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 and replaces subparagraph (A) of subdivision (33) of subsection (a) of section 36a-250 of the general statutes, effective October 1, 2025. The new language stipulates that banks can acquire, alter, or improve real estate for their business 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 also makes a specific deletion and insertion in the legal language. The term "it" is replaced with "the bank" to clarify the subject of the provision. Additionally, the bill introduces new criteria for when the commissioner's approval is not necessary, including the definition of "adequately capitalized" as per federal regulations and the conditions under which a bank can proceed with real estate improvements without prior approval. 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: