DOB: News Bulletin 1881 - March 10, 2000

The Department of Banking News Bulletin 

 Bulletin # 1881
Week Ending March 10, 2000

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to John P. Burke, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.


STATE BANK ACTIVITY
Branch Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Bank Examination Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

Date Bank Location Activity
3/06/00 The Savings Institute
Willimantic
474 Boston Post Road
North Windham, CT 06256
opening
date
3/08/00 Union Savings Bank
Danbury
27 Main Street
New Milford, CT 06776
filed

ACQUISITIONS

On March 6, 2000, The Charles Schwab Corporation, a corporation with its principal place of business in California, and Charles R. Schwab, a shareholder of more than 10% of The Charles Schwab Corporation, filed an application, pursuant to Sections 36a-411 and 36a-184 of the Connecticut General Statutes, for the indirect acquisition of U.S. Trust Company, a Connecticut bank, through the acquisition of its parent, U.S. Trust Corporation, a bank holding company with its principal place of business in New York. In connection with the acquisition, The Charles Schwab Corporation filed a community reinvestment plan which is available for public inspection and comment at the Department of Banking for a period of 30 days.

On March 6, 2000, pursuant to Section 36a-412(a)(1) of the Connecticut General Statutes, First Massachusetts Bank, National Association, filed an application for the merger of Glastonbury Bank & Trust Company, a Connecticut bank, with and into First Massachusetts Bank, National Association. In connection with the application, First Massachusetts Bank, National Association and Glastonbury Bank & Trust Company filed a community reinvestment plan which is available for public inspection and comment at the Department of Banking for a period of 30 days.

CREDIT UNION ACTIVITY

Pursuant to Sections 36a-437(g) and (h) of the Connecticut General Statutes, as amended by Public Act 99-36, on February 18, 2000, Connecticut Community Credit Union, Inc. requested approval to amend its certificate of organization and bylaws to expand its field of membership to include all persons who live, work, worship, or attend school in, and businesses and other entities located in the contiguous towns of Voluntown, Griswold, Lisbon, Sprague, Sterling, Plainfield and Canterbury. (This request is in conjunction with a merger presently in process.)

NOTICE OF INTENT TO AMEND PROPOSED REGULATIONS

Pursuant to Section 4-168(a) of the Connecticut General Statutes, the Banking Commissioner is issuing a Notice of Intent to Amend Regulations concerning open-end loan annual fees imposed on borrowers by small loan licensees and collection practices of creditors. A copy of the proposed regulations is attached.

Dated: Tuesday, March 14, 2000

John P. Burke
Banking Commissioner


Open-end Loan Annual Fees Imposed on Borrowers
by Small Loan Licensees
 and
Collection Practices of Creditors

    Section 1. Subsection (n) of Section 36a-570-17 of the Regulations of Connecticut State Agencies is amended to read as follows:

    (n) Open-end loan annual fee. In the case of an open-end loan made pursuant to this section, if the agreement between the lender and the borrower so provides, the lender may assess and collect an annual fee not to exceed [thirty-five] FIFTY dollars for the privileges made available to the borrower under the open-end loan agreement.

    Sec. 2 Section 36a-647-2 of the Regulations of Connecticut State Agencies is amended to read as follows:

    Sec. 36a-647-2. Definitions
    As used in sections 36a-647-1 to 36a-647-7, inclusive, of the Regulations of Connecticut State Agencies:
    (1) "Commissioner" [means the commissioner of banking. With respect to any function of the commissioner, "commissioner" includes any person authorized or designated by the commissioner to carry out that function.] HAS THE SAME MEANING AS SET FORTH IN SECTION 36a-2 OF THE CONNECTICUT GENERAL STATUTES.
    (2) "Communications" means any communication directly or indirectly to any person in person or through any medium and includes the conveyance of debt information.
    (3) "Convey debt information" means the conveying of information regarding a debt directly or indirectly to any person in person or through any medium.
    (4) "Consumer debtor" [means any natural person residing in this state to whom credit for personal, family or household purposes has been extended or who is otherwise obligated to pay a debt, and includes any person who a creditor believes to be a consumer debtor. As] HAS THE SAME MEANING AS SET FORTH IN SECTION 36a-645 OF THE CONNECTICUT GENERAL STATUTES, PROVIDED AS used in sections 36a-647-3 and 36a-647-4, "consumer debtor" also includes the consumer debtor's spouse (if such spouse resides with the consumer debtor), parent (if the consumer debtor is a minor), guardian, executor, and administrator.
    (5) "Credit" means the right granted by a creditor to a consumer debtor to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment therefor.
    (6) "Creditor" [means any person who in the ordinary course of business extends credit to a consumer debtor.] HAS THE SAME MEANING AS SET FORTH IN SECTION 36a-645 OF THE CONNECTICUT GENERAL STATUTES.
    (7) "Debt" [means an obligation owed by a consumer debtor to a creditor.] HAS THE SAME MEANING AS SET FORTH IN SECTION 36a-645 OF THE CONNECTICUT GENERAL STATUTES.
    (8) "Location information" means a consumer debtor's place of abode or telephone number at such place, or the consumer debtor's place of employment.
    (9) "Person" includes individuals, partnerships, associations and corporations.
   (10) "Prospective creditor" means any person to whom a consumer debtor has applied for credit but who has not yet advised such consumer debtor if the application has been approved or denied. (11) "Prior consent of the consumer debtor" shall not include consent obtained by virtue of any provision in any writing evidencing the debt or executed at the time the debt was incurred.

Statement of Purpose: To conform the open-end loan annual fee regulation for small loan licensees to the legislative change to Section 36a-565(c)(1) of the Connecticut General Statutes, which increased the permitted annual fee from "thirty-five" to "fifty" dollars; and to conform the definitions of "consumer debtor", "creditor" and "debt" in Section 36a-647-2 of the Regulations of Connecticut Agencies to the recently amended definitions of those terms in Section 36a-645 of the Connecticut General Statutes.

All interested persons who wish to submit data, views or arguments in connection with the proposed amendment to the regulations may do so in writing within thirty (30) days of the publication of this notice in the Connecticut Law Journal. Comments may be submitted to the Banking Commissioner, Attention: Legal Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103.