Substitute House Bill No. 6513
          Substitute House Bill No. 6513

              PUBLIC ACT NO. 97-160


AN ACT CONCERNING INVOLUNTARY LIQUIDATION OF STATE
BRANCHES AND AGENCIES OF  FOREIGN  BANKS  AND  THE
ESTABLISHMENT  OF  BRANCHES  OR  OTHER  OFFICES BY
OUT-OF-STATE BANKS AND FOREIGN BANKS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section 1. (NEW) (a) As used in this section:
    (1)    "Branch    or    agency   net   payment
entitlement" means, with respect  to  a  qualified
financial contract, the amount, if any, that would
have been owed by a party to a foreign bank  after
netting  only  those  transactions entered into by
the branch or agency of the foreign bank  in  this
state   and   such   party  under  such  qualified
financial contract.
    (2)  "Branch or agency net payment obligation"
means,  with  respect  to  a  qualified  financial
contract, the amount, if any, that would have been
owed by the foreign bank to a party after  netting
only those transactions entered into by the branch
or agency of the foreign bank in  this  state  and
such   party   under   such   qualified  financial
contract.
    (3)  "Business  and  property  in  this state"
includes, but is not limited to, all  property  of
the foreign bank, real, personal or mixed, whether
tangible or  intangible,  (A)  wherever  situated,
constituting  part  of  the  business of the state
agency or state branch of the foreign bank in this
state  and appearing on its books as such, and (B)
situated  within  this  state   whether   or   not
constituting  part  of  the business of such state
agency  or  state  branch  in  this  state  or  so
appearing on its books.
    (4)  "Global  net  payment  entitlement" means
the amount, if any, owed by a party or that  would
be  owed  if  the relevant agreements provided for
payments to either party, upon termination thereof
under  any  and  all circumstances, to the foreign
bank as a whole after giving effect to the netting
provisions  of a qualified financial contract with
respect to all  transactions  subject  to  netting
under such qualified financial contract.
    (5)  "Global net payment obligation" means the
amount, if any, owed by  the  foreign  bank  as  a
whole  to  a  party  after  giving  effect  to the
netting  provisions  of  a   qualified   financial
contract  with respect to all transactions subject
to  netting   under   such   qualified   financial
contract.
    (6)  "Qualified  financial contract" means any
securities contract, commodity  contract,  forward
contract,  including  any spot and forward foreign
exchange  contract,  repurchase  agreement,   swap
agreement,  and  any similar agreement, any option
to enter into any such  agreement,  including  any
combination  of the foregoing, any other agreement
determined  by  the  Commissioner  of  Banking  by
regulation  or  order  to be a qualified financial
contract  and  any  master  agreement   for   such
agreements.  Such  master agreement, together with
all supplements thereto, shall be treated  as  one
qualified   financial   contract,  provided,  such
contract, option or agreement, or  combination  of
contracts,  options  or agreements is reflected in
the books, accounts or records of the foreign bank
or  a  party provides documentary evidence of such
agreement.
    (b)    The   commissioner   may,   by   order,
immediately take possession of  the  business  and
property  in this state of any foreign bank with a
state branch or state agency in  this  state  upon
the  commissioner's determination that such action
is necessary for the protection of  the  interests
of  the  creditors of such foreign bank's business
in this state or for the protection of the  public
interest,  and  that  such  foreign  bank: (1) Has
violated any applicable law, regulation or  order;
(2)  is conducting its business in an unauthorized
or unsafe manner; (3) is in an unsafe  or  unsound
condition  to  transact  its  business; (4) cannot
with safety and expediency continue business;  (5)
has  ceased  to  operate its state branch or state
agency in this state; (6) has an impairment of its
capital;   (7)   has   suspended  payment  of  its
obligations, made an assignment for the benefit of
its   creditors,   or   admitted  in  writing  its
inability to pay its debts as they become due; (8)
has  neglected,  refused  or  failed  to  take  or
continue proceedings for voluntary liquidation  in
accordance  with  section  36a-428k of the general
statutes, as amended by section 6 of this act; (9)
is  insolvent  in  that  it  has ceased to pay its
debts in the ordinary course of  business,  cannot
pay   its   debts  as  they  become  due,  or  has
liabilities exceeding its assets; (10) has applied
for an adjudication of bankruptcy, reorganization,
arrangement, or other relief under any bankruptcy,
reorganization,  insolvency or moratorium law, or,
that any person has applied for  any  such  relief
under  any  such law against the foreign bank, and
the  foreign  bank  has  by  any  affirmative  act
approved  of  or  consented to such action or such
relief has been granted;  (11)  is  no  longer  in
existence  or  its  authority  to transact banking
business under the laws of the place where  it  is
domiciled  has  been suspended or terminated; (12)
is in liquidation, receivership or conservatorship
at   its   domicile  or  elsewhere,  or  that  any
proceeding  for  appointment  of   a   liquidator,
receiver  or conservator or any similar proceeding
has been initiated against it, or there is  reason
to doubt its ability or willingness to pay in full
the claims of creditors; (13)  has  otherwise  had
its   license   revoked,   suspended,   cancelled,
terminated or otherwise not  renewed  pursuant  to
the  provisions of section 36a-428j of the general
statutes; or (14) is in a condition, or  facts  or
circumstances relating to such foreign bank exist,
which, if existing at the time such  foreign  bank
applied  for  its  license  to  establish  a state
branch or state agency in this state,  would  have
been grounds for denying such application.
    (c)  Title  to  such  business and property in
this  state  of  a  foreign  bank  shall  vest  by
operation  of  law  in  the  commissioner  and his
successors upon  taking  possession,  without  the
execution   of   any  instruments  of  conveyance,
assignment,   transfer   or    endorsement.    The
commissioner  shall promptly apply to the superior
court for the judicial  district  of  Hartford-New
Britain   for  appointment  as  receiver  of  such
foreign bank with effect from the time  of  taking
possession, and the superior court shall make such
appointment.  Thereafter,  except   as   otherwise
provided  in  this section, the commissioner shall
liquidate or otherwise deal with such business and
property  in  this  state  of  a  foreign  bank in
accordance with the provisions of sections 36a-223
to  36a-239,  inclusive,  of the general statutes,
provided, (1) "debts", "liabilities",  "deposits",
"claims"  and other similar terms used in sections
36a-223 to  36a-239,  inclusive,  of  the  general
statutes   refers   to   the   claims   that   the
commissioner shall accept pursuant  to  subsection
(e)   of   this   section;   (2)  "creditors"  and
"depositors", as used in such sections, refers  to
the  owners of such accepted claims; (3) except as
the  context  otherwise   requires,   "Connecticut
bank",  as  used  in  such sections, refers to the
state branches or state agencies  in  this  state;
and  (4)  "officer",  as  used  in  such sections,
includes any person in charge  of  or  who  is  an
officer  of  such  state branches and the agent or
other person in charge  of  such  state  agencies.
Notwithstanding  any  contrary  provision  of law,
including chapters  55a  and  67  of  the  general
statutes,  the commissioner may employ or contract
with such  legal  counsel  and  expert  assistants
under  such  titles as the commissioner may assign
to them and may retain such  of  the  officers  or
employees of such foreign bank as the commissioner
deems   necessary   in   the    liquidation    and
distribution  of  the assets of such foreign bank,
without the prior  approval  of  any  other  state
agency  or  elective  officers.  The  commissioner
shall be entitled to the appointment of  a  single
judge to supervise the liquidation upon request to
the administrative judge of the superior court for
the  judicial  district  of  Hartford-New Britain.
Said judge shall have the power to order expedited
or  simplified  procedures  whenever  necessary to
resolve a matter in such liquidation.
    (d)  At  any  time  within  ten days after the
commissioner has taken possession of the  business
and property in this state of a foreign bank, such
foreign bank may apply to the superior  court  for
the  judicial district of Hartford-New Britain for
an order requiring the commissioner to show  cause
why  the  commissioner should not be enjoined from
continuing such possession. The  court  may,  upon
good  cause  shown,  direct  the  commissioner  to
refrain from further proceedings and to  surrender
such possession.
    (e)  Only  the  claims  of  creditors  of such
foreign bank arising out of  transactions  entered
into  by such creditors with its state branches or
state agencies in this state, shall be accepted by
the  commissioner for payment out of such business
and property in this state of a  foreign  bank  as
provided  in this section. Acceptance or rejection
of such  claims  by  the  commissioner  shall  not
prejudice  such  creditors'  rights  to  otherwise
share in the assets  of  such  foreign  bank.  The
following  claims  shall  not  be  accepted by the
commissioner for payment out of such business  and
property  in  this  state  of  a foreign bank: (1)
Claims which would not  represent  an  enforceable
legal  obligation  against  such  state  branch or
state agency if  such  branch  or  agency  were  a
separate  and  independent  legal  entity; and (2)
amounts  due  and  other  liabilities   to   other
offices, agencies, branches and affiliates of such
foreign bank. Whenever the principal amount of any
such  claim  owed by or owing to such foreign bank
does  not  exceed  fifty  thousand  dollars,   the
commissioner   may  sell,  assign,  compromise  or
otherwise dispose of the same upon such  terms  as
the commissioner may deem for the best interest of
such foreign bank without obtaining  the  approval
of  the court otherwise having jurisdiction of the
matter. All wages actually owing to the  employees
of  a  foreign  bank  in  the  possession  of  the
commissioner for services  rendered  within  three
months  prior  to  the  date  when  possession was
taken, not exceeding two thousand dollars to  each
employee,  shall  be  paid prior to the payment of
every other debt or claim, and in  the  discretion
of  the  commissioner  may  be  paid  as  soon  as
practicable after taking possession,  except  that
at  all  times the commissioner shall reserve such
funds as will in  the  commissioner's  opinion  be
sufficient for the expenses of administration.
    (f)  Whenever  the  accepted  claims, together
with interest thereon, and  the  expenses  of  the
liquidation  have  been  paid  in full or properly
provided for, the commissioner, upon the order  of
the  superior  court  for the judicial district of
Hartford-New  Britain,   shall   turn   over   the
remaining  assets  to the principal office of such
foreign bank, or to the duly appointed domiciliary
liquidator or receiver of such foreign bank.
    (g)  After  taking  possession of the business
and property in this state of  any  foreign  bank:
(1) The commissioner shall immediately give notice
of  such  fact  to  all  persons  known   to   the
commissioner  to  hold  any assets of such foreign
bank. No person having notice  or  knowledge  that
the  commissioner  has  taken  possession  of  the
business  and  property  in  this  state  of  such
foreign  bank, shall have a lien or charge for any
payment,  advance  or  clearance  thereafter  made
against any of the assets of such foreign bank for
liability  thereafter  incurred.  (2)   Upon   the
written  demand  of  the  commissioner, any person
holding assets of such foreign bank shall  deliver
such   assets   to   the  commissioner  and  shall
thereupon  be  discharged  from   liability   with
respect  to  any claim upon such assets, provided,
such demand  shall  not  affect  the  right  of  a
secured   creditor   with   a  perfected  security
interest, or other valid lien or security interest
enforceable   against  third  parties,  to  retain
collateral, including any right  of  such  secured
creditor under any security arrangement related to
a   qualified   financial   contract   to   retain
collateral and apply such collateral in accordance
with this section. Nothing in this  section  shall
affect   any   right  of  setoff  permitted  under
applicable law, provided, no person  may  set  off
the  business  and  property  in  this  state of a
foreign bank against liabilities of  such  foreign
bank   other   than   those   that  arise  out  of
transactions entered into by such person with  the
state  branch  or state agency of the foreign bank
in this state, which liabilities shall  be  deemed
to  include  in  the  case  of qualified financial
contracts the lesser of the two amounts calculated
with  respect  to  any  such  qualified  financial
contract pursuant to subdivision (2) of subsection
(i) of this section.
    (h)(1)  The  commissioner  shall, after taking
possession of the business and  property  in  this
state  of  a  foreign  bank, cause to be mailed to
each person claiming to be, or appearing upon  the
books  of such foreign bank to be (A) the owner of
any personal property in the custody or possession
of  such  foreign bank as bailee or depositary for
hire or otherwise, including  securities,  whether
held  in custody directly or in book-entry form by
such  foreign  bank,  its  nominee,  subcustodian,
clearing  corporation  or  similar entity, and the
contents of any safe,  vault  or  box  opened  for
nonpayment   of  rental  in  accordance  with  the
provisions of this subsection, or (B)  the  lessee
of  any  safe,  vault  or box, a notice in writing
sent by registered mail to  such  person  at  such
person's  last  address as it appears on the books
of such foreign bank  or  at  such  person's  last
known address if no address appears on such books,
notifying such person to remove all such  property
or  the  contents  of any such safe, vault or box,
within a  period  stated  in  such  notice,  which
period  shall be not less than sixty days from the
date of such notice, and  further  notifying  such
person   of  the  terms  and  provisions  of  this
subsection and any regulations that may be adopted
under this section by the commissioner pursuant to
chapter 54 of the general statutes.  The  contract
of  bailment  or of deposit for hire, or the lease
of such safe, vault or box, if  any,  between  the
person  to  whom  such  notice  is mailed and such
foreign bank shall terminate  upon  the  date  for
removal  fixed  in  such notice. Such person shall
have a claim against such  foreign  bank  for  the
amount  of  unearned rent or charges, if any, paid
by such person from the date fixed in such  notice
if  the  property  or  contents  are removed on or
before such date,  or  from  the  date  of  actual
removal  if  the  property or contents are removed
after such date.
    (2)  If  such  property  or  contents  are not
removed, and all accrued  rental  or  storage  and
other  charges,  if  any, are not paid, within the
time fixed by such notice, the commissioner  shall
inventory and deal with such property and contents
in accordance with any  regulations  that  may  be
adopted  under  this  section  by the commissioner
pursuant to chapter 54 of  the  general  statutes.
The commissioner shall deal with such property and
contents at the expense and risk of the person  in
whose  name  it  stands. The commissioner shall be
held harmless and  shall  not  be  liable  to  any
subsequent  claimant  for any delivery or transfer
made by the commissioner  in  good  faith  to  the
claimant appearing to be entitled to such property
from the records available to the commissioner. If
the commissioner is in doubt concerning the person
entitled to property  in  the  possession  of  the
commissioner,  or  there  are  conflicting  claims
thereto,  the  commissioner  may  require  of  the
claimant  an  order  of  the superior court of the
judicial   district   of   Hartford-New    Britain
authorizing  and  directing  the  delivery of such
property.
    (3)  After the expiration of one year from the
date of mailing the notice required by subdivision
(1) of this subsection, the commissioner may apply
to the superior court for the judicial district of
Hartford-New  Britain for an order authorizing the
commissioner to sell, destroy or otherwise dispose
of  any  personal  property  which had been in the
custody or possession  of  such  foreign  bank  as
bailee  or  depositary  for  hire or otherwise and
which   remains   in   the   possession   of   the
commissioner.  The  court  may  require  that  the
commissioner provide notice to the person in whose
name  such property stands and to any other person
claiming or appearing to have an interest therein,
by publication, mailing or in such other manner as
the court may prescribe. Whenever the commissioner
is  given  the  power  to sell such property, such
power to sell shall be deemed a power to  sell  in
satisfaction  of  a lien for nonpayment of accrued
rental or storage charges and  all  other  charges
and  expenses paid or incurred to the date of sale
with respect to such property. Such power to sell,
destroy  or  otherwise dispose of, when authorized
pursuant to this  subsection  or  any  regulations
that  may  be  adopted  under  this section by the
commissioner pursuant to chapter 54 of the general
statutes,  shall be deemed to include the power to
sell, destroy or otherwise dispose of  any  bonds,
stock  certificates,  promissory  notes, choses in
action or other securities, and any other tangible
or  intangible  property contained in any package,
regardless of whether or not it shall appear  from
such  securities  or properties that the person in
whose name the package stands possesses  title  to
or interest in such securities or other properties
or the power to transfer such title  or  interest,
and  any  sale  of  such  securities or properties
pursuant to this subsection shall vest good  title
thereto in the purchaser thereof.
    (4)  The  provisions  of this subsection shall
not (A) affect or preclude any  other  remedy,  by
civil  action or otherwise, for the enforcement of
the claims or rights of  the  commissioner  or  of
such foreign bank against the person in whose name
any property, or any safe,  vault,  box,  package,
parcel  or receptacle stands, or (B) affect or bar
the right of the commissioner or the foreign  bank
to recover, before sale, any debt or claim due the
commissioner or such foreign bank, or, after sale,
the portion of the debt or claim that was not paid
by the proceeds of the sale.
    (i)(1)  Except  as  otherwise provided in this
subsection,  after  taking   possession   of   the
business  and  property in this state of a foreign
bank, the commissioner may assume or repudiate any
contract,  including  an  unexpired lease, of such
foreign  bank,  relating  to  the   business   and
property in this state of such foreign bank and to
which  such  foreign  bank   is   a   party,   the
performance  of  which the commissioner determines
to be burdensome and the repudiation of which  the
commissioner  determines  will promote the orderly
administration of the foreign  bank's  affairs  in
this  state.  After  the expiration of ninety days
from  the  date  that   the   commissioner   takes
possession,  any  party  to  a  contract  with the
foreign bank relating to the business and property
in  this  state of such foreign bank may demand in
writing that the commissioner assume or  repudiate
such contract. If the commissioner has not assumed
or repudiated the  contract  within  fifteen  days
from  the  date  of  receipt  of  the  demand, the
affected party may bring an action in the superior
court  for  the  judicial district of Hartford-New
Britain  to  obtain   an   order   requiring   the
commissioner   to  decide  whether  to  assume  or
repudiate such contract. If the  commissioner  has
not  assumed  or  repudiated  a contract not later
than one month before the  last  date  for  filing
claims   against  such  foreign  bank  established
pursuant  to  section  36a-225  of   the   general
statutes,    such   contract   shall   be   deemed
repudiated. Notwithstanding the provisions of this
subdivision, with respect to an unexpired lease of
the foreign bank for the rental of  real  property
under  which the foreign bank was a lessee, if the
commissioner  remains   in   possession   of   the
leasehold,  the commissioner shall not be required
to assume or repudiate such lease and may continue
in  possession of such leasehold for the remainder
of the term of the lease in  accordance  with  the
terms  of the lease, provided, if the commissioner
later repudiates the lease before the end  of  the
lease term, any amounts that may be due the lessor
as  a  result  of  such   repudiation   shall   be
calculated   according   to   the   provisions  of
subparagraph  (A)  of  subdivision  (3)  of   this
subsection. Notwithstanding any contrary provision
of this subsection, in liquidating a state  branch
or  state  agency of a foreign bank in this state,
the commissioner shall not assume or repudiate any
qualified   financial  contract  that  such  state
branch or  state  agency  entered  into  which  is
subject  to  a  multi-branch  netting agreement or
arrangement that provides for netting  present  or
future     payment    obligations    or    payment
entitlements, including termination  or  close-out
values    relating    to    the   obligations   or
entitlements, among the parties to  the  contract,
agreement  or  arrangement,  and  the commissioner
shall not be required to assume or  repudiate  any
other qualified financial contract that such state
branch or state  agency  entered  into,  provided,
upon  any  repudiation  of any qualified financial
contract or the termination or liquidation of  any
qualified  financial  contract  in accordance with
its terms,  the  liability  under  such  qualified
financial   contract   shall   be   determined  in
accordance with subparagraph  (B)  of  subdivision
(2) of this subsection.
    (2)  (A)  Except as otherwise provided in this
subsection, upon the repudiation or termination of
any  contract  pursuant to subdivision (1) of this
subsection, liability  shall  be  limited  to  the
actual  direct compensatory damages of the parties
to the contract, determined as  of  the  date  the
commissioner  took  possession.  The  commissioner
shall not be liable for any  future  wages,  other
than   reasonable   severance   payments,  or  for
payments for future services, costs of cover,  any
consequential,   punitive  or  exemplary  damages,
damages for lost profits or lost  opportunity,  or
any  other  damages  except  as  allowed  by  this
subparagraph.
    (B)  Except  as  otherwise  provided  in  this
subsection, the liability of the commissioner upon
the   repudiation   of   any  qualified  financial
contract, or in connection with the termination or
liquidation of any qualified financial contract in
accordance  with  the  terms  thereof,  shall   be
limited  as  provided  in subparagraph (A) of this
subdivision,  except  that  compensatory   damages
shall  be  deemed to include normal and reasonable
costs of cover or  other  reasonable  measures  of
damages  utilized among participants in the market
for   qualified   financial    contract    claims,
calculated  as  of  the date of repudiation or the
date  of  the  termination   of   such   qualified
financial  contract  in accordance with its terms.
Upon the repudiation of  any  qualified  financial
contract  or in connection with the termination or
liquidation of any qualified financial contract in
accordance   with   the   terms  thereof,  if  the
commissioner is entitled to damages, such  damages
shall  be  paid  by  the party to the commissioner
upon written demand pursuant to subdivision (2) of
subsection  (g)  of  this section, notwithstanding
any provision in any such contract  that  purports
to effect a forfeiture of such damages.
    (C)  In the case of the liquidation of a state
branch or state agency of a foreign  bank  by  the
commissioner,  with respect to qualified financial
contracts  subject  to   netting   agreements   or
arrangements  that  provide for netting present or
future    payment    obligations    or     payment
entitlements,  including  termination or close-out
values   relating   to    the    obligations    or
entitlements,  among  the parties to the contracts
and agreements or arrangements, the  liability  of
the   commissioner   to  any  party  to  any  such
qualified financial contract upon  repudiation  or
in  connection with the termination or liquidation
of such qualified financial contract in accordance
with  the terms thereof, shall be calculated as of
the  date  of  repudiation  or  the  date  of  the
termination  of  such qualified financial contract
in accordance with its terms and shall be  limited
to  the  lesser  of  (i)  the  global  net payment
obligation  or  (ii)  the  branch  or  agency  net
payment   obligation.   The   liability   of   the
commissioner  under  this  subparagraph  shall  be
reduced   by  any  amount  otherwise  paid  to  or
received by the party in respect of the global net
payment  obligation  pursuant  to  such  qualified
financial  contract  which,  if   added   to   the
liability   of   the   commissioner   under   this
subdivision, would exceed the global  net  payment
obligation.  The  liability  of  the  commissioner
under this subparagraph to a party to a  qualified
financial  contract  also  shall be reduced by the
fair market value or the amount of any proceeds of
collateral  that  secures  and has been applied to
satisfy the obligations of the foreign bank to the
party   pursuant   to   such  qualified  financial
contract. In the  event  that  netting  under  any
applicable   netting   agreement   or  arrangement
results  in  a  branch  or  agency   net   payment
entitlement,  notwithstanding any provision in any
such contract that purports to effect a forfeiture
of  such  entitlement,  the  commissioner may make
written demand upon the  party  to  such  contract
under  subdivision  (2)  of subsection (g) of this
section for an amount not to exceed the lesser  of
the  global  net payment entitlement or the branch
or agency net payment entitlement.  The  liability
of  the  party  under  this  subparagraph shall be
reduced  by  any  amount  otherwise  paid  to   or
received   by   the   commissioner  or  any  other
liquidator or receiver of the  foreign  bank  with
respect  to  the  global  net  payment entitlement
pursuant  to  such  qualified  financial  contract
which,  if  added  to  the  liability of the party
under this subparagraph, would exceed  the  global
net  payment  entitlement.  The  liability  of the
party under this subparagraph to the  commissioner
pursuant  to  such  qualified  financial  contract
shall also be reduced by the fair market value  or
the  amount  of  any  proceeds  of collateral that
secures  and  has  been  applied  to  satisfy  the
obligations  of  the  party  to  the  foreign bank
pursuant to such qualified financial contract.
    (D)  A party to a qualified financial contract
with the state branch  or  state  agency  in  this
state  of  the  foreign  bank,  which  party has a
perfected  security  interest  in  collateral,  or
other   valid   lien   or   security  interest  in
collateral  enforceable  against   third   parties
pursuant to a security arrangement related to such
qualified financial contract, may retain all  such
collateral and, upon repudiation or termination of
that qualified financial  contract  in  accordance
with   its   terms,   apply   such  collateral  in
satisfaction  of  any  claims   secured   by   the
collateral,  provided  the total amount so applied
to such claims shall not  exceed  the  global  net
payment obligation, if any.
    (3)(A)  If the commissioner repudiates a lease
of the foreign bank for  the  rental  of  real  or
personal property under which the foreign bank was
a lessee, the lessor under  such  lease  shall  be
entitled to file a claim with the commissioner for
whichever  is  the  least  of:  (i)   The   amount
designated  as liquidated damages contained in the
agreement between the foreign bank and the lessor,
(ii)  an amount equal to one year's rent under the
terms of the repudiated lease, or (iii) an  amount
equal  to  the  rent for the remaining term of the
lease.
    (B)  If the commissioner repudiates a lease of
the foreign bank for the rental of  real  property
under which the foreign bank was a lessor, and the
lessee  was  not  in  default  at  the   time   of
repudiation,  the  lessee  under  such  repudiated
lease may either (i) treat the lease as terminated
by  such  repudiation  and vacate the premises, or
(ii)  remain  in  possession  of   the   leasehold
interest for the balance of the term of the lease,
and for any renewal or extension of such term that
is enforceable by such lessee under applicable law
other than any law relating to insolvency,  unless
the  lessee  defaults under the terms of the lease
after the date of such repudiation. If the  lessee
remains  in  possession of the leasehold interest,
the  lessee  shall  continue   to   pay   to   the
commissioner  the contractual rent pursuant to the
terms  of  the  lease  after  the  date   of   the
repudiation  of  such lease and may offset against
such rent payment any damages which may accrue due
to  the  nonperformance  of  any obligation of the
foreign bank under the lease  after  the  date  of
repudiation.  The commissioner shall not be liable
to the lessee for any damages arising  after  such
date as a result of the repudiation other than the
amount  of   any   offset   allowed   under   this
subdivision.  Nothing  in  this  subsection  shall
prohibit the commissioner from entering into a new
contract  with  the  lessee  for the rental of the
leasehold which was the subject of the  repudiated
lease.
    (4)  Except  as  otherwise  provided  in  this
subsection, notwithstanding any  provision  in  an
unexpired    lease    or    other   contract   and
notwithstanding  any   applicable   law   to   the
contrary,  a  contract  or  unexpired lease of the
foreign bank that  is  subject  to  assumption  or
repudiation   by   the   commissioner  under  this
subsection may not be terminated  or  modified  by
any  party other than the commissioner without the
concurrence of  the  commissioner.  Any  right  or
obligation under such contract or lease may not be
terminated or modified,  at  any  time  after  the
commissioner  takes possession, solely pursuant to
a provision in such  contract  or  lease  that  is
conditioned   on   (A)   the  commissioner  taking
possession,  or  (B)  the  insolvency,   financial
condition or liquidation of the foreign bank.
    (5)  Nothing  in  this subsection shall affect
the right of a party to a contract  of  a  foreign
bank  to  seek  performance  of  such  contract or
damages  thereon  in   any   other   jurisdiction,
provided, the commissioner shall not be liable for
the  performance  of  such  contract  or   damages
thereon in any other jurisdiction.
    (6)  The rights granted in this subsection are
in addition to any other rights available  to  the
commissioner under any other law.
    (j)  Where,  by  any  agreement,  a  period of
limitation is fixed for instituting an action upon
any  claim  or for presenting or filing any claim,
proof of claim, proof of loss, demand,  notice  or
the like, or where, in any action or by statute or
ordinance, a period of  limitation  is  fixed  for
serving  or  filing  any claim or pleading, taking
any appeal or doing any other act,  and  where  in
any  such  case  such period had not expired as of
the date the commissioner took possession  of  the
business and property in this state of the foreign
bank, the commissioner may for the benefit of such
foreign  bank  institute any such action, serve or
file any such claim or  pleading,  take  any  such
appeal,  or  do  any  such  other act, required or
permitted to such foreign bank within a period  of
one   year   subsequent  to  the  date  of  taking
possession, or within such further period  as  may
be  permitted  by the agreement, or in the action,
or by statute or ordinance, as the case may be.
    (k)   (1)   Except   as   provided   in   this
subsection, the commissioner's  taking  possession
of  the  business  and property in this state of a
foreign bank shall operate as a stay of and as  an
injunction  against  the following, as of the date
the  commissioner  takes   possession:   (A)   The
commencement   or   continuation,   including  the
issuance or employment of process, of a  judicial,
administrative   or  other  action  or  proceeding
against the foreign bank that was  or  could  have
been commenced before the taking of possession, or
to recover a claim against the foreign  bank  that
arose  before  the  taking  of possession; (B) the
enforcement  against  the  foreign  bank  or   its
business  and property in this state of a judgment
obtained before the taking of possession; (C)  any
act  to  obtain  possession  of  property  of  the
foreign bank or of property from the foreign  bank
or  to  exercise  control  over  property  of  the
foreign bank; (D) any act to create,  perfect,  or
enforce  any  lien against property of the foreign
bank, including any lien that secures a claim that
arose before the taking of possession; and (E) any
act to collect, assess, or recover a claim against
the  foreign  bank that arose before the taking of
possession.
    (2)  The  commissioner's  taking possession of
the business and  property  in  this  state  of  a
foreign  bank shall not operate as a stay of or as
injunction against: (A)  The  filing  of  a  claim
pursuant  to subsection (e) of this section in the
liquidation of the foreign bank; the making  of  a
demand   upon   the   commissioner   pursuant   to
subsection (i) of this section to  decide  whether
to  assume  or repudiate a contract of the foreign
bank;  the  exercise  of  any   setoff   otherwise
permissible under applicable law except as limited
by subdivision  (2)  of  subsection  (g)  of  this
section;  the right of any secured creditor with a
perfected security interest or other valid lien or
security   interest   enforceable   against  third
parties to retain collateral, including any  right
of   such  secured  creditor  under  any  security
arrangement  related  to  a  qualified   financial
contract,  to  retain collateral and to apply such
collateral in accordance with subparagraph (D)  of
subdivision (2) of subsection (i) of this section;
any automatic termination in accordance  with  the
terms  of  any qualified financial contract or any
right to cause the termination or  liquidation  of
any  qualified  financial  contract, in accordance
with the terms thereof; any right to offset or net
out  any  termination  value,  payment  amount, or
other transfer  obligation  arising  under  or  in
connection   with   one  or  more  such  qualified
financial contracts; or  the  commencement  of  an
action under subsection (d) of this section or any
other action relating to  the  liquidation  before
the    superior   court   judge   overseeing   the
liquidation  of  the   foreign   bank;   (B)   the
commencement  or continuation of a criminal action
or proceeding against the foreign  bank;  (C)  the
commencement  or  continuation  of  an  action  or
proceeding by a governmental unit to enforce  such
governmental  unit's  police  or regulatory power;
(D) the enforcement of a judgment,  other  than  a
money   judgment,   obtained   in   an  action  or
proceeding by a governmental unit to enforce  such
governmental  unit's  police  or regulatory power;
(E)  the  issuance  to  the  foreign  bank  by   a
governmental  unit  of a notice of tax deficiency;
and (F) the  commencement  or  continuation  of  a
judicial   action   or  proceeding  by  a  secured
creditor with a perfected  security  interest,  or
other  valid lien or security interest enforceable
against third parties, including any right of such
secured  creditor  under  any security arrangement
related to  a  qualified  financial  contract,  to
enforce such security interest or lien.
    (3)  Except  as  otherwise  provided  in  this
subsection: (A) The stay or enjoining  of  an  act
against  property  of  the foreign bank under this
subsection shall continue until such  property  is
no  longer  the  property  of  the commissioner in
possession of the foreign bank; and (B)  the  stay
or   enjoining   of   any  other  act  under  this
subsection shall continue until  the  commissioner
has concluded the liquidation.
    (4)  For  good  cause  shown,  on request of a
party in interest and after notice and a  hearing,
the    superior   court   judge   overseeing   the
liquidation may grant  relief  from  the  stay  or
injunction   provided  under  this  subsection  by
terminating, annulling, modifying or  conditioning
such stay or injunction.
    (5)  In  the case of any wilful violation of a
stay or injunction provided in this subsection  by
any  person  or  entity  who  has knowledge of the
commissioner taking possession of the business and
property  in  this state of a foreign bank that is
the  subject  of  the  stay  or  injunction,   the
commissioner   shall   recover   actual   damages,
including costs  and  reasonable  attorneys'  fees
and,  in  appropriate  circumstances,  may recover
punitive damages.
    (l)  The  commissioner  shall  not  accept any
claim based on an agreement with the foreign  bank
unless  the  agreement  is either reflected on the
accounts, books or records of the foreign bank  or
a  creditor  provides documentary evidence of such
agreement.
    Sec.  2. Section 36a-3 of the general statutes
is repealed and the following  is  substituted  in
lieu thereof:
    Other  definitions  applying  to this title or
to specified parts thereof  and  the  sections  in
which they appear are:
    "Account". Sections 36a-155 and 36a-365.
    "Advance  fee".  Sections 36a-510, 36a-485 and
36a-615.
    "Agency bank". Section 36a-285.
    "Alternative mortgage loan". Section 36a-265.
    "Amount financed". Section 36a-690.
    "Annual percentage rate". Section 36a-690.
    "Annual percentage yield". Section 36a-316.
    "Applicant". Section 36a-736.
    "Associate". Section 36a-184.
    "Bank". Section 36a-30.
    "Bankers' bank". Section 36a-70.
    "Banking business". Section 36a-425.
    "Billing cycle". Section 36a-565.
    "Bona  fide  nonprofit  organization". Section
36a-655.
    "Branch". Sections 36a-145 and 36a-410.
    "BRANCH  OR  AGENCY  NET PAYMENT ENTITLEMENT".
SECTION 1 OF THIS ACT.
    "BRANCH  OR  AGENCY  NET  PAYMENT OBLIGATION".
SECTION 1 OF THIS ACT.
    "Broker". Section 36a-510.
    "Business     and    Industrial    Development
Corporation". Section 36a-626.
    "BUSINESS   AND   PROPERTY   IN  THIS  STATE".
SECTION 1 OF THIS ACT.
    "Cash advance". Section 36a-564.
    "Cash price". Section 36a-770.
    "Certificate    of    organization".   Section
36a-435.
    "Collective  managing agency account". Section
36a-365.
    "Commercial vehicle". Section 36a-770.
    "Connecticut    holding    company".   Section
36a-410.
    "Consumer".   Sections  36a-155,  36a-676  and
36a-695.
    "Consumer   Credit  Protection  Act".  Section
36a-676.
    "Consumer   debtor"   and  "debtor".  Sections
36a-645 and 36a-800.
    "Consumer    collection    agency".    Section
36a-800.
    "Controlling interest". Section 36a-276.
    "Credit". Sections 36a-645 and 36a-676.
    "Creditor".   Sections  36a-676,  36a-695  and
36a-800.
    "Credit    card",   "cardholder"   and   "card
issuer". Section 36a-676.
    "Credit clinic". Section 36a-695.
    "Credit rating agency". Section 36a-695.
    "Credit report". Section 36a-695.
    "Credit sale". Section 36a-676.
    "De novo branch". Section 36a-410.
    "Debt". Section 36a-645.
    "Debt adjustment". Section 36a-655.
    "Debt mutual fund". Section 36a-275.
    "Debt securities". Section 36a-275.
    "Deliver". Section 36a-316.
    "Deposit". Section 36a-316.
    "Deposit account". Section 36a-316.
    "Deposit account charge". Section 36a-316.
    "Deposit    account    disclosures".   Section
36a-316.
    "Deposit contract". Section 36a-316.
    "Deposit services". Section 36a-425.
    "Depositor". Section 36a-316.
    "Earning period". Section 36a-316.
    "Eligible account holder". Section 36a-136.
    "Eligible collateral". Section 36a-330.
    "Equity mutual fund". Section 36a-276.
    "Federal   Home   Mortgage   Disclosure  Act".
Section 36a-736.
    "Fiduciary". Section 36a-365.
    "Filing fee". Section 36a-770.
    "Finance   charge".   Sections   36a-690   and
36a-770.
    "Financial   institution".   Sections  36a-41,
36a-155, 36a-316, 36a-330 and 36a-736.
    "Financial records". Section 36a-41.
    "First   mortgage   loan".  Sections  36a-485,
36a-705 and 36a-715.
    "Fiscal year". Section 36a-435.
    "Foreign    banking    corporation".   Section
36a-425.
    "General facility". Section 36a-580.
    "GLOBAL  NET  PAYMENT  ENTITLEMENT". SECTION 1
OF THIS ACT.
    "GLOBAL  NET PAYMENT OBLIGATION". SECTION 1 OF
THIS ACT.
    "Goods". Sections 36a-535 and 36a-770.
    "Graduated  payment  mortgage  loan".  Section
36a-265.
    "Groups  having a common bond of occupation or
association". Section 36a-435.
    "Guardian". Section 36a-365.
    "Holder". Section 36a-596.
    "Home banking services". Section 36a-170.
    "Home banking terminal". Section 36a-170.
    "Home improvement loan". Section 36a-736.
    "Home purchase loan". Section 36a-736.
    "Home state". Section 36a-410.
    "Immediate family". Section 36a-435.
    "Instalment  loan  contract". Sections 36a-535
and 36a-770.
    "Instrument". Section 36a-596.
    "Insurance bank". Section 36a-285.
    "Insurance department". Section 36a-285.
    "Interest". Section 36a-316.
    "Interest rate". Section 36a-316.
    "Lender". Sections 36a-510 and 36a-770.
    "Lessor". Section 36a-676.
    "License". Section 36a-626.
    "Licensee".   Sections  36a-510,  36a-596  and
36a-626.
    "Limited branch". Section 36a-145.
    "Limited facility". Section 36a-580.
    "Loan broker". Section 36a-615.
    "Loss". Section 36a-330.
    "Made in this state". Section 36a-770.
    "Managing agent". Section 36a-365.
    "Member". Section 36a-435.
    "Membership share". Section 36a-435.
    "Money order". Section 36a-596.
    "Mortgage broker". Section 36a-485.
    "Mortgage insurance". Section 36a-725.
    "Mortgage   lender".   Sections   36a-485  and
36a-705.
    "Mortgage    loan".   Sections   36a-261   and
36a-265.
    "Mortgage rate lock-in". Section 36a-705.
    "Mortgage    servicing    company".    Section
36a-715.
    "Mortgagor". Section 36a-715.
    "Motor vehicle". Section 36a-770.
    "Municipality". Section 36a-800.
    "Net worth". Section 36a-596.
    "Network". Section 36a-155.
    "Note account". Sections 36a-301 and 36a-445.
    "Office". Section 36a-316.
    "Open-end credit plan". Section 36a-676.
    "Open-end loan". Section 36a-565.
    "Organization". Section 36a-800.
    "Out-of-state    holding   company".   Section
36a-410.
    "Outstanding". Section 36a-596.
    "Passbook savings account". Section 36a-316.
    "Periodic statement". Section 36a-316.
    "Permissible investment". Section 36a-596.
    "Person". Section 36a-184.
    "Post". Section 36a-316.
    "Prime quality". Section 36a-596.
    "Principal   amount   of  the  loan".  Section
36a-510.
    "Principal officer". Section 36a-485.
    "Processor". Section 36a-155.
    "Public deposit". Section 36a-330.
    "Purchaser". Section 36a-596.
    "QUALIFIED  FINANCIAL  CONTRACT". SECTION 1 OF
THIS ACT.
    "Qualified      public     depository"     and
"depository". Section 36a-330.
    "Records". Section 36a-17.
    "Relocate". Section 36a-145.
    "Residential property". Section 36a-485.
    "Retail buyer". Sections 36a-535 and 36a-770.
    "Retail credit transaction". Section 42-100b.
    "Retail    instalment    contract".   Sections
36a-535 and 36a-770.
    "Retail  instalment  sale".  Sections  36a-535
and 36a-770.
    "Retail    seller".   Sections   36a-535   and
36a-770.
    "Reverse   annuity   mortgage  loan".  Section
36a-265.
    "Sales  finance company". Sections 36a-535 and
36a-770.
    "Savings department". Section 36a-285.
    "Savings deposit". Section 36a-316.
    "Secondary mortgage loan". Section 36a-510.
    "Security    convertible    into    a   voting
security". Section 36a-184.
    "Share". Section 36a-435.
    "Social purpose investment". Section 36a-277.
    "Standard mortgage loan". Section 36a-265.
    "Tax  and  loan account". Sections 36a-301 and
36a-445.
    "The  Savings  Bank  Life  Insurance Company".
Section 36a-285.
    "Time account". Section 36a-316.
    "Transaction". Section 36a-215.
    "Travelers check". Section 36a-596.
    "Troubled   financial   institution".  Section
36a-215.
    "Unsecured loan". Section 36a-615.
    Sec.   3.   Section  36a-410  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    As   used  in  sections  36a-410  to  36a-413,
inclusive, unless the context otherwise requires:
    (1)   "Branch"  means  a  domestic  branch  as
defined in 12 USC Section 1813, as  from  time  to
time  amended,  EXCEPT  THAT "BRANCH" INCLUDES ANY
BRANCH  BANK,  BRANCH   OFFICE,   BRANCH   AGENCY,
ADDITIONAL OFFICE, OR ANY BRANCH PLACE OF BUSINESS
AT WHICH FIDUCIARY OR TRUST POWERS ARE EXERCISED;
    (2)  "Connecticut  holding  company" means any
holding company whose home state is this state;
    (3)  "De novo branch" means a branch of a bank
or an out-of-state bank other than a foreign bank,
which:
    (A)  Is originally established by such bank or
out-of-state bank; and
    (B)  Does  not become a branch of such bank or
out-of-state  bank  as  the  result  of  (i)   the
acquisition by the bank or out-of-state bank of an
insured depository institution or a branch  of  an
insured   depository   institution;  or  (ii)  the
conversion, merger or consolidation  of  any  such
institution or branch;
    (4)  "Home state" means: (A) With respect to a
federally-chartered bank, the state in  which  the
main  office  of  the  bank  is  located; (B) with
respect to a foreign bank, the state which is  the
home   state   of   the  foreign  bank  under  the
International Bank Act of  1978,  12  USC  Section
3101  et  seq.,  as  from time to time amended, if
any, or the foreign country by which such bank  is
chartered;  (C)  with respect to a state-chartered
bank, the state by which such bank  is  chartered;
(D)  with  respect  to a bank holding company, the
state in which the total deposits of  all  banking
subsidiaries  of  such  company are the largest on
the later of July 1, 1966, or the  date  on  which
the  company  became  a bank holding company under
the federal Bank Holding Company Act of  1956,  12
USC  Section  1841  et  seq., as from time to time
amended, and in the case of any such company  that
holds  a  banking subsidiary that functions solely
in a trust or fiduciary  capacity,  the  state  in
which  the total of such trust or fiduciary assets
of such subsidiaries were the largest on the  date
such  company  became  a bank holding company; and
(E) with respect to a  savings  and  loan  holding
company,  the state in which the total deposits of
all savings and loan association  subsidiaries  of
such company were the largest on the date on which
the company became  a  savings  and  loan  holding
company;
    (5)  "Out-of-state  holding company" means any
holding company whose home state is a state  other
than  this  state or whose home state is a foreign
country.
    Sec.  4.  Subsection (c) of section 36a-425 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (c)  The  provisions of subsection (b) of this
section shall not apply to: (1)  An  office  of  a
bank;  (2) an office established or maintained for
the purpose of managing or controlling a bank; (3)
an  office  of  a  subsidiary  of  a  bank,  which
subsidiary is limited to carrying on one  or  more
of  the  functions  which  such  bank may carry on
directly in the exercise of its express or implied
powers;  (4)  an  office  of  a holding company or
subsidiary  of  a  holding  company   or   banking
corporation  which required and which had received
all requisite state and federal authorization  and
was  open  for  business  prior  to  June 1, 1984,
provided  such  office  may  not  engage  in   any
activities  other  than  those  for  which  it had
authorization and in which it was actually engaged
on  June  1,  1984;  (5)  an office established or
maintained pursuant  to  subsection  (d)  of  this
section; (6) an office of a foreign bank that is a
federal  branch  [,  provided  such  foreign  bank
elects  this  state  as  its  home state under the
International Banking Act of 1978, 12 USC  Section
3101  et seq., as from time to time amended, or an
office of a foreign bank that  is]  OR  a  federal
agency;  or  (7)  an  office  of a subsidiary of a
foreign bank that [has elected this state  as  its
home  state under the International Banking Act of
1978, 12 USC 3101 et seq., as from  time  to  time
amended,  and]  has  a  federal  branch or a state
branch in this state, which subsidiary is  limited
to  carrying on one or more of the functions which
such branch of such  foreign  bank  may  carry  on
directly.
    Sec.   5.   Section  36a-428  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    A  foreign  bank  [that has elected this state
as its home state under the International  Banking
Act  of 1978, 12 USC Section 3101 et seq., as from
time to time amended,] may establish and  maintain
in  this  state  one  or  more state branches upon
receipt of a license for each such branch from the
commissioner  at  the  location  specified in such
license. A foreign bank may establish and maintain
in  this  state  one  or  more state agencies upon
receipt of a license for each such agency from the
commissioner  at  the  location  specified in such
license.  Such  licensed  foreign  bank  shall  be
deemed  to transact business or conduct affairs in
this state for the purposes of section  33-920  or
subsection (a) of section 33-1210 and shall comply
with  the  requirements  of  said   sections.   In
establishing  and  maintaining  a  state branch or
state agency, a foreign bank shall be  subject  to
such  regulations  and  orders as the commissioner
considers appropriate to carry out the purposes of
sections   36a-428   to  36a-428l,  inclusive,  AS
AMENDED BY THIS ACT.
    Sec.   6.  Section  36a-428k  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  Any  foreign  bank  which  (1)  has  been
licensed to establish and maintain a state  branch
or  state agency in this state the assets of which
in this state exceed the liabilities of its  state
branches   or   state   agencies  in  this  state,
including any such foreign bank whose license  has
expired  or  been  surrendered or revoked, and (2)
intends to cease transacting the business  of  any
of  its  state  branches or state agencies in this
state,  shall   commence   proceedings   for   the
voluntary liquidation of the business and property
IN THIS STATE of  such  state  branches  or  state
agencies, provided, [the commissioner has not been
appointed receiver for such business and property]
NO  SUCH  PROCEEDINGS SHALL BE COMMENCED WHILE THE
COMMISSIONER IS IN POSSESSION OF SUCH BUSINESS AND
PROPERTY  IN  THIS  STATE UNLESS SUCH FOREIGN BANK
SHALL HAVE FIRST RECEIVED THE WRITTEN APPROVAL  OF
THE  COMMISSIONER.  IN  ANY  SUCH LIQUIDATION, THE
CLAIMS OF CREDITORS OF SUCH FOREIGN  BANK  ARISING
OUT OF TRANSACTIONS ENTERED INTO BY SUCH CREDITORS
WITH THE FOREIGN BANK'S STATE  BRANCHES  OR  STATE
AGENCIES  IN THIS STATE SHALL BE ACCORDED THE SAME
PREFERENCE  ACCORDED  TO  SIMILAR  CLAIMS   IN   A
LIQUIDATION UNDER SECTION 1 OF THIS ACT.
    (b)  To effect such a voluntary liquidation, a
foreign bank shall file with  the  commissioner  a
written  notice  of  its  intention  to  liquidate
together with a plan of  liquidation.  The  notice
shall  specify  the  date  of  commencement of the
liquidation, and  on  or  before  such  date  such
foreign  bank  shall cease to transact business at
such state branches or agencies.
    (c)  The commissioner may approve the plan and
issue an order prescribing the notice to be  given
to   (1)  creditors  whose  claims  arise  out  of
transactions with such branches or  agencies,  and
(2)  owners of personal property in the custody or
possession  of  such  branches  or  agencies,   to
present their claims for payment.
    (d)  When  such  foreign  bank  has  given the
notice  prescribed  by  the   commissioner   under
subsection  (c)  of this section, it shall proceed
with the liquidation in accordance with the  plan.
Upon  completion  of the liquidation, such foreign
bank shall make  a  verified  statement  from  its
books  of the names of all creditors and owners of
personal property described in subsection  (c)  of
this  section  who  have  not  claimed or have not
received the amounts due them, and shall file such
statement  with the commissioner together with all
identifying information, including, in the case of
unclaimed   proceeds   of  any  sale  of  personal
property, a list of the articles sold, the  prices
obtained  therefor  and  the  amount  deducted and
retained from  the  proceeds.  Such  foreign  bank
shall  thereupon pay such unclaimed amounts to the
commissioner as trustee for the  persons  entitled
to receive them.
    (e)  If  the commissioner [has reason to doubt
a foreign bank's ability or willingness to pay  in
full  the  claims  of  the  creditors described in
subsection (c) of this section,  the  commissioner
may  take]  SHALL AT ANY TIME FIND THAT ANY OF THE
REASONS ENUMERATED IN SECTION 1 OF  THIS  ACT  FOR
TAKING  possession of the business and property in
this state of [any] A  FOREIGN  BANK  EXISTS,  THE
COMMISSIONER  MAY  TAKE POSSESSION OF THE BUSINESS
AND PROPERTY IN THIS STATE OF such foreign bank IN
ACCORDANCE   WITH   SECTION   1   OF   THIS   ACT,
notwithstanding that such foreign  bank  may  have
previously  commenced  proceedings  for  voluntary
liquidation under this section.  [Thereafter,  the
commissioner  shall  liquidate  or  otherwise deal
with such business and property in accordance with
regulations  adopted  by  the  commissioner.  Upon
taking possession of the business and property  of
such foreign bank, the commissioner shall possess,
with respect to such property  and  business,  the
powers the commissioner possesses as a receiver of
a Connecticut bank. As used  in  this  subsection,
"business  and  property  in this state" includes,
but is not limited to, all property of the foreign
bank, whether tangible or intangible, (1) wherever
situated, constituting part of the business of the
state  branch or state agency and appearing on its
books as such, and (2) situated within this  state
whether  or  not constituting part of the business
of  the  state  branch  or  state  agency  or   so
appearing  on its books.] AS USED IN THIS SECTION,
"BUSINESS AND PROPERTY IN THIS STATE"  SHALL  HAVE
THE  SAME MEANING AS PROVIDED IN SUBSECTION (a) OF
SECTION 1 OF THIS ACT.
    [(f)  At  any  time  within ten days after the
commissioner has taken possession of the  property
and  business  of  such foreign bank, such foreign
bank may  apply  to  the  superior  court  in  the
judicial  district of Hartford-New Britain* for an
order requiring the commissioner to show cause why
the  commissioner  should  not  be  enjoined  from
continuing such possession. The  court  may,  upon
good  cause  shown,  direct  the  commissioner  to
refrain from further proceedings and to  surrender
such possession.]
    Sec.  7.  This  act shall take effect from its
passage.

Approved June 24, 1997