The General Assembly Raised Bill No. 1399 aims to authorize the establishment of limited purpose trust companies in Connecticut, effective October 1, 2025. The bill defines key terms such as "Connecticut bank," "federal bank," "out-of-state bank," "trust office," and "representative trust office." It outlines the application process for forming a limited purpose trust company, which includes submitting a notice and application to the Banking Commissioner, along with a fee. The application must provide details such as the company's name, officers, principal office location, business purpose, and capital structure. The Banking Commissioner has the authority to grant a certificate for establishing a limited purpose trust company if it promotes public convenience and competition among financial institutions.

Additionally, the bill stipulates that limited purpose trust companies may not accept deposits or make loans, and they can establish offices in other states with prior notice to the Banking Commissioner. It also allows for the merger, consolidation, or dissolution of these companies under the commissioner's prescribed terms. The bill specifies that it does not apply to licensed attorneys or individuals exercising fiduciary powers under lawful authority. The commissioner is empowered to adopt regulations to govern the affairs of limited purpose trust companies, ensuring compliance with relevant statutes.