House Bill No. 6509
               House Bill No. 6509

              PUBLIC ACT NO. 97-262


AN  ACT  CONCERNING DEPARTMENT OF BANKING EMPLOYEE
RESTRICTIONS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  36a-12  of  the  general  statutes is
repealed and the following is substituted in  lieu
thereof:
    The commissioner may  appoint  and  define the
duties and authority  of  such employees as may be
necessary to perform properly the functions of the
commissioner's office. The deputy commissioner and
any other employee  of  the  Department of Banking
shall have the  same  privileges and be subject to
the   same  restrictions   as   the   commissioner
concerning relationships and transactions with any
federal bank, federal  credit  union, out-of-state
bank, or out-of-state  credit  union  or  with any
person subject to  the  general supervision of the
commissioner, except that [the deputy commissioner
or other employee  may,  with  the approval of the
commissioner  (1)  be  or  become  indebted  on  a
mortgage  loan  upon   premises  occupied  as  the
principal residence of  the deputy commissioner or
employee or (2)  be  indebted  to  any such person
provided such indebtedness  was  incurred at least
six months prior  to appointment as an employee of
the Department of Banking. Employees] ANY EMPLOYEE
of the Department of Banking other than the deputy
commissioner  [may  borrow   from   a   state   of
Connecticut employee credit  union. The provisions
of this section restricting the transactions which
an  employee of  the  Department  of  Banking  may
conduct shall not apply to] MAY BE INDEBTED TO ANY
PERSON SUBJECT TO  THE  GENERAL SUPERVISION OF THE
COMMISSIONER, PROVIDED THE  PRIOR  APPROVAL OF THE
COMMISSIONER   IS  OBTAINED   FOR   ANY   SINGULAR
INDEBTEDNESS  OR SERIES  OF  INDEBTEDNESS  IN  THE
AGGREGATE OF TWENTY-FIVE  THOUSAND DOLLARS OR MORE
TO ANY SUCH  PERSON. SUCH PRIOR APPROVAL SHALL NOT
BE REQUIRED FOR  (1)  INDEBTEDNESS  RESULTING FROM
THE SALE OF  THE  DEBT BY THE ORIGINAL LENDER, (2)
INDEBTEDNESS INCURRED AT LEAST SIX MONTHS PRIOR TO
APPOINTMENT AS AN  EMPLOYEE  OF  THE DEPARTMENT OF
BANKING,  PROVIDED,  THE  COMMISSIONER  MAY  GRANT
RETROACTIVE APPROVAL UPON  SUCH APPOINTMENT IN THE
CASE OF ANY  SINGULAR  INDEBTEDNESS  OR  SERIES OF
INDEBTEDNESS  IN  THE   AGGREGATE  OF  TWENTY-FIVE
THOUSAND DOLLARS OR  MORE  TO ANY SUCH PERSON THAT
IS INCURRED, IN  WHOLE  OR  IN  PART,  WITHIN  SIX
MONTHS  PRIOR  TO   SUCH   APPOINTMENT,   OR   (3)
INDEBTEDNESS  INCURRED  BY  any  employee  of  the
[department] DEPARTMENT OF  BANKING who is covered
under the terms  of  the  administrative  clerical
(NP-3)   collective  bargaining   agreement.   FOR
PURPOSES  OF THIS  SECTION,  "INDEBTEDNESS"  SHALL
INCLUDE A LINE  OF CREDIT EXTENDED TO ANY EMPLOYEE
BY A PERSON  SUBJECT TO THE GENERAL SUPERVISION OF
THE  COMMISSIONER WHETHER  OR  NOT  SUCH  LINE  OF
CREDIT  HAS  BEEN   DRAWN  UPON.  ANY  INFORMATION
SUBMITTED BY AN  EMPLOYEE  TO THE COMMISSIONER FOR
THE  COMMISSIONER'S  APPROVAL   PURSUANT  TO  THIS
SECTION  SHALL BE  EXEMPT  FROM  DISCLOSURE  UNDER
SECTION 1-19.

Approved June 26, 1997