Summary of Substitute Senate Bill No. 1109

• Modifies electronic data processing service contracts for banks and credit unions to require notification to the commissioner of material changes rather than sending copies of contracts; authorizes commissioner to examine servicers' books and systems and assess examination fees.

• Expands the commissioner's authority to enter into stipulations, memoranda of understanding, and consent orders with banks and credit unions, and permits issuance of preliminary warning letters to credit unions and credit union service organizations.

• Extends the period for expedited Connecticut bank applications from October 1, 2009 to September 30, 2013, permits multiple expedited bank applications, and clarifies that conditional preliminary approval expires eighteen months from approval without requiring business commencement within that period.

• Modifies collateral requirements for public deposits held by financial institutions, establishing percentages based on risk-based capital ratios (10%, 25%, or 100%) and requiring deficiencies to be cured by the close of business the following business day.

• Authorizes Connecticut banks to merge with non-bank affiliates provided the resulting institution remains a Connecticut bank, subject to applicable state and federal banking laws.

• Adds criminal history record check requirements for trustees, credit union organizers and officers, and business development corporation principals and officers.