House Bill No. 6507
House Bill No. 6507
PUBLIC ACT NO. 97-35
AN ACT CONCERNING BANK INVESTMENTS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subsection (a) of section 36a-275
of the general statutes is repealed and the
following is substituted in lieu thereof:
(a) As used in this section, the term "debt
securities" means (1) any marketable obligation
evidencing indebtedness of any person in the form
of direct, assumed or guaranteed bonds, notes or
debentures commonly known as investment
securities; [or] (2) any obligation identified by
certificates of participation in investments
described in subdivision (1) of subsection (a) of
this section in which a Connecticut bank could
invest directly; OR (3) REPURCHASE AGREEMENTS and
the term "debt mutual fund" means a partnership
interest in, shares of stock of, units of
beneficial interest in or other ownership interest
in any one investment company registered under the
Investment Company Act of 1940, as from time to
time amended, commonly described as mutual funds,
money market funds, investment trusts or business
trusts, provided the portfolios of such investment
companies consist solely of investments described
in subdivision (1) of subsection (a) of this
section.
Sec. 2. Section 36a-277 of the general
statutes is repealed and the following is
substituted in lieu thereof:
In addition to other investments authorized
by sections 36a-275, AS AMENDED BY SECTION 1 OF
THIS ACT, and 36a-276, this section and section
36a-280, any Connecticut bank may purchase or hold
for its own account the following securities,
without regard to any other liability to the
Connecticut bank of the obligor, maker, guarantor
or issuer of such securities, provided the total
amount of the securities of any one maker, obligor
or issuer held by a Connecticut bank or for a
Connecticut bank's account may not exceed, at any
time, ten per cent of its equity capital and
reserves for loan and lease losses:
(1) Shares of stock and debt securities of
companies licensed as "small business investment
companies", under the federal Small Business
Investment Act of 1958, 15 USC Section 661 et
seq., as from time to time amended, and which
qualify as companies financing disadvantaged
persons under 15 USC Section 681(d), as from time
to time amended;
(2) Shares of stock and debt securities of
companies licensed as "small business investment
companies", under the federal Small Business
Investment Act of 1958, 15 USC Section 661 et
seq., as from time to time amended;
(3) Debt securities issued by corporations
certified by the commissioner to be organized and
operated solely for the purpose of providing
assistance which will contribute to the public
welfare by facilitating the acquisition and
maintenance of ownership of homes by individuals
whose ability to own their own homes is hampered
because of social or economic disadvantages, which
debt securities are backed by mortgage loans made
by the issuing corporations;
(4) Shares of stock and debt securities
issued by the National Corporation for Housing
Partnerships or by any other corporation created
pursuant to Title IX of the Housing and Urban
Development Act of 1968; limited partnership
interests in The National Housing Partnership or
in any other limited partnership formed pursuant
to Section 907(a) of that act; and any
partnership, limited partnership, or joint venture
formed pursuant to Section 907(c) of that act;
(5) Shares of stock and debt securities of
corporations, and equity interests in and debt
securities of, partnerships and limited
partnerships, engaged solely in acquiring and
rehabilitating housing;
(6) Debt securities or equity securities of a
corporation, all the equity securities of which
corporation are to be owned by one or more
Connecticut banks and which corporation is
organized and operated for the purpose of
developing, and stimulating and assisting the
development of, by any means and in any capacity,
by itself or jointly with others, low and moderate
income housing in this state;
[(7) Shares of stock of corporations
qualified under the laws of the United States as
"small business investment companies";]
[(8)] (7) Debt securities or equity
securities of closed-end investment companies
which provide capital to racial or ethnic
minority-owned businesses and institutions;
[(9)] (8) Debt securities or equity
securities of development corporations or similar
organizations organized to promote the business
prosperity and economic welfare of this state and
to encourage the location and development of new
business, industry and commerce at least in part
within the municipality where the main office or a
branch of such bank is located; and
[(10)] (9) Debt securities or equity
securities that are social purpose investments,
provided before making any such investment, the
bank shall obtain the certification of the
commissioner that the investment is a social
purpose investment. For purposes of this section,
a "social purpose investment" means an investment
which contributes to the public welfare by
facilitating the provision of a service or
facility needed by residents of the area in which
an office of the bank making the investment is
located.
Approved May 6, 1997