Conn. Gen. Stat. § 32-530

Current with legislation from the 2024 Regular and Special Sessions.

Section 32-530 - Definitions

As used in sections 32-530 to 32-540, inclusive:

(1) "Exempt company" means a corporation organized pursuant to the laws of this state or qualified to do business as a foreign corporation in this state and which (A) does not engage in the active conduct of a trade or business anywhere in the United States, except as provided in sections 32-530 to 32-540, inclusive, (B) elects to be an exempt company in accordance with said sections, (C) has its headquarters in and conducts all of its exempt activities in the United States, to the extent such activities are permitted under said sections, from locations within the Insurance and Financial Services Export Zone, (D) is an exempt banking company, an exempt insurer or an exempt investment company, and (E) includes the initials "IFSEZ" or the words "Insurance and Financial Services Export Zone" in its corporate name;

(2) "Internal revenue code" means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended;

(3) "Exempt banking company" means an exempt company that is a majority-owned subsidiary of a bank, out-of-state bank or foreign bank, as defined in section 36a-2, whose customers are non-United-States persons and which is not authorized to make loans or borrow money in the United States and which conducts no business other than that of an exempt company;

(4) "Exempt insurer" means an exempt company which is an alien insurer or domestic insurer, as defined in section 38a-1, whose policy holders are non-United-States persons and which only insures risks located outside of the United States and which conducts no business other than that of an exempt company;

(5) "Exempt investment company" means

(A) a mutual fund investment company that is an exempt company the principal business of which is trading in stocks or securities for its own account whose customers are non-United-States persons and which conducts no business other than that of an exempt company, or

(B) a mutual fund management company that is an exempt company which develops, services and manages mutual funds for non-United-States persons or exempt mutual fund investment companies and which conducts no business other than that of an exempt company;

(6) "Exempt activities" means activities undertaken by an exempt company from within the boundaries of the Insurance and Financial Services Export Zone with non-United-States persons, including, but not limited to, the earnings or receipt of interest on deposits with banks or on amounts held by an insurance company under an agreement to pay interest thereon, the earnings or receipt of interest or dividends from another exempt company and the realization of gain or loss from the sale or exchange or other disposition of the stock of another exempt company, activities within the state provided the activities are a required part of the business of the exempt company and includes, without limitation, the following:

(A) Communicating with depositors, customers or policy holders, all of which are non-United-States persons or shareholders, including the furnishing of financial reports, providing services or managing customer accounts;

(B) communicating with the general public;

(C) soliciting sales of its own stock;

(D) accepting the subscriptions of non-United-States persons as new stockholders;

(E) maintaining its principal corporate records and books of accounts;

(F) auditing its books of accounts;

(G) publishing or furnishing the offering and redemption price of the shares of stock issued by it;

(H) disbursing payments of dividends, legal fees, accounting fees and salaries of officers and directors;

(I) conducting meetings of its shareholders and board of directors;

(J) making redemptions of its own stock; and

(K) engaging in what would otherwise be nonexempt activities, provided such activities are ordinary, necessary and intended to carry out exempt activities;

(7) "Insurance and Financial Services Export Zone" means the geographic area designated pursuant to section 32-531; and

(8) "Non-United-States person" means anyone other than a United States person, as defined in Section 957(c) of the Internal Revenue Code.

Conn. Gen. Stat. § 32-530

( P.A. 96-253, S. 1, 12.)