OLR Bill Analysis

HB 5296

AN ACT CONCERNING THE DEPARTMENT OF BANKING.

SUMMARY:

This bill specifically adds business and industrial development corporation licensees to the list of licensees to which Connecticut's banking law applies. The banking law applies to listed entities, as well as to other people who subject themselves to its provisions or who, by violating any of its provisions, become subject to its penalties. The law already authorizes and provides for the licensure of business and industrial development corporations. A business and industrial corporation is a person approved or seeking approval by the federal Small Business Administration as a participating lender under its loan guarantee programs, who applies to the commissioner for a license under the law.

The bill also makes a technical change.

EFFECTIVE DATE: October 1, 2006

BACKGROUND

Parties Subject to the Connecticut Banking Laws

Connecticut banking law currently applies to all Connecticut banks; Connecticut credit unions; first and secondary mortgage lenders and brokers; money order and travelers check licensees; check cashing service licensees; trustees under mortgages or deeds of trust of real property securing certain investments; corporations exercising fiduciary powers; small loan licensees, sales finance companies; mortgage servicing companies; debt adjusters; and other entities that subject themselves to the provisions of the law or who, by violating any of its provisions, become subject to its penalties.

COMMITTEE ACTION

Banks Committee

Joint Favorable