Bill Text: CT HB05404 | 2018 | General Assembly | Introduced

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Bill Title: An Act Concerning The Authority Of Connecticut Credit Unions To Make Member Business Loans That Meet Certain Federal Requirements.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2018-03-02 - Public Hearing 03/06 [HB05404 Detail]

Download: Connecticut-2018-HB05404-Introduced.html

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General Assembly		Raised Bill No. 5404
February Session, 2018		LCO No. 1947
		*01947_______BA_*
Referred to Committee on BANKING
Introduced by:
(BA)

AN ACT CONCERNING THE AUTHORITY OF CONNECTICUT CREDIT UNIONS TO MAKE MEMBER BUSINESS LOANS THAT MEET CERTAIN FEDERAL REQUIREMENTS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 36a-458a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):

(a) As used in this section, [:]

[(1) "Associated member" means any member with a shared ownership, investment or other pecuniary interest in a business or commercial endeavor with the borrower.

(2) "Construction loan" means a loan for developing or acquiring and developing real estate, as defined in subsection (a) of section 36a-457b, where the borrower intends to convert such real estate to income-producing property or use such real estate for income-producing purposes, including residential housing for rental or sale, or commercial, industrial or similar purposes.

(3) "Member business loan"] "member business loan" means any loan, line of credit or unfunded commitment thereof, letter of credit or any other extension of credit, where the borrower intends to use or uses the proceeds for any of the following purposes: [(A)] (1) Commercial; [(B)] (2) corporate; [(C)] (3) investment property; [(D)] (4) business venture; or [(E)] (5) agricultural, but does not include the following loans:

[(i)] (A) A loan fully secured by a lien on a one-to-four family residence that is the primary residence of the member;

[(ii)] (B) A loan fully secured by shares in the credit union making the loan or by shares or deposits in other financial institutions;

[(iii)] (C) One or more loans to [a] the same member or [an associated member] affiliated members where the proceeds are to be used or are used for the purposes specified in this subdivision to benefit a common endeavor and which, in the aggregate, are equal to less than fifty thousand dollars;

[(iv)] (D) A loan where any agency of the federal government, a state or any political subdivision of such state, fully insures or guarantees repayment, or provides an advance commitment to purchase the loan in full; or

[(v)] (E) A loan granted by the corporate Connecticut credit union to a Connecticut credit union, federal credit union or out-of-state credit union.

[(4) "Net worth" means retained earnings under generally accepted accounting principles.

(5) "Net outstanding member business loan balance" means the outstanding loan balance, including any unfunded commitment, exclusive of the portion of the member business loan secured by shares in the credit union, or by shares or deposits in other financial institutions, or fully or partially insured or guaranteed by any agency of the federal government, a state or any political subdivision of such state, or subject to an advance commitment to purchase by any agency of the federal government, a state or any political subdivision of such state.

(b) No Connecticut credit union shall make a member business loan unless it has adequate net worth as determined by the commissioner, develops a member business loan program and obtains the prior written approval of the commissioner for such program. The request for approval of such program shall include a member business loan policy that meets the requirements of subsection (c) of this section and shall demonstrate that sufficient resources, knowledge, systems and procedures are in place to monitor and control the risks involved. A Connecticut credit union that makes member business loans shall use the services of or employ an individual for the purpose of processing, making or servicing member business loans with at least two years direct experience with the types or categories of member business loans the credit union intends to make.

(c) The governing board of a Connecticut credit union shall adopt a specific member business loan policy that shall be a part of the credit union's loan policy. Such policy shall be reviewed at least annually or more often if deemed necessary by the governing board and shall address:

(1) The categories or types of member business loans that will be made;

(2) The trade area;

(3) The maximum amount of assets, in relation to net worth, that will be invested in member business lending subject to the limitations provided in subsection (h) of this section;

(4) The maximum amount of assets, in relation to net worth, that will be invested in a given category or type of member business loan subject to the limitations provided in subdivision (2) of subsection (f) of this section and subsection (i) of this section;

(5) The maximum amount of assets, in relation to net worth, that will be loaned to one member or associated members, subject to the limitations provided in subdivision (2) of subsection (f) of this section and subsection (g) of this section;

(6) The qualifications and experience of the individuals responsible for processing, approving or administering member business loans;

(7) The required analysis and documentation of the ability of the borrower to repay the member business loan by the individuals responsible for processing, approving or administering;

(8) The receipt and periodic updating of financial statements and other documentation, including tax returns;

(9) The documentation required in support of each loan application, which shall include the following: (A) Balance sheet, (B) cash flow analysis, (C) income statement, (D) tax data, (E) analysis of leveraging, and (F) comparison with industry average or similar analysis. If the member business loan is secured by a mortgage on income-producing real estate and if the Connecticut credit union relies upon such real estate or income production as primary security for the loan, the credit union shall also obtain and retain in its files such income projection statements, tenants' financial statements and other credit information as the credit union deems necessary. The governing board may amend the member business loan policy to eliminate the requirement for any documentation that the governing board determines is not generally available for a particular type of member business loan provided the reasons for such determination are stated in such amendment;

(10) The collateral requirements which shall include: (A) Loan-to-value ratios, (B) determination of value, (C) determination of ownership, (D) steps to secure various types of collateral, and (E) frequency of re-evaluation of value and marketability of collateral;

(11) The interest rates and maturities of member business loans;

(12) General member business loan procedures which shall include: (A) Loan monitoring, (B) servicing and administering, and (C) collection; and

(13) Guidelines for purchase and sale of member business loans and loan participation if the credit union intends to engage in such activity.

(d) A Connecticut credit union shall not grant a member business loan if any additional income received by such credit union or a member of the senior management is tied to the profit or sale of the business or commercial endeavor for which the loan is made.

(e) Member business loans made to an insider are subject to the provisions of section 36a-454b.

(f) A Connecticut credit union may make unsecured member business loans provided:

(1) The aggregate of unsecured net outstanding member business loan balances to any one member or associated members shall not exceed the lesser of one hundred thousand dollars or two and one-half per cent of the credit union's net worth;

(2) The aggregate of all unsecured net outstanding member business loan balances shall not exceed ten per cent of the credit union's net worth;

(3) The credit union has a net worth of at least seven per cent; and

(4) The credit union submits quarterly reports to the commissioner providing numbers and such other detail as may be required by the commissioner to demonstrate compliance with this section.

(g) The aggregate amount of secured and unsecured net outstanding member business loan balances to any one member or associated members shall not exceed the greater of one hundred thousand dollars or fifteen per cent of the credit union's net worth. The commissioner may waive this limit subject to the provisions of subsection (l) of this section.

(h) (1) The aggregate amount of secured and unsecured net outstanding member business loan balances shall be limited to the lesser of twelve and one-quarter per cent of the Connecticut credit union's total assets or one and three-quarters times the Connecticut credit union's net worth. The commissioner may grant an exception to the aggregate limit upon written request from a Connecticut credit union and submission of documentation evidencing that one of the following three criteria have been met:

(A) The credit union serves predominantly low-income members, as defined in subsection (f) of section 36a-456a;

(B) The credit union participates in the Community Development Financial Institutions Program, 12 CFR Part 1805, as from time to time amended; or

(C) The credit union is established for the purpose of making member business loans, as supported by its bylaws, business plan, field of membership, minutes of the governing board and loan portfolio.

(2) The commissioner shall notify the Connecticut credit union and the National Credit Union Administration of the commissioner's decision on the request for an exception not later than forty-five days from such request. An exception, if granted, shall be revoked by the commissioner if the Connecticut credit union ceases to qualify under subparagraph (A), (B) or (C) of subdivision (1) of this subsection, or for reasons of safety and soundness.

(i) Unless waived by the commissioner under subsection (l) of this section, a member business loan that is a construction loan is subject to the following additional requirements:

(1) The aggregate of all construction loans shall not exceed fifteen per cent of the net worth of the Connecticut credit union;

(2) The borrower shall have at least a thirty-five per cent equity interest in the real estate being developed or acquired and developed; and

(3) The loan proceeds shall be released only after on-site, written inspections by qualified personnel and in accordance with a pre-approved draw schedule and any other conditions as set forth in the loan documentation.

(j) Unless waived by the commissioner under subsection (l) of this section, the loan-to-value ratio for a member business loan secured by a first lien shall not exceed eighty per cent unless the value in excess of eighty per cent is covered through private mortgage or equivalent insurance, or is insured or guaranteed or subject to advance commitment to purchase by an agency of the federal government, or of a state or any of the political subdivisions of such state, but in no case shall the loan-to-value ratio exceed ninety-five per cent.

(k) The loan-to-value ratio for any member business loan secured by a second or lesser priority lien shall not exceed eighty per cent unless the credit union holds the first lien and the value in excess of eighty per cent is covered through private mortgage or equivalent insurance, or is insured or guaranteed or subject to advance commitment to purchase by an agency of the federal government, or of a state or any of the political subdivisions of such state, in which case the loan-to-value ratio of such member business loan shall not exceed ninety-five per cent.

(l) A Connecticut credit union may request a waiver of the limitations set forth in subsections (g), (i) and (j) of this section by submitting the following documentation to the commissioner: (1) A copy of the member business loan policy; (2) a statement of the higher limit sought, if applicable; (3) an explanation of the need to raise the limit or change the appraisal requirement, as applicable; (4) documentation to support the credit union's ability to manage the activity; (5) an analysis of the credit union's prior experience in making member business loans, including: (A) The history of loan losses and loan delinquency, (B) volume and cyclical or seasonal patterns, (C) diversification, (D) concentrations of credit to one member or associated members in excess of fifteen per cent of the credit union's net worth, (E) underwriting standards and practices, (F) types or categories of loans grouped by purpose and collateral, and (G) the qualifications of individuals responsible for processing, approving and administering member business loans. The commissioner will provide a copy of the waiver request to Region 1 of the National Credit Union Administration and will consult and seek to work cooperatively with Region 1 in making a decision on the request. The commissioner may grant or deny the waiver within sixty days of receipt of the request.

(m) Member business loans shall be subject to the appraisal requirements of 12 CFR Part 722.3, as from time to time amended, provided the credit union may request a waiver of such appraisal requirements in accordance with the applicable provisions of subsection (l) of this section. Such waiver request shall not become effective until written approval has been granted by both the commissioner and the National Credit Union Administration.

(n) The commissioner may lower any limit provided in this section, revoke any waiver granted under this section or revoke the credit union's approval to make member business loans if the credit union's policies or practices violate safe and sound lending principles.

(o) Member business loans shall be identified in the aggregate on a Connecticut credit union's financial statements provided each type or category of member business loan shall be separately identified in the credit union's records.]

(b) A Connecticut credit union may make a member business loan, provided such loan meets the requirements of 12 USC Section 1757a and 12 CFR Part 723, each as amended from time to time.

(c) Notwithstanding the provisions of subsection (b) of this section, the commissioner may authorize, by rule or on a case-by-case basis, the member business loan program of any Connecticut credit union that (1) has less than two hundred fifty million dollars in assets and (2) otherwise meets the criteria set forth in 12 CFR Part 723, as amended from time to time, provided any such authorization by the commissioner shall be no less restrictive than the member business loan authorization rules set forth in 12 CFR Part 723, as amended from time to time.

Sec. 2. Subsection (a) of section 36a-457b of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):

(a) Subject to the requirements of this section, a Connecticut credit union may make one or more mortgage loans to its members. As used in this section, the term "mortgage loan" means a closed-end loan or line of credit secured wholly or substantially by a lien on or interest in real estate, including a leasehold interest, and which is secured by a one-to-four family residence that is the primary residence of a member or by any other real estate provided the aggregate of the loans made by the credit union to such mortgagor that are secured by such other real estate do not exceed fifty thousand dollars. As used in this section, [and section 36a-458a,] the term "real estate" includes land and any structure and other improvement or equipment that is permanently attached to such land or structure. The term "mortgage loan" shall not include a member business loan, as defined in section 36a-458a.

Sec. 3. Section 36a-3 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):

Other definitions applying to this title or to specified parts thereof and the sections in which they appear are:

T1	"Account". Sections 36a-155 and 36a-365.
T2	"Additional proceeds". Section 36a-746e.
T3	"Administrative expense". Section 36a-237.
T4	"Advance fee". Sections 36a-485 and 36a-615.
T5	"Advertise", "advertisement" or "advertising". Sections 36a-485, 36a-535,
T6	36a-586, 36a-596, 36a-655,
T7	36a-671 and 36a-846.
T8	"Agency bank". Section 36a-285.
T9	"Agent". Section 36a-494.
T10	"Alternative mortgage loan". Section 36a-265.
T11	"Amount financed". Section 36a-690.
T12	"Annual percentage rate". Section 36a-690.
T13	"Annual percentage yield". Section 36a-316.
T14	"Annuities". Section 36a-455a.
T15	"Applicant". Section 36a-736.
T16	"APR". Section 36a-746a.
T17	"Assessment area". Section 36a-37.
T18	"Assets". Section 36a-70.
T19	"Associate". Section 36a-184.
T20	"Associated member". Section 36a-458a, as amended by this act.
T21	"Authorized delegate". Section 36a-596.
T22	"Bank". Section 36a-30.
T23	"Bankers' bank". Section 36a-70.
T24	"Banking business". Section 36a-425.
T25	"Basic services". Section 36a-437a.
T26	"Billing cycle". Section 36a-565.
T27	"Bona fide nonprofit organization". Sections 36a-487 and 36a-655.
T28	"Branch". Sections 36a-145, 36a-410 and 36a-435b.
T29	"Branch office". Sections 36a-485 and 36a-715.
T30	"Branch or agency net payment entitlement". Section 36a-428n.
T31	"Branch or agency net payment obligation". Section 36a-428n.
T32	"Broker". Section 36a-746a.
T33	"Business and industrial development corporation". Section 36a-626.
T34	"Business and property in this state". Section 36a-428n.
T35	"Capital". Section 36a-435b.
T36	"Cash advance". Section 36a-564.
T37	"Cash price". Section 36a-770.
T38	"Certificate of incorporation". Section 36a-435b.
T39	"CHFA loan". Section 36a-760.
T40	"Clerical or support duties". Section 36a-485.
T41	"Closely related activities". Sections 36a-250 and 36a-455a.
T42	"Collective managing agency account". Section 36a-365.
T43	"Commercial vehicle". Section 36a-770.
T44	"Community bank". Section 36a-70.
T45	"Community credit union". Section 36a-37.
T46	"Community development bank". Section 36a-70.
T47	"Community reinvestment performance". Section 36a-37.
T48	"Connecticut holding company". Sections 36a-53 and 36a-410.
T49	"Consolidate". Section 36a-145.
T50	["Construction loan". Section 36a-458a.]
T51	"Consumer". Sections 36a-155 and 36a-695.
T52	"Consumer Credit Protection Act". Section 36a-676.
T53	"Consumer debtor" and "debtor". Sections 36a-645 and 36a-800.
T54	"Consumer collection agency". Section 36a-800.
T55	"Consummation". Section 36a-746a.
T56	"Control person". Sections 36a-485, 36a-535, 36a-580, 36a-596, 36a-655,
T57	36a-671 and 36a-846.
T58	"Controlling interest". Section 36a-276.
T59	"Conventional mortgage rate". Section 36a-760.
T60	"Corporate". Section 36a-435b.
T61	"Credit". Section 36a-645.
T62	"Credit manager". Section 36a-435b.
T63	"Creditor". Sections 36a-676, 36a-695 and 36a-800.
T64	"Credit clinic". Section 36a-700.
T65	"Credit rating agency". Section 36a-695.
T66	"Credit report". Section 36a-695.
T67	"Credit union service organization". Section 36a-435b.
T68	"Credit union service organization services". Section 36a-435b.
T69	"De novo branch". Section 36a-410.
T70	"Debt". Section 36a-645.
T71	"Debt adjustment". Section 36a-655.
T72	"Debt mutual fund". Sections 36a-275 and 36a-459a.
T73	"Debt negotiation". Section 36a-671.
T74	"Debt securities". Sections 36a-275 and 36a-459a.
T75	"Debtor". Section 36a-655, 36a-671.
T76	"Deliver". Section 36a-316.
T77	"Deposit". Section 36a-316.
T78	"Deposit account". Section 36a-316.
T79	"Deposit account charge". Section 36a-316.
T80	"Deposit account disclosures". Section 36a-316.
T81	"Deposit contract". Section 36a-316.
T82	"Deposit services". Section 36a-425.
T83	"Depositor". Section 36a-316.
T84	"Depository institution". Section 36a-485.
T85	"Derivative transaction". Section 36a-262.
T86	"Director". Section 36a-435b.
T87	"Dwelling". Section 36a-485.
T88	"Earning period". Section 36a-316.
T89	"Electronic payment instrument". Section 36a-596.
T90	"Eligible collateral". Section 36a-330.
T91	"Eligible entity". Section 36a-34.
T92	"Employee". Section 36a-485.
T93	"Entity". Section 36a-380.
T94	"Equity mutual fund". Sections 36a-276 and 36a-459a.
T95	"Equity security". Sections 36a-276 and 36a-459a.
T96	"Executive officer". Sections 36a-263 and 36a-469c.
T97	"Expedited Connecticut bank". Section 36a-70.
T98	"Experience in the mortgage business". Section 36a-488.
T99	"Federal banking agency". Section 36a-485.
T100	"Federal Credit Union Act". Section 36a-435b.
T101	"Federal Home Mortgage Disclosure Act". Section 36a-736.
T102	"FHA loan". Section 36a-760.
T103	"Fiduciary". Section 36a-365.
T104	"Filing fee". Section 36a-770.
T105	"Finance charge". Sections 36a-690 and 36a-770.
T106	"Financial institution". Sections 36a-41, 36a-44a, 36a-155, 36a-316, 36a-330,
T107	36a-435b, 36a-736 and 36a-755.
T108	"Financial records". Section 36a-41.
T109	"First mortgage loan". Sections 36a-485, 36a-705 and 36a-725.
T110	"Foreclosure rescue services". Section 36a-671.
T111	"Foreign banking corporation". Section 36a-425.
T112	"Fully indexed rate". Section 36a-760b.
T113	"General facility". Section 36a-580.
T114	"Global net payment entitlement". Section 36a-428n.
T115	"Global net payment obligation". Section 36a-428n.
T116	"Goods". Sections 36a-535 and 36a-770.
T117	"Graduated payment mortgage loan". Section 36a-265.
T118	"Guardian". Section 36a-365.
T119	"High cost home loan". Section 36a-746a.
T120	"Holder". Section 36a-596.
T121	"Home improvement loan". Section 36a-736.
T122	"Home purchase loan". Section 36a-736.
T123	"Home state". Section 36a-410.
T124	"Housing finance agency". Section 36a-487.
T125	"Immediate family member". Sections 36a-435b and 36a-485.
T126	"Independent contractor". Section 36a-485.
T127	"Individual". Section 36a-485.
T128	"Insider". Section 36a-454b.
T129	"Installment loan contract". Sections 36a-535 and 36a-770.
T130	"Insurance". Section 36a-455a.
T131	"Insurance bank". Section 36a-285.
T132	"Insurance department". Section 36a-285.
T133	"Interest". Section 36a-316.
T134	"Interest rate". Section 36a-316.
T135	"Interim interest". Section 36a-746a.
T136	"Investments". Section 36a-602.
T137	"Lender". Sections 36a-746a, 36a-760 and 36a-770.
T138	"Lessor". Section 36a-676.
T139	"License". Section 36a-626.
T140	"Licensee". Sections 36a-596, 36a-607 and 36a-626.
T141	"Limited branch". Section 36a-145.
T142	"Limited facility". Section 36a-580.
T143	"Loan broker". Section 36a-615.
T144	"Loan processor or underwriter". Section 36a-485.
T145	"Loss". Section 36a-330.
T146	"Made in this state". Section 36a-770.
T147	"Main office". Section 36a-485.
T148	"Managing agent". Section 36a-365.
T149	"Manufactured home". Section 36a-457b, as amended by this act.
T150	"Member". Section 36a-435b.
T151	"Member business loan". Section 36a-458a, as amended by this act.
T152	"Member in good standing". Section 36a-435b.
T153	"Membership share". Section 36a-435b.
T154	"Mobile branch". Sections 36a-145 and 36a-435b.
T155	"Monetary value". Section 36a-596.
T156	"Money transmission". Section 36a-596.
T157	"Mortgage". Section 36a-760g.
T158	"Mortgage broker". Sections 36a-485, 36a-705 and 36a-760.
T159	"Mortgage correspondent lender". Section 36a-485.
T160	"Mortgage insurance". Section 36a-725.
T161	"Mortgage lender". Sections 36a-485, 36a-705 and 36a-725.
T162	"Mortgage loan". Sections 36a-261, 36a-265, 36a-457b, as amended
T163	by this act and 36a-736.
T164	"Mortgage loan originator". Section 36a-485.
T165	"Mortgage rate lock-in". Section 36a-705.
T166	"Mortgage servicer". Section 36a-715.
T167	"Mortgagee". Sections 36a-671 and 36a-715.
T168	"Mortgagor". Sections 36a-671 and 36a-715.
T169	"Motor vehicle". Section 36a-770.
T170	"Multiple common bond membership". Section 36a-435b.
T171	"Municipality". Section 36a-800
T172	["Net outstanding member business loan balance". Section 36a-458a.]
T173	["Net worth". Sections 36a-441a and 36a-458a.]
T174	"Network". Section 36a-155.
T175	"Nonprime home loan". Section 36a-760.
T176	"Nonrefundable". Section 36a-498.
T177	"Nontraditional mortgage product". Section 36a-489a
T178	"Note account". Sections 36a-301 and 36a-456b.
T179	"Office". Sections 36a-23, 36a-316 and 36a-485.
T180	"Officer". Section 36a-435b.
T181	"Open-end line of credit". Section 36a-760.
T182	"Open-end loan". Section 36a-565.
T183	"Organization". Section 36a-800.
T184	"Out-of-state holding company". Section 36a-410.
T185	"Outstanding". Section 36a-596.
T186	"Passbook savings account". Section 36a-316.
T187	"Payment instrument". Section 36a-596.
T188	"Periodic statement". Section 36a-316.
T189	"Permissible investment". Section 36a-596.
T190	"Person". Sections 36a-184 and 36a-485.
T191	"Post". Section 36a-316.
T192	"Prepaid finance charge". Section 36a-746a.
T193	"Prime quality". Section 36a-596.
T194	"Principal amount of the loan". Section 36a-485.
T195	"Processor". Section 36a-155.
T196	"Public deposit". Section 36a-330.
T197	"Purchaser". Section 36a-596.
T198	"Qualified financial contract". Section 36a-428n.
T199	"Qualified public depository" and "depository". Section 36a-330.
T200	"Real estate". Section 36a-457b, as amended by this act.
T201	"Real estate brokerage activity". Section 36a-485.
T202	"Records". Section 36a-17.
T203	"Registered mortgage loan originator". Section 36a-485.
T204	"Related person". Section 36a-53.
T205	"Relocate". Sections 36a-145 and 36a-462a.
T206	"Residential mortgage loan". Section 36a-485.
T207	"Residential property". Section 36a-671.
T208	"Residential real estate". Section 36a-485.
T209	"Resulting entity". Section 36a-34.
T210	"Retail buyer". Sections 36a-535 and 36a-770.
T211	"Retail credit transaction". Section 42-100b.
T212	"Retail installment contract". Sections 36a-535 and 36a-770.
T213	"Retail installment sale". Sections 36a-535 and 36a-770.
T214	"Retail seller". Sections 36a-535 and 36a-770.
T215	"Reverse annuity mortgage loan". Section 36a-265.
T216	"Sales finance company". Sections 36a-535 and 36a-770.
T217	"Savings department". Section 36a-285.
T218	"Savings deposit". Section 36a-316.
T219	"Secondary mortgage loan". Section 36a-485.
T220	"Security convertible into a voting security". Section 36a-184.
T221	"Senior management". Section 36a-435b.
T222	"Servicing". Section 36a-846.
T223	"Settlement agent". Section 36a-494.
T224	"Share". Section 36a-435b.
T225	"Short sale". Section 36a-671.
T226	"Simulated check". Section 36a-485.
T227	"Single common bond membership". Section 36a-435b.
T228	"Special mortgage". Section 36a-760c.
T229	"Social purpose investment". Section 36a-277.
T230	"Sponsored". Section 36a-485.
T231	"Standard mortgage loan". Section 36a-265.
T232	"Stored value". Section 36a-596.
T233	"Student education loan". Section 36a-846.
T234	"Student loan borrower". Section 36a-846.
T235	"Student loan servicer". Section 36a-846.
T236	"Table funding agreement". Section 36a-485.
T237	"Tax and loan account". Sections 36a-301 and 36a-456b.
T238	"The Savings Bank Life Insurance Company". Section 36a-285.
T239	"Time account". Section 36a-316.
T240	"Travelers check". Section 36a-596.
T241	"Troubled Connecticut credit union". Section 36a-448a.
T242	"Unique identifier". Section 36a-485.
T243	"Unsecured loan". Section 36a-615.
T244	"Value". Section 36a-603.
T245	"Virtual banking". Section 36a-170.
T246	"Warehouse agreement". Section 36a-485.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2018	36a-458a
Sec. 2	October 1, 2018	36a-457b(a)
Sec. 3	October 1, 2018	36a-3

Statement of Purpose:

To allow Connecticut credit unions to issue member business loans, provided such loans comply with federal law.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]