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

Sec. 36a-746. Short title: Connecticut Abusive Home Loan Lending Practices Act. Sections 36a-746 to 36a-746g, inclusive, shall be known and may be cited as the “Connecticut Abusive Home Loan Lending Practices Act”. (P.A. 01-34, S. 2.)

Sec. 36a-746a. Definitions. As used in this section and sections 36a-746b to 36a-746g, inclusive: (1) “APR” means the annual percentage rate for the loan calculated according to the provisions of the federal Truth-in-Lending Act, 15 USC Section 1601 et seq., as amended from time …

Sec. 36a-746b. Disclosures. A lender making a high cost home loan shall disclose to the prospective borrower: (1) The following statement: “You are not required to complete this agreement merely because you have received these disclosures or have signed a loan application. If you…

Sec. 36a-746c. Prohibited provisions in loan agreement. A high cost home loan shall not provide for or include the following: (1) For a loan with a term of less than seven years, a payment schedule with regular periodic payments that when aggregated do not fully amortize the outs…

Sec. 36a-746d. Report of payment history. Any lender who makes a high cost home loan shall report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit reporting agency at least annually during such period as the lender hold…

Sec. 36a-746e. Prohibited acts by lender. In the making of a high cost home loan no lender shall: (1) Pay a contractor under a home improvement contract from the proceeds of the loan, other than: (A) By an instrument payable to the borrower or jointly to the borrower and the cont…

Sec. 36a-746f. Purchase of insurance by buyer. Section 36a-746f is repealed, effective July 1, 2008. (P.A. 01-34, S. 8; P.A. 03-61, S. 8; P.A. 08-176, S. 84.)

Sec. 36a-746g. Refund or credit of charges. The lender and any assignee of the lender shall have the obligation, jointly and severally, to refund or credit the borrower for any default charges or prepaid finance charges collected in excess of the limits set forth in sections 36a-…

Secs. 36a-747 to 36a-754. Reserved for future use. PART X OTHER MORTGAGE AND LOAN PRACTICES

Sec. 36a-755. (Formerly Sec. 36-9h). Mortgage appraisal practices. Definitions. Regulations. (a) As used in this section: (1) “Applicant” means a natural person who applies for a mortgage loan; (2) “Financial institution” means a bank, out-of-state bank, Connecticut credit union,…

Sec. 36a-756. (Formerly Sec. 36-9t). Title insurance as condition of mortgage on residential real estate prohibited. No bank or out-of-state bank shall, in connection with any application for a mortgage loan in this state which is secured by mortgage on residential real estate lo…

Sec. 36a-757. (Formerly Sec. 36-9u). Mortgage insurance requirements limited. No mortgage lender shall, in connection with any application for a mortgage loan in this state which is secured by mortgage on residential real estate located in this state, require any prospective mort…

Sec. 36a-758. (Formerly Sec. 36-9y). Payment of loan proceeds by certified, bank treasurer's or cashier's check or by wire transfer. Any person who makes any first mortgage loan, as defined in section 36a-485, or any secondary mortgage loan, as defined in section 36a-485, shall, …

Sec. 36a-758a. Payment of first or secondary mortgage loan proceeds by wire transfer. Time limits. Penalties. Section 36a-758a is repealed, effective October 1, 2007. (P.A. 02-112, S. 1, 2; P.A. 03-23, S. 1; 03-84, S. 80; P.A. 07-91, S. 38.)

Sec. 36a-759. (Formerly Sec. 36-4). Minority of veterans, spouses and widows for purposes of the Servicemen's Readjustment Act. The disability of minority of any person otherwise eligible for a loan, or guaranty or insurance of a loan, pursuant to the act of the Congress of the U…

Sec. 36a-759a. Compliance with John Warner National Defense Authorization Act for Fiscal Year 2007. Limit on interest rate charged on consumer credit to members of armed services. Each financial institution shall comply with the applicable provisions of Section 670 of the John Wa…

Sec. 36a-760. Nonprime home loans: Definitions; applicability. (a) As used in this section and sections 36a-760a to 36a-760j, inclusive: (1) “APR” has the same meaning as provided in section 36a-746a; (2) “CHFA loan” means a loan made, insured, purchased, subsidized or guaranteed…

Sec. 36a-760a. Duties of lenders and mortgage brokers relating to nonprime home loans. (a) A lender shall not engage in conduct in any transaction, practice or course of business in connection with the making of a nonprime home loan that is misleading, deceptive or untruthful. (b…

Sec. 36a-760b. Analysis of obligor's ability to pay. (a) No lender shall make a nonprime home loan unless the lender reasonably believes, at the time the loan is consummated, that one or more of the obligors, when considered individually or collectively, will be able to make the …

Sec. 36a-760c. Prohibition against making nonprime home loan when proceeds used to pay off special mortgage. (a) No lender shall make a nonprime home loan where all or a portion of the proceeds are used to fully or partially pay off a special mortgage on the same property unless …

Sec. 36a-760d. Requirements for making nonprime home loans. A lender shall not make a nonprime home loan unless: (1) With respect to nonprime home loans that are first mortgage loans for which the lender receives an application on or after April 1, 2010, the lender requires and c…

Sec. 36a-760e. Restrictions on provisions in nonprime home loans. (a) A lender shall not offer a nonprime home loan that contains: (1) A prepayment penalty, except that this prohibition shall not apply to FHA loans; (2) A provision requiring a borrower, whether acting individuall…

