The Department of Banking News Bulletin 

 Bulletin # 2067
Week Ending October 3, 2003

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to John P. Burke, Commissioner of Banking, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.

BRANCH ACTIVITY
State Bank Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Bank Examination Division, (860) 240-8185. Note: dates are listed in month/day/year format.

On September 29, 2003, Liberty Bank notified the Banking Commissioner that the legal address of its branch located at 597 Boston Post Road, Groton, Connecticut, which was approved on September 15, 2003, should be corrected to 597 Long Hill Road, Groton, Connecticut.

NEW BANK ACTIVITY
Application to Organize a Bank and Trust Company

On October 2, 2003, pursuant to the provisions of Section 36a-70 of the Connecticut General Statutes, as amended by Public Act 03-259, an application was filed by the organizers of The Bank of Southeastern Connecticut for the establishment of a bank and trust company 15 Masonic Street, New London, CT New London, Connecticut. The organizers are Joseph V. Ciaburri, Elmer F. Laydon, Michael M. Ciaburri, G. Leon Jacobs and James D. Wherry. Spokesperson for the organizers is Joseph V. Ciaburri, Southern Connecticut Bancorp, Inc., 215 Church Street, New Haven, Connecticut, 203-782-1100.

Notice of Special Meeting

Pursuant to Sections 1-225 and 36a-70(i) of the Connecticut General Statutes, on October 10, 2003, a special meeting will be held for the purpose of considering the application of the organizer of Customers' Bank (In Organization), West Haven, Connecticut, for an extension of its Temporary Certificate of Authority until October 15, 2004. The meeting is scheduled to be held at 1:00 p.m. at the Department of Banking, Room 50, 260 Constitution Plaza, Hartford, Connecticut.

MERGER

On October 1, 2003, pursuant to Section 36a-125 of the Connecticut General Statutes, as amended by Public Act 03-259, Ridgefield Bank and Fairfield County Savings Bank, both mutual savings banks, filed an application for the merger of Fairfield County Savings Bank with and into Ridgefield Bank, the resulting bank to operate as a mutual savings bank under the name of Fairfield County Bank Corp. In connection with the application, Ridgefield Bank and Fairfield County Savings Bank filed a community reinvestment plan that is available for public inspection and comment at the Department of Banking for a period of 30 days.

CONVERSION, ACQUISITION AND MERGER

On September 30, 2003, pursuant to Section 36a-136 of the Connecticut General Statutes, as amended by Public Act 03-196, The New Haven Savings Bank, New Haven, Connecticut, filed an application to convert from a mutual savings bank into a capital stock bank known as NewAlliance Bank, and for the formation of a holding company, NewAlliance Bancshares, Inc. On September 30, 2003, pursuant to Section 36a-184 of the Connecticut General Statutes, NewAlliance Bancshares, Inc., a corporation to be formed as the holding company of The New Haven Savings Bank, also filed an acquisition statement for the acquisition of Connecticut Bancshares, Inc., and indirectly The Savings Bank of Manchester, a Connecticut bank, and for the acquisition of Alliance Bancorp of New England, Inc., and indirectly Tolland Bank, a Connecticut bank. In addition, pursuant to Section 36a-125 of the Connecticut General Statutes, The New Haven Savings Bank filed an application, on behalf of itself, The Savings Bank of Manchester and Tolland Bank, for the merger of The Savings Bank of Manchester and Tolland Bank with and into The New Haven Savings Bank, the resulting bank to operate under the name NewAlliance Bank. In connection with the acquisition statement and application, NewAlliance Bancshares, Inc. and The New Haven Savings Bank filed a community reinvestment plan that is available for public inspection and comment at the Department of Banking for a period of 30 days.

CREDIT UNION DIVISION ACTIVITY
Credit Union Activity

CONSUMER CREDIT ACTIVITY

On September 30, 2003, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing against National City Mortgage Co., 3232 Newmark Drive, Miamisburg, Ohio 45342. The agency's action was based on the fact that the entity has engaged in the business of making first and secondary mortgage loans in this state without a first mortgage or a secondary mortgage license in violation of Sections 36a-486(a) and 36a-511(a), respectively, of the Connecticut General Statutes.

On September 24, 2003 the Banking Commissioner issued a Notice of Intent to Refuse to Renew First Mortgage Broker License and Notice of Right to Hearing against Joseph Vincent d/b/a Bank Street Mortgage Company, 44 Swanson Avenue, Stratford, Connecticut. The agency's action is based on findings that the entity failed to submit a $100 late fee with its renewal application, in violation of Section 36a-491(a)(1) of the Connecticut General Statutes and the entity failed to file a new bond or a replacement bond with the Commissioner as required by Section 36a-492 of the Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
New Canaan Firm Assessed $6,200 for
Unregistered Investment Advisory Activity

On October 3, 2003, the Banking Commissioner entered a Consent Order with respect to RLR Capital Management, Inc., an applicant for investment adviser registration having its principal office at 76 Elm Street, Suite 205, New Canaan, Connecticut. The Consent Order alleged that, from July 1997 forward, the firm transacted business as an investment adviser absent registration and employed an unregistered investment adviser agent. In entering the Consent Order, the Commissioner acknowledged that the firm had voluntarily disclosed the extent of its prior unregistered activity and that the number of clients serviced, excluding family accounts, had not exceeded five. The Consent Order required that the firm remit $6,200 to the department, $5,000 of which constituted an administrative fine, $900 of which represented past due investment adviser registration fees; and $300 of which represented past due investment adviser agent registration fees. In addition, the Consent Order required that the firm implement revised supervisory and compliance procedures providing for enhanced monitoring of state investment adviser and investment adviser agent licensing requirements. RLR Capital Management, Inc. became registered as an investment adviser under the Connecticut Uniform Securities Act on October 3, 2003.

Florida Firm Fined $500 for Transacting Business
from Unregistered Broker-dealer Branch Office

On October 3, 2003, the Banking Commissioner entered into a Stipulation and Agreement with Kovack Securities, Inc. of 6451 N. Federal Highway, Ft. Lauderdale, Florida. The Stipulation and Agreement alleged that from approximately January 2003 forward, the firm transacted business from 1707 Summer Street, Stamford, Connecticut at a time when that location was not registered as a branch office under Section 36b-6(d) of the Connecticut Uniform Securities Act. Kovack Securities, Inc. is a broker-dealer registered under the Act. Pursuant to the Stipulation and Agreement, the firm agreed to pay a $500 fine to the agency. In addition, the firm agreed to distribute to its main office compliance staff, and incorporate into its supervisory procedures, the department's written explanation concerning the definition of "branch office" and branch office registration procedures located on the department's web site.