AGO 1990-022.

• Case Date: June 25, 1990
• Court: Connecticut

Connecticut Attorney General Opinions 1990. AGO 1990-022. June 25, 1990Opinion No. 1990-022Honorable Howard B. BrownDepartment of Banking44 Capitol AvenueHartford, CT 06106 Dear Commissioner Brown: You have requested our advice concerning the meaning of a provision within Conn. Gen. Stat. e§7-402, which relates to the deposit of public money and trust funds by municipalities and school districts. Section 7-402 provides in pertinent part: Deposit of public money and trust funds. Any public official of any municipality or school district is authorized to deposit any funds or moneys in his hands belonging to such municipality or district, or held by him as such official or as a trustee, in any qualified public depository, as defined in section 36-382 ... provided such deposit shall only be made in his name as such official or trustee or in the name of the municipality or school district to which the money belongs. In no case shall the deposit by such official in any one such qualified public depository exceed in the aggregate at any one time seventy-five per cent of the capital, general loss reserve, surplus and undivided profits of such depository, provided: (a) Any such qualified public depository is required to disclose such information relating to public deposits as the commissioner of banking may require by regulations which he shall adopt in accordance with the provisions of chapter 54. The regulations shall include, but not be limited to disclosure of the most current quarterly statement of condition and statement of income; (b) any such public depository whose ratio of net worth to assets falls below three per cent is prohibited from accepting additional public deposits ....1 Specifically, you have inquired whether subsection (b) imposes a blanket prohibition on acceptance of all additional public deposits until the depository's ratio of net worth to assets rises to at least three percent, or whether subsection (b) only prohibits the acceptance of such additional public deposits as would exceed the aggregate amount of public deposits held on the date that the depository's ratio fell below three percent. Under the latter alternative, if withdrawals are made from municipalities' accounts after the depository's ratio falls below three percent, the public depository would be permitted to accept additional deposits of public...