House Bill No. 6877, also known as Public Act No. 25-11, amends the regulations concerning the Banking Commissioner's approval for certain real estate improvements and alterations by banks. The bill repeals 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 with the written approval of the commissioner. However, this approval is not required if the bank is adequately capitalized and not subject to any pending formal enforcement actions, or if the expenditure for such improvements does not exceed five percent of the bank's capital and surplus or $750,000 in a calendar year.

The bill introduces specific criteria for when the approval is not necessary, including the definition of "adequately capitalized" as per 12 CFR 324.403 and stipulations regarding enforcement actions by the commissioner or the Federal Deposit Insurance Corporation. Additionally, it clarifies that the term "the bank" replaces the previous reference to "it" in the context of corporations controlled by the bank. This legislative change aims to streamline the process for banks to manage their real estate assets while ensuring they remain financially sound.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 147:
Public Act No. 25-11: