Table of Contents
Sec. 36a-290. (Formerly Sec. 36-3). Joint deposit and share accounts.
Sec. 36a-291. (Formerly Sec. 36-113). Pledge of savings and time accounts in single or
joint ownership. Lien.
Sec. 36a-292. (Formerly Sec. 36-3a). Liability of survivor receiving payment on joint deposit account.
Sec. 36a-293. (Formerly Sec. 36-5). Adverse claim to bank deposit.
Sec. 36a-294. (Formerly Sec. 36-114). Loss, theft or destruction of passbooks, certificates or instruments.
Sec. 36a-295. (Formerly Sec. 36-76). Rendering of statement and delivery of passbook; accuracy and completeness presumed after seven years.
Sec. 36a-296. (Formerly Sec. 36-110). Deposits in trust.
Sec. 36a-297. (Formerly Sec. 36-111). Deposits of minors.
Sec. 36a-298. (Formerly Sec. 36-106). Notice of withdrawals.
Sec. 36a-299. (Formerly Sec. 36-9i). Permitted and prohibited transfers by negotiable
withdrawal order.
Sec. 36a-300. (Formerly Sec. 36-108). School savings deposits and time deposits.
Sec. 36a-301. (Formerly Sec. 36-9q). Tax and loan accounts and note accounts.
Sec. 36a-302. (Formerly Sec. 36-9v). Applicability of federal Expedited Funds Availability Act to banks and credit unions.
Sec. 36a-303. (Formerly Sec. 36-9o). Charge for overdraft, when prohibited.
Sec. 36a-304. (Formerly Sec. 36-9bb). Cashing of state checks. Fee prohibited. Liability
for loss from wrongful payment.
Sec. 36a-305. (Formerly Sec. 36-9cc). Regulations re cashing state checks.
Sec. 36a-306. Connecticut banks and Connecticut credit unions to accept identification
cards, when.
Sec. 36a-307. (Formerly Sec. 36-9dd). Interest on savings deposit accounts.
Secs. 36a-308 to 36a-314.
Sec. 36a-315. (Formerly Sec. 36-27a). Short title: Deposit Account Contract Act.
Sec. 36a-316. (Formerly Sec. 36-27b). Definitions.
Sec. 36a-317. (Formerly Sec. 36-27c). Prohibited acts of financial institutions.
Sec. 36a-317a. Charges for stop payment orders.
Sec. 36a-318. (Formerly Sec. 36-27d). Copy of deposit account contract and schedule of
charges and interest to be furnished to depositors. Exceptions. Notice requirements.
Sec. 36a-319. (Formerly Sec. 36-27e). Deposit account disclosures. List of charges.
Sec. 36a-320. (Formerly Sec. 36-27f). Changes in deposit account charges. Notice.
Sec. 36a-321. (Formerly Sec. 36-27g). Changes in computation of interest or interest
rate. Notice.
Sec. 36a-322. (Formerly Sec. 36-27h). Enforcement powers of commissioner.
Sec. 36a-323. (Formerly Sec. 36-27i). Exceptions. Waivers.
Secs. 36a-324 to 36a-329.
Sec. 36a-330. (Formerly Sec. 36-382). Definitions.
Sec. 36a-331. (Formerly Sec. 36-383). Protection of public deposits.
Sec. 36a-332. (Formerly Sec. 36-385). Powers of commissioner.
Sec. 36a-333. (Formerly Sec. 36-386). Collateral requirements.
Sec. 36a-334. (Formerly Sec. 36-387). Procedure upon loss.
Sec. 36a-335. (Formerly Sec. 36-388). Subrogation of commissioner to depositor's rights.
Sec. 36a-336. (Formerly Sec. 36-389). Public deposits in qualified public depository or
out-of-state bank.
Sec. 36a-337. (Formerly Sec. 36-390). Securing of public deposits. Private insurance in
lieu of eligible collateral.
Sec. 36a-338. (Formerly Sec. 36-391). Report of public depository.
Secs. 36a-339 to 36a-349.
DEPOSITS AND CHECKS
Sec. 36a-290. (Formerly Sec. 36-3). Joint deposit and share accounts. (a) When
a deposit account has been established at any bank, or a share account has been established at any Connecticut credit union or federal credit union, in the names of two or
more natural persons and under such terms as to be paid to any one of them, or to the
survivor or survivors of them, such account is deemed a joint account, and any part or
all of the balance of such account, including any and all subsequent deposits or additions
made thereto, may be paid to any of such persons during the lifetime of all of them or
to the survivor or any of the survivors of such persons after the death of one or more of
them. Any such payment constitutes a valid and sufficient release and discharge of such
bank, Connecticut credit union or federal credit union, or its successor, as to all payments
so made. Sec. 36a-291. (Formerly Sec. 36-113). Pledge of savings and time accounts in
single or joint ownership. Lien. Unless the applicable deposit contract provides that the
account is nontransferable, and except to the extent that such deposit contract otherwise
limits such right, the interest of any named owner in any savings account established
or maintained at any Connecticut bank, except a savings account subject to negotiable
orders of withdrawal, or in any time account established or maintained at such bank,
without regard to whether any such account is held in the names of one or more persons,
may be pledged by such named owner, without the consent of any other named owner
thereof by delivery to the pledgee of (1) the passbook, if any, evidencing such account,
and (2) an order to the Connecticut bank to transfer such pledged account to the pledgee;
but no such pledge shall be effective against any person other than the named owners,
their executors or administrators, unless an actual transfer of such account to the pledgee
has been made upon the books of such bank, or a copy of the order for such transfer has
been filed with the bank. Any pledgee which makes a loan based on the pledge of a
savings account or a time account as provided in this section shall have a lien against
such account until all sums due under the loan have been repaid. The Connecticut bank
with which such savings account or time account is established or maintained may be
a pledgee under this section. This section does not apply to a negotiable certificate of
deposit subject to the terms of article 9 of title 42a. Sec. 36a-292. (Formerly Sec. 36-3a). Liability of survivor receiving payment
on joint deposit account. (a) Whenever all or any portion of the balance of any deposit
account which is a joint account under section 36a-290 has been paid, after the death
of one account owner to any surviving account owner or owners, and if the deceased
account owner has left no other estate of sufficient value for the payment of claims
against the deceased account owner's estate, such survivor or survivors or, if any such
survivor is incapable, the legal representative of such incapable survivor, shall pay to
the representative of such estate or, if there is no such representative, and subject to the
terms of subsection (b) of this section, directly to the claimant, from such joint account
or from its proceeds, any valid claims against the deceased account owner's estate for
such deceased account owner's funeral expenses, for the expenses of settling such estate,
for any debts owed for the last sickness of such deceased account owner, and for any
debt due to this state for aid or care to the deceased account owner. The aggregate liability
of the surviving account owner or owners, under this section, shall not exceed an amount
equal to the balance of such joint account on the date of the deceased account owner's
death divided by the number of owners of such account immediately before the deceased
account owner's death. Sec. 36a-293. (Formerly Sec. 36-5). Adverse claim to bank deposit. Notice to
any bank of any adverse claim to all or any portion of the balance of a deposit account
held within this state and, according to the bank's records, for the credit of any person,
shall not be effectual to cause such bank to recognize such adverse claimant unless
such adverse claimant also either (1) procures a restraining order, injunction or other
appropriate process against such bank from a court of competent jurisdiction in a cause
instituted by such person wherein each person for whose credit the deposit account is
held, or such person's executor, administrator, legal representative or heir, is made a
party and is served with summons or (2) executes to such bank, in a form and with
sureties acceptable to it, a bond indemnifying such bank from any and all liability, loss,
damage, costs and expenses for and on account of the payment of such adverse claim
or the dishonor of the check or other order of the person for whose credit the deposit
account, according to the records of such bank, is held; provided this section shall not
apply in any instance where the person for whose credit the deposit account is held,
according to the records of such bank, is a fiduciary for such adverse claimant, and the
facts constituting such relationship, and the facts showing reasonable cause of belief on
the part of such claimant that such fiduciary is about to misappropriate all or any portion
of the balance of such deposit account, are made to appear by affidavit of such claimant.
An adverse claimant means one who is not a named owner, joint owner or co-owner of
the deposit account according to the bank's records. This section shall not apply to any
writ of foreign attachment or any writ of execution applying to a deposit account. Sec. 36a-294. (Formerly Sec. 36-114). Loss, theft or destruction of passbooks,
certificates or instruments. When any passbook, certificate or instrument, negotiable
or nonnegotiable, transferable or nontransferable, issued by a Connecticut bank in connection with a deposit account has been lost, stolen or destroyed, all persons in whose
names such account is held, or their respective legal representatives, may make written
application to such bank for either the payment of the balance then due on such account
or for the issuance of a duplicate passbook, certificate or instrument for such account.
Such application shall be signed by each person in whose name such account is then
held according to the records of the bank, and shall be in such form, together with such
sureties and such reasonable representations, warranties, agreements and indemnifications as are acceptable to such bank. Upon receipt of such application and proof satisfactory to it of the identity of the person or persons making such application, such bank
shall, at its option, either pay the balance then due on such account to such applicant or
applicants or issue a duplicate passbook, certificate or instrument for such account and,
upon such payment or issuance, all liability of such bank to any person making such
application and based on the existence of the original passbook, certificate or instrument
terminates. Sec. 36a-295. (Formerly Sec. 36-76). Rendering of statement and delivery of
passbook; accuracy and completeness presumed after seven years. Except as otherwise provided by applicable state or federal law, including title 42a, if a Connecticut bank
has rendered a statement or delivered a passbook to its depositor reflecting transactions in
or the balance of a deposit account, and unless a court of competent jurisdiction determines, in an action filed by the depositor against such bank before the expiration of seven
years from the date of the rendering of the statement or the delivery of the passbook, that
the statement or passbook was inaccurate or incomplete, then, upon the expiration of
the seven-year period, at the option of such bank, the statement or passbook is deemed
accurate and complete as of the date of the statement or the delivery and as to each
transaction and any balance reflected in the statement or passbook, and such depositor
is thereafter barred from questioning the correctness of any transaction and any balance
reflected therein for any cause. Nothing in this section shall be construed to relieve the
depositor from the duty imposed by law or contract of exercising due diligence in the
examination of any such statement or passbook when rendered by the bank, and of
immediate notification to the bank upon discovery of any error therein, nor from the
legal consequences of neglect of such duty. Sec. 36a-296. (Formerly Sec. 36-110). Deposits in trust. (a) (1) No bank shall
establish any deposit account in which deposits are to be held by one natural person in
trust for another natural person unless the depositor provides the bank with the name
and a residential address for the beneficiary, upon establishing the deposit account or
thereafter at the request of the bank. The depositor may also provide the bank with a
writing signed by the depositor specifying the terms of the trust under which such deposit
account is to be held. Unless such writing specifies to the contrary, it shall be conclusively presumed that the depositor intends to create a trust of all funds credited to the
deposit account from time to time upon the following terms: (A) The depositor during
his life may withdraw, or authorize charges against, such funds; (B) if the depositor
survives the named beneficiary, the named beneficiary's death shall terminate the trust
and title to the deposit account shall thereupon vest in the depositor free and clear of
the trust; (C) if the named beneficiary survives the depositor, the depositor's death shall
terminate the trust and title to the deposit account shall thereupon vest in the named
beneficiary free and clear of the trust. (2) Any bank shall be fully protected in making
payment of any moneys credited to such deposit account in accordance with the terms
of such signed writing or, in the event such writing does not specify to the contrary, in
accordance with the presumptions contained in this subsection that are applicable, and
the title of any person to any moneys credited to such deposit account and the effect of
such signed writing with respect to the deposit account or, in the event such writing
does not specify to the contrary, the effect of the presumptions contained in this subsection shall not be denied, abridged or in any way affected because such signed writing
was not executed in accordance with, or otherwise fails to comply with, the laws of this
state prescribing the requirements to effect a valid testamentary disposition of property
or because of any absence of delivery or compliance with other requirements to effect
a valid gift or transfer in trust. (3) The provisions of this subsection do not apply to
deposit accounts accompanied by a writing of the type described in subsection (b) of
this section or to any deposit account opened primarily for business or professional
purposes, including, but not limited to, escrow accounts, trust accounts and clients'
funds accounts. Sec. 36a-297. (Formerly Sec. 36-111). Deposits of minors. A minor may contract
to establish a deposit account with any bank, and may be the owner, or a joint owner,
co-owner or beneficiary of any deposit account. A minor who is an owner, co-owner
or beneficiary of any deposit account shall be bound by the terms of the deposit contract
governing such deposit account, as amended by the bank from time to time, and any
payment made or withdrawal permitted by such bank in accordance with the terms of
the deposit contract governing such account shall constitute a sufficient and valid release
to such bank for such payment or withdrawal and shall be binding upon such minor and
any other owner, co-owner or beneficiary of such deposit account to the same extent as
if such minor were over the age of majority. Unless made by such minor or by a person
appointed as guardian of the estate of such minor, a bank may treat any claim to a deposit
account made solely on behalf of a minor owner, co-owner or beneficiary of such deposit
account as an adverse claim under section 36a-293. This section shall not affect any
rights of or obligations imposed on a parent, guardian or spouse of a minor under section
45a-631. Sec. 36a-298. (Formerly Sec. 36-106). Notice of withdrawals. Notwithstanding
any contrary provisions of its charter or bylaws: Sec. 36a-299. (Formerly Sec. 36-9i). Permitted and prohibited transfers by
negotiable withdrawal order. (a) A Connecticut bank may permit unlimited transfers
by negotiable withdrawal order from a savings account consisting of savings deposits
deposited to the credit of, or in which the entire beneficial interest is held by, one or
more individuals, or by a corporation, partnership, association or other organization
operated primarily for religious, philanthropic, charitable, educational, political, or other
similar purposes and not operated for profit or from deposits of public funds by an
officer, employee or agent of the United States or of any state, county, municipality or
political subdivision thereof. Sec. 36a-300. (Formerly Sec. 36-108). School savings deposits and time deposits. The superintendent of any school system or the principal of any school, acting directly or indirectly through their authorized agents, who may be teachers, other school
employees, members of a parent-teacher organization or such other natural persons as
the superintendent or principal may designate, may from time to time collect savings
deposits or time deposits from the pupils and deposit them within ten days from the day
of collection in any bank. Such deposits shall be placed to the credit of the respective
pupils from whom they have been collected or, if the amount collected at any one time
is deemed by the bank insufficient for the opening of individual accounts, it shall be
deposited in the name of such superintendent, principal or designated person in trust to
be transferred eventually to the credit of, or to be repaid to, the respective pupils to whom
the same belongs. Such superintendent, principal or designated person shall furnish such
bank the names, signatures, addresses, ages, or dates of birth, parents' or guardians'
names and such other data concerning the respective pupils as the bank may require.
The bank shall be liable for any loss of savings deposits or time deposits collected under
this section that occurs from the day of collection to the day of deposit. Sec. 36a-301. (Formerly Sec. 36-9q). Tax and loan accounts and note accounts.
(a) As used in this section: Sec. 36a-302. (Formerly Sec. 36-9v). Applicability of federal Expedited Funds
Availability Act to banks and credit unions. Each bank, Connecticut credit union and
federal credit union shall comply with the applicable provisions of the Expedited Funds
Availability Act, 12 USC 4001 et seq. and regulations now and hereafter adopted thereunder, except that for the purposes of this section, the term "account" as defined in
Section 229.2 of Regulation CC (12 CFR Part 229) includes savings accounts but does
not include accounts where funds deposited in such accounts are payable on a specified
date or at the expiration of a specified time after the date of deposit. Sec. 36a-303. (Formerly Sec. 36-9o). Charge for overdraft, when prohibited.
No bank, Connecticut credit union or federal credit union may charge a fee or a penalty
for an overdraft if such overdraft is due to an error on a direct deposit tape of the Social
Security Administration or an accidental omission from such tape. Sec. 36a-304. (Formerly Sec. 36-9bb). Cashing of state checks. Fee prohibited.
Liability for loss from wrongful payment. (a) Each bank, Connecticut credit union
and federal credit union shall cash, at its main office or any of its branch offices within
this state, any check drawn by the state of Connecticut and payable within this state to
a recipient of public assistance or state-administered general assistance or the refugee
program, if the check is negotiated to the bank, Connecticut credit union or federal
credit union by the original payee of the check, and if the payee produces reasonable
identification as provided for in regulations adopted pursuant to section 36a-305. No
bank, Connecticut credit union or federal credit union shall charge such recipient a fee
for cashing a check pursuant to this section. Nothing in this section shall preclude a
bank, Connecticut credit union or federal credit union from requesting a fee from the
state of Connecticut for cashing such checks. The provisions of this subsection shall
apply to a Connecticut credit union or federal credit union only if the original payee
negotiating the check is a member of such credit union. Sec. 36a-305. (Formerly Sec. 36-9cc). Regulations re cashing state checks. The
Commissioner of Social Services, in cooperation with the commissioner, shall adopt
regulations in accordance with chapter 54 specifying: (1) The forms of reasonable identification which a bank, Connecticut credit union or federal credit union shall accept when
cashing a check pursuant to section 36a-304; and (2) the identification procedures such
bank, Connecticut credit union or federal credit union shall employ to avoid liability
for the wrongful payment of any such check. Sec. 36a-306. Connecticut banks and Connecticut credit unions to accept identification cards, when. A Connecticut bank or Connecticut credit union shall accept
any identity card issued by the Department of Motor Vehicles in accordance with section
1-1h as identification for establishing an account with the Connecticut bank or Connecticut credit union or for any other purpose for which the Connecticut bank or Connecticut
credit union accepts as identification a motor vehicle operator's license. Sec. 36a-307. (Formerly Sec. 36-9dd). Interest on savings deposit accounts. (a)
For purposes of this section: (1) "Savings deposit account" means any account at a bank,
Connecticut credit union or federal credit union into which deposits are made, where
interest is paid periodically on such deposits and which is evidenced by the issuance of
a passbook or, in lieu thereof, written receipts and periodic statements provided the
deposits in such account (A) cannot be withdrawn by check or draft, and (B) are not
payable on a specified date or at the expiration of a specified period of time after the
date of deposit; and (2) "earning period" means the period during which interest accrues
and at the end of which interest is credited to a savings deposit account. Secs. 36a-308 to 36a-314. Reserved for future use. Sec. 36a-315. (Formerly Sec. 36-27a). Short title: Deposit Account Contract
Act. Sections 36a-315 to 36a-323, inclusive, shall be known and may be cited as the
"Deposit Account Contract Act". Sec. 36a-316. (Formerly Sec. 36-27b). Definitions. As used in sections 36a-315
to 36a-323, inclusive: Sec. 36a-317. (Formerly Sec. 36-27c). Prohibited acts of financial institutions.
(a) Except as otherwise provided in sections 36a-315 to 36a-323, inclusive, no financial
institution shall enforce or attempt to enforce any material term, condition, duty or
obligation other than those required by law, federal or state governmental regulation,
rule or order, court order or clearinghouse rule on any depositor with regard to a deposit
account that is opened on or after July 1, 1980, unless such term, condition, duty or
obligation is included in the deposit contract governing such account. The provisions
of title 42a are "required by law" for the purposes of this subsection to the extent that
such provisions are not varied by agreement. Sec. 36a-317a. Charges for stop payment orders. A charge for a stop payment
order made in accordance with section 36a-317 by a bank, Connecticut credit union or
federal credit union, as those terms are defined in section 36a-2, shall cover the initial
stop payment order that is effective for six months under subsection (b) of section 42a-
4-403 and the first six-month renewal of such stop payment order. Sec. 36a-318. (Formerly Sec. 36-27d). Copy of deposit account contract and
schedule of charges and interest to be furnished to depositors. Exceptions. Notice
requirements. (a) Except as provided in subsection (c) of this section, prior to opening
a new deposit account for any depositor or prospective depositor: (1) Each financial
institution shall deliver to such depositor or prospective depositor in written form which
the depositor can keep a copy of (A) the deposit contract, (B) a listing of deposit account
charges and the conditions under which such charges will be imposed including, but
not limited to, failure to maintain a minimum balance, and (C) if such account is a time
account, deposit account disclosures that govern such account; and (2) each financial
institution, other than a Connecticut credit union or federal credit union, shall deliver
to each depositor or prospective depositor deposit account disclosures that govern such
account if such account is a savings account. Sec. 36a-319. (Formerly Sec. 36-27e). Deposit account disclosures. List of
charges. Each financial institution, other than a Connecticut credit union or federal
credit union, shall post in each office at which deposits are accepted for each type of
deposit account a prospective depositor may open, current deposit account disclosures.
Each financial institution shall post in each office at which deposits are accepted for
each type of deposit account a prospective depositor may open, a listing of all current
deposit account charges. The information required to be posted may be in multiple
documents, signs, separate pages or combined with other information relating to the
deposit accounts. Sec. 36a-320. (Formerly Sec. 36-27f). Changes in deposit account charges. Notice. (a) A financial institution may delete or decrease any existing deposit account
charges without notice. No financial institution shall impose any new deposit account
charge or increase any existing deposit account charge unless the financial institution:
(1) At least thirty days prior to such imposition or increase, posts a notice reciting such
new or increased charge adjacent to, or incorporates such notice in, the current deposit
account charges posted in each office at which deposits are accepted; and (2) delivers
a notice reciting such new or increased charge to each depositor who has a deposit
account which will be affected by such new or increased charge and for which such
financial institution normally renders a periodic statement of account, which notice of
new or increased charge shall be delivered (A) at least thirty days prior to such new or
increased charge if any such periodic statement is normally rendered monthly or more
frequently, or (B) no later than delivery of the next subsequent periodic statement after
such new or increased charge if any such periodic statement is normally rendered less
frequently than monthly. Sec. 36a-321. (Formerly Sec. 36-27g). Changes in computation of interest or
interest rate. Notice. (a) No financial institution, other than a Connecticut credit union
or federal credit union, shall change its method of computing interest in such manner
as to reduce the annual percentage yield on any savings account from that most recently
disclosed to the depositor, including changes to disclosures delivered in accordance
with section 36a-318, made in accordance with this section, unless the financial institution: (1) At least thirty days prior to such change, posts a notice reciting such reduction
adjacent to, or incorporates such notice in, the current deposit account disclosures posted
in each office at which deposits are accepted; and (2) delivers a notice reciting such
reduction to each depositor who has a deposit account which will be affected by such
reduction and for which such financial institution normally renders a periodic statement
of account, which notice of reduction shall be delivered (A) at least thirty days prior to
such reduction if any such periodic statement is normally rendered monthly or more
frequently, or (B) no later than delivery of the next subsequent periodic statement after
such reduction if any such periodic statement is normally rendered less frequently than
monthly. Sec. 36a-322. (Formerly Sec. 36-27h). Enforcement powers of commissioner.
If the commissioner finds that a financial institution is violating the provisions of sections
36a-315 to 36a-323, inclusive, the commissioner may order such institution to make
restitution to any depositor for any unlawful deposit account charge or overcharge imposed on, or any interest unlawfully withheld from, such depositor. Sec. 36a-323. (Formerly Sec. 36-27i). Exceptions. Waivers. Notwithstanding
any other provision of sections 36a-315 to 36a-323, inclusive: Secs. 36a-324 to 36a-329. Reserved for future use. Sec. 36a-330. (Formerly Sec. 36-382). Definitions. As used in sections 36a-330
to 36a-338, inclusive, unless the context otherwise requires: Sec. 36a-331. (Formerly Sec. 36-383). Protection of public deposits. All public
deposits in qualified public depositories shall be protected against loss, as provided in
sections 36a-330 to 36a-338, inclusive. Sec. 36a-332. (Formerly Sec. 36-385). Powers of commissioner. (a) The commissioner has the power (1) to require any qualified public depository to furnish such
information as the commissioner shall request. Any public depository which refuses
or neglects to give any information so requested shall no longer be a qualified public
depository and shall be excluded from the right to receive public deposits; (2) to take
such action as the commissioner deems best for the protection, collection, compromise
or settlement of any claim arising in case of loss; and (3) to fix the official date on which
any loss shall be deemed to have occurred taking into consideration the orders, rules
and regulations of any supervisory authority as they affect the failure or inability of a
qualified public depository to repay public deposits in full. Sec. 36a-333. (Formerly Sec. 36-386). Collateral requirements. (a) To secure
public deposits, each qualified public depository shall at all times maintain, segregated
from its other assets as provided in subsection (b) of this section, eligible collateral in
an amount at least equal to the following percentage of public deposits held by the
depository: (1) For any qualified public depository having a risk-based capital ratio of
ten per cent or greater, a sum equal to ten per cent of all public deposits held by the
depository; (2) for any qualified public depository having a risk-based capital ratio of
less than ten per cent but greater than or equal to eight per cent, a sum equal to twenty-
five per cent of all public deposits held by the depository; (3) for any qualified public
depository having a risk-based capital ratio of less than eight per cent but greater than
or equal to three per cent, a sum equal to one hundred per cent of all public deposits
held by the depository; and (4) for any qualified public depository having a risk-based
capital ratio of less than three per cent, and, notwithstanding the provisions of subdivisions (1) to (3), inclusive, of this subsection, for any qualified public depository which
has been conducting business in this state for a period of less than two years except for a
qualified public depository that is a successor institution to a qualified public depository
which conducted business in this state for two years or more, a sum equal to one hundred
and twenty per cent of all public deposits held by the depository; provided, the qualified
public depository and the public depositor may agree on an amount of eligible collateral
to be maintained by the depository that is greater than the minimum amounts required
under subdivisions (1) to (4), inclusive, of this subsection. For purposes of this subsection, the amount of all public deposits held by the depository shall be determined based
on either the public deposits reported on the most recent quarterly call report or the
average of the public deposits reported on the four most recent quarterly call reports,
whichever amount is greater. For purposes of this subsection, the depository's risk-
based capital ratio shall be determined, in accordance with applicable federal regulations
and regulations adopted by the commissioner in accordance with chapter 54, based on
the most recent quarterly call report, provided (A) if, during any calendar quarter after
the issuance of such report, the depository experiences a decline in its risk-based capital
ratio to a level that would require the depository to maintain a higher amount of eligible
collateral under subdivisions (1) to (4), inclusive, of this subsection, the depository shall
increase the amount of eligible collateral maintained by it to the minimum required
under subdivisions (1) to (4), inclusive, of this subsection based on such lower risk-
based capital ratio and shall notify the commissioner of its actions; and (B) if, during
any calendar quarter after the issuance of such report, the commissioner reasonably
determines that the depository's risk-based capital ratio is likely to decline to a level
that would require the depository to maintain a higher amount of eligible collateral under
subdivisions (1) to (4), inclusive, of this subsection, the commissioner may require that
the depository increase the amount of eligible collateral maintained by it to the minimum
required under subdivisions (1) to (4), inclusive, of this subsection based on the commissioner's determination of such lower risk-based capital ratio. (1967, P.A. 517, S. 5; P.A. 77-614, S. 156, 587, 610; P.A. 78-303, S. 85, 136; P.A. 87-9, S. 2, 3; P.A. 91-245, S. 4;
P.A. 94-122, S. 158, 340; P.A. 95-155, S. 23, 29.) Sec. 36a-334. (Formerly Sec. 36-387). Procedure upon loss. When the commissioner determines that a loss has occurred, the commissioner shall as soon as possible
make payment to the proper public officers of all public deposits subject to such loss,
pursuant to the following procedure: (1) For the purposes of determining the sums to
be paid, the commissioner or receiver shall, within twenty days after issuance of a restraining order or taking possession of any qualified public depository, ascertain the
amount of public deposits held by the depository as disclosed by its records and the
amount thereof covered by deposit insurance and certify the amounts to each public
depositor having public funds on deposit in the depository; (2) within ten days after
receipt of such certification, each such public depositor shall furnish to the commissioner
verified statements of its deposits in the depository as disclosed by its records; (3) upon
receipt of such certificate and statements, the commissioner shall ascertain and fix the
amount of such public deposits, net after deduction of any deposit insurance, and assess
the same against the depository in which the loss occurred; (4) the assessment made by
the commissioner shall be payable on the second business day following demand, and
in case of the failure of the qualified public depository so to pay, the commissioner
shall immediately take possession of the eligible collateral segregated by the depository
pursuant to sections 36a-330 to 36a-338, inclusive, and liquidate the same for the purpose
of paying such assessment; (5) upon receipt of the assessment, the commissioner shall
reimburse the public depositors of the depository in which the loss occurred to the extent
of the depository's net deposit liability to them. Sec. 36a-335. (Formerly Sec. 36-388). Subrogation of commissioner to depositor's rights. Upon payment to any public depositor, the commissioner shall be subrogated to all of such depositor's right, title and interest against the depository in which
the loss occurred and shall share in any distribution of its assets ratably with other
depositors. Any sums received from any distribution shall be paid to the public depositors to the extent of any unpaid net deposit liability. If the commissioner incurs expense
in enforcing any such claim, the amount thereof shall be paid as a liquidation expense
of the depository in which the loss occurred. Sec. 36a-336. (Formerly Sec. 36-389). Public deposits in qualified public depository or out-of-state bank. No public deposit shall be made except in a qualified
public depository or in an out-of-state bank if (1) the deposit is permitted by a statute
of this state and (2) such out-of-state bank provides eligible collateral for such deposit
in excess of the Federal Deposit Insurance Corporation insurance limit in an amount
satisfactory to the public depositor but in any event affording protection at least equal
to that provided under sections 36a-330 to 36a-338, inclusive. Sec. 36a-337. (Formerly Sec. 36-390). Securing of public deposits. Private insurance in lieu of eligible collateral. (a) All qualified public depositories shall have
power to secure public deposits in accordance with sections 36a-330 to 36a-338, inclusive. Except as provided in said sections, no bond or other security shall be required of
or given by any qualified public depository for any public deposit. Sec. 36a-338. (Formerly Sec. 36-391). Report of public depository. On each call
report date, each qualified public depository shall file with the commissioner a written
report, certified under oath, indicating its risk-based capital ratio and total capital, as
determined in accordance with applicable federal regulations and regulations adopted
by the commissioner in accordance with chapter 54, the total amount of public deposits
held by it and the amount and nature of the eligible collateral segregated and designated
to secure the public deposits in accordance with sections 36a-330 to 36a-338, inclusive.
Each depository shall furnish a copy of its most recent report to any public depositor
having public funds on deposit in the depository, upon request of the depositor. Any
public depository which refuses or neglects to furnish any report or give any information
as required by this section shall no longer be a qualified public depository and shall be
excluded from the right to receive public deposits.
(b) The establishment of a deposit account or share account which is a joint account
under subsection (a) of this section is, in the absence of fraud or undue influence, or
other clear and convincing evidence to the contrary, prima facie evidence of the intention
of all of the named owners thereof to vest title to such account, including all subsequent
deposits and additions made thereto, in such survivor or survivors, in any action or
proceeding between any two or more of the depositors, respecting the ownership of such
account or its proceeds.
(c) This section shall not apply to any deposit account or share account where any
owner died before October 1, 1971, nor shall it apply to any action pending on that date.
(1953, S. 2779d; 1961, P.A. 405; 1971, P.A. 417; P.A. 78-121, S. 10, 113; P.A. 88-65, S. 7; P.A. 92-12, S. 2; P.A. 94-
122, S. 131, 340.)
History: 1961 act clarified application of statute to accounts issued to more than two persons; 1971 act added "or other
clear and convincing evidence to the contrary" and substituted "prima facie" for "conclusive" evidence in Subsec. (1) and
changed applicability in Subsec. (2) to exclude "any" owner rather than "either" owner who died before October 1, 1971,
rather than October 1, 1953; P.A. 78-121 deleted references to deposits in building associations and private banks in Subsec.
(1); P.A. 88-65 deleted a reference to industrial banks in Subsec. (1); P.A. 92-12 redesignated Subsecs. and made technical
changes; P.A. 94-122 made technical changes, divided former Subsec. (a) into Subsecs. (a) and (b), and relettered former
Subsec. (b) as Subsec. (c), effective January 1, 1995; Sec. 36-3 transferred to Sec. 36a-290 in 1995.
Annotations to former section 36-3:
Former statute cited. 139 C. 350. Cited. 142 C. 257. Cited. 183 C. 96, 98. Cited. 226 C. 51, 58, 73, 74.
Intent of the legislature is to give to the survivors an unrebuttable presumption of ownership, but the determination of
the respective rights of the parties inter vivos is left to the common law. 154 C. 456. Cited. 172 C. 292, 297. Cited. 176 C.
657, 658, 661; 177 C. 53, 57. Cited. 195 C. 82, 84. Cited. 232 C. 172, 174, 175.
Cited. 2 CA 430, 432, 433, 435. A legislative rule of evidence which has the effect of shifting a burden of proof is not
an unconstitutional invasion of the legislative into the judicial sphere: The statute affects the introduction of evidence, it
does not impinge on independence of the judicial branch. Id., 622, 623, 625−627. Cited. 7 CA 735, 740. Cited. 13 CA
662−665.
Cited. 43 CS 360, 364.
Subsec. (a):
Cited. 226 C. 51, 73.
Annotations to present section:
Cited. 240 C. 343.
Subsec. (a):
Cited. 240 C. 343.
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(1949 Rev., S. 5833; 1955, S. 2686d; 1961, P.A. 222, S. 2; 1967, P.A. 461, S. 35; P.A. 79-433, S. 9; P.A. 94-122, S.
132, 340.)
History: 1961 act added "if any", see Sec. 36-113a; 1967 act deleted references to "savings departments" of state bank
and trust companies; P.A. 79-433 added provision granting institutions which make loans on pledge of savings account a
lien against any such savings accounts until loan is repaid; P.A. 94-122 rewrote the section to broaden the right to have a
lien against a deposit which is pledged for a loan to include any pledgee, not just any bank, effective January 1, 1995; Sec.
36-113 transferred to Sec. 36a-291 in 1995.
Cited. 240 C. 343.
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(b) After pursuing all remedies available for payment from any estate left by the
deceased account owner, any person to whom any of the claims, expenses or debts listed
in subsection (a) of this section are owed shall have direct recourse to such survivor,
survivors or legal representative of any such incapable survivor for such claim, expense
or debt, but only to the extent of their liability under subsection (a) of this section, and
shall thereafter have no further recourse against the deceased account owner's estate
for such claim, expense or debt.
(1959, P.A. 646; P.A. 82-197, S. 1, 2; P.A. 87-190; P.A. 94-122, S. 133, 340.)
History: P.A. 82-197 amended section to include debts due to the state for aid or care to the deceased depositor; P.A.
87-190 added provision that recourse of person to whom debts are owed shall be to survivor and not to the fiduciary of
decedent's estate; P.A. 94-122 changed "conservator" to "legal representative", divided section into Subsecs. (a) and (b)
and made technical changes, effective January 1, 1995; Sec. 36-3a transferred to Sec. 36a-292 in 1995.
Annotations to former section 36-3a:
Expenses of last illness and funeral are not deductible from the nonprobate portion of an estate, except as they may
constitute liens thereon or debts which it is judicially established are chargeable thereto. Such liens or debts are not created
by this section. 25 CS 250, 251.
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(1955, S. 2781d; P.A. 92-12, S. 3; P.A. 94-122, S. 134, 340.)
History: P.A. 92-12 made technical changes; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-
5 transferred to Sec. 36a-293 in 1995.
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(1949 Rev., S. 5834; 1959, P.A. 10; 1967, P.A. 461, S. 37; P.A. 76-174; P.A. 94-122, S. 135, 340.)
History: 1959 act added minimum balance provision, changed advertising requirement to two successive weeks and
time allowed for presenting book to one month; 1967 act deleted reference to "savings departments" of state bank and
trust companies; P.A. 76-174 made provisions generally applicable rather than applicable to passbooks with balance of
twenty-five dollars or more, required that application be signed by each person in whose name the book was issued and
deleted requirement that notice of application be published at least once a week for two weeks in newspaper; P.A. 94-122
expanded the section to include "certificate or instrument, negotiable or nonnegotiable, transferable or nontransferable",
made the procedures apply to stolen passbooks, certificates or instruments, and allowed banks before issuing such instruments to require reasonable indemnifications, effective January 1, 1995; Sec. 36-114 transferred to Sec. 36a-294 in 1995.
Annotations to former section 36-114:
Waiver of provisions of section by bank. 87 C. 347.
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(1949 Rev., S. 5798; P.A. 94-122, S. 136, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-76 transferred to Sec. 36a-295 in 1995.
See Sec. 42a-4-406 re customers' duty to discover and report unauthorized signature or alteration.
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(b) In the case of a deposit account established or maintained with a bank by a
trustee under a will or trust agreement or under the terms of some other written document,
or by a trustee pursuant to statute or order of a court, the trustee shall provide the bank
with a writing identifying such will, agreement, other written document, statute or order;
and any moneys credited to a deposit account with respect to which the trustee has filed
such a writing shall be paid only to or upon the order of such trustee or of the successor
trustee. If the trustee is serving in such capacity under a will, trust agreement or other
written document, a certified copy of such document shall be filed by the depositor if
at any time requested by the bank but such bank shall not be charged with notice, actual
or constructive, of the contents of such will, trust agreement, or other written document.
Such bank shall be fully protected in paying over any moneys credited to such deposit
account to or upon the order of the trustee establishing or maintaining the deposit account
or the successor trustee and shall be under no duty to inquire into the application of
funds so paid.
(c) Subsection (a) applies to all deposit accounts governed by its provisions established (1) on or after June 13, 1963, and (2) prior to that date if the depositor when
establishing such deposit account or at any time thereafter provides a writing meeting
the requirements of subsection (a). Subsection (b) applies to all deposit accounts governed by its provisions whether such deposit accounts were established prior to June
13, 1963, or are established after that date.
(1949, Rev., S. 5829; 1961, P.A. 306; 1963, P.A. 417; February, 1965, P.A. 95, S. 1; 1967, P.A. 461, S. 32; 1969, P.A.
504, S. 16; P.A. 87-569, S. 4; P.A. 92-12, S. 42; P.A. 94-122, S. 137, 340.)
History: 1961 act specified presumptions and effect of deposits in trust; 1963 act reorganized Subdiv. indicators in
Subsec. (1), adding Subdiv. (c) re applicability to deposits and incorporating part of former Subsec. (2), inserted new
Subsec. (2) and revised effective date provisions (formerly in Subsec. (2)) to reflect re organization of section and new
provisions; 1965 act rephrased paragraph 1 of Subsec. (1)(a); 1967 act deleted references to "savings departments" of state
bank and trust companies; 1969 act included national banking associations in purview of section; P.A. 87-569 amended
the section to extend the application of the provisions to savings and loan associations; P.A. 92-12 redesignated Subsecs.,
Subdivs. and Subparas. and made technical changes; P.A. 94-122 clarified procedures for certain trust accounts and made
technical changes, effective January 1, 1995; Sec. 36-110 transferred to Sec. 36a-296 in 1995.
Annotations to former section 36-110:
No valid trust can arise where sole ownership of the funds on deposit is in the person named as trustee. 146 C. 496.
Effectuates intent of depositor to make a "poor man's will" while retaining sole right to the moneys during his lifetime.
176 C. 663−665, 668. Beneficiaries of savings account trusts created under the statute acquire no interest in the trusts
during lifetime of depositor unless latter by unequivocal act renders them irrevocable. 186 C. 311, 317, 318, 321−323.
Cited. 226 C. 51−53, 59, 60, 68.
Former Subsec. (1):
Subdiv. (a) cited. 172 C. 292. Cited. 176 C. 663, 666, 667. Subdiv. (a)(1) cited. 186 C. 311, 317.
Subsec. (a):
Cited. 226 C. 51, 52, 59, 60, 63−70. Subdiv. (1) cited. Id., 51, 56. Subdiv. (2) cited. Id., 51, 59, 66.
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(1949 Rev., S. 5830; 1967, P.A. 461, S. 33; P.A. 94-122, S. 138, 340.)
History: 1967 act deleted references to "savings departments" of state bank and trust companies; P.A. 94-122 clarified
the right of minors to jointly own, open or be beneficiaries of all bank accounts, not just savings and time accounts, and
made technical changes, effective January 1, 1995; Sec. 36-111 transferred to Sec. 36a-297 in 1995.
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(1) Any Connecticut bank may require not more than three months' notice for the
withdrawal of savings deposits or time deposits from such bank; provided, during the
period when any such bank is operating with such notice requirement in force, it may,
nevertheless, in its discretion, pay such amount or amounts to any depositor weekly or
at other intervals as it deems prudent; and
(2) In every case in which a notice of intention to withdraw moneys has been filed
by a depositor, such notice is void and of no effect upon the actual withdrawal of the
amount demanded and in any event shall be void one month after the expiration of the
period specified therein.
(1949 Rev., S. 5825; 1967, P.A. 461, S. 28; P.A. 92-12, S. 40; P.A. 94-122, S. 139, 340.)
History: 1967 act deleted references to "savings departments" of state bank and trust companies; P.A. 92-12 redesignated
Subsecs. and made technical changes; P.A. 94-122 extended to savings and loans the notice of deposit withdrawal provisions, deleted Subsec. lettering and relettered former Subsecs. (a) and (b) as Subdivs. (1) and (2), deleted Subsec. (c) and
made technical changes, effective January 1, 1995; Sec. 36-106 transferred to Sec. 36a-298 in 1995.
Annotations to former section 36-106:
Cited. 142 C. 483.
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(b) A Connecticut bank may permit transfers by negotiable withdrawal order from
savings accounts in which any beneficial interest is held by a corporation, partnership,
association or other organization operated for profit, provided under the terms of the
deposit contract, the depositor may make no more than three transfers by negotiable
withdrawal order or check made by the depositor during any month or statement cycle
of at least four weeks. The limitation on transfers in this subsection does not apply to (1)
preauthorized or automatic transfers made by a means other than negotiable withdrawal
order or check made by the depositor; (2) telephone transfers; (3) transfers to the bank
at which the savings account is held to repay loans and associated expenses and to
cover overdrafts; or (4) transfers to another account the depositor has at the bank and
withdrawals when the transfers or withdrawals are made by mail, messenger, automated
teller machine or in person.
(P.A. 73-195, S. 11, 14; P.A. 77-54, S. 2, 4; P.A. 81-472, S. 66, 159; P.A. 83-438, S. 3, 8; P.A. 94-122, S. 140, 340;
P.A. 95-70, S. 7, 8.)
History: P.A. 77-54 replaced previous provisions which had prohibited transfer by negotiable withdrawal order from
savings deposit in name of government, governmental agency, trade, corporation or partnership name or in name containing
commercial, occupational or professional designation and had further prohibited such withdrawals from accounts "not in
such a name" for governmental, commercial, occupational or professional purposes; Sec. 36-104l transferred to Sec. 36-
9i in 1979; P.A. 81-472 made technical changes; P.A. 83-438 allowed state banks and trust companies, savings banks and
savings and loan associations to accept public funds in the form of negotiable withdrawal orders; P.A. 94-122 allowed
banks to provide NOW accounts to political organizations, effective January 1, 1995; Sec. 36-9i transferred to Sec. 36a-
299 in 1995; P.A. 95-70 amended Subsec. (a) to specifically authorize "unlimited" transfer and to delete "only" re withdrawals from savings account and reference to corporations operated for "fraternal" purposes, effective May 31, 1995.
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(1949 Rev., S. 5827; 1967, P.A. 461, S. 30; P.A. 92-9, S. 1, 3; P.A. 94-122, S. 141, 340.)
History: 1967 act deleted reference to "savings departments" of state bank and trust companies; P.A. 92-9 added
provisions re designation of authorized agents and liability for loss of savings collected; P.A. 94-122 consolidated school
savings authority for all banks, extended it to include time deposits and made technical changes, effective January 1, 1995;
Sec. 36-108 transferred to Sec. 36a-300 in 1995.
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(1) "Tax and loan account" means an account, the balance of which is subject to
the right of immediate withdrawal, established for receipt of payments of federal taxes
and certain United States obligations. Such accounts are not savings accounts, savings
deposits, demand accounts or demand deposits.
(2) "Note account" means a note, subject to the right of immediate call, evidencing
funds held by depositories electing the note option under applicable United States Treasury Department regulations. Note accounts are not savings accounts, savings deposits,
demand accounts or demand deposits.
(b) Subject to regulations of the United States Treasury Department, Connecticut
banks may serve as depositories for federal taxes or as United States Treasury tax and
loan depositories, and satisfy any requirement in connection therewith, including maintaining tax and loan accounts and note accounts, and pledging collateral.
(c) Connecticut banks shall pay a return on note accounts at the rates required by
the United States Treasury Department.
(d) In addition to the requirements contained in the regulations of the United States
Treasury Department, Connecticut banks shall meet all requirements in order to obtain
any available insurance of deposits contained in tax and loan accounts and note accounts
by the Federal Deposit Insurance Corporation.
(P.A. 82-129, S. 1, 2; P.A. 91-357, S. 4, 78; P.A. 92-12, S. 7; P.A. 94-122, S. 142, 340.)
History: P.A. 91-357 deleted reference to the Federal Savings and Loan Insurance Corporation from Subsec. (d); P.A.
92-12 made technical changes in Subsec. (a); P.A. 94-122 consolidated tax and loan account authority for all banks, effective
January 1, 1995; Sec. 36-9q transferred to Sec. 36a-301 in 1995.
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(P.A. 84-164, S. 1; P.A. 85-194; P.A. 87-8; 87-9, S. 2, 3; 87-589, S. 10, 87; P.A. 89-131, S. 1, 2; May Sp. Sess. P.A.
92-11, S. 8, 70; P.A. 94-122, S. 143, 340.)
History: P.A. 85-194 inserted new provisions designated as Subsecs. (a), (c) and (d) prohibiting the imposition of a
check hold period of greater than four business days for checks drawn on banks located in this state and seven business
days for checks drawn on banks located out of state, making prior provisions Subsec. (b); P.A. 87-8 amended Subsec. (a)
to shorten check hold periods to one business day for checks drawn on the same institution, three business days for checks
drawn on institutions located in this state, and five business days for checks drawn on institutions located out of state;
(Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner
of banking"); P.A. 87-589 made technical change in Subsec. (c); P.A. 89-131 amended Subsec. (a) by adding numeric
subdivision designations, changing numeric subparagraph designations to lettered designations and adding Subpara. (2)
re compliance with the Expedited Funds Availability Act, amended Subsec. (b) by providing that the provisions of the
subsection shall not apply after September 1, 1990, and amended Subsec. (d) by limiting the application of the subsection
to prior to September 1, 1990; May Sp. Sess. P.A. 92-11 amended Subsecs. (a) and (b) to replace references to "subdivision
(g) of subsection (1) of section 42a-4-104" with "subdivision (9) of subsection (a) of section 42a-4-104"; P.A. 94-122
deleted as obsolete provisions re time limits on deposit availability in Subsec. (a) and Subsecs. (b), (c) and (d), effective
January 1, 1995; Sec. 36-9v transferred to Sec. 36a-302 in 1995.
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(P.A. 79-248, S. 1, 2; P.A. 94-122, S. 144, 340.)
History: P.A. 94-122 applied the prohibition on overdraft charges to all state and federal banks and credit unions,
effective January 1, 1995; Sec. 36-9o transferred to Sec. 36a-303 in 1995.
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(b) Nothing in this section shall be interpreted as limiting any rights which the bank,
Connecticut credit union or federal credit union may have against the payee by contract
or at law, with regard to items which are negotiated to it as provided for in this section,
which are not paid upon presentment or where such payee breaches a warranty made
under section 42a-4-207 or 42a-4-208. This section shall not apply to any check negotiated to a bank, Connecticut credit union or federal credit union if such bank, Connecticut
credit union or federal credit union has reason to believe that the check will not be paid
on presentment or that the tendering party may be in breach of one or more of the
warranties contained in section 42a-4-207 or 42a-4-208.
(c) No bank, Connecticut credit union or federal credit union shall be liable to reimburse the state of Connecticut for a loss incurred as the result of the wrongful payment
of any check cashed pursuant to this section, provided at the time such check was cashed
such bank, Connecticut credit union or federal credit union employed the identification
procedures prescribed in regulations adopted pursuant to section 36a-305.
(P.A. 87-24, S. 1, 3; May Sp. Sess. P.A. 92-11, S. 9, 70; P.A. 94-122, S. 145, 340; June 18 Sp. Sess. P.A. 97-2, S. 100, 165.)
History: P.A. 87-24, Sec. 1 effective October 1, 1988, being the effective date of regulations adopted pursuant to Sec.
36-9cc; May Sp. Sess. P.A. 92-11 amended Subsec. (c) to add references to Sec. 42a-4-208; P.A. 94-122 deleted Subsec.
(a), relettered Subsecs. (b), (c) and (d) as Subsecs. (a), (b) and (c), and made technical changes, effective January 1, 1995;
Sec. 36-9bb transferred to Sec. 36a-304 in 1995; June 18 Sp. Sess. P.A. 97-2 amended Subsec. (a) to replace references
to various sections in title 17b with reference to state-administered general assistance, effective July 1, 1997.
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(P.A. 87-9, S. 2, 3; 87-24, S. 2, 3; P.A. 92-12, S. 9; P.A. 93-262, S. 1, 87; P.A. 94-122, S. 146, 340.)
History: (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to
"commissioner of banking"); P.A. 92-12 redesignated Subdivs.; P.A. 93-262 authorized substitution of commissioner and
department of social services for commissioner and department of income maintenance, effective July 1, 1993; P.A. 94-
122 made technical changes, effective January 1, 1995; Sec. 36-9cc transferred to Sec. 36a-305 in 1995.
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(P.A. 93-8; P.A. 96-109, S. 4.)
History: P.A. 96-109 substituted "Connecticut bank or Connecticut credit union" for "financial institution".
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(b) In the event a depositor withdraws all moneys from a savings deposit account
before the end of the earning period during which interest accrues and at the end of
which interest is credited, the bank, Connecticut credit union or federal credit union
shall pay interest on a pro rata basis from the first day of the earning period to the date
of withdrawal, provided Connecticut credit unions and federal credit unions may defer
actual payment of such interest until the day following the date dividends are next scheduled to be declared by the Connecticut credit union or the federal credit union.
(P.A. 89-117; P.A. 94-122, S. 147, 340.)
History: P.A. 94-122 allowed credit unions to defer interest payments to depositors who withdraw funds before the end
of the earning period until the day following the date dividends are next scheduled to be declared, effective January 1,
1995; Sec. 36-9dd transferred to Sec. 36a-307 in 1995.
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(Return to TOC) (Return to Chapters) (Return to Titles)
DEPOSIT ACCOUNT CONTRACT ACT
(P.A. 79-433, S. 1, 11.)
History: P.A. 79-433 effective July 1, 1980; Sec. 36-27a transferred to Sec. 36a-315 in 1995.
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(1) "Annual percentage yield" means a percentage rate reflecting the total amount
of interest paid on funds in a deposit account calculated in compliance with the Federal
Truth in Savings Act, Subtitle F of Title II of the Federal Deposit Insurance Corporation
Improvement Act of 1991, Public Law 102-242, and the regulations promulgated thereunder, as from time to time amended.
(2) "Deliver" means deliver in person or place in the United States mail with first
class postage properly affixed.
(3) "Deposit" means any demand deposit, savings deposit or club deposit, any deposit into a time account as defined in subdivision (18) of this section, and the payment
on a share or time share at a Connecticut credit union or federal credit union.
(4) "Deposit account" means any account at a financial institution into which a
deposit is made (A) which is in the name of one or more natural persons; (B) in which,
with regard to a trust account, the entire beneficial interest is held by one or more natural
persons, and (C) into which deposits may be made. "Deposit account" does not include
a general or limited partnership account or a sole proprietorship business account.
(5) "Deposit contract" means the contract between a financial institution and a depositor that sets forth the terms, conditions, duties and obligations relating to a deposit
account.
(6) "Deposit account charge" means a charge which may be imposed on a depositor
for utilizing the services of a financial institution in connection with a deposit account,
including a charge for: (A) Stop payment orders; (B) items drawn on a deposit account
which are dishonored; (C) providing the depositor with a copy of any record relating
to a deposit account; (D) the use of checks, negotiable orders of withdrawal, share drafts
or other items, devices or methods that may be used to withdraw moneys from a deposit
account; and (E) maintaining a deposit account, such as a service charge.
(7) "Deposit account disclosures" means the following information with regard to
a deposit account: (A) The interest rate, if any, paid on funds deposited in the account;
(B) the annual percentage yield, if any, paid on funds deposited in the account; (C) the
frequency with which interest will be compounded and the frequency with which interest
will be credited to the account; (D) the minimum amount which must be deposited in
such account to open such account; (E) the minimum balance, if any, that must be
maintained to earn the annual percentage yield; and (F) any condition relating to maintenance of a minimum balance for any part of the earning period which may cause interest
not to be credited to such account at the end of the earning period.
(8) Except as provided in subdivision (4) of section 36a-323, "depositor" means
any natural person who is legally entitled to make withdrawals or sell shares from a
deposit account at a financial institution regardless of whether a penalty may be imposed
for such withdrawal or sale.
(9) "Earning period" means the period during which interest accrues and at the end
of which accrued interest is credited to a savings or time account.
(10) "Financial institution" means any bank, Connecticut credit union or federal
credit union.
(11) "Interest" means any payment to a depositor or to a deposit account for the use
of funds in a deposit account, calculated by application of a periodic rate to the balance.
"Interest" does not include the payment of a bonus or other consideration worth ten
dollars or less given during a year, the waiver or reduction of a fee, or the absorption
of expenses.
(12) "Interest rate" means the annual rate of interest paid on a deposit account which
does not reflect compounding. For the purposes of deposit account disclosures, the
interest rate may be referred to as the "annual percentage rate" in addition to being
referred to as the "interest rate".
(13) "Office" of a financial institution does not include an automated teller machine
or point of sale terminal.
(14) "Passbook savings account" means a savings account in which the depositor
retains a book or other document in which the financial institution records transactions
on the savings account.
(15) "Periodic statement" means a statement setting forth information about a deposit account, other than a time account or passbook savings account, that is provided
to a depositor on a regular basis four or more times a year.
(16) "Post" means to post or otherwise provide notice in a location so that such
notice is easily visible to depositors. With regard to an office at which a financial institution lacks access to space for posting notices, such as an office within a retail establishment, "post" means to make available to any depositor upon request.
(17) "Savings deposit" means a savings deposit, as defined in subdivision (55) of
section 36a-2, and the payment on shares at a Connecticut credit union or federal credit
union, and a "savings account" is a deposit account which contains savings deposits.
(18) "Time account" means (A) a deposit account with a maturity of at least seven
days in which the depositor generally does not have a right to make withdrawals for six
days after the account is opened, unless the deposit is subject to an early withdrawal
penalty of at least seven days' interest on amounts withdrawn and (B) a Connecticut
credit union member's payment on shares which such member agrees in writing not to
withdraw within the time period stated therein as described in subsection (g) of section
36a-446.
(P.A. 79-433, S. 2, 11; P.A. 81-261, S. 1; P.A. 87-9, S. 2, 3; P.A. 92-12, S. 15; P.A. 93-168, S. 1, 8; P.A. 94-14, S. 1,
2; 94-122, S. 148, 340; P.A. 98-177, S. 2; 98-258, S. 2.)
History: P.A. 79-433 effective July 1, 1980; P.A. 81-261 inserted new Subsecs. (b), (i) and (j) to define "deliver",
"office" and "post" respectively and relettered the remaining Subsecs. accordingly, amended Subsec. (d) to redefine "deposit account", amended Subsec. (m) to provide that the schedule of interest recite the minimum amount which must be
deposited to open an account and provide a format to recite the rate of simple interest and effective annual percentage yield
when the interest rate varies, and rephrased and clarified certain of the other definitions; (Revisor's note: Pursuant to P.A.
87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); internal reference
to "subdivision (b) of subsection (8)" was corrected editorially by the Revisors to "subsection (g)" in Subdiv. (n) in 1991;
P.A. 92-12 redesignated Subsecs. and Subdivs. and made technical changes; P.A. 93-168 added definitions of "annual
percentage yield", "deposit account charge", "deposit account disclosures", "interest", "interest rate", "passbook savings
account", "periodic statement" and "time account", deleted definitions of "schedule of deposit account charges" and
"schedule of interest", amended the definition of "deposit" to include a time account, and renumbered the remaining
Subdivs. accordingly, effective June 23, 1993, except that compliance by financial institutions shall be optional prior to
the mandatory compliance date of the regulations applicable to the financial institution promulgated pursuant to the Federal
Truth in Savings Act, Subtitle F of Title II of the Federal Deposit Insurance Corporation Improvement Act of 1991, Public
Law 102-242, as from time to time amended, or January 1, 1994, whichever is sooner; P.A. 94-14 changed the January 1,
1994, compliance date to July 1, 1995, effective April 25, 1994; P.A. 94-122 deleted the definition of "commissioner" in
Subdiv. (2), renumbered the remaining Subdivs. and made technical changes, effective January 1, 1995; Sec. 36-27b
transferred to Sec. 36a-316 in 1995; (Revisor's note: In 1997 the reference in Subdiv. (17) to "... savings deposit, as defined
in subsection (49) of section 36a-2 ..." was corrected editorially by the Revisors to "... savings deposit, as defined in
subsection (54) of section 36a-2 ..." to reflect the current internal numbering of that section); P.A. 98-177 made a technical
change in Subdivs. (3), (8) and (17); P.A. 98-258 made a technical change in Subdiv. (17).
Subdiv. (6):
Statute does not authorize bank which has established an ATM to levy surcharge or fee of any kind upon nondepositor
customer. 45 CS 566.
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(b) No financial institution shall impose or attempt to impose any deposit account
charge that has not been disclosed to the depositor pursuant to section 36a-318 or 36a-
320, as applicable, or is in an amount greater than the amount disclosed to the depositor
pursuant to section 36a-318 or 36a-320, as applicable. Notwithstanding any provision
of the general statutes to the contrary, check printing charges will be deemed to have
been disclosed to the depositor if the financial institution discloses to the depositor (1)
a range of prices, (2) that check printing charges may vary, or (3) that prices upon reorder
may be higher than the price initially disclosed.
(c) No financial institution, other than a Connecticut credit union or federal credit
union, shall pay or attempt to pay interest at a lower annual percentage yield than that
disclosed to the depositor pursuant to section 36a-318 or 36a-321, as applicable.
(P.A. 79-433, S. 3, 11; P.A. 81-261, S. 2; P.A. 93-168, S. 2, 8; P.A. 94-14, S. 1, 2; 94-122, S. 149, 340.)
History: P.A. 79-433 effective July 1, 1980; P.A. 81-261 amended Subsec. (a) by adding "except as otherwise provided
in this chapter", replacing "impose" with "enforce" and providing that the provisions of title 42a are required by law to
the extent that such provisions are not varied by agreement, and amended Subsecs. (b) and (c) by replacing "listed" with
"recited"; P.A. 93-168 amended Subsec. (b) by adding a provision specifying actions which are deemed disclosure of
check printing charges and made technical corrections for accuracy, effective June 23, 1993, except that compliance by
financial institutions shall be optional prior to the mandatory compliance date of the regulations applicable to the financial
institution promulgated pursuant to the Federal Truth in Savings Act, Subtitle F of Title II of the Federal Deposit Insurance
Corporation Improvement Act of 1991, Public Law 102-242, as from time to time amended, or January 1, 1994, whichever
is sooner; P.A. 94-14 changed the January 1, 1994, compliance date to July 1, 1995, effective April 25, 1994; P.A. 94-122
made technical changes, effective January 1, 1995; Sec. 36-27c transferred to Sec. 36a-317 in 1995.
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(P.A. 00-15.)
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(b) The deposit account disclosures and listing of deposit account charges may be
contained in more than one document and may be combined with disclosures, fees and
contract terms for other accounts as long as the deposit account disclosures and deposit
account charges are disclosed clearly and conspicuously and it is clear which deposit
account disclosures and deposit account charges are applicable to the types of deposit
accounts maintained by the depositor.
(c) If all or any part of a maturing or otherwise expiring time account is automatically
deposited by renewal, roll-over or otherwise in a new deposit account within thirty days
after expiration, the provisions of subsection (a) of this section shall not apply to such
new account, except that if the annual percentage yield on such new account is lower
than the annual percentage yield on the expiring account, and the maturing time account
has a term to maturity of longer than thirty-one days, the financial institution shall deliver
to the depositor the notice as required by this subsection. Such notice shall be delivered
at least thirty calendar days before the maturity of the existing time account. Alternatively, such notice may be delivered at least twenty calendar days before the end of the
grace period on the existing account, provided a grace period of at least five calendar
days is allowed. For purposes of this subsection, a grace period means a period following
the maturity of an automatically renewing time account during which the depositor may
withdraw funds without being assessed a penalty. The notice shall recite the deposit
account disclosures and deposit account charges, including the conditions under which
such charges will be imposed, applicable to the new account, along with the date the
existing account matures and the new maturity date if the account is renewed; provided
if the interest rate and annual percentage yield that will be paid for the new account are
unknown when the notice is provided, the notice shall state that those rates have not yet
been determined, the date when they will be determined and a telephone number the
depositor may call to obtain the interest rate and the annual percentage yield that will
be paid for the new account. Notwithstanding any provisions of the general statutes to
the contrary, if the term to maturity of the maturing time account is one year or less but
longer than thirty-one days, the notice is not required to contain the information recited
in this subsection other than (1) the date the existing account matures and the new
maturity date if the account is renewed; (2) the interest rate and the annual percentage
yield if they are known, or if the rates have not yet been determined, the date they will
be determined and a telephone number the depositor may call to obtain the interest rate
and the annual percentage yield that will be paid for the new account; and (3) any
difference in the terms of the new account compared to the deposit account disclosures
and deposit account charges governing the existing account.
(P.A. 79-433, S. 4, 11; P.A. 81-261, S. 3; P.A. 93-168, S. 3, 8; P.A. 94-14, S. 1, 2; 94-122, S. 150, 340.)
History: P.A. 79-433 effective July 1, 1980; P.A. 81-261 rephrased the section and added Subsec. (b) to provide that
the provisions of Subsec. (a) do not apply to an expiring time deposit which is renewed, rolled-over or otherwise deposited
in a new account, except if the effective annual percentage yield on the new account is less than that on the expiring account
the financial institution shall deliver a schedule of interest prior to the opening of the new account; P.A. 93-168 amended
Subsec. (a) re requirement to provide in written form a copy of the deposit contract and list of deposit account charges,
added a new Subsec. (b) allowing the use of more than one document in making any disclosures to the customer concerning
deposit accounts maintained and amended former Subsec. (b), now designated as Subsec. (c), re the automatic renewal
and roll-over of account funds and the ratification and accounting procedures required, effective June 23, 1993, except that
compliance by financial institutions shall be optional prior to the mandatory compliance date of the regulations applicable to
the financial institution promulgated pursuant to the Federal Truth in Savings Act, Subtitle F of Title II of the Federal
Deposit Insurance Corporation Improvement Act of 1991, Public Law 102-242, as from time to time amended, or January
1, 1994, whichever is sooner; P.A. 94-14 changed the January 1, 1994, compliance date to July 1, 1995, effective April
25, 1994; P.A. 94-122 made technical changes and renumbered Subdivs. (A), (B) and (C) in Subsec. (c) as Subdivs. (1),
(2) and (3), effective January 1, 1995; Sec. 36-27d transferred to Sec. 36a-318 in 1995.
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(P.A. 79-433, S. 5, 11; P.A. 81-261, S. 4; P.A. 93-168, S. 4, 8; P.A. 94-14, S. 1, 2; 94-122, S. 151, 340.)
History: P.A. 79-433 effective July 1, 1980; P.A. 81-261 deleted the requirement that the schedules be posted in a
location easily visible to depositors; P.A. 93-168 required a posting of the list of all deposit account disclosures or charges,
effective June 23, 1993, except that compliance by financial institutions shall be optional prior to the mandatory compliance
date of the regulations applicable to the financial institution promulgated pursuant to the Federal Truth in Savings Act,
Subtitle F of Title II of the Federal Deposit Insurance Corporation Improvement Act of 1991, Public Law 102-242, as from
time to time amended, or January 1, 1994, whichever is sooner; P.A. 94-14 changed the January 1, 1994, compliance date
to July 1, 1995, effective April 25, 1994; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-27e
transferred to Sec. 36a-319 in 1995.
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(b) The prohibition in subsection (a) of this section does not apply to increases in
check printing charges if the financial institution has previously disclosed to the consumer a range of prices, that check printing charges may vary or that prices upon reorder
may be higher than the price initially disclosed.
(P.A. 79-433, S. 6, 11; P.A. 81-261, S. 5; P.A. 93-168, S. 5, 8; P.A. 94-14, S. 1, 2.)
History: P.A. 79-433 effective July 1, 1980; P.A. 81-261 rephrased certain parts of the section and established time
periods for the delivery of a notice reciting new or increased charges depending upon the frequency with which the periodic
statement is rendered to the depositor; P.A. 93-168 added Subsec. (b) re exception to the prohibition required under Subsec.
(a) concerning increases in check printing charges, effective June 23, 1993, except that compliance by financial institutions
shall be optional prior to the mandatory compliance date of the regulations applicable to the financial institution promulgated
pursuant to the Federal Truth in Savings Act, Subtitle F of Title II of the Federal Deposit Insurance Corporation Improvement
Act of 1991, Public Law 102-242, as from time to time amended, or January 1, 1994, whichever is sooner; P.A. 94-14
changed the January 1, 1994, compliance date to July 1, 1995, effective April 25, 1994; Sec. 36-27f transferred to Sec.
36a-320 in 1995.
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(b) No financial institution, other than a Connecticut credit union or federal credit
union, shall reduce the interest rate and therefore the annual percentage yield paid on any
savings account from that most recently disclosed to the depositor, including changes to
disclosures delivered in accordance with section 36a-318, made in accordance with this
section unless: (1) Within fifteen days after such change, such financial institution posts
a notice reciting such reduction in interest rate and annual percentage yield adjacent to,
or incorporates such notice in, the deposit account disclosures posted in each office at
which deposits are accepted; and (2) such financial institution delivers a notice reciting
such reduction in interest rate and annual percentage yield to each depositor who has a
savings account which will be affected by such reduction and for which such financial
institution normally renders a periodic statement of account, which notice of reduction
shall be delivered no later than delivery of the next subsequent periodic statement, if
any, after such reduction.
(c) A financial institution may, without notice, change its method of computing
interest in such manner as to increase its annual percentage yield or may increase the
interest rate, not to exceed any maximum set by law, and therefore the annual percentage
yield paid on any deposit account from that most recently disclosed to the depositor,
including changes to disclosures delivered in accordance with section 36a-318, made
in accordance with this section.
(P.A. 79-433, S. 7, 11; P.A. 81-261, S. 6; P.A. 93-168, S. 6, 8; P.A. 94-14, S. 1, 2; 94-122, S. 152, 340.)
History: P.A. 79-433 effective July 1, 1980; P.A. 81-261 rephrased certain parts of the section, amended Subsec. (a)
to establish time periods for the delivery of a notice reciting a reduction in interest due to a change in computation method
depending upon the frequency with which the periodic statement is rendered to the depositor, and amended Subsec. (b) to
require that a financial institution which reduces the simple interest rate deliver to each depositor a notice of reduction no
later than delivery of the next subsequent periodic statement after such reduction; P.A. 93-168 changed all references of
"schedule of interest" to "most recently disclosed changes to disclosures", eliminated the use of "simple interest" in favor
of "interest" and deleted the reference to "effective annual percentage yield" in favor of "annual percentage yield", effective
June 23, 1993, except that compliance by financial institutions shall be optional prior to the mandatory compliance date
of the regulations applicable to the financial institution promulgated pursuant to the Federal Truth in Savings Act, Subtitle
F of Title II of the Federal Deposit Insurance Corporation Improvement Act of 1991, Public Law 102-242, as from time
to time amended, or January 1, 1994, whichever is sooner; P.A. 94-14 changed the January 1, 1994, compliance date to July
1, 1995, effective April 25, 1994; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-27g transferred to
Sec. 36a-321 in 1995.
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(P.A. 79-433, S. 8, 11; P.A. 94-122, S. 153, 340.)
History: P.A. 79-433 effective July 1, 1980; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-
27h transferred to Sec. 36a-322 in 1995.
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(1) The provisions of sections 36a-315 to 36a-323, inclusive, shall not apply to any
time account containing one hundred thousand dollars or more.
(2) The deposit contract, deposit account disclosures and disclosure of deposit account charges may exclude, and the provisions of sections 36a-315 to 36a-323, inclusive,
do not apply to, any disclosures which are provided to a depositor in accordance with
any provisions of the general statutes other than said sections or any federal law which
expressly preempts the operation of said sections.
(3) For any deposit account which has more than one depositor, a financial institution need not deliver the deposit contract, deposit account disclosures, disclosure of
deposit account charges and notices, when such delivery is required by sections 36a-
315 to 36a-323, inclusive, to more than one of the depositors.
(4) At such time as any financial institution is authorized by law to accept a time
deposit, the interest rate of which may vary during the term of such deposit, or at such
time as interest rate ceilings on any type of savings deposit are no longer provided by law
or are changing with sufficient frequency to justify, in the opinion of the commissioner,
invoking the provisions of this subsection, the commissioner may issue an order waiving
compliance with any or all of the provisions of sections 36a-315 to 36a-323, inclusive,
by any one or more of such financial institutions with regard to such accounts for any
period of time the commissioner may designate if, in the commissioner's opinion, economic or competitive conditions are such that compliance with such provisions would
be detrimental to depositors and other creditors of the institutions. For the purposes of
this subsection, "depositors" means persons having deposits in financial institutions.
(P.A. 81-261, S. 7; P.A. 92-12, S. 16; P.A. 93-168, S. 7, 8; P.A. 94-14, S. 1, 2; 94-122, S. 154, 340.)
History: P.A. 92-12 redesignated Subsecs. and made technical changes; P.A. 93-168 deleted the references to "schedule
of interest and schedule of deposit" and substituted "deposit account disclosure and disclosure of deposit" and made
technical changes for consistency, effective June 23, 1993, except that compliance by financial institutions shall be optional
prior to the mandatory compliance date of the regulations applicable to the financial institution promulgated pursuant to
the Federal Truth in Savings Act, Subtitle F of Title II of the Federal Deposit Insurance Corporation Improvement Act of
1991, Public Law 102-242, as from time to time amended, or January 1, 1994, whichever is sooner; P.A. 94-14 changed
the January 1, 1994, compliance date to July 1, 1995, effective April 25, 1994; P.A. 94-122 made technical changes,
effective January 1, 1995; Sec. 36-27i transferred to Sec. 36a-323 in 1995.
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PROTECTION OF PUBLIC DEPOSITS
(1) "Eligible collateral" means (A) United States treasury bills, notes and bonds,
(B) United States government agency securities, (C) United States agency variable-rate
securities, (D) mortgage pass-through or participation certificates or similar securities,
(E) performing one-to-four-family residential mortgage loans that meet the following
criteria: (i) The mortgage loan has a loan-to-value ratio which is less than or equal to
eighty per cent for loans without private mortgage insurance, or a loan-to-value ratio
which is less than or equal to ninety-five per cent for loans with private mortgage insurance; and (ii) the mortgage loan has a payment history of not more than one payment
over thirty days in arrears during the past twelve consecutive months or, if the loan has
a payment history of less than twelve months in duration, the loan meets the documentation requirements of the Federal National Mortgage Association or the Federal Home
Loan Mortgage Corporation; provided, in the case of a subsequent default under any
such mortgage loan that continues uncured for more than sixty days, such loan shall no
longer qualify as eligible collateral and shall be replaced by a performing mortgage loan
that meets the criteria set forth in this subdivision, and (F) state and municipal bonds;
(2) "Financial institution" means a bank, Connecticut credit union, federal credit
union or an out-of-state bank that maintains in this state a branch as defined in section
36a-410;
(3) "Loss" means issuance of an order of supervisory authority restraining a qualified public depository from making payments of deposit liabilities or the appointment
of a receiver for a qualified public depository;
(4) "Public deposit" means (A) moneys of this state or of any governmental subdivision of this state or any commission, committee, board or officer thereof, any housing
authority or any court of this state and (B) moneys held by the Judicial Department in
a fiduciary capacity;
(5) "Qualified public depository" or "depository" means a bank, Connecticut credit
union, federal credit union or an out-of-state bank that maintains in this state a branch,
as defined in section 36a-410, which receives or holds public deposits and segregates
eligible collateral for public deposits as described in section 36a-333.
(1967, P.A. 517, S. 1; P.A. 77-614, S. 156, 587, 610; P.A. 78-303, S. 85, 136; P.A. 80-482, S. 259, 345, 348; P.A. 81-
193, S. 11, 16; P.A. 83-331, S. 3; P.A. 84-510, S. 1, 5; P.A. 87-9, S. 2, 3; P.A. 91-245, S. 1; P.A. 92-12, S. 78; P.A. 94-
122, S. 155, 340; P.A. 95-155, S. 22, 29.)
History: P.A. 77-614 and P.A. 78-303 replaced definition of "commission", i.e. Connecticut Public Deposit Protection
Commission, and reference thereto, with definition of "commissioner", i.e. banking commissioner within the department
of business regulation, and like references, effective January 1, 1979; P.A. 80-482 deleted reference to abolished department
of business regulation and restored commissioner as head of independent banking department; P.A. 81-193 amended
Subsec. (b) by adding to the definition of "qualified public depository" the words "savings bank, federal savings bank,
savings and loan association or federal savings and loan association"; P.A. 83-331 amended Subsec. (b) redefining "qualified public depository" to include state or federal credit unions; P.A. 84-510 amended Subsec. (a) to include moneys of
housing authorities in the definition of "public deposit"; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner"
was changed editorially by the Revisors to "commissioner of banking"); P.A. 91-245 redefined "public deposit" to include
moneys held by the judicial department in a fiduciary capacity, amended Subsec. (b) by adding "or depository", redefined
the term "eligible collateral" in Subsec. (e) and deleted Subsec. (f) defining "maximum liability"; P.A. 92-12 redesignated
Subsecs. and Subdivs; P.A. 94-122 deleted the definition of "commissioner", alphabetized the definitions and made technical changes, effective January 1, 1995; Sec. 36-382 transferred to Sec. 36a-330 in 1995; P.A. 95-155 added references to
out-of-state banks in Subdiv. (2) and (5) and deleted references to public depositories in Subdiv. (4), effective June 27, 1995.
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(1967, P.A. 517, S. 2; P.A. 91-245, S. 2; P.A. 94-122, S. 156, 340.)
History: P.A. 91-245 changed deadline for compliance from October 1, 1967, to October 1, 1991; P.A. 94-122 made
technical changes, effective January 1, 1995; Sec. 36-383 transferred to Sec. 36a-331 in 1995.
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(b) The commissioner shall adopt regulations, in accordance with the provisions of
chapter 54, to administer the provisions of sections 36a-330 to 36a-338, inclusive. Such
regulations shall establish (1) requirements for the qualification of financial institutions
as qualified public depositories, (2) other terms and conditions consistent with sections
36a-330 to 36a-338, inclusive, under which public deposits may be received and held,
(3) requirements for financial institutions eligible to serve as trustees for segregated
eligible collateral under subsection (b) of section 36a-333, (4) requirements for the
transfer of eligible collateral from a qualified public depository to a financial institution
serving as trustee for such collateral under subsection (b) of section 36a-333, (5) provisions governing the valuation of eligible collateral when the market value of such collateral is not readily determinable, and (6) such other provisions as the commissioner deems
necessary to carry out the requirements of sections 36a-330 to 36a-338, inclusive.
(1967, P.A. 517, S. 4; P.A. 77-614, S. 157, 610; P.A. 91-245, S. 3; P.A. 94-122, S. 157, 340.)
History: P.A. 77-614 replaced "commission", i.e. Public Deposit Protection Commission, with "commissioner", i.e.
banking commissioner, effective January 1, 1979; P.A. 91-245 designated existing section as Subsec. (a), deleted provisions
re regulations and allocation of payments in case of loss, and added Subsec. (b) re regulations to administer the provisions
of the chapter; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-385 transferred to Sec. 36a-332
in 1995.
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(b) Each qualified public depository having a risk-based capital ratio of eight per
cent or greater shall transfer eligible collateral maintained under subsection (a) of this
section to its own trust department, provided such trust department is located in this
state unless the commissioner approves otherwise, to the trust department of another
financial institution, provided such eligible collateral shall be maintained in such other
financial institution's trust department located in this state unless the commissioner
approves otherwise, or to a federal reserve bank or federal home loan bank. Each qualified public depository having a risk-based capital ratio of less than eight per cent shall
transfer eligible collateral maintained under subsection (a) of this section to the trust
department of a financial institution that is not owned or controlled by the depository
or by a holding company owning or controlling the depository, provided such eligible
collateral shall be maintained in such other financial institution's trust department located in this state unless the commissioner approves otherwise, or to a federal reserve
bank or federal home loan bank. Such transfers of eligible collateral shall be made in a
manner prescribed by the commissioner. Eligible collateral shall be valued at market
value or as determined by the commissioner if market value is not readily determinable,
and the value of such eligible collateral shall be determined and adjusted on a quarterly
basis. Without the requirement of any further action, the commissioner shall have, for
the benefit of public depositors, a perfected security interest in all such eligible collateral
held in such segregated trust accounts, granted pursuant to and in accordance with the
terms of the agreement between the public depositor and the qualified public depository.
Such security interest shall have priority over all other perfected security interests
and liens.
(c) The depository shall have the right to make substitutions of eligible collateral
at any time without notice. The depository shall provide written notice to its public
depositors of any reduction in the amount of eligible collateral maintained under subsection (a) of this section.
(d) The income from the assets which constitute segregated eligible collateral shall
belong to the depository without restriction.
(e) Eligible collateral pledged to secure public deposits under subsection (a) of this
section shall have a minimum market value as expressed in the following collateral
ratios:
Form of Eligible Collateral Pledged
Collateral Ratio
(Market value divided by
public
deposit plus
accrued interest)1. United States Treasury bills, notes and bonds A. Maturing in less than one year 102% B. Maturing in one to five years 105% C. Maturing in more than five years 110% D. Zero-coupon treasury securities with maturities exceeding ten years 120% 2. Actively traded United States government agency securities A. Maturing in less than one year 103% B. Maturing in one to five years 107% C. Maturing in more than five years 115% 3. United States government agency variable rate securities 103% 4. Government National Mortgage Association mortgage pass-through or participation certificates or similar securities A. Current issues 115% B. Older issues 120% C. Issues for which prices are not quoted 125% 5. Other United States government securities 125% 6. Other mortgage pass-through or participation certificates or similar securities 125% 7. One-to-four family residential mortgages 125% 8. State and municipal bonds A. General obligation bonds i. Maturing in less than one year 102% ii. Maturing in one to five years 107% iii. Maturing in more than five years 110% B. Revenue bonds i. Maturing in less than one year 105-110% ii. Maturing in one to five years 110-120% iii. Maturing in more than five years 120-130%
History: P.A. 77-614 and P.A. 78-303 allowed substitution of banking commissioner references for references to Public
Deposit Protection Commission, effective January 1, 1979; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner"
was changed editorially by the Revisors to "commissioner of banking"); P.A. 91-245 deleted existing Subsecs. (a) and
(b), added new Subsec. (a) re eligible collateral requirements, added new Subsec. (b) re segregation of eligible collateral,
added notice requirements to Subsec. (c), made a technical change to Subsec. (d) and added Subsec. (e) re minimum market
value for eligible collateral; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-386 transferred to
Sec. 36a-333 in 1995; P.A. 95-155 added provisos in Subsec. (b) re location of the trust department and location at which
eligible collateral is maintained, effective June 27, 1995.
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(1967, P.A. 517, S. 6; P.A. 77-614, S. 158, 610; P.A. 87-9, S. 2, 3; P.A. 91-245, S. 5; P.A. 92-12, S. 79; P.A. 94-122,
S. 159, 340.)
History: P.A. 77-614 replaced bank commissioner with banking commissioner and references to Public Deposit Protection Commission with references to said commissioner, effective January 1, 1979; (Revisor's note: Pursuant to P.A. 87-
9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 91-245 deleted
provisions re assessment of loss against all other qualified public depositories in proportion to their maximum liability and
made technical changes; P.A. 92-12 redesignated Subdivs; P.A. 94-122 made technical changes, effective January 1, 1995;
Sec. 36-387 transferred to Sec. 36a-334 in 1995.
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(1967, P.A. 517, S. 7; P.A. 77-614, S. 159, 610; P.A. 91-245, S. 6.)
History: P.A. 77-614 replaced references to Public Deposit Protection Commission with references to banking commissioner, effective January 1, 1979; P.A. 91-245 deleted provisions re payments to qualified public depositories against
which assessments were made; Sec. 36-388 transferred to Sec. 36a-335 in 1995.
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(1967, P.A. 517, S. 8; P.A. 81-193, S. 14, 16; P.A. 92-12, S. 80; P.A. 94-7, S. 3; 94-122, S. 160, 340.)
History: P.A. 81-193 deleted "Except as provided in section 36-392,"; P.A. 92-12 redesignated Subdivs; P.A. 94-7
amended section to require an out-of-state depository to provide collateral in excess of the Federal Deposit Insurance
Corporation insurance limit; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-389 transferred to
Sec. 36a-336 in 1995.
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(b) In lieu of eligible collateral required under section 36a-333, at least to the extent
provided by said section, not more than fifty per cent of the public deposits held by
any qualified public depository may be secured solely by a private insurance policy
purchased by the depository, the depositor, or any other third party. Any private insurance policy used to secure public deposits shall be issued by an insurance company
licensed to do business in Connecticut.
(1967, P.A. 517, S. 9; P.A. 91-177; 91-245, S. 7; P.A. 94-122, S. 161, 340.)
History: P.A. 91-177 made technical changes to the existing section, designated said section as Subsec. (a), and added
Subsec. (b) re private insurance in lieu of eligible collateral; P.A. 91-245 made technical changes; P.A. 94-122 made
technical changes, effective January 1, 1995; Sec. 36-390 transferred to Sec. 36a-337 in 1995.
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(1967, P.A. 517, S. 10; P.A. 77-614, S. 160, 610; P.A. 87-9, S. 2, 3; P.A. 91-245, S. 8; P.A. 94-122, S. 162, 340.)
History: P.A. 77-614 replaced bank commissioner with banking commissioner and references to Public Deposit Protection Commission with references to said commissioner, effective January 1, 1979; (Revisor's note: Pursuant to P.A. 87-
9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 91-245 added
requirements for reporting risk-based capital ratio and total capital, deleted provisions re examination by the commissioner
or the Comptroller of the Currency, required depositories to furnish copies of report to public depositories and provided
for failure to do so, and made technical change; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-
391 transferred to Sec. 36a-338 in 1995.
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