SUBSECTION (b) OF SECTION 36a-32, AS AMENDED BY SECTION 3 OF THIS ACT, IN THE PUBLIC FILE WITHIN THIRTY BUSINESS DAYS AFTER ITS RECEIPT FROM THE COMMISSIONER. THE BANK MAY ALSO INCLUDE IN THE PUBLIC FILE ANY RESPONSE TO SUCH PERFORMANCE EVALUATION THAT THE BANK WISHES TO MAKE. THE BANK SHALL MAKE A COPY OF THE PUBLIC SECTION OF SUCH PERFORMANCE EVALUATION AVAILABLE TO THE PUBLIC FOR INSPECTION UPON REQUEST AND AT NO COST AT THE BANK'S MAIN OFFICE AND AT EACH OF ITS BRANCHES IN THIS STATE. ANY BANK THAT RECEIVED A LESS THAN SATISFACTORY RATING DURING ITS MOST RECENT EXAMINATION UNDER SECTION 36a-32, AS AMENDED BY SECTION 3 OF THIS ACT, SHALL INCLUDE IN ITS PUBLIC FILE A DESCRIPTION OF ITS CURRENT EFFORTS TO IMPROVE ITS PERFORMANCE IN HELPING TO MEET THE CREDIT NEEDS OF ITS ENTIRE COMMUNITY. THE BANK SHALL UPDATE THE DESCRIPTION QUARTERLY.

(h) THE COMMISSIONER MAY ASSESS A BANK'S RECORD OF HELPING TO MEET THE CREDIT NEEDS OF ITS ASSESSMENT AREAS UNDER A STRATEGIC PLAN PURSUANT TO FEDERAL CRA, PROVIDED (1) THE STRATEGIC PLAN IS FILED WITH THE COMMISSIONER CONCURRENTLY WITH ITS SUBMISSION BY THE BANK TO A FEDERAL FINANCIAL SUPERVISORY AGENCY FOR APPROVAL UNDER FEDERAL CRA, AND (2) THE STRATEGIC PLAN IS APPROVED BY THE COMMISSIONER.

Sec. 2. Section 36a-31 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) [Each] EXCEPT AS PROVIDED IN SUBSECTION (d) OF THIS SECTION, UNTIL JUNE 30, 1997, EACH bank shall provide, in the public lobby of each of its offices other than satellite devices, a public notice substantially similar to the one set forth [below] IN THIS SUBSECTION AND SUBSECTION (b) OF THIS SECTION. Bracketed material shall be used only by a bank having more than one local community.

COMMUNITY REINVESTMENT NOTICE

Community Reinvestment requires the evaluation of our performance in helping to meet the credit needs of this community, and to take this evaluation into account when the commissioner of banking decides on certain applications submitted by us. Your involvement is encouraged. You should know that: You may obtain our current Community Reinvestment Statement for this community in this office. (Current Community Reinvestment Statements for other communities served by us are available at our main office, located at:......................................) You may send signed, written comments about our Community Reinvestment Statement or our performance in helping to meet community credit needs to (title and address of bank official) and to the commissioner of banking (address). Your letter, together with any responses by us, may be made public. You may look at a file of all signed, written comments received by us within the past two years, any response we have made to the comments and all Community Reinvestment Statements in effect during the past two years at our office located at (address). (You also may look at the file about this community at (name and address of designated office).) You may ask to look at any comments received by the Commissioner of Banking.

(b) If the bank is a subsidiary of a holding company, the following provision shall be included in the Community Reinvestment Notice required by subsection (a) of this section: We are a subsidiary of (name of holding company), a (bank/savings and loan) holding company. You may request from the (Federal Reserve Bank/Office of Thrift Supervision) of (city, address) an announcement of applications covered by the community reinvestment statement filed by holding companies.

(c) [Within] EXCEPT AS PROVIDED IN SUBSECTION (d) OF THIS SECTION, UNTIL JUNE 30, 1997, WITHIN thirty business days of receiving its most recent community reinvestment performance evaluation prepared by the commissioner or [the appropriate] A federal [regulatory] FINANCIAL SUPERVISORY agency, each bank shall add the following provision to the community reinvestment notice required by subsection (a) of this section: You may obtain the public section of our most recent Community Reinvestment Performance Evaluation at (name and address of main office and designated community office).