Sec. 36a-760f. Prohibition against dividing or structuring loan to avoid application of nonprime home loan statutory provisions. No lender or mortgage broker shall attempt in bad faith to avoid the application of sections 36a-760a to 36a-760h, inclusive, by dividing any loan tran…

Sec. 36a-760g. Restrictions on making and financing under nonprime home loans. Curing of defaults. (a) As used in this section and section 36a-760h, the term “mortgage” means a mortgage deed or other instrument that constitutes a first or secondary consensual lien upon any intere…

Sec. 36a-760h. Additional duties of mortgage brokers. A mortgage broker, in addition to duties imposed by federal statutes, other provisions of the general statutes or at common law, shall: (1) Use reasonable care, skill and diligence in performing the mortgage broker's duties an…

Sec. 36a-760i. Court action based on lender's failure to comply with statutory requirements. (a) A borrower who has been injured by a violation of sections 36a-760a to 36a-760h, inclusive, may bring a claim in a court of competent jurisdiction by the date three years after the da…

Sec. 36a-760j. Prohibition against influencing real estate appraisals. No person shall influence real estate appraisals of residential property. For the purposes of this section, “influence real estate appraisals” means to directly or indirectly cause or attempt to cause, through…

Secs. 36a-761 to 36a-769. Reserved for future use. PART XI* RETAIL INSTALLMENT SALES FINANCING *See Sec. 36a-676 for definitions under the Truth-in-Lending Act applicable to this part. Annotations to former chapter 733: Remedies under chapter not limited to Secs. 42-99 and 42-100…

Sec. 36a-770. (Formerly Sec. 42-83). Applicability of Uniform Commercial Code. Filing and recording. Definitions. (a) The Uniform Commercial Code. A transaction subject to sections 36a-770 to 36a-788, inclusive, 42-100b and 42-100c is also subject to the Uniform Commercial Code, …

Sec. 36a-771. (Formerly Sec. 42-84). General contract requirements. (a) Every retail installment contract shall be in writing, shall contain all the agreements of the parties and shall be completed as to all essential provisions prior to the signing of the contract by the retail …

Sec. 36a-772. (Formerly Sec. 42-85). Maximum finance charge on retail sales of motor vehicles and other goods. (a) A retail seller of motor vehicles may charge, contract for, receive or collect a finance charge expressed as an annual percentage rate on any retail installment cont…

Sec. 36a-773. (Formerly Sec. 42-86). Insurance. Every retail seller or sales finance company, if insurance is included in a retail installment contract, shall, within fifteen days after execution of the retail installment contract, send or cause to be sent to the retail buyer a p…

Sec. 36a-774. (Formerly Sec. 42-87). Installment loan contract requirements. Every installment loan contract shall be in writing executed by the retail buyer and a copy thereof shall be delivered to such retail buyer at the time of the execution thereof. Within fifteen days after…

Sec. 36a-775. (Formerly Sec. 42-88). Confession of judgment provision invalid. No provision for confession of judgment or power of attorney therefor, contained in any retail installment contract or installment loan contract or contained in a separate agreement relating thereto, s…

Sec. 36a-776. (Formerly Sec. 42-89). Inclusion of other goods in contract void. Any provision of a retail installment contract as originally written or subsequently amended which purports to provide for the inclusion of title to or a lien upon any goods subsequently or previously…

Sec. 36a-777. (Formerly Sec. 42-90). Acknowledgment of receipt of notice and statement. An acknowledgment by the retail buyer of the delivery of any such copy, notice or statement as is required in section 36a-771 or 36a-774 contained in the body of the statement or contract shal…

Sec. 36a-778. (Formerly Sec. 42-91). Delinquency and collection charges. The holder of any retail installment contract or any installment loan contract shall not receive or collect any charges or expenses for collecting any delinquent payment, including, but not limited to, any s…

Sec. 36a-779. (Formerly Sec. 42-92). Assignment of contract. Any sales finance company may purchase or acquire from the original holder thereof or from any other sales finance company any retail installment contract or any installment loan contract on such terms and conditions as…

Sec. 36a-780. (Formerly Sec. 42-93). Payments after assignment. Unless notice has been given to the retail buyer of actual or intended assignment of a retail installment contract or installment loan contract, payment thereunder or tender thereof made by the retail buyer to the la…

Sec. 36a-781. (Formerly Sec. 42-94). Statement of payments made. Receipts. Upon written request from the retail buyer, the holder of the retail installment contract or the installment loan contract shall give or forward to the retail buyer a written statement of the dates and amo…

Sec. 36a-782. (Formerly Sec. 42-95). Cancellation of contract on payment in full. Upon payment in full of the balance and other amounts lawfully due under a retail installment contract or installment loan contract by the retail buyer, the holder shall mark the contract and note s…

Sec. 36a-783. (Formerly Sec. 42-96). Rebate and refund upon prepayment of contract. (a) Notwithstanding the provisions of any retail installment contract to the contrary, any retail buyer may satisfy in full at any time before maturity the debt of any retail installment contract …

Sec. 36a-784. (Formerly Sec. 42-97). Renewals and extensions. Whenever any sales finance company or retail seller renews or extends the installments remaining unpaid so that the retail installment contract is both extended beyond its original date of final payment and the install…

Sec. 36a-785. (Formerly Sec. 42-98). Foreclosure. (a) Repossession. When the retail buyer is in default in the payment of any sum due under the retail installment contract or installment loan contract, or in the performance of any other condition that such contract requires the r…

Sec. 36a-786. (Formerly Sec. 42-99). Recovery of charges barred by wilful violations. A wilful violation of any provision of sