PART III
EXERCISE OF FIDUCIARY POWERS BY CORPORATIONS
OTHER THAN BANKING INSTITUTIONS
Sec. 36a-380. (Formerly Sec. 36-314). License. (a) Except as provided in this
section, no corporation, other than a bank or out-of-state bank that maintains in this
state a branch as defined in section 36a-410, shall have or exercise in this state the power
to receive, by grant, assignment, transfer, devise, bequest or otherwise, any money,
securities or other personal property, or any interest in real estate from any person or
corporation in trust, to hold, manage or dispose of the same for the benefit of any third
person or corporation, or to accept or execute any such trust, unless such corporation
is specifically empowered so to act by a general statute of this state or by a special act
of the General Assembly. Any corporation so empowered to act as trustee, other than
such bank or out-of-state bank, shall, before so acting, obtain a license from the commissioner as provided in subsection (b).
(b) Application for such license shall be in writing upon forms to be furnished by
the commissioner and shall contain the full name and address of the applicant corporation
and of each of its officers and a statement of the assets and liabilities of such corporation
in such form as the commissioner requires. If, upon examination of such application
and upon any further investigation that the commissioner deems necessary, the commissioner is satisfied that such corporation is solvent and conducting its business according
to law, the commissioner may issue to such corporation a license to receive property in
trust and to execute and administer trusts to the extent and in the manner authorized by
the charter of such corporation or by any general or special law of this state, but not
otherwise. If it appears to the commissioner that any such applicant corporation is insolvent, or that its business is being conducted contrary to law or to the provisions of its
charter, the commissioner shall refuse to issue such license.
(1949 Rev., S. 6018; P.A. 85-188, S. 7; 85-379, S. 40; P.A. 86-403, S. 77, 132; P.A. 92-12, S. 76; P.A. 94-122, S. 174,
340; P.A. 95-155, S. 24, 29.)
History: P.A. 85-188 and P.A. 85-379 applied provisions of section to state or federally chartered savings banks and
savings and loan associations; P.A. 86-403 made technical change in Subsec. (1); P.A. 92-12 redesignated Subsecs. and
Subdivs. and made technical changes; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-314 transferred to Sec. 36a-380 in 1995; P.A. 95-155 added reference to out-of-state banks in Subsec. (a), effective June 27, 1995.
Sec. 36a-381. (Formerly Sec. 36-315). Exemptions. The provisions of sections
36a-380 to 36a-386, inclusive, shall not apply to the administration of: (1) Any trust for
cemetery purposes by an incorporated cemetery association; (2) any charitable, religious
or educational trust by a corporation organized for charitable, religious or educational
purposes; (3) any trust by a life insurance company of the proceeds of its insurance
policies; (4) any trust by a corporation without compensation and not as a part of its
regular business; (5) any trust in real or personal property the trustee of which is a
corporation acting pursuant to the provisions of section 45a-206; (6) any trust the trustee
of which is a corporation acting pursuant to the provisions of section 36a-395; or (7)
any trust the trustee of which is a corporation acting pursuant to section 36a-434a.
(1949 Rev., S. 6019; P.A. 86-234, S. 1, 6; P.A. 92-12, S. 77; P.A. 94-122, S. 175, 340; P.A. 98-258, S. 3.)
History: P.A. 86-234 deleted former Subdiv. (e) re inapplicability of chapter to trust in real property or real property
accompanied by personal property as included in Sec. 49-93 provisions under mortgage or deed of trust held as security
for loan and inserted new Subdivs. (e) and (f) re trust having as trustee corporations acting pursuant to Secs. 45-191 and
36-249, respectively; P.A. 92-12 redesignated Subdivs.; P.A. 94-122 made technical changes, effective January 1, 1995;
Sec. 36-315 transferred to Sec. 36a-381 in 1995; P.A. 98-258 added new Subdiv. (7) re exemption for any trust the trustee
of which is a corporation acting pursuant to Sec. 36a-434a.
Sec. 36a-382. (Formerly Sec. 36-316). Examination; cost and fee. The commissioner shall annually or more often examine each corporation licensed under sections
36a-380 to 36a-386, inclusive, and special acts 93-12, 93-19 and 93-20, any provision
in the charter of any such corporation to the contrary notwithstanding, and shall require
that such corporation file an annual report in such form as the commissioner may prescribe and such other reports as the commissioner may require. Each such licensed
corporation shall pay the cost of such examination as determined by the commissioner
and shall, in addition, pay to the commissioner an annual license fee of one hundred
dollars. Such license fee shall be payable on the thirtieth day of June in each year and
the fee for licenses granted upon any other date shall be prorated to the thirtieth day of
June next following the issuance thereof, provided no fee for the unexpired portion of
any license year shall be less than twenty dollars.
(1949 Rev., S. 6020; P.A. 77-614, S. 161, 610; P.A. 80-482, S. 257, 345, 348; P.A. 87-9, S. 2, 3; P.A. 90-271, S. 20,
24; P.A. 94-122, S. 176, 340; May 25 Sp. Sess. P.A. 94-1, S. 106, 130.)
History: P.A. 77-614 made banking department a division within the department of business regulation with banking
commissioner as its head, effective January 1, 1979; P.A. 80-482 restored banking division as independent department
with commissioner as its head and abolished the department of business regulation; (Revisor's note: Pursuant to P.A. 87-9 "banking department" was changed editorially by the Revisors to "department of banking"); P.A. 90-271 made a technical
change; P.A. 94-122 made technical changes, effective January 1, 1995; May 25 Sp. Sess. P.A. 94-1 made a further technical
change, effective January 1, 1994, and applicable January 1, 1995; Sec. 36-316 transferred to Sec. 36a-382 in 1995.
Sec. 36a-383. (Formerly Sec. 36-317). Procedure in case of failure to comply
with cease and desist order or insolvency. If it at any time appears to the commissioner
that any corporation so licensed has failed to comply with a cease and desist order issued
by the commissioner or is insolvent or likely to become insolvent, the commissioner
may revoke such license in accordance with section 36a-51 and apply to the superior
court for the judicial district of Hartford or the judicial district in which such corporation
is located for an injunction restraining such corporation from continuing to receive
property in trust and restraining it from administering any and all trusts including such
as may be then in force and effect, and for an order appointing some suitable person to
succeed such corporation as trustee of any trust property then in its possession or in or
to which it has any right, title, interest or claim, or for any other or further order as
appears to the court as necessary or advisable to protect and secure the interests of
the beneficiaries of any such trust property. The court, after reasonable notice to such
corporation and hearing thereon, may issue such injunction or other order or grant such
other equitable relief as the facts may warrant and, pending such hearing, the court may
issue such temporary injunction or restraining order as the court deems equitable.
(1949 Rev., S. 6021; P.A. 78-280, S. 2, 127; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 91-357, S. 55, 78; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S. 177, 340; P.A. 95-220, S. 4-6.)
History: P.A. 78-280 substituted reference to judicial districts for reference to counties; P.A. 91-357 deleted obsolete
language re judge of the superior court and made a technical change; P.A. 94-122 deleted the cease and desist provisions
moved to Sec. 36a-52, allowed the commissioner to apply for enforcement orders to the Hartford-New Britain superior
court and made technical changes, effective January 1, 1995 (Revisor's note: P.A. 88-230, P.A. 90-98 and P.A. 93-142
authorized substitution of "judicial district of Hartford" for "judicial district of Hartford-New Britain" in public and special
acts of the 1994 regular and special sessions, effective September 1, 1996); Sec. 36-317 transferred to Sec. 36a-383 in
1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective
July 1, 1995.
See Sec. 36a-52 re cease and desist orders.
Sec. 36a-384. (Formerly Sec. 36-318). Segregation of securities. Deposits. The
securities and investments of each trust committed to any such corporation so licensed
shall be set apart and segregated and shall not be mingled with the securities and investments of any other trust or of the corporation. Any undistributed or temporarily uninvested cash held by such corporation as trustee shall be deposited in the name of the
trust or in the name of the corporation as trustee in a bank, provided, when any such
undistributed or uninvested cash is deposited in the name of the corporation as trustee,
such deposits shall be so identified on the books of the corporation as to disclose the
beneficial ownership thereof.
(1949 Rev., S. 6022; P.A. 94-122, S. 178, 340.)
History: P.A. 94-122 allowed nonbank trust companies to deposit undistributed or uninvested trust funds in any bank,
effective January 1, 1995; Sec. 36-318 transferred to Sec. 36a-384 in 1995.
See Sec. 45a-208 re deposit of securities in clearing corporation.
Sec. 36a-385. (Formerly Sec. 36-319). Name. No such corporation so licensed
shall use, either as a part of its name, or as a prefix or suffix thereto, or as a designation
of the business carried on by it, the word "bank", "banking", "banker", "bankers", "trust"
or "savings", notwithstanding any provision of the charter of any such corporation to
the contrary.
(1949 Rev., S. 6023; P.A. 94-122, S. 179, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-319 transferred to Sec. 36a-385 in 1995.
Sec. 36a-386. (Formerly Sec. 36-319a). Planned Lifetime Assistance Network
of Connecticut, Inc. Self-sufficiency trusts. (a) Planned Lifetime Assistance Network
of Connecticut, Inc. shall have the power to receive, by grant, assignment, transfer,
devise, bequest or otherwise, any money, securities or other personal property, or any
interest in real estate from any person or corporation in trust, to hold, manage or dispose
of the same for the benefit of any person with disabilities or to accept or execute any
such trust pursuant to the provisions of sections 36a-380 to 36a-386, inclusive, provided
Planned Lifetime Assistance Network of Connecticut, Inc. shall be a nonprofit corporation incorporated in this state and shall be licensed in accordance with, and comply with
the provisions of said sections. The purpose of such a trust shall be to assist the beneficiary in achieving and maintaining self-sufficiency.
(b) Planned Lifetime Assistance Network of Connecticut, Inc. shall establish a charitable trust which shall benefit any person with disabilities for whom an individual trust
has not been established. Planned Lifetime Assistance Network of Connecticut, Inc.
shall charge each trust created under subsection (a) of this section an annual administrative fee, which shall not exceed the actual costs of administering such trusts. The grantor
of a trust created under subsection (a) of this section may enter into an agreement
whereby a percentage of the remainder of the trust may be transferred to the charitable
trust upon the death of the beneficiary.
(c) The board of directors of Planned Lifetime Assistance Network of Connecticut,
Inc. shall report, on or before June 30, 1991, and annually thereafter, to the joint standing
committees of the General Assembly having cognizance of matters relating to human
services and banks: (1) The number of beneficiaries for whom assets are placed in trust;
(2) the amount held on behalf of each beneficiary; (3) the type of assets funding each
trust; (4) the income earned by all such trusts; (5) the amount and purpose of any funds
dispersed; (6) the number of grantors who agree to transfer a percentage of the remainder
of a trust established pursuant to subsection (a) of this section to the charitable trust and
the percentage and amount transferred by each; and (7) an itemization of administrative costs.
(P.A. 90-316.)
History: Sec. 36-319a transferred to Sec. 36a-386 in 1995.
Secs. 36a-387 to 36a-394. Reserved for future use.
PART IV
TRUSTEES UNDER MORTGAGE
Sec. 36a-395. (Formerly Sec. 36-249). Application of provisions. The provisions
of this section and sections 36a-396 to 36a-399, inclusive, shall apply to each person,
firm or corporation, hereinafter referred to as "trustee", acting or proposing to act as
trustee under a mortgage or deed of trust of real property, in any case in which the note,
notes, bond or bonds or other evidence of indebtedness secured thereby have been or
are to be sold as investments, except that they shall not apply to any bank, any corporation
licensed by the commissioner to receive property in trust and to execute and administer
trusts or any corporation acting pursuant to the provisions of section 45a-206.
(1949 Rev., S. 5958; P.A. 81-192; P.A. 94-122, S. 180, 340.)
History: P.A. 81-192 excluded corporations "acting pursuant to the provisions of section 45-191" from provisions of
chapter; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-249 transferred to Sec. 36a-395 in 1995.
Sec. 36a-396. (Formerly Sec. 36-250). Notice to commissioner. Examination.
Fee. (a) Each such trustee, before acting as such trustee, shall notify the commissioner
in writing that such trustee proposes to so act and shall be under the supervision of the
commissioner to the extent of such trustee accounts.
(b) The commissioner shall, annually or more often, examine all such trustee accounts and shall require that each such trustee file an annual report of such accounts
held in trust in such form as the commissioner may prescribe and such other reports
relating to the administration of any such trust as the commissioner may require. Such
annual report shall be as of the close of business on the thirty-first day of December and
shall be filed with the commissioner on or before the thirtieth day of January in each year.
(c) Each such trustee shall pay an annual fee of twenty-five dollars, and, in addition,
shall pay the actual cost of such examination as determined by the commissioner.
(1949 Rev., S. 5959; 1951, S. 2766d; P.A. 77-614, S. 161, 610; P.A. 80-482, S. 255, 345, 348; P.A. 87-9, S. 2, 3; P.A.
90-271, S. 19, 24; P.A. 92-12, S. 71; P.A. 94-122, S. 181, 340.)
History: P.A. 77-614 made banking department a division within the department of business regulation, retaining
commissioner as its head, effective January 1, 1979; P.A. 80-482 restored banking division as an independent department
and abolished the department of business regulation; (Revisor's note: Pursuant to P.A. 87-9 "banking department" was
changed editorially by the Revisors to "department of banking"); P.A. 90-271 made a technical change in Subsec. (2);
P.A. 92-12 redesignated Subsecs. and made a technical change; P.A. 94-122 made technical changes, effective January 1,
1995; Sec. 36-250 transferred to Sec. 36a-396 in 1995.
Sec. 36a-397. (Formerly Sec. 36-251). Records. Deposit of funds. All moneys,
funds or other assets held in trust by such trustees shall, at all times, be so held as to
disclose that they are held in trust, and all books and records pertaining thereto shall
contain sufficient information to identify and separate the moneys, funds and assets of
each trust from those of other trusts and from other assets held by such trustee. Any
such trust funds that are temporarily uninvested or undistributed shall be deposited in
the name of the trust or in the name of such person, firm or corporation as trustee in a
bank or in such other depository as may be approved by the commissioner.
(1949 Rev., S. 5960; P.A. 94-122, S. 182, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-251 transferred to Sec. 36a-397 in 1995.
Sec. 36a-398. (Formerly Sec. 36-252). Powers. Each trustee shall have the following powers, whether expressly contained in the terms of the trust or not, unless
expressly forbidden:
(1) Such trustee may accept conveyance of the mortgaged property when it deems
it advisable, instead of obtaining title thereto by foreclosure; provided no right to any
deficiency judgment on the notes, bonds or other evidences of indebtedness secured by
such mortgage shall be affirmatively released by such trustee without the consent of the
owners of such notes, bonds or other evidences of indebtedness.
(2) After acquiring title to such mortgaged property in either manner, or if money
is needed by such trustee to redeem such property from the foreclosure of tax liens or
other liens prior to such trust mortgage and to thus acquire such title, or to purchase
such property at a court sale in any such foreclosure action, such trustee may, directly
or indirectly, mortgage such premises to any Connecticut bank, to obtain the money
necessary to so redeem or purchase such property or to pay any taxes or assessment liens
due on such property. No such bank, accepting such a mortgage, shall be responsible for
the rightful application of the money thus obtained by the trustee. No commission or
bonus shall be paid by such trustee for such loan. All property or money received by
such trustee as provided in this section shall be subject to such trust and shall be held
and disposed of for the benefit of the beneficiaries of such trust, pro rata, or in such
manner as such trust provides.
(1949 Rev., S. 5961; P.A. 92-12, S. 72; P.A. 94-122, S. 183, 340.)
History: P.A. 92-12 redesignated Subdivs. and made technical changes; P.A. 94-122 changed "savings bank in Connecticut, or to any other bank under the supervision of the commissioner" to "Connecticut bank", effective January 1, 1995;
Sec. 36-252 transferred to Sec. 36a-398 in 1995.
Sec. 36a-399. (Formerly Sec. 36-253). Orders and injunctions. Death of
trustee. (a) If the trustee does not comply with any such cease and desist order issued
by the commissioner or if it appears to the commissioner that any such trustee is insolvent
or likely to become insolvent, the commissioner may apply to the superior court for the
judicial district of Hartford or the judicial district in which such trustee resides or conducts such business for an injunction restraining such trustee from continuing to receive
property under mortgages or deeds of trust and restraining the trustee from administering
any and all trusts then in force and effect, and for an order appointing some suitable
person to succeed such person, firm or corporation as trustee of any trust property then
in the trustee's possession or in or to which the trustee has any right, title, interest or
claim, and for such other or further order as appears to the court necessary or desirable
to protect and secure the interests of the beneficiaries of any such trust property. The
court may issue such injunction or other order after reasonable notice to such trustee,
provided, if such mortgage or deed of trust provides for a certain successor trustee and
if such successor trustee is a suitable person to act in such capacity, the court may appoint
such successor trustee to be the acting trustee.
(b) In the event of the death of any such trustee, if no successor trustee is provided
for in any such mortgage or deed of trust, the commissioner may apply to the superior
court for the judicial district of Hartford for an order appointing some suitable person
to succeed such trustee.
(1949 Rev., S. 5962; P.A. 78-280, S. 2, 127; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 91-357, S. 54, 78; P.A. 92-12, S. 73; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S. 184, 340; P.A. 95-220, S. 4-6.)
History: P.A. 78-280 replaced reference to counties with reference to judicial districts; P.A. 91-357 deleted obsolete
language re judge of the superior court and made technical changes; P.A. 92-12 redesignated Subsecs. and made technical
changes; P.A. 94-122 deleted the cease and desist provisions moved to Sec. 36a-52, authorized the commissioner to apply
for enforcement orders to the Hartford-New Britain superior court and made technical changes, effective January 1, 1995
(Revisor's note: P.A. 88-230, P.A. 90-98 and P.A. 93-142 authorized substitution of "judicial district of Hartford" for
"judicial district of Hartford-New Britain" in public and special acts of the 1994 regular and special sessions, effective
September 1, 1996); Sec. 36-253 transferred to Sec. 36a-399 in 1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective July 1, 1995.