(d) (1) ON AND AFTER JULY 1, 1997, IN ADDITION TO THE PUBLIC NOTICE REQUIRED UNDER FEDERAL CRA, EACH BANK SHALL PROVIDE IN THE PUBLIC LOBBY OF ITS MAIN OFFICE AND EACH OF ITS BRANCHES IN THIS STATE A PUBLIC NOTICE SUBSTANTIALLY SIMILAR TO THE FOLLOWING:

STATE OF CONNECTICUT

COMMUNITY REINVESTMENT NOTICE

THE COMMISSIONER OF BANKING EVALUATES OUR RECORD OF HELPING TO MEET THE CREDIT NEEDS OF THIS COMMUNITY CONSISTENT WITH SAFE AND SOUND OPERATIONS. THE COMMISSIONER OF BANKING ALSO TAKES THIS RECORD INTO ACCOUNT WHEN DECIDING ON CERTAIN APPLICATIONS SUBMITTED BY US. YOUR INVOLVEMENT IS ENCOURAGED. IN ADDITION TO THE INFORMATION THAT YOU ARE ENTITLED TO RECEIVE UNDER THE FEDERAL COMMUNITY REINVESTMENT ACT, AS LISTED IN THE "COMMUNITY REINVESTMENT ACT NOTICE" POSTED IN THIS LOBBY, YOU MAY REVIEW TODAY THE PUBLIC SECTION OF OUR MOST RECENT COMMUNITY REINVESTMENT PERFORMANCE EVALUATION PREPARED BY THE COMMISSIONER OF BANKING. YOU MAY SEND WRITTEN COMMENTS ABOUT OUR PERFORMANCE IN HELPING TO MEET COMMUNITY CREDIT NEEDS TO THE COMMISSIONER OF BANKING (ADDRESS). YOUR LETTER, TOGETHER WITH ANY RESPONSE BY US, WILL BE CONSIDERED BY THE COMMISSIONER OF BANKING IN EVALUATING OUR COMMUNITY REINVESTMENT PERFORMANCE AND MAY BE MADE PUBLIC. YOU MAY ASK TO LOOK AT ANY COMMENTS RECEIVED BY THE COMMISSIONER OF BANKING. (2) NOTWITHSTANDING THE PROVISIONS OF SUBSECTIONS (a) TO (c), INCLUSIVE, OF THIS SECTION, PRIOR TO JULY 1, 1997, A BANK MAY USE THE FORM OF PUBLIC NOTICE PROVIDED IN SUBDIVISION (1) OF THIS SUBSECTION IN LIEU OF THE FORM OF PUBLIC NOTICE SET FORTH IN SUBSECTIONS (a) TO (c), INCLUSIVE, OF THIS SECTION IF SUCH USE IS CONSISTENT WITH THE FORM OF PUBLIC NOTICE REQUIRED TO BE USED BY THE BANK UNDER FEDERAL CRA.

[(d)] The information, statements, evaluations and notices required under this section and subsections (d) and (g) of section 36a-30 AS AMENDED BY SECTION 1 OF THIS ACT may be combined with or attached to the information, statements, evaluations and notices required under [the Federal Community Reinvestment Act, Title VIII of P.L. 95-128 (12 USC Section 2901 et seq.), as from time to time amended, and any regulations thereunder] FEDERAL CRA.

Sec. 3. Section 36a-32 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) In connection with the examination of a bank [required] under section 36a-17, the commissioner shall assess the record of the performance of the bank in helping to meet the credit needs of its entire community, including low and moderate-income neighborhoods, consistent with the safe and sound operation of the bank. The commissioner shall [review the bank's community reinvestment statement and signed, written comments retained by the bank or the commissioner] ASSESS THE COMMUNITY REINVESTMENT PERFORMANCE OF A BANK UTILIZING THE APPLICABLE METHODOLOGY SET FORTH IN FEDERAL CRA. In addition, the commissioner shall consider the following [factors] in assessing a bank's record of performance: [(1) Activities conducted by the bank to ascertain the credit needs of its community, including the extent of the bank's efforts to communicate with members of its community regarding the credit services being provided by the bank; (2) The extent of the bank's marketing and special credit-related programs to make members of the community aware of the credit services offered by the bank; (3) The extent of participation by the bank's governing board in formulating the bank's policies, and reviewing its performance with respect to the purposes of community reinvestment as set forth in this section; (4) Any practices intended to discourage applications for types of credit set forth in the bank's community reinvestment statement; (5) The geographic distribution of the bank's credit extensions, credit applications and credit denials; (6) Evidence of prohibited discriminatory or other illegal credit practices;] [(7)] (1) The bank's record of [opening and closing offices and providing services at offices including] offering escrow accounts for purposes of compliance with subsection (h) of section 47a-21; [(8) The bank's participation, including investments, in local community development and redevelopment projects or programs; (9) The bank's origination of residential mortgage loans, housing rehabilitation loans, home improvement loans and small business or small farm loans within its community, or the purchase of such loans originated in its community; (10) The bank's participation in governmentally insured guaranteed, or subsidized loan programs for housing, small business or small farms; (11) The bank's ability to meet various community credit needs based on its financial condition and size, its legal impediments, local economic conditions and other factors; and (12)] (2) [Other factors, including, but not limited to, efforts] EFFORTS of the bank to work with delinquent residential mortgage customers who are unemployed or underemployed to facilitate a resolution of the delinquency [, or such other initiatives and programs that, in the commissioner's judgment, reasonably bear upon the extent to which a bank is helping to meet the credit needs of its entire community.] AND (3) WRITTEN COMMENTS RECEIVED BY THE COMMISSIONER.

(b) (1) Upon the conclusion of the assessment required under subsection (a) of this section, the commissioner shall prepare a written evaluation of the bank's record of meeting the credit needs of its entire community, including low and moderate-income neighborhoods. Each community reinvestment performance evaluation prepared under this subsection shall have a public section and a confidential section. (2) The public section of the performance evaluation shall (A) state the commissioner's [conclusions for each assessment factor set forth in subsection (a) of this section] ASSESSMENT OF THE COMMUNITY REINVESTMENT PERFORMANCE OF THE BANK UTILIZING THE APPLICABLE METHODOLOGY SET FORTH IN FEDERAL CRA, (B) discuss the facts supporting such [conclusions] ASSESSMENT and (C) contain the bank's rating and a statement describing the basis for the rating. The rating shall be one of the following: (i) Outstanding record of meeting community credit needs; (ii) satisfactory record of meeting community credit needs; (iii) needs to improve record of meeting community credit needs; or (iv) substantial noncompliance in meeting community credit needs. The commissioner shall furnish a copy of the public portion of the performance evaluation to the bank upon its completion. (3) The confidential section of the performance evaluation shall contain all references that identify any customer of the bank, any employee or officer of the bank, or any person that has provided information in confidence to the commissioner or to any federal [regulatory] FINANCIAL SUPERVISORY agency. The confidential section shall also contain any statements obtained or made by the commissioner in the course of an examination under section 36a-17 which, in the judgment of the commissioner, are too sensitive or speculative in nature to disclose to the bank or the public. The confidential section may be disclosed, in whole or in part, to the bank if the commissioner determines that such disclosure will promote the objectives of sections 36a-30 to 36a-33, inclusive, AS AMENDED BY THIS ACT provided any such disclosure shall not identify a person that has provided information in confidence to the commissioner or to any federal [regulatory] FINANCIAL SUPERVISORY agency.

(c) In considering an application for the establishment of a branch or other facility with the ability to accept deposits, the relocation of the main office or a branch office, or a merger or consolidation with or the acquisition of assets OR STOCK or assumption of liabilities of another bank, the commissioner shall consider, but not be limited to, the bank's record of performance. [The assessment of a] A bank's record of performance in helping to meet the credit needs of its community may be the basis for [denial of] DENYING OR CONDITIONING such an application.

(d) THE COMMISSIONER MAY ADOPT REGULATIONS, IN ACCORDANCE WITH CHAPTER 54, TO CARRY OUT THE PROVISIONS OF SECTIONS 36a-30 TO 36a-33, INCLUSIVE, AS AMENDED BY THIS ACT. SUCH REGULATIONS MAY ESTABLISH CONDITIONS, REQUIREMENTS OR OTHER PROVISIONS THAT ARE IN ADDITION TO OR VARY FROM THE PROVISIONS OF FEDERAL CRA THAT ARE INCORPORATED BY REFERENCE IN SECTIONS 36a-30 TO 36a-33, INCLUSIVE, AS AMENDED BY THIS ACT.

Sec. 4. Section 36a-33 of the general statutes, as amended by section 8 of public act 95-282, is repealed and the following is substituted in lieu thereof:

[(a)] The commissioner shall annually prepare and submit to the State Treasurer a list of banks which have received a rating of needs to improve or of substantial noncompliance in connection with the community reinvestment performance evaluation prepared by the commissioner pursuant to subsection (b) of section 36a-32 AS AMENDED BY SECTION 3 OF THIS ACT or by a federal [depository institution's regulatory] FINANCIAL SUPERVISORY agency pursuant to [the Federal Community Reinvestment Act, Sections 802 et seq., of Title VIII of P.L. 95-128 (12 USC Section 2901 et seq.), as from time to time amended, and any regulations promulgated thereunder] FEDERAL CRA, whichever evaluation is made available most recently. No bank included in such list may receive deposits under the provisions of section 4-33, AS AMENDED or 7-402 AS AMENDED. IN PREPARING SUCH LIST, THE COMMISSIONER MAY RELY ON INFORMATION RECEIVED FROM A FEDERAL FINANCIAL SUPERVISORY AGENCY.

[(b) The commissioner shall also prepare and submit annually to the State Treasurer a list, based on information received from the appropriate federal regulatory agency, which indicates those federal banks which have been determined by the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of the Currency to have received a rating of needs to improve or of substantial noncompliance in connection with the most recent community reinvestment performance evaluation prepared and made available by a federal regulatory agency pursuant to the Federal Community Reinvestment Act, Sections 802 et seq., of Title VIII of P.L. 95-128 (12 USC Section 2901 et seq.), as from time to time amended, and any regulations promulgated thereunder. No institution included in such list may receive deposits under the provisions of section 4-33 or 7-402.]

Sec. 5. Section 36a-34 of the general statutes, as amended by section 6 of public act 95-155, is repealed and the following is substituted in lieu thereof:

(a) As used in subsection (b) of this section: (1) "Entity" means the applicant or applicants except: (A) In the case of an approval pursuant to section 36a-181, AS AMENDED "entity" means the subsidiaries of the parent corporation, if any, and the parent corporation, if it is a bank or out-of-state bank; and (B) in the case of an approval pursuant to section 36a-411, AS AMENDED "entity" means the subsidiaries of the applicant holding company. (2) "Resulting entity" means: (A) In the case of an approval pursuant to section 36a-145, AS AMENDED the applicant; (B) in the case of an approval pursuant to section 36a-125, AS AMENDED the resulting Connecticut bank; (C) in the case of an approval pursuant to section 36a-181, AS AMENDED the subsidiary Connecticut bank; (D) in the case of an approval pursuant to section 36a-411, AS AMENDED the institution to be acquired or established; and (E) in the case of an approval pursuant to section 36a-412, AS AMENDED the bank to be acquired or THE resulting bank. (3) "FEDERAL CRA" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBSECTION (a) OF SECTION 36a-30, AS AMENDED BY SECTION 1 OF THIS ACT.

(b) The commissioner shall not grant any approval under section 36a-125, AS AMENDED [4m, [0m subsections (b) and (c) of section 36a-145, section 36a-181, AS AMENDED 36a-411 AS AMENDED or 36a-412 AS AMENDED unless the commissioner finds, in accordance with regulations adopted pursuant to chapter 54, that the entity has a record of compliance with the requirements of [the Community Reinvestment Act of 1977, 12 USC 2901 et seq., as from time to time amended] FEDERAL CRA, sections 36a-30 to 36a-33, inclusive, AS AMENDED BY THIS ACT to the extent applicable, and applicable consumer protection laws; and that 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, in accordance with a plan submitted by the applicant to the commissioner, in such form and containing such information as the commissioner may require OR, IF ACCEPTABLE TO THE COMMISSIONER, IN ACCORDANCE WITH AN APPROVED STRATEGIC PLAN PREPARED UNDER FEDERAL CRA, OR THE RELEVANT PORTION THEREOF, THAT IS SUBMITTED BY THE APPLICANT TO THE COMMISSIONER. Upon receiving [the] ANY SUCH plan, the commissioner shall make the plan available for public inspection and comment at the Department of Banking and cause notice of its submission and availability for inspection and comment to be published in the department's weekly bulletin. With the concurrence of the commissioner, the applicant or applicants shall publish, in the form of a legal advertisement in a newspaper having a substantial circulation in the area, notice of such plan's submission and availability for public inspection and comment. The notice shall state that the inspection and comment period will last for a period of thirty [business] days from the date of publication. The commissioner shall not make such finding until the expiration of such thirty-day period. In making such finding, the commissioner shall, unless clearly inapplicable, consider, among other factors, whether the plan identifies specific unmet credit and consumer banking needs in the local community and specifies how such needs will be satisfied, provides for sufficient distribution of banking services among branches or satellite devices, or both, located in low-income neighborhoods, contains adequate assurances that banking services will be offered on a nondiscriminatory basis and demonstrates a commitment to extend credit for housing, small business and consumer purposes in low-income neighborhoods. Except with respect to an approval pursuant to section 36a-145, AS AMENDED the commissioner shall not approve the transaction if the transaction would result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking in this state or if the commissioner determines that the effect of the proposed transaction may be to substantially lessen competition, or would tend to create a monopoly, or would be in restraint of trade, unless the commissioner finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served.

(c) The commissioner shall not make a determination stating that the commissioner does not disapprove an offer, invitation, request, agreement or acquisition pursuant to section 36a-185 AS AMENDED unless the commissioner finds, in accordance with regulations adopted pursuant to chapter 54, that the acquiring person, if such person is a bank or out-of-state bank, and the acquiring person's subsidiaries, if such person is a holding company, has a record of compliance with the requirements of [the Community Reinvestment Act of 1977, 12 USC 2901 et seq., as from time to time amended] FEDERAL CRA, sections 36a-30 to 36a-33, inclusive, AS AMENDED BY THIS ACT to the extent applicable, and applicable consumer protection laws; and that the bank or the banking subsidiaries of the holding company referred to in the acquisition statement 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. If the acquiring person is not a natural person, or 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 finding as to the adequacy of services to be provided shall be based on a plan submitted by the acquiring person to the commissioner, in such form and containing such information as the commissioner may require OR, IF ACCEPTABLE TO THE COMMISSIONER, IN ACCORDANCE WITH AN APPROVED STRATEGIC PLAN PREPARED UNDER FEDERAL CRA, OR THE RELEVANT PORTION THEREOF, THAT IS SUBMITTED BY THE ACQUIRING PERSON TO THE COMMISSIONER. Upon receiving [the] ANY SUCH plan, the commissioner shall make the plan available for public inspection and comment at the Department of Banking and cause notice of its submission and availability for inspection and comment to be published in the department's weekly bulletin. With the concurrence of the commissioner, the acquiring person shall publish, in the form of a legal advertisement in a newspaper having a substantial circulation in the area, notice of such plan's submission and availability for public inspection and comment. The notice shall state that the inspection and comment period will last for a period of thirty [business] days from the date of publication. The commissioner shall not make such finding until the expiration of such thirty-day period. In making such finding, the commissioner shall consider, among other factors, whether the plan identifies specific unmet credit and consumer banking needs in the local community and specifies how such needs will be satisfied, provides for sufficient distribution of banking services among branches or satellite devices, or both, located in low-income neighborhoods, contains adequate assurances that banking services will be offered on a nondiscriminatory basis and demonstrates a commitment to extend credit for housing, small business and consumer purposes in low-income neighborhoods. 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, the commissioner shall make the finding as to adequacy of services to be provided based on the commitment of the acquiring person to use the acquiring person's best efforts to cause such bank or banking subsidiaries of such holding company to provide such services. The commissioner shall not make a determination stating that the commissioner does not disapprove such offer, invitation, request, agreement or acquisition if such offer, invitation, request, agreement or acquisition would result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking in this state or if the commissioner should determine that the effect of the proposed offer, invitation, request, agreement or acquisition may be to substantially lessen competition, or would tend to create a monopoly, or would be in restraint of trade, unless the commissioner finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served.

Sec. 6. This act shall take effect from its passage.

Approved April 29, 1996. Effective April 29, 1996.

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