House Bill No. 6877 proposes an amendment to the existing law regarding the approval process for Connecticut banks when it comes to altering or improving their business real estate. The bill introduces a second exception to the requirement for banks to obtain written approval from the banking commissioner before making such changes. Specifically, banks will not need approval for alterations or improvements to real estate they already own or lease, provided they meet two conditions: the bank must be adequately capitalized according to federal standards and must not be under any pending formal enforcement actions from the banking commissioner or the Federal Deposit Insurance Corporation.

Additionally, the bill maintains the existing provision that allows banks to make alterations or improvements without approval if the expenditure does not exceed 5% of the bank's capital and surplus or $750,000 in a calendar year, whichever is less. The language of the bill also includes technical and conforming changes, such as replacing the term "it" with "the bank" for clarity. The bill is set to take effect on October 1, 2025, and is not expected to have any fiscal impact on the state or municipalities.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 147: