DOB: News Bulletin 2129 - December 10, 2004

The Department of Banking News Bulletin 

Bulletin # 2129
Week Ending December 10, 2004

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, Commissioner of Banking, 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.


BRANCH ACTIVITY
State Bank 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 Financial Institutions Division, (860) 240-8180.

Date Bank Location Activity
12/04/04 First County Bank
Stamford
660 Main Avenue
Norwalk, CT
opening
date
12/10/04 Salisbury Bank and Trust
   Company
73-89 Main Street
Sheffield, MA  02157
filed

INTEREST RATE TO BE PAID ON CLAIMS FOR PROPERTY, FUNDS OR MONEY DELIVERED TO THE STATE TREASURER PURSUANT TO SECTION 3-57a(a)(1) or (2), MORTGAGE ESCROW ACCOUNTS, PUBLIC SERVICE COMPANY, CERTIFIED TELECOMMUNICATIONS PROVIDER AND ELECTRIC SUPPLIER CUSTOMER SECURITY DEPOSITS AND TENANT SECURITY DEPOSITS

In accordance with Sections 3-70a(e), as amended by June 30 Special Session Public Act 03-1, 16-262j(d), 47a-21(i)(2) and 49-2a(c) of the Connecticut General Statutes, the deposit index for calendar year 2005 is 0.53%. However, Sections 3-70a(e), as amended, 16-262j(c), 47a-21(i)(1) and 49-2a(a) provide that in no event shall the rate be less than 1.5%. Therefore, the interest rate to be paid on claims for property, funds or money delivered to the State Treasurer pursuant to Section 3-57a(a)(1) or (2), and mortgage escrow accounts, public service company and electric supplier customer security deposits and tenant security deposits is 1.5% for the period commencing January 1, 2005 and ending December 31, 2005.

REORGANIZATION AS A MUTUAL HOLDING COMPANY AND ACQUISITION

On December 6, 2004, the Commissioner, in connection with the application by Naugatuck Savings Bank ("Naugatuck Mutual Bank") to reorganize so as to form a mutual holding company, issued a notice of intent not to disapprove the formation of a proposed mutual holding company to be known as Nutmeg Financial MHC, Inc., pursuant to Section 36a-192(h) of the Connecticut General Statutes, as amended by Public Act 04-23. Also in connection with the application, approval was granted pursuant to Section 36a-193 of the Connecticut General Statutes, as amended by Public Act 04-136, and Section 36a 192(b)(2) of the Connecticut General Statutes, as amended, to form a reorganized savings institution to be known as Naugatuck Savings Bank ("Naugatuck Stock Bank"), and subsequently merge Naugatuck Mutual Bank with and into Naugatuck Stock Bank, the resulting bank to operate as a capital stock savings bank under the name Naugatuck Savings Bank. Also, on December 6, 2004, pursuant to Section 36a-185 of the Connecticut General Statutes, as amended by Public Act 03-259, the Commissioner issued a notice of intent not to disapprove the acquisition by Nutmeg Financial, MHC of 100% of the voting securities of Naugatuck Savings Bank.

CREDIT UNION ACTIVITY 
Merger

On December 1, 2004, pursuant to Section 36a-468a of the Connecticut General Statutes, the Commissioner approved the merger of BIC Credit Union, Inc., Milford, a Connecticut credit union, with and into General Electric Employees Federal Credit Union, Milford, a federally chartered credit union.

Field of Membership

On November 26, 2004, pursuant to Section 36a-462b(d) of the Connecticut General Statutes, Corporate America Family Credit Union, Elgin, Illinois, filed a request for approval to expand its field of membership in the State of Connecticut to include employees of Southington Auto Wash, LLC, who are paid or supervised from Plantsville.

On November 30, 2004, pursuant to Section 36a-462b(d) of the Connecticut General Statutes, Corporate America Family Credit Union, Elgin, Illinois, was granted approval to expand its field of membership in the State of Connecticut to include employees of Reliable Spring, Bristol; Fastenal Company, Bristol; and Dolce Heritage, Southbury.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Florida Man Fined $3,500 for Engaging in Dishonest or Unethical Practices

On December 1, 2004, the Commissioner entered a Consent Order resolving the allegations in a July 19, 2004 Notice of Intent to Fine against Dean Russel Baker of Oakland Park, Florida. On November 23, 2004, the Commissioner had revoked the respondent's broker-dealer agent registration based upon findings that the respondent wilfully violated Section 36b-4(b) of the Connecticut Uniform Securities Act and had engaged in a dishonest or unethical practice in the securities business.

In entering the Consent Order, the Commissioner acknowledged that the respondent had submitted documentation demonstrating economic hardship such that the respondent was financially incapable of paying the maximum fine contemplated by the Notice of Intent to Fine. The Consent Order directed the respondent to pay a $3,500 fine to the agency in resolution of the matter and withdrew the July 19, 2004 Notice of Intent to Fine.

Notice of Intent to Revoke Registration as Agent Issued Based on
Alleged Prior Criminal Conviction

On December 7, 2004, the Commissioner issued a Notice of Intent to Revoke Registration as Agent with respect to James Arthur Wilson, Sr. of Newburgh, New York. The respondent is registered under the Connecticut Uniform Securities Act as a broker-dealer agent of Ormes Capital Markets, Inc. The action alleged that, on February 10, 2004, in New York Superior Court, County Court of Orange County, the respondent was convicted by plea of grand larceny in the fourth degree, a class E felony under New York law, for stealing $5,265 in unemployment benefits from the New York State Department of Labor, and was sentenced to pay $5,265 in restitution. The action also recited that, on or about February 2, 2004, and prior to sentencing, the respondent paid restitution in full. The respondent was afforded an opportunity to request a hearing on the Notice of Intent to Revoke Registration as Agent.

Dated: Tuesday, December 14, 2004

John P. Burke
Commissioner