Substitute Senate Bill No. 376
          Substitute Senate Bill No. 376

               PUBLIC ACT NO. 98-58


AN ACT CONCERNING CERTAIN TRUST OFFICES OF FOREIGN
BANKING    CORPORATIONS   AND    CLARIFYING    THE
APPLICABILITY OF THE  CONNECTICUT  UNIFORM PRUDENT
INVESTOR ACT.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section 1. Subdivision  (2)  of subsection (a)
of section 36a-412  of  the  general  statutes  is
repealed and the  following is substituted in lieu
thereof:
    (2)  Any  out-of-state   bank,  other  than  a
foreign  bank,  may,  with  the  approval  of  the
commissioner,   and   in   accordance   with   the
provisions of this  subdivision,  establish  a  de
novo  branch in  this  state.  [,  provided]  SUCH
ESTABLISHMENT SHALL NOT TAKE PLACE UNLESS the laws
of  the  home  state  of  such  out-of-state  bank
authorize, under conditions  no  more  restrictive
than those imposed  by  the laws of this state, as
determined  by  the   commissioner,   a   bank  to
establish a de  novo  branch  in the home state of
such out-of-state bank,  PROVIDED THE COMMISSIONER
MAY WAIVE SUCH  RECIPROCITY  REQUIREMENT  FOR  THE
ESTABLISHMENT OF A  DE  NOVO BRANCH THE ACTIVITIES
OF WHICH ARE  LIMITED TO THE EXERCISE OF FIDUCIARY
OR TRUST POWERS.  Any  such establishment shall be
effected in accordance  with  and  subject  to the
filing requirements and any limitations imposed by
section 36a-145. Any  such  out-of-state bank that
engages in business  in  this  state  shall comply
with the requirements  of section [33-396] 33-920,
AS AMENDED, or  subsection (a) of section 33-1210,
AS   AMENDED.   Before    approving    any    such
establishment, the commissioner  shall  make  such
considerations,  determinations  and  findings  as
required  by section  36a-145  and,  in  addition,
shall  consider  whether  such  establishment  can
reasonably be expected  to produce benefits to the
public and whether  such benefits clearly outweigh
possible  adverse  effects,   including,  but  not
limited to, an  undue  concentration  of resources
and   decreased   or   unfair   competition.   The
commissioner shall not  approve such establishment
unless the commissioner considers whether: (A) The
investment   and   lending    policies    of   the
out-of-state bank are  consistent  with  safe  and
sound  banking  practices  and  will  benefit  the
economy of this  state;  (B) the proposed services
of the branch  are  consistent with safe and sound
banking practices and  will benefit the economy of
this  state;  (C)   the   establishment  will  not
substantially lessen competition  in  this  state;
(D) the out-of-state  bank  is  adequately managed
and will continue  to  be  adequately managed upon
establishment  of  such   branch;   and   (E)  the
out-of-state bank is in compliance with applicable
minimum  capital  requirements.  The  commissioner
shall not approve  such  establishment  unless the
commissioner  makes  the   findings   required  by
section 36a-34, AS  AMENDED.  An out-of-state bank
which has established  a  de  novo  branch in this
state  in accordance  with  this  subdivision  may
establish additional branches  in  this  state  in
accordance  with  section  36a-145,  PROVIDED  THE
ACTIVITIES  OF  SUCH  ADDITIONAL  BRANCHES  OF  AN
OUT-OF-STATE  BANK  FOR   WHICH  THE  COMMISSIONER
WAIVED  SUCH  RECIPROCITY   REQUIREMENT  SHALL  BE
LIMITED TO THE  EXERCISE  OF  FIDUCIARY  OR  TRUST
POWERS.
    Sec. 2. Subsection  (a)  of section 45a-203 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) Trust funds, received or held by trustees,
unless  otherwise  provided   in   the  instrument
creating the trust,  and funds received or held by
guardians or conservators,  (1) may be invested in
such real estate mortgages as the savings banks in
this state may  be authorized by law to invest in,
or  (2)  may   be   deposited   in  savings  banks
incorporated by this  state  or in time or savings
deposits in state  banks  and  trust companies and
national  banking  associations  located  in  this
state, or (3) may be paid into accounts of savings
and  loan  associations   located  in  this  state
insured by the  Federal Savings and Loan Insurance
Corporation, its successors or assigns, or (4) may
be invested or  reinvested  in  any bonds, stocks,
specifically  including  but   not   by   way   of
limitation, shares of  any  open-end or closed-end
management-type investment company  or  investment
trust  registered  under  the  Federal  Investment
Company  Act  of  1940,  as  amended,  [or]  other
securities, OR OTHER KINDS OF PROPERTY OR TYPES OF
INVESTMENTS, selected by  the trustee, guardian or
conservator with the care of a prudent investor IN
ACCORDANCE WITH THE  STANDARDS  ESTABLISHED BY THE
CONNECTICUT UNIFORM PRUDENT INVESTOR ACT, SECTIONS
1 TO 13,  INCLUSIVE,  OF  PUBLIC  ACT  97-140. Any
bonds  purchased  by   a   trustee,   guardian  or
conservator under authority  of  this section may,
in the discretion  of such fiduciary, be in coupon
form.
    Sec. 3. This  act  shall  take effect from its
passage.

Approved May 18, 1998