Title 36a — Title 36a: The Banking Law of Connecticut

Sec. 36a-485. (Formerly Sec. 36-440). Definitions. As used in this section and sections 36a-486 to 36a-498e, inclusive, 36a-498h, 36a-534a and 36a-534b, unless the context otherwise requires: (1) “Advance fee” means any consideration paid or given, directly or indirectly, by a co…

Sec. 36a-486. (Formerly Sec. 36-440a). Licenses required. Exemptions. Prohibited advertisements. Violations. Temporary authority to act as mortgage loan originator. (a) No person shall engage in the business of making residential mortgage loans or act as a mortgage broker in this…

Sec. 36a-487. (Formerly Sec. 36-440b). Exemptions from licensure. (a) The following are exempt from licensing as a mortgage lender, mortgage correspondent lender or mortgage broker under sections 36a-485 to 36a-498e, inclusive, 36a-534a and 36a-534b: (1) Any bank, out-of-state ba…

Sec. 36a-488. (Formerly Sec. 36-440c). Mortgage lender, mortgage correspondent lender, mortgage broker, mortgage loan originator, loan processor, underwriter and lead generator licenses. Requirements. (a)(1) The commissioner shall not issue a mortgage lender license, a mortgage c…

Sec. 36a-489. (Formerly Sec. 36-440d). Licenses: Issuance; denial; renewal; suspension; financial responsibility; withdrawal or abandonment of application. (a)(1) The commissioner shall not issue an initial license for a mortgage lender, mortgage correspondent lender or mortgage …

Sec. 36a-489a. Prelicensing education, written test and annual continuing education requirements. (a)(1) In order to meet the prelicensing education and testing requirements referred to in section 36a-489, an individual shall complete: (A) At least twenty hours of education appro…

Sec. 36a-490. (Formerly Sec. 36-440e). License requirements. Request to surrender license. Requirements for filing information with system. (a)(1) Any licensee who intends to permanently cease engaging in the business of making residential mortgage loans or acting as a mortgage b…

Sec. 36a-491. (Formerly Sec. 36-440f). Expiration of licenses. Applications for renewal. Fees. (a) Each mortgage lender, mortgage correspondent lender, mortgage broker, lead generator, mortgage loan originator and loan processor or underwriter license shall expire at the close of…

Sec. 36a-492. (Formerly Sec. 36-440g). Surety bond required. Cancellation of bond. Automatic suspension of license. Notices. (a)(1) Each licensed mortgage lender, mortgage correspondent lender and mortgage broker shall file with the commissioner a single surety bond, written by a…

Sec. 36a-493. (Formerly Sec. 36-440h). Records to be maintained by licensee. (a) Each mortgage lender, mortgage correspondent lender and mortgage broker licensee, and each bona fide nonprofit organization exempt from licensure under subdivision (2) of subsection (b) of section 36…

Sec. 36a-494. (Formerly Sec. 36-440i). Suspension, revocation or refusal to renew license or taking other action. Removal from office and from employment or retention. Temporary order to cease business. (a)(1) The commissioner may suspend, revoke or refuse to renew any mortgage l…

Sec. 36a-495. (Formerly Sec. 36-440j). Regulations. Section 36a-495 is repealed, effective October 1, 2002. (P.A. 85-399, S. 11; P.A. 99-36, S. 30; P.A. 02-111, S. 51.)

Sec. 36a-496. (Formerly Sec. 36-440k). Applications and referrals from unlicensed mortgage brokers or mortgage loan originators. No person engaged in the business of making residential mortgage loans in this state, whether licensed in accordance with the provisions of sections 36…

Sec. 36a-497. (Formerly Sec. 36-440l). Advertisements. (a) No mortgage lender licensee, mortgage correspondent lender licensee or mortgage broker licensee shall: (1) Advertise or cause to be advertised in this state, any residential mortgage loan in which such person intends to a…

Sec. 36a-498. (Formerly Sec. 36-440m). Refundability of advance fees. Exceptions. Prohibited acts by mortgage lenders, correspondent lenders, brokers and loan originators re borrowers. (a) Except as provided in subsection (c) of this section, every advance fee paid or given, dire…

Sec. 36a-498a. Prepaid finance charges; restrictions. Secondary mortgage loan; demand for payment prior to maturity; liability for noncompliance; deed. (a) No mortgage lender licensee or mortgage correspondent lender licensee under section 36a-489 and no person exempt from licens…

Sec. 36a-498b. Release of secondary mortgage. Notice of outstanding balance of obligation secured by secondary mortgage. (a) Each mortgage lender, mortgage correspondent lender and mortgage broker, all as defined in section 36a-485 and licensed under section 36a-489, shall delive…

Sec. 36a-498c. Adoption of mortgage loan policy with respect to subprime mortgage loans and nontraditional mortgage loans. At least once a year, each mortgage lender and mortgage correspondent lender, both as defined in section 36a-485 and licensed under section 36a-489, shall ad…

Sec. 36a-498d. Unique identifier of licensee. Advertising of licensee. (a)(1) The unique identifier of any mortgage loan originator or loan processor or underwriter licensed under section 36a-489 shall be clearly shown on all residential mortgage loan application forms. (2) The u…

Sec. 36a-498e. Prohibited acts. (a) No person who is required to be licensed and who is subject to this section, sections 36a-485 to 36a-498d, inclusive, 36a-534a and 36a-534b, may, directly or indirectly: (1) Employ any scheme, device or artifice to defraud or mislead borrowers …

Sec. 36a-498f. Authority of commissioner re investigations and examinations. Prohibited acts by subjects of investigation or examination. Section 36a-498f is repealed, effective October 1, 2018. (P.A. 09-209, S. 19; P.A. 17-38, S. 13; P.A. 18-173, S. 101.)

Sec. 36a-498g. Severability. If any provision or application of section 36a-21, sections 36a-485 to 36a-498e, inclusive, or sections 36a-498h, 36a-534a and 36a-534b to any person or circumstance is held invalid by a court of this state, the remainder of said sections or the appli…

Sec. 36a-498h. Lead generator licensees. Prohibited acts. (a) No person required to be licensed as a lead generator shall, while engaged in lead generation activities: (1) Initiate any outbound telephone call using an automatic telephone dialing system or an artificial or prereco…

Secs. 36a-499 to 36a-509. Reserved for future use. (B) SECONDARY MORTGAGE LENDERS, BROKERS AND ORIGINATORS

Secs. 36a-510 to 36a-517. (Formerly Secs. 36-224a to 36-224h). Definitions. License required; violations. Persons exempt from license requirement. License as secondary mortgage lender, secondary mortgage correspondent lender or secondary mortgage broker; prerequisites; applicatio…

Sec. 36a-518. (Formerly Sec. 36-224i). Regulations. Section 36a-518 is repealed, effective October 1, 2002. (P.A. 77-228, S. 9; P.A. 02-111, S. 51.)

Secs. 36a-519 to 36a-524. (Formerly Secs. 36-224j to 36-224o). Prepayment penalties. Release of secondary mortgage; notice of loan balance. Limitation on prepaid finance charges; demand for payment prior to maturity; liability of mortgage lender to borrower for noncompliance; ref…

Secs. 36a-525 to 36a-534. Reserved for future use. (C) GENERAL PROVISIONS

Sec. 36a-534a. Notice of discriminatory lending practices. Violation as grounds for license suspension, revocation or nonrenewal. (a) Any mortgage broker, or mortgage lender or mortgage correspondent lender, as defined in section 36a-485 and licensed pursuant to section 36a-489, …

Sec. 36a-534b. Participation in system. Authority of commissioner to establish requirements. Reports. (a)(1) In addition to any other duties imposed upon the commissioner by law, the commissioner shall require mortgage lenders, mortgage correspondent lenders, mortgage brokers, le…

Sec. 36a-534c. Reports re system. Section 36a-534c is repealed, effective June 9, 2017. (P.A. 07-156, S. 25; P.A. 08-176, S. 67; P.A. 12-96, S. 17; P.A. 17-38, S. 17.) PART II* FINANCE COMPANIES *See Sec. 36a-676 for definitions under the Truth-in-Lending Act applicable to this p…

Sec. 36a-535. (Formerly Sec. 36-254). Definitions. As used in sections 36a-535 to 36a-547, inclusive, unless the context otherwise requires: (1) The terms “goods”, “retail installment sale”, “retail installment contract”, “installment loan contract”, “retail seller” and “retail b…

Sec. 36a-536. (Formerly Sec. 36-255). License required. Location of licensed activity. No person, unless excluded from the definition of a “sales finance company” as provided in section 36a-535, shall engage in the business of a sales finance company unless such person has obtain…

Sec. 36a-537. (Formerly Sec. 36-256a). Application. Criminal history records check, fingerprints, investigation of financial condition. Abandonment of application. (a) An application for a license as a sales finance company or for renewal of such license shall be made and process…

Sec. 36a-538. (Formerly Sec. 36-256b). Payment of cost of investigation. Each person applying for a license as a sales finance company or a renewal thereof shall pay the actual cost, at the discretion of and as determined by the commissioner, of any investigation or examination m…

Sec. 36a-539. (Formerly Sec. 36-257). License fee. Automatic suspension of license. Notice. Opportunity for hearing. Prohibited acts. (a) Each applicant for a sales finance company license shall pay to the system any required fees or charges and a license fee of four hundred doll…

Sec. 36a-540. (Formerly Sec. 36-258). License. Change in control person. Automatic suspension of license. Surrender of license. (a) Each license shall specify the location at which the business is to be conducted. Such license shall not be transferable or assignable. Any change i…

Sec. 36a-541. (Formerly Sec. 36-259a). Authority of commissioner to issue license or deny application for license. Standards for renewal. (a) If the commissioner finds, upon the filing of an application for a license as a sales finance company, that the financial responsibility, …

Sec. 36a-542. (Formerly Sec. 36-259b). Requirements for filing with system. Unique identifier of licensee. Advertising of license. (a) Except as otherwise specified in subsections (a) and (b) of section 36a-540, each sales finance company applicant or licensee, and each control p…

Sec. 36a-543. (Formerly Sec. 36-260a). Suspension, revocation or refusal to renew license or taking of other action. Enforcement powers of commissioner. (a) The commissioner may suspend, revoke or refuse to renew any sales finance company license or take any other action, in acco…

Sec. 36a-544. (Formerly Sec. 36-260b). Regulations. (a) The commissioner may adopt regulations, in accordance with chapter 54, as necessary to carry out the provisions of sections 36a-535 to 36a-547, inclusive, including the defining of any terms, whether or not used in said sect…

Sec. 36a-545. (Formerly Sec. 36-262a). Books and records. Each applicant or licensee shall have established bookkeeping methods and shall keep books and records at the place of business specified in the license in a form and manner satisfactory to the commissioner, or shall make …

Sec. 36a-546. (Formerly Sec. 36-263). Penalty. Any individual, corporation, partnership, limited partnership, association or other unincorporated enterprise, and any responsible officer, partner or employee thereof, who wilfully fails to comply with or violates any of the provisi…

Sec. 36a-547. Retail installment contract records. On and after October 1, 2018, a sales finance company, as defined in section 36a-535, shall acquire and maintain adequate records in the form and manner as the commissioner shall direct in each retail installment contract acquire…

Secs. 36a-548 to 36a-554. Reserved for future use. PART III* SMALL LOAN LENDING AND RELATED ACTIVITIES *See Sec. 42a-9-203 re attachment of security interest. Annotation to former chapter 647: Cited. 23 CS 184.

Sec. 36a-555. (Formerly Sec. 36-225). Definitions. As used in this section and sections 36a-556 to 36a-573, inclusive: (1) “Advertise” or “advertising” means any announcement, statement, assertion or representation that is placed before the public in a newspaper, magazine or othe…

Sec. 36a-556. (Formerly Sec. 36-226). Small loan lending and related activities prohibited without license or exemption. License required for certain persons acting for exempt person. (a) Without having first obtained a small loan license from the commissioner pursuant to section…

Sec. 36a-557. (Formerly Sec. 36-227). Exemptions. (a) The following persons are exempt from the requirement for licensure set forth in section 36a-556: (1) A licensed pawnbroker; (2) A person licensed as a consumer collection agency in accordance with section 36a-801 when engaged…

Sec. 36a-558. (Formerly Sec. 36-228). Prohibitions re small loans and related activities. Permitted small loan provisions. Open-end small loans. Lead generation activities. (a) Except as provided in subsection (c) of section 36a-557, no person licensed or required to be licensed …

Sec. 36a-559. (Formerly Sec. 36-229). Credit life insurance. Credit accident and health insurance. (a) Subject to the conditions provided in this section, insurance may be sold to a Connecticut borrower by a licensee at the request of the borrower (1) for insuring the life of per…