CT SB00271

Authorizes the State Treasurer to purchase and acquire Connecticut trust preferred securities issued by eligible banks and holding companies on behalf of state trust funds, effective October 1, 2010.

Defines eligible institutions as banks and their holding companies certified by the Banking Commissioner that can issue trust preferred securities qualifying as Tier 1 capital under Federal Reserve Board regulations.

Requires Connecticut trust preferred securities to be issued through business trusts with terms established in an indenture or agreement between the issuing trust and an independent trustee approved by the Treasurer.

Allows issuing trusts to defer dividend payments on the securities, with deferred amounts appropriated from the General Fund to trust funds and repaid to the General Fund according to the indenture terms.

Authorizes the Banking Commissioner to adopt regulations to determine which institutions qualify as eligible institutions under this program.