Bill Text: CT HB05268 | 2014 | General Assembly | Introduced

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Bill Title: An Act Concerning Consumer Credit Licenses.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2014-02-28 - Public Hearing 03/04 [HB05268 Detail]

Download: Connecticut-2014-HB05268-Introduced.html

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General Assembly		Raised Bill No. 5268
February Session, 2014		LCO No. 1345
		*01345_______BA_*
Referred to Committee on BANKS
Introduced by:
(BA)

AN ACT CONCERNING CONSUMER CREDIT LICENSES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 36a-2 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

As used in this title, unless the context otherwise requires:

(1) "Affiliate" of a person means any person controlling, controlled by, or under common control with, that person;

(2) "Applicant" with respect to any license or approval provision pursuant to this title means a person who applies for that license or approval;

(3) "Automated teller machine" means a stationary or mobile unattended device, including a satellite device but excluding a point of sale terminal, at which banking transactions, including, but not limited to, deposits, withdrawals, advances, payments or transfers, may be conducted;

(4) "Bank" means a Connecticut bank or a federal bank;

(5) "Bank and trust company" means an institution chartered or organized under the laws of this state as a bank and trust company;

(6) "Bank holding company" has the meaning given to that term in 12 USC Section 1841(a), as amended from time to time, except that the term "bank", as used in 12 USC Section 1841(a) includes a bank or out-of-state bank that functions solely in a trust or fiduciary capacity;

(7) "Capital stock" when used in conjunction with any bank or out-of-state bank means a bank or out-of-state bank that is authorized to accumulate funds through the issuance of its capital stock;

(8) "Client" means a beneficiary of a trust for whom the Connecticut bank acts as trustee, a person for whom the Connecticut bank acts as agent, custodian or bailee, or other person to whom a Connecticut bank owes a duty or obligation under a trust or other account administered by such Connecticut bank, regardless of whether such Connecticut bank owes a fiduciary duty to the person;

(9) "Club deposit" means deposits to be received at regular intervals, the whole amount deposited to be withdrawn by the owner or repaid by the bank in not more than fifteen months from the date of the first deposit, and upon which no interest or dividends need to be paid;

(10) "Commissioner" means the Banking Commissioner and, with respect to any function of the commissioner, includes any person authorized or designated by the commissioner to carry out that function;

(11) "Company" means any corporation, joint stock company, trust, association, partnership, limited partnership, unincorporated organization, limited liability company or similar organization, but does not include (A) any corporation the majority of the shares of which are owned by the United States or by any state, or (B) any trust which by its terms shall terminate within twenty-five years or not later than twenty-one years and ten months after the death of beneficiaries living on the effective date of the trust;

(12) "Connecticut bank" means a bank and trust company, savings bank or savings and loan association chartered or organized under the laws of this state;

(13) "Connecticut credit union" means a cooperative, nonprofit financial institution that (A) is organized under chapter 667 and the membership of which is limited as provided in section 36a-438a, (B) operates for the benefit and general welfare of its members with the earnings, benefits or services offered being distributed to or retained for its members, and (C) is governed by a volunteer board of directors elected by and from its membership;

(14) "Connecticut credit union service organization" means a credit union service organization that is incorporated under the laws of this state, located in this state and established by at least one Connecticut credit union;

(15) "Consolidation" means a combination of two or more institutions into a new institution; all institutions party to the consolidation, other than the new institution, are "constituent" institutions; the new institution is the "resulting" institution;

(16) "Control" has the meaning given to that term in 12 USC Section 1841(a), as amended from time to time;

(17) "Credit union service organization" means an entity organized under state or federal law to provide credit union service organization services primarily to its members, to Connecticut credit unions, federal credit unions and out-of-state credit unions other than its members, and to members of any such other credit unions;

(18) "Customer" means any person using a service offered by a financial institution;

(19) "Demand account" means an account into which demand deposits may be made;

(20) "Demand deposit" means a deposit that is payable on demand, a deposit issued with an original maturity or required notice period of less than seven days or a deposit representing funds for which the bank does not reserve the right to require at least seven days' written notice of the intended withdrawal, but does not include any time deposit;

(21) "Deposit" means funds deposited with a depository;

(22) "Deposit account" means an account into which deposits may be made;

(23) "Depositor" includes a member of a mutual savings and loan association;

(24) "Director" means a member of the governing board of a financial institution;

(25) "Equity capital" means the excess of a Connecticut bank's total assets over its total liabilities, as defined in the instructions of the federal Financial Institutions Examination Council for consolidated reports of condition and income;

(26) "Executive officer" means every officer of a Connecticut bank who participates or has authority to participate, otherwise than in the capacity of a director, in major policy-making functions of such bank, regardless of whether such officer has an official title or whether that title contains a designation of assistant and regardless of whether such officer is serving without salary or other compensation. The president, vice president, secretary and treasurer of such bank are deemed to be executive officers, unless, by resolution of the governing board or by such bank's bylaws, any such officer is excluded from participation in major policy-making functions, otherwise than in the capacity of a director of such bank, and such officer does not actually participate in such policy-making functions;

(27) "Federal agency" has the meaning given to that term in 12 USC Section 3101, as amended from time to time;

(28) "Federal bank" means a national banking association, federal savings bank or federal savings and loan association having its principal office in this state;

(29) "Federal branch" has the meaning given to that term in 12 USC Section 3101, as amended from time to time;

(30) "Federal credit union" means any institution chartered or organized as a federal credit union pursuant to the laws of the United States having its principal office in this state;

(31) "Fiduciary" means a person undertaking to act alone or jointly with others primarily for the benefit of another or others in all matters connected with its undertaking and includes a person acting in the capacity of trustee, executor, administrator, guardian, assignee, receiver, conservator, agent, custodian under the Connecticut Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act, and acting in any other similar capacity;

(32) "Financial institution" means any Connecticut bank, Connecticut credit union, or other person whose activities in this state are subject to the supervision of the commissioner, but does not include a person whose activities are subject to the supervision of the commissioner solely pursuant to chapter 672a, 672b or 672c or any combination thereof;

(33) "Foreign bank" has the meaning given to that term in 12 USC Section 3101, as amended from time to time;

(34) "Foreign country" means any country other than the United States and includes any colony, dependency or possession of any such country;

(35) "Governing board" means the group of persons vested with the management of the affairs of a financial institution irrespective of the name by which such group is designated;

(36) "Holding company" means a bank holding company or a savings and loan holding company, except, as used in sections 36a-180 to 36a-191, inclusive, "holding company" means a company that controls a bank;

(37) "Insured depository institution" has the meaning given to that term in 12 USC Section 1813, as amended from time to time;

(38) "Licensee" means any person who is licensed or required to be licensed pursuant to the applicable provisions of this title;

(39) "Loan" includes any line of credit or other extension of credit;

(40) "Loan production office" means an office of a bank or out-of-state bank, other than a foreign bank, whose activities are limited to loan production and solicitation;

(41) "Merger" means the combination of one or more institutions with another which continues its corporate existence; all institutions party to the merger are "constituent" institutions; the merging institution which upon the merger continues its existence is the "resulting" institution;

(42) "Mutual" when used in conjunction with any institution that is a bank or out-of-state bank means any such institution without capital stock;

(43) "Mutual holding company" means a mutual holding company organized under sections 36a-192 to 36a-199, inclusive, and unless otherwise indicated, a subsidiary holding company controlled by a mutual holding company organized under sections 36a-192 to 36a-199, inclusive;

(44) "Out-of-state" includes any state other than Connecticut and any foreign country;

(45) "Out-of-state bank" means any institution that engages in the business of banking, but does not include a bank, Connecticut credit union, federal credit union or out-of-state credit union;

(46) "Out-of-state credit union" means any credit union other than a Connecticut credit union or a federal credit union;

(47) "Out-of-state trust company" means any company chartered to act as a fiduciary but does not include a company chartered under the laws of this state, a bank, an out-of-state bank, a Connecticut credit union, a federal credit union or an out-of-state credit union;

(48) "Person" means an individual, company, including a company described in subparagraphs (A) and (B) of subdivision (11) of this section, or any other legal entity, including a federal, state or municipal government or agency or any political subdivision thereof;

(49) "Point of sale terminal" means a device located in a commercial establishment at which sales transactions can be charged directly to the buyer's deposit, loan or credit account, but at which deposit transactions cannot be conducted;

(50) "Prepayment penalty" means any charge or penalty for paying all or part of the outstanding balance owed on a loan before the date on which the principal is due and includes computing a refund of unearned interest by a method that is less favorable to the borrower than the actuarial method, as defined by Section 933(d) of the Housing and Community Development Act of 1992, 15 USC 1615(d), as amended from time to time;

(51) "Reorganized savings bank" means any savings bank incorporated and organized in accordance with sections 36a-192 and 36a-193;

(52) "Reorganized savings and loan association" means any savings and loan association incorporated and organized in accordance with sections 36a-192 and 36a-193;

(53) "Reorganized savings institution" means any reorganized savings bank or reorganized savings and loan association;

(54) "Representative office" has the meaning given to that term in 12 USC Section 3101, as amended from time to time;

(55) "Reserves for loan and lease losses" means the amounts reserved by a Connecticut bank against possible loan and lease losses as shown on the bank's consolidated reports of condition and income;

(56) "Retail deposits" means any deposits made by individuals who are not "accredited investors", as defined in 17 CFR 230.501(a);

(57) "Satellite device" means an automated teller machine which is not part of an office of the bank, Connecticut credit union or federal credit union which has established such machine;

(58) "Savings account" means a deposit account, other than an escrow account established pursuant to section 49-2a, into which savings deposits may be made and which account must be evidenced by periodic statements delivered at least semiannually or by a passbook;

(59) "Savings and loan association" means an institution chartered or organized under the laws of this state as a savings and loan association;

(60) "Savings bank" means an institution chartered or organized under the laws of this state as a savings bank;

(61) "Savings deposit" means any deposit other than a demand deposit or time deposit on which interest or a dividend is paid periodically;

(62) "Savings and loan holding company" has the meaning given to that term in 12 USC Section 1467a, as amended from time to time;

(63) "Share account holder" means a person who maintains a share account in a Connecticut credit union, federal credit union or out-of-state credit union that maintains in this state a branch, as defined in section 36a-435b;

(64) "State" means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the trust territory of the Pacific Islands, the Virgin Islands and the Northern Mariana Islands;

(65) "State agency" has the meaning given to that term in 12 USC Section 3101, as amended from time to time;

(66) "State branch" has the meaning given to that term in 12 USC Section 3101, as amended from time to time;

(67) "Subsidiary" has the meaning given to that term in 12 USC Section 1841(d), as amended from time to time;

(68) "Subsidiary holding company" means a stock holding company, controlled by a mutual holding company, that holds one hundred per cent of the stock of a reorganized savings institution;

(69) "Supervisory agency" means: (A) The commissioner; (B) the Federal Deposit Insurance Corporation; (C) the Resolution Trust Corporation; (D) the Office of Thrift Supervision; (E) the National Credit Union Administration; (F) the Board of Governors of the Federal Reserve System; (G) the United States Comptroller of the Currency; (H) the Bureau of Consumer Financial Protection; and (I) any successor to any of the foregoing agencies or individuals;

(70) "System" means the Nationwide Mortgage Licensing System and Registry, NMLS, NMLSR or such other name or acronym as may be assigned to the multistate system developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and registration of persons in the mortgage and other financial services industries;

[(70)] (71) "Time account" means an account into which time deposits may be made;

[(71)] (72) "Time deposit" means a deposit that the depositor or share account holder does not have a right and is not permitted to make withdrawals from within six days after the date of deposit, unless the deposit is subject to an early withdrawal penalty of at least seven days' simple interest on amounts withdrawn within the first six days after deposit, subject to those exceptions permissible under 12 CFR Part 204, as amended from time to time;

[(72)] (73) "Trust bank" means a Connecticut bank organized to function solely in a fiduciary capacity; and

[(73)] (74) "Uninsured bank" means a Connecticut bank that does not accept retail deposits and for which insurance of deposits by the Federal Deposit Insurance Corporation or its successor agency is not required.

Sec. 2. Section 36a-3 of the 2014 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Other definitions applying to this title or to specified parts thereof and the sections in which they appear are:

T1	"Account". Sections 36a-155 and 36a-365.
T2	"Additional proceeds". Section 36a-746e.
T3	"Administrative expense". Section 36a-237.
T4	"Advance fee". Sections 36a-485, as amended by this act, and 36a-615.
T5	"Advertise", "advertisement" or "advertising". Section 36a-485, as
T6	amended by this act.
T7	"Agency bank". Section 36a-285.
T8	"Agent". Section 36a-494.
T9	"Alternative mortgage loan". Section 36a-265.
T10	"Amount financed". Section 36a-690.
T11	"Annual percentage rate". Section 36a-690.
T12	"Annual percentage yield". Section 36a-316.
T13	"Annuities". Section 36a-455a.
T14	"Applicant". Section 36a-736.
T15	"APR". Section 36a-746a.
T16	"Assessment area". Section 36a-37.
T17	"Assets". Section 36a-70.
T18	"Associate". Section 36a-184.
T19	"Associated member". Section 36a-458a.
T20	"Authorized delegate". Section 36a-596.
T21	"Bank". Section 36a-30.
T22	"Bankers' bank". Section 36a-70.
T23	"Banking business". Section 36a-425.
T24	"Basic services". Section 36a-437a.
T25	"Billing cycle". Section 36a-565.
T26	"Bona fide nonprofit organization". Sections 36a-487 and 36a-655.
T27	"Branch". Sections 36a-145, 36a-410 and 36a-435b.
T28	"Branch office". Section 36a-485, as amended by this act.
T29	"Branch or agency net payment entitlement". Section 36a-428n.
T30	"Branch or agency net payment obligation". Section 36a-428n.
T31	"Broker". Section 36a-746a.
T32	"Business and industrial development corporation". Section 36a-626.
T33	"Business and property in this state". Section 36a-428n.
T34	"Capital". Section 36a-435b.
T35	"Cash advance". Section 36a-564.
T36	"Cash price". Section 36a-770.
T37	"Certificate of incorporation". Section 36a-435b.
T38	"CHFA loan". Section 36a-760.
T39	"Clerical or support duties". Section 36a-485, as amended by this act.
T40	"Closely related activities". Sections 36a-250 and 36a-455a.
T41	"Collective managing agency account". Section 36a-365.
T42	"Commercial vehicle". Section 36a-770.
T43	"Community bank". Section 36a-70.
T44	"Community credit union". Section 36a-37.
T45	"Community development bank". Section 36a-70.
T46	"Community reinvestment performance". Section 36a-37.
T47	"Connecticut holding company". Sections 36a-53 and 36a-410.
T48	"Consolidate". Section 36a-145.
T49	"Construction loan". Section 36a-458a.
T50	"Consumer". Sections 36a-155, 36a-676 and 36a-695.
T51	"Consumer Credit Protection Act". Section 36a-676.
T52	"Consumer debtor" and "debtor". Sections 36a-645 and 36a-800.
T53	"Consumer collection agency". Section 36a-800.
T54	"Consummation". Section 36a-746a.
T55	"Control person". Section 36a-485, as amended by this act.
T56	"Controlling interest". Section 36a-276.
T57	"Conventional mortgage rate". Section 36a-760.
T58	"Corporate". Section 36a-435b.
T59	"Credit". Sections 36a-645 and 36a-676.
T60	"Credit manager". Section 36a-435b.
T61	"Creditor". Sections 36a-676, 36a-695 and 36a-800.
T62	"Credit card", "cardholder" and "card issuer". Section 36a-676.
T63	"Credit clinic". Section 36a-700.
T64	"Credit rating agency". Section 36a-695.
T65	"Credit report". Section 36a-695.
T66	"Credit sale". Section 36a-676.
T67	"Credit union service organization". Section 36a-435b.
T68	"Credit union service organization services". Section 36a-435b.
T69	"De novo branch". Section 36a-410.
T70	"Debt". Section 36a-645.
T71	"Debt adjustment". Section 36a-655.
T72	"Debt mutual fund". Sections 36a-275 and 36a-459a.
T73	"Debt securities". Sections 36a-275 and 36a-459a.
T74	"Debtor". Section 36a-655.
T75	"Deliver". Section 36a-316.
T76	"Deposit". Section 36a-316.
T77	"Deposit account". Section 36a-316.
T78	"Deposit account charge". Section 36a-316.
T79	"Deposit account disclosures". Section 36a-316.
T80	"Deposit contract". Section 36a-316.
T81	"Deposit services". Section 36a-425.
T82	"Depositor". Section 36a-316.
T83	"Depository institution". Section 36a-485, as amended by this act.
T84	"Derivative transaction". Section 36a-262.
T85	"Director". Section 36a-435b.
T86	"Dwelling". Section 36a-485, as amended by this act.
T87	"Earning period". Section 36a-316.
T88	"Electronic payment instrument". Section 36a-596.
T89	"Eligible collateral". Section 36a-330.
T90	"Eligible entity". Section 36a-34.
T91	"Employee". Section 36a-485, as amended by this act.
T92	"Entity". Section 36a-380.
T93	"Equity mutual fund". Sections 36a-276 and 36a-459a.
T94	"Equity security". Sections 36a-276 and 36a-459a.
T95	"Executive officer". Sections 36a-263 and 36a-469c.
T96	"Expedited Connecticut bank". Section 36a-70.
T97	"Experience in the mortgage business". Section 36a-488.
T98	"Federal banking agency". Section 36a-485, as amended by this act.
T99	"Federal Credit Union Act". Section 36a-435b.
T100	"Federal Home Mortgage Disclosure Act". Section 36a-736.
T101	"FHA loan". Section 36a-760.
T102	"Fiduciary". Section 36a-365.
T103	"Filing fee". Section 36a-770.
T104	"Finance charge". Sections 36a-690 and 36a-770.
T105	"Financial institution". Sections 36a-41, 36a-44a, 36a-155, 36a-316,
T106	36a-330, 36a-435b, 36a-736 and 36a-755.
T107	"Financial records". Section 36a-41.
T108	"First mortgage loan". Sections 36a-485, as amended by this act, 36a-705
T109	and 36a-725.
T110	"Foreign banking corporation". Section 36a-425.
T111	"Fully indexed rate". Section 36a-760b.
T112	"General facility". Section 36a-580.
T113	"Global net payment entitlement". Section 36a-428n.
T114	"Global net payment obligation". Section 36a-428n.
T115	"Goods". Sections 36a-535 and 36a-770.
T116	"Graduated payment mortgage loan". Section 36a-265.
T117	"Guardian". Section 36a-365.
T118	"High cost home loan". Section 36a-746a.
T119	"Holder". Section 36a-596.
T120	"Home banking services". Section 36a-170.
T121	"Home banking terminal". Section 36a-170.
T122	"Home improvement loan". Section 36a-736.
T123	"Home purchase loan". Section 36a-736.
T124	"Home state". Section 36a-410.
T125	"Housing finance agency". Section 36a-487.
T126	"Immediate family member". Sections 36a-435b and 36a-485, as
T127	amended by this act.
T128	"Independent contractor". Section 36a-485, as amended by this act.
T129	"Individual". Section 36a-485, as amended by this act.
T130	"Insider". Section 36a-454b.
T131	"Installment loan contract". Sections 36a-535 and 36a-770.
T132	"Insurance". Section 36a-455a.
T133	"Insurance bank". Section 36a-285.
T134	"Insurance department". Section 36a-285.
T135	"Interest". Section 36a-316.
T136	"Interest rate". Section 36a-316.
T137	"Interim interest". Section 36a-746a.
T138	"Investments". Section 36a-602.
T139	"Lender". Sections 36a-746a, 36a-760 and 36a-770.
T140	"Lessor". Section 36a-676.
T141	"License". Section 36a-626.
T142	"Licensee". Sections 36a-596, 36a-607 and 36a-626.
T143	"Limited branch". Section 36a-145.
T144	"Limited facility". Section 36a-580.
T145	"Loan broker". Section 36a-615.
T146	"Loan processor or underwriter". Section 36a-485, as amended by this
T147	act.
T148	"Loss". Section 36a-330.
T149	"Made in this state". Section 36a-770.
T150	"Main office". Section 36a-485, as amended by this act.
T151	"Managing agent". Section 36a-365.
T152	"Manufactured home". Section 36a-457b.
T153	"Material litigation". Section 36a-598.
T154	"Member". Section 36a-435b.
T155	"Member business loan". Section 36a-458a.
T156	"Member in good standing". Section 36a-435b.
T157	"Membership share". Section 36a-435b.
T158	"Mobile branch". Sections 36a-145 and 36a-435b.
T159	"Monetary value". Section 36a-596.
T160	"Money transmission". Section 36a-596.
T161	"Mortgage". Section 36a-760g.
T162	"Mortgage broker". Sections 36a-485, as amended by this act, 36a-705
T163	and 36a-760.
T164	"Mortgage correspondent lender". Section 36a-485, as amended by this
T165	act.
T166	"Mortgage insurance". Section 36a-725.
T167	"Mortgage lender". Sections 36a-485, as amended by this act, 36a-705
T168	and 36a-725.
T169	"Mortgage loan". Sections 36a-261, 36a-265, 36a-457b and 36a-736.
T170	"Mortgage loan originator". Section 36a-485, as amended by this act.
T171	"Mortgage rate lock-in". Section 36a-705.
T172	"Mortgage servicing company". Section 36a-715.
T173	["Mortgage servicer". Section 36a-715.
T174	"Mortgagee". Section 36a-715.]
T175	"Mortgagor". Section 36a-715.
T176	"Motor vehicle". Section 36a-770.
T177	"Multiple common bond membership". Section 36a-435b.
T178	"Municipality". Section 36a-800.
T179	"Net outstanding member business loan balance". Section 36a-458a.
T180	"Net worth". Sections 36a-441a and 36a-458a.
T181	"Network". Section 36a-155.
T182	"Nonprime home loan". Section 36a-760.
T183	"Nonrefundable". Section 36a-498.
T184	"Nontraditional mortgage product". Section 36a-489a.
T185	"Note account". Sections 36a-301 and 36a-456b.
T186	"Office". Sections 36a-23, 36a-316 and 36a-485, as amended by this act.
T187	"Officer". Section 36a-435b.
T188	"Open-end credit plan". Section 36a-676.
T189	"Open-end line of credit". Section 36a-760.
T190	"Open-end loan". Section 36a-565.
T191	"Organization". Section 36a-800.
T192	"Out-of-state holding company". Section 36a-410.
T193	"Outstanding". Section 36a-596.
T194	"Passbook savings account". Section 36a-316.
T195	"Payment instrument". Section 36a-596.
T196	"Periodic statement". Section 36a-316.
T197	"Permissible investment". Section 36a-596.
T198	"Person". Sections 36a-184 and 36a-485, as amended by this act.
T199	"Post". Section 36a-316.
T200	"Prepaid finance charge". Section 36a-746a.
T201	"Prime quality". Section 36a-596.
T202	"Principal amount of the loan". Section 36a-485, as amended by this act.
T203	"Processor". Section 36a-155.
T204	"Public deposit". Section 36a-330.
T205	"Purchaser". Section 36a-596.
T206	"Qualified financial contract". Section 36a-428n.
T207	"Qualified public depository" and "depository". Section 36a-330.
T208	"Real estate". Section 36a-457b.
T209	"Real estate brokerage activity". Section 36a-485, as amended by this
T210	act.
T211	"Records". Section 36a-17.
T212	"Registered mortgage loan originator". Section 36a-485, as amended by
T213	this act.
T214	"Related person". Section 36a-53.
T215	"Relocate". Sections 36a-145 and 36a-462a.
T216	"Residential mortgage loan". [Sections] Section 36a-485, as amended by
T217	this act. [and 36a-715.]
T218	"Residential real estate". Section 36a-485, as amended by this act.
T219	"Resulting entity". Section 36a-34.
T220	"Retail buyer". Sections 36a-535 and 36a-770.
T221	"Retail credit transaction". Section 42-100b.
T222	"Retail installment contract". Sections 36a-535 and 36a-770.
T223	"Retail installment sale". Sections 36a-535 and 36a-770.
T224	"Retail seller". Sections 36a-535 and 36a-770.
T225	"Reverse annuity mortgage loan". Section 36a-265.
T226	"Sales finance company". Sections 36a-535 and 36a-770.
T227	"Savings department". Section 36a-285.
T228	"Savings deposit". Section 36a-316.
T229	"Secondary mortgage loan". Section 36a-485, as amended by this act.
T230	"Security convertible into a voting security". Section 36a-184.
T231	"Senior management". Section 36a-435b.
T232	"Settlement agent". Section 36a-494.
T233	"Share". Section 36a-435b.
T234	"Simulated check". Section 36a-485, as amended by this act.
T235	"Single common bond membership". Section 36a-435b.
T236	"Special mortgage". Section 36a-760c.
T237	"Social purpose investment". Section 36a-277.
T238	"Sponsored". Section 36a-485, as amended by this act.
T239	"Standard mortgage loan". Section 36a-265.
T240	"Stored value". Section 36a-596.
T241	["System". Section 36a-485.]
T242	"Table funding agreement". Section 36a-485, as amended by this act.
T243	"Tax and loan account". Sections 36a-301 and 36a-456b.
T244	"The Savings Bank Life Insurance Company". Section 36a-285.
T245	"Time account". Section 36a-316.
T246	"Travelers check". Section 36a-596.
T247	"Troubled Connecticut credit union". Section 36a-448a.
T248	"Unique identifier". Section 36a-485, as amended by this act.
T249	"Unsecured loan". Section 36a-615.
T250	"Value". Section 36a-603.
T251	"Warehouse agreement". Section 36a-485, as amended by this act.

Sec. 3. Section 36a-485 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

As used in this section and sections 36a-486 to 36a-498f, inclusive, as amended by this act, 36a-534a to 36a-534c, inclusive, unless the context otherwise requires:

(1) "Advance fee" means any consideration paid or given, directly or indirectly, to a mortgage lender, mortgage correspondent lender or mortgage broker required to be licensed pursuant to sections 36a-485 to 36a-498f, inclusive, and sections 36a-534a and 36a-534b, prior to the closing of a residential mortgage loan to any person, including, but not limited to, loan fees, points, broker's fees or commissions, transaction fees or similar prepaid finance charges;

(2) "Advertise", "advertisement" or "advertising" means the use of any announcement, statement, assertion or representation that is placed before the public in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster or over any radio or television station, by means of the Internet, or by other electronic means of distributing information, by personal contact, or in any other way;

(3) "Branch office" means a location other than the main office at which a licensee or any person on behalf of a licensee acts as a mortgage lender, mortgage correspondent lender, [or] mortgage broker or mortgage loan originator;

(4) "Control person" means an individual that directly or indirectly exercises control over another person. Any person that (A) is a director, general partner or executive officer; (B) directly or indirectly has the right to vote ten per cent or more of a class of any voting security or has the power to sell or direct the sale of ten per cent or more of any class of voting securities; (C) in the case of a limited liability company, is a managing member; or (D) in the case of a partnership, has the right to receive upon dissolution, or has contributed, ten per cent or more of the capital, is presumed to be a control person. For purposes of this subdivision, "control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract or otherwise;

(5) "Depository institution" has the same meaning as provided in Section 3 of the Federal Deposit Insurance Act, 12 USC 1813, and includes any Connecticut credit union, federal credit union or out-of-state credit union;

(6) "Dwelling" has the same meaning as provided in Section 103 of the Consumer Credit Protection Act, 15 USC 1602;

(7) "Employee" means an individual (A) whose manner and means of work performance are subject to the right of control of, or are controlled by, a person, and (B) whose compensation is reported or required to be reported on a W-2 form issued by the controlling person. For purposes of the definition of "registered mortgage loan originator", "employee" has the foregoing meaning or such other meaning as the federal banking agencies may issue in connection with such agencies' implementation of such agencies' responsibilities under the S.A.F.E. Mortgage Licensing Act of 2008, 12 USC 5101 et seq.;

(8) "Federal banking agency" means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Credit Union Administration and the Federal Deposit Insurance Corporation;

(9) "First mortgage loan" means a residential mortgage loan that is secured by a first mortgage;

(10) "Immediate family member" means a spouse, child, sibling, parent, grandparent or grandchild and includes stepparents, stepchildren, stepsiblings and adoptive relationships;

(11) "Independent contractor" means an individual retained on a basis where the individual is not an employee of any person in connection with the services such individual provides and whose compensation is reported or required to be reported on an Internal Revenue Service Form 1099 issued by the retaining person;

(12) "Individual" means a natural person;

(13) "Loan processor or underwriter" means an individual who performs clerical or support duties. The term "clerical or support duties" includes, subsequent to the receipt of an application, (A) the receipt, collection, distribution and analysis of information common for the processing or underwriting of a residential mortgage loan, and (B) communication with a consumer to obtain the information necessary for the processing or underwriting of a loan to the extent that such communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms;

(14) "Main office" means the main address designated on the system;

(15) "Mortgage broker" (A) means a person who (i) for compensation or gain or with the expectation of compensation or gain (I) takes a residential mortgage loan application, or (II) offers or negotiates terms of a residential mortgage loan, and (ii) is not the prospective source of the funds for the residential mortgage loan, (B) but does not include (i) an individual who is licensed as a mortgage loan originator acting as a mortgage loan originator on behalf of such mortgage loan originator's sponsoring mortgage lender, mortgage correspondent lender, mortgage broker or exempt registrant, or (ii) an individual exempt from mortgage loan originator licensure under subdivision (2) of subsection (b) of section 36a-486, as amended by this act, when acting within the scope of such exemption;

(16) "Mortgage correspondent lender" means a person engaged in the business of making residential mortgage loans in such person's own name where the loans are not held by such person for more than ninety days and are funded by another person through a warehouse agreement, table funding agreement or similar agreement;

(17) "Mortgage lender" means a person engaged in the business of making residential mortgage loans in such person's own name utilizing such person's own funds or by funding loans through a warehouse agreement, table funding agreement or similar agreement;

(18) "Mortgage loan originator" means an individual who for compensation or gain or with the expectation of compensation or gain, either for such individual or for the person employing or retaining such individual, (A) takes a residential mortgage loan application, or (B) offers or negotiates terms of a residential mortgage loan. "Mortgage loan originator" does not include (i) an individual engaged solely as a loan processor or underwriter; (ii) a person who only performs real estate brokerage activities and is licensed in accordance with chapter 392, unless the person is compensated by a mortgage lender, mortgage correspondent lender, mortgage broker or other mortgage loan originator or by any agent of such mortgage lender, mortgage correspondent lender, mortgage broker or other mortgage loan originator; (iii) a person solely involved in extensions of credit relating to timeshare plans, as that term is defined in Paragraph 53D of 11 USC 101; or (iv) any individual who solely renegotiates terms for existing mortgage loans on behalf of a mortgagee and who does not otherwise act as a mortgage loan originator, unless the United States Department of Housing and Urban Development, the Bureau of Consumer Financial Protection or a court of competent jurisdiction determines that the S.A.F.E. Mortgage Licensing Act of 2008, 12 USC Section 5101 et seq., requires such individual to be licensed as a mortgage loan originator under state laws implementing said S.A.F.E. Mortgage Licensing Act;

(19) "Office" means a branch office or a main office;

(20) "Person" means a natural person, corporation, company, limited liability company, partnership or association;

(21) "Principal amount of the loan" means the gross amount the borrower is obligated to repay including any prepaid finance charge that is financed, and any other charge that is financed;

(22) "Real estate brokerage activity" means any activity that involves offering or providing real estate brokerage services to the public, including (A) acting as a real estate agent or real estate broker for a buyer, seller, lessor or lessee of real property; (B) bringing together parties interested in the sale, purchase, lease, rental or exchange of real property; (C) negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental or exchange of real property, other than in connection with providing financing with respect to any such transaction; (D) engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and (E) offering to engage in any activity, or act in any capacity, described in this subdivision;

(23) "Registered mortgage loan originator" means any individual who (A) meets the definition of mortgage loan originator and is an employee of a depository institution, a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency, or an institution regulated by the Farm Credit Administration; and (B) is registered with and maintains a unique identifier through the system;

(24) "Residential mortgage loan" means any loan primarily for personal, family or household use that is secured by a mortgage, deed of trust or other equivalent consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a dwelling;

(25) "Residential real estate" means any real property located in this state, upon which is constructed or intended to be constructed a dwelling;

(26) "Secondary mortgage loan" means a residential mortgage loan that is secured, in whole or in part, by a mortgage, provided such property is subject to one or more prior mortgages;

(27) "Simulated check" means a document that imitates or resembles a check but is not a negotiable instrument;

(28) "Sponsored" means employed or retained as an independent contractor;

[(29) "System" means the Nationwide Mortgage Licensing System and Registry developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of mortgage lenders, mortgage correspondent lenders, mortgage brokers, mortgage loan originators and loan processors or underwriters;]

[(30)] (29) "Table funding agreement" means an agreement wherein a person agrees to fund mortgage loans to be made in another person's name and to purchase such loans after they are made;

[(31)] (30) "Unique identifier" means a number or other identifier assigned by protocols established by the system; and

[(32)] (31) "Warehouse agreement" means an agreement to provide credit to a person to enable the person to have funds to make residential mortgage loans and hold such loans pending sale to other persons.

Sec. 4. Section 36a-21 of the 2014 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Notwithstanding any provision of state law and except as provided in subsections (b) and (d) of this section and subdivision (2) of subsection (a) of section 36a-534b, the following records of the Department of Banking shall not be disclosed by the commissioner or any employee of the Department of Banking, or be subject to public inspection or discovery:

(1) Examination and investigation reports and information contained in or derived from such reports, including examination reports prepared by the commissioner or prepared on behalf of or for the use of the commissioner;

(2) Confidential supervisory or investigative information obtained from a state, federal or foreign regulatory or law enforcement agency;

(3) Information obtained, collected or prepared in connection with examinations, inspections or investigations, and complaints from the public received by the Department of Banking, if such records are protected from disclosure under federal or state law or, in the opinion of the commissioner, such records would disclose, or would reasonably lead to the disclosure of: (A) Investigative information the disclosure of which would be prejudicial to such investigation, until such time as the investigation and all related administrative and legal actions are concluded; (B) personal or financial information, including account or loan information, without the written consent of the person or persons to whom the information pertains; or (C) information that would harm the reputation of any person or affect the safety and soundness of any person whose activities in this state are subject to the supervision of the commissioner, and the disclosure of such information under this subparagraph would not be in the public interest; and

(4) Information obtained, collected or prepared in connection with the organization of an expedited Connecticut bank prior to the issuance of a final certificate of authority to commence the business of a Connecticut bank pursuant to section 36a-70.

(b) The commissioner may, without waiving any privilege, disclose the records described in subsection (a) of this section for any appropriate supervisory, governmental, law enforcement or other public purpose. Any such disclosure shall be made under safeguards designed to prevent further dissemination of such records. In any proceeding before a court, the court may issue a protective order in appropriate circumstances to protect the confidentiality of any such record and order that any such record on file with the court or filed in connection with the court proceeding be sealed and that the public be excluded from any portion of the proceeding at which any such record is disclosed.

(c) No director, officer, employee or agent of any Connecticut bank, Connecticut credit union or licensee under section 36a-380 or 36a-628 shall disclose without the prior written consent of the commissioner any information contained in an examination report about such bank, credit union or licensee which information is not otherwise a matter of public record.

[(d) (1) The provisions of subsections (a) and (b) of this section shall not apply to the disclosure of any record provided to or maintained by the commissioner with the system. Except as otherwise provided in Section 1512 of the federal S.A.F.E. Mortgage Licensing Act of 2008, any requirements under federal law or any law of this state, including this section and chapter 14 and any privilege arising under federal law or any law of this state, including the rules of any federal court or court of this state that protect the disclosure of any record provided to or maintained with the system, shall continue to apply to such record after it has been disclosed to the system. Such record may be shared with all state and federal regulatory officials that have oversight authority over the mortgage industry without the loss of privilege or the loss of confidentiality protections provided by federal law or the laws of this state.]

(d) (1) Except as otherwise provided in this section, the requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to the system, as defined in section 36a-2, as amended by this act, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to such information or material, shall continue to apply to such information or material after the information or material has been disclosed to the system. Such information and material may be shared with all federal and state regulatory officials with mortgage or other financial services industry oversight authority without the loss of privilege or the loss of confidentiality protection provided by federal or state law. For purposes of this subsection, the commissioner may enter into agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators or associations representing governmental agencies.

(2) Any information or material that is [protected from disclosure] under subdivision (1) of this subsection subject to privilege or confidentiality shall not be subject to (A) disclosure under any federal or state law governing disclosure to the public of information held by an officer or agency of the federal government or the respective state; or (B) subpoena, discovery or admission into evidence in any private civil action or administrative process, except a person may, at such person's discretion, waive in whole or in part a privilege held by the system concerning such information and material.

(3) Any law of this state relating to the disclosure of confidential supervisory information or of any information or material described in subdivision (1) of this subsection that is inconsistent with subdivision (1) shall be superseded by the requirements of this subsection.

(e) The confidentiality provisions of this section shall not apply to records relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, [mortgage loan originators or loan processors or underwriters] persons that are included in the system for access by the public.

[(f) For purposes of this section, "system" has the same meaning as provided in section 36a-485.]

Sec. 5. Subsection (c) of section 36a-51 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(c) Any licensee may surrender any license issued by the commissioner under any provision of the general statutes by surrendering the license to the commissioner in person or by registered or certified mail, provided, in the case of a license issued [pursuant to part I of chapter 668] through the system, as defined in section 36a-2, as amended by this act, such surrender shall be initiated by filing a request to surrender on the system. [, as defined in section 36a-485, in accordance with section 36a-490.] No surrender on the system shall be effective until the request for surrender is accepted by the commissioner. Surrender of a license shall not affect the licensee's civil or criminal liability, or affect the commissioner's ability to impose an administrative penalty on the licensee pursuant to section 36a-50 for acts committed prior to the surrender. If, prior to receiving the license, or, in the case of a license issued [pursuant to part I of chapter 668,] through the system prior to the filing of a request to surrender a license, [under section 36a-490,] the commissioner has instituted a proceeding to suspend, revoke or refuse to renew such license, such surrender or request to surrender will not become effective except at such time and under such conditions as the commissioner by order determines. If no proceeding is pending or has been instituted by the commissioner at the time of surrender, or, in the case of a license issued [pursuant to part I of chapter 668] through the system, at the time a request to surrender is filed, the commissioner may still institute a proceeding to suspend, revoke or refuse to renew a license under subsection (a) of this section up to the date one year after the date of receipt of the license by the commissioner, or, in the case of a license issued [pursuant to part I of chapter 668] through the system, up to the date one year after the date of the acceptance by the commissioner of a request to surrender a license. [under section 36a-490.]

Sec. 6. (NEW) (Effective October 1, 2014) (a) In addition to any other duties imposed upon the Banking Commissioner by law, the commissioner is authorized to require persons engaged in a financial services industry subject to the commissioner's jurisdiction to be licensed or registered through the system, as defined in section 36a-2 of the general statutes, as amended by this act.

(b) In the event the commissioner elects to require system-based licensure for persons engaged in a financial services industry subject to the commissioner's jurisdiction, the commissioner shall require all initial or renewal applications for such licenses or registrations in this state to be made and processed through the system in such form as the commissioner may prescribe, and the system shall be authorized to receive and maintain records related to such licenses or registrations to the same extent allowed or required to be maintained by the commissioner. For this purpose, the commissioner may establish requirements by order as necessary for participation in the system, including, but not limited to: (1) Background checks, including in the case of any form of business organization, checks on the individuals comprising the ownership or management of such organization, for criminal history through (A) fingerprint submission to the Federal Bureau of Investigation or other state, national or international criminal databases, (B) civil, criminal or administrative records from any governmental jurisdiction, (C) credit history, including an independent credit report obtained from a consumer reporting agency described in Section 603(p) of the Fair Credit Reporting Act, 15 USC 1681a, or (D) any other information as deemed necessary by the system; (2) the payment of fees to apply for or renew licenses or registrations through the system; (3) the setting or resetting of license expiration, renewal or transition dates or reporting dates or forms; and (4) the requirements for amending or surrendering a license or any other such activities as the commissioner deems necessary for participation in the system. Such information may thereafter be used by the commissioner to determine an applicant's eligibility for licensing under applicable law and any order issued by the commissioner pursuant to this section. For the purpose of participating in the system, the commissioner may by order waive or modify, in whole or in part, any applicable requirement of title 36a of the general statutes and establish new requirements as reasonably necessary. For the purpose of implementing an orderly and efficient licensing process, the commissioner may adopt licensing regulations, in accordance with the provisions of chapter 54 of the general statutes, and interim procedures for licensing and acceptance of applications.

(c) In the event the commissioner elects to require system-based licensure for persons engaged in financial services industries subject to the commissioner's jurisdiction, the commissioner may report regularly to the system violations of and enforcement actions under applicable law and other relevant information. The commissioner may establish relationships or enter into contracts with the system or other entities designated by the system to collect and maintain records and process transaction fees or other fees related to licensees or other persons required or permitted to be licensed or registered on the system.

(d) To reduce the points of contact that the commissioner or the Federal Bureau of Investigation may have to maintain for purposes of title 36a of the general statutes, the commissioner may use the system as a channeling agent for requesting information from and distributing information to the United States Department of Justice, any governmental agency or any other source as directed by the commissioner.

(e) A person required or permitted to be licensed or registered on the system may challenge information entered into the system by the commissioner. Such challenge shall (1) be made in writing to the commissioner, (2) set forth the specific information being challenged, and (3) include any evidence which supports the challenge. A challenge shall be limited to the factual accuracy of information within the system. If the commissioner determines that the information entered into the system is factually inaccurate, the commissioner shall take prompt action to correct such information. Nothing in this subsection shall be construed to permit a challenge under this section to the merits or factual basis of any administrative action taken by the commissioner pursuant to title 36a of the general statutes.

(f) A person making any filing or submission of any information on the system shall do so in accordance with the procedures and requirements of the system and shall pay applicable fees or charges to the system. Each person required to obtain registration or licensure through the system shall timely submit to the system accurate reports that shall be in such form and contain such information as the system may require.

(g) All fees paid for any initial application for a license or registration or for a renewal application for a license or registration, including, but not limited to, fees paid in connection with an application that is denied or withdrawn prior to the issuance of the license or registration, shall be nonrefundable. No fee shall be prorated if the license or registration is surrendered, revoked or suspended prior to the expiration of the period for which it was approved.

(h) The commissioner may automatically suspend a license or registration of a person on the system if such person receives a deficiency on the system indicating that a required payment was Returned-ACH or returned pursuant to any other term as may be utilized by the system to indicate that payment was not accepted. After a license or registration has been automatically suspended pursuant to this subsection, the commissioner shall give such licensee or registrant notice of the automatic suspension, pending proceedings for revocation or refusal to renew and an opportunity for a hearing on such action in accordance with section 36a-51 of the general statutes, as amended by this act, and require such licensee to take or refrain from taking such action that, in the opinion of the commissioner, will effectuate the purposes of this subsection.

(i) The commissioner may deem an application for a license or registration on the system abandoned if the applicant fails to respond to any request for required information. The commissioner shall notify the applicant on the system that if such information is not submitted within sixty days of the date of such request the application shall be deemed abandoned. An application filing fee paid prior to the date an application is deemed abandoned pursuant to this subsection shall not be refunded. Abandonment of an application pursuant to this subsection shall not preclude the applicant from submitting a new application for a license or registration.

(j) The commissioner may issue a temporary order to cease business under a license or registration if the commissioner determines that such license or registration was issued erroneously. The commissioner shall give the licensee an opportunity for a hearing on such action in accordance with section 36a-52 of the general statutes. Such temporary order shall become effective upon receipt by the licensee and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in the notice.

Sec. 7. Subdivision (2) of subsection (b) of section 36a-486 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

(2) The following are exempt from this section: (A) A registered mortgage loan originator or an employee of an institution or subsidiary described in subdivision (23) of section 36a-485, as amended by this act, who is not required to be registered under Section 1507 of the S.A.F.E. Mortgage Licensing Act of 2008, 12 USC Section 5101 et seq., when acting for such institution or subsidiary; (B) an individual who offers or negotiates the terms of a residential mortgage loan with or on behalf of an immediate family member of such individual; (C) an individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling that served as the individual's residence, unless the context demonstrates that such individual engaged in such activities with a degree of habitualness or repetition; (D) a Connecticut licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a mortgage lender, mortgage correspondent lender, mortgage broker or other mortgage loan originator or by any agent of such mortgage lender, mortgage correspondent lender, mortgage broker or other mortgage loan originator; (E) an individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan as an employee of a federal, state or local government agency or housing finance agency exempt from licensure pursuant to section 36a-487, and who does so only pursuant to such individual's official duties as an employee of such agency; (F) an individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan as an employee of an organization that has obtained bona fide nonprofit status from the commissioner and is exempt from licensure pursuant to section 36a-487, and who does so only pursuant to such individual's official duties as an employee of such organization; and (G) an individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling that is not the individual's residence but is owned by such individual, unless the context demonstrates that such individual engaged in such activities with a degree of habitualness or repetition.

Sec. 8. Subdivision (10) of section 36a-498e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

(10) Negligently make any false statement or knowingly and wilfully make any omission of material fact in connection with any information or reports filed with a governmental agency or the system, as defined in section [36a-485] 36a-2, as amended by this act, or in connection with any investigation conducted by the Banking Commissioner or another governmental agency;

This act shall take effect as follows and shall amend the following sections:
Section 1	from passage	36a-2
Sec. 2	from passage	36a-3
Sec. 3	from passage	36a-485
Sec. 4	from passage	36a-21
Sec. 5	from passage	36a-51(c)
Sec. 6	October 1, 2014	New section
Sec. 7	October 1, 2014	36a-486(b)(2)
Sec. 8	October 1, 2014	36a-498e(10)

Statement of Purpose:

To authorize the Banking Commissioner to use the Nationwide Mortgage Licensing System and Registry for licensing or registration of any person engaged in a financial services industry within the jurisdiction of the commissioner.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]