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 a pending formal enforcement action, 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 bank's capitalization status as defined by federal regulations and the financial limits on expenditures. The language changes include the deletion of the term "it" and the insertion of "the bank" for clarity, as well as the addition of detailed conditions under which the approval can be bypassed. This legislation is set to take effect on October 1, 2025, and 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: