Source: https://portal.ct.gov/DOB/Legal-Resources/Legal-Resources/Interim-Banking-Advisory-Opinions-and-Decisions
Timestamp: 2019-04-20 15:15:09+00:00

Document:
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.
Approval pursuant to §§ 36a-412(b) and 36a-125 of the merger of Westbank with and into NewAlliance Bank.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
A Connecticut bank may not by contract increase the funds availability period beyond that required by § 36a-302.
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.
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.
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.
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.
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.
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.
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.
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.
Legality of a real estate agent acting as a loan originator under certain scenarios.
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.
A corporation that attempts to collect monies owed to its sister corporation would have to be licensed as a consumer collection agency.
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.
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.
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.
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.
A futures commission merchant specializing in “forex” transactions is not required to obtain a license to engage in the business of money transmission.
Section 3-57a, which governs the escheat of property held by a banking organization, is outside the jurisdiction of the Department.
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.
Approval pursuant to § 36a-185 of the acquisition by BNC Financial Group, Inc., of 100% of the voting securities of The Bank of Fairfield.
An out-of-state state-chartered bank does not need a license to make residential mortgages in Connecticut.

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