Connecticut Administrative Code › Title 36a - The Banking Law of Connecticut › 428c - Foreign Banks › Section 36a-428c-6 - Deposit agreement

Current through July 10, 2024
No deposit by a foreign bank with a licensed state branch or
				licensed state agency with a depository pursuant to section
				36a-428c(a)
				of the general statutes shall be made until the foreign bank and the depository
				shall have executed a deposit agreement satisfactory to the commissioner. The
				commissioner may by written authorization relieve the foreign bank or the
				depository from compliance with any term or condition of the deposit agreement,
				including any term or condition prescribed by this section, if the commissioner
				finds such action necessary and proper to give effect to the purpose of section
				36a-428c(a)
				of the general statutes or of sections 36a-428c-6 and
				36a-428c-7 of
				the Regulations of Connecticut State Agencies. The deposit agreement, in
				addition to any other terms and considerations not inconsistent with this
				section, shall contain the following provisions:
(a)
Assets to be held as special
			 deposit.
Assets deposited by a foreign bank with a depository under the
			 deposit agreement shall be held by the depository as a special deposit free of
			 any lien, charge, right of set-off, credit or preference in connection with any
			 claim of the depository against the foreign bank. The depository shall not
			 accept, as a deposit by the foreign bank pursuant to the deposit agreement, any
			 asset that is not accompanied by documentation necessary to facilitate transfer
			 of title.
(b)
Depository to
			 furnish receipt.
The depository shall furnish to the foreign bank, upon
			 deposit of any assets pursuant to the deposit agreement, a receipt or statement
			 evidencing such deposit. Such receipt or statement shall identify the deposit
			 as having been made by the foreign bank pursuant to section
			 36a-428c(a)
			 of the general statutes and under the deposit agreement, and it shall provide
			 the amount of the deposit and, with respect to deposits of securities, a
			 description of each security so deposited.
(c)
Release of assets by
			 depository.
The depository shall release deposited assets to the foreign
			 bank upon written request (1) when accompanied by a certificate, as described
			 in subsection (e) of this section, signed by a duly authorized officer of the
			 foreign bank, or (2) upon receipt of a written authorization of the
			 commissioner to release to the foreign bank such part of the assets on deposit
			 under such conditions and terms as the authorization may specify.
(d)
Termination of right to substitute
			 or withdraw assets.
The right to substitute or withdraw assets provided
			 in this section may be terminated or suspended by the commissioner at any
			 time.
(e)
Model
			 certificate.
The following or similar certificate shall be executed by a
			 duly authorized officer of the foreign bank where withdrawals are made pursuant
			 to subdivision (1) of subsection (c) of this section:
It is hereby certified that the aggregate of assets remaining
				on deposit pursuant to the Deposit Agreement after this withdrawal or
				substitution amounts to $ , valued at the lower of principal amount or market
				value, and that such amount is at least equal to the amount required to be
				deposited pursuant to section
				36a-428c(a)
				of the Connecticut General Statutes and Section
				36a-428c-4
				of the Regulations of Connecticut State Agencies. The amount required to be
				maintained on deposit, as calculated pursuant to Section
				36a-428c-4
				of the Regulations of Connecticut State Agencies is $ as of this date.
(f)
Depository to furnish
			 monthly statements of all transactions.
The depository shall furnish to
			 the foreign bank, at least once in each calendar month, a statement of all
			 transactions in the special deposit account since the closing date of the
			 previous such statement. The statement shall include a listing of the assets on
			 deposit, as of the closing date of the statement. A copy of such statement
			 shall be simultaneously forwarded by the depository to the
			 commissioner.
(g)
Depository
			 may pay interest earned upon assets.
The depository may pay to the
			 foreign bank interest earned on assets deposited in accordance with such
			 arrangements as may be made between the depository and the foreign bank. The
			 commissioner is authorized to revoke this provision.
(h)
Responsibility of depository with
			 respect to deposited securities.
Except as provided in this subsection,
			 a depository shall hold the securities deposited by a foreign bank under the
			 deposit agreement separate and apart from all other securities and shall permit
			 examination and comparison thereof by duly authorized representatives of the
			 foreign bank or of the commissioner. A depository may utilize a central
			 depository, clearing corporation or book entry system to hold securities
			 deposited pursuant to a deposit agreement, provided the records of the central
			 depository, clearing corporation or book entry system show that the securities
			 are held for the depository as principal, agent or custodian for its customers.
			 The depository shall maintain adequate records to demonstrate the disposition
			 of such book entry deposits.
(i)
Depository shall safeguard securities.
The depository shall give
			 to the safekeeping, handling and shipping of securities deposited with it by
			 the foreign bank the same degree of care given by such depository to its own
			 securities.
(j)
Commissioner
			 shall not pay for services rendered.
The commissioner shall not be
			 required to pay for any of the services rendered or any expenses incurred by
			 the depository or the foreign bank under or in connection with this section or
			 the deposit agreement.
(k)
Termination of deposit agreement.
The foreign bank or the
			 depository may terminate the deposit agreement by giving the other party
			 thereto at least 60 days written notice of such termination, or such shorter
			 notice as the commissioner may approve, provided no termination by the foreign
			 bank shall be effective until (1) another depository has been designated by the
			 foreign bank, (2) such other depository has been approved by the commissioner,
			 (3) a deposit agreement has been executed in conformity with this section, and
			 (4) the depository has released to the foreign bank all the assets on deposit
			 in accordance with written instructions from the foreign bank, approved by the
			 commissioner.
(l)
Termination
			 of deposit agreement by action of commissioner.
If the conditions
			 provided in subsection (k) of this section are not met within 60 days after
			 notice of termination, or such shorter period as the commissioner may approve,
			 the commissioner may require the depository to release the assets on such terms
			 as the commissioner specifies. The depository, in such case, shall release the
			 assets upon the terms so specified, and the deposit agreement shall terminate
			 upon such release.