The proposed legislation, General Assembly Raised Bill No. 6877, seeks to amend the current requirements for bank real estate improvements and alterations by modifying the exemption from the Banking Commissioner's approval. Specifically, it repeals the existing language in subparagraph (A) of subdivision (33) of subsection (a) of section 36a-250 and replaces it with new provisions that allow banks to acquire, alter, or improve real estate without prior approval from the commissioner under certain conditions.

The new conditions stipulate that such approval is not necessary if the bank is adequately capitalized, as defined by federal regulations, and is not subject to any pending formal enforcement actions by the commissioner or the Federal Deposit Insurance Corporation. Additionally, the bill sets a financial limit on expenditures for these improvements, stating that they cannot exceed five percent of the bank's capital and surplus or $750,000 in any calendar year, whichever is less. This change is set to take effect on October 1, 2025.

Statutes affected:
Raised Bill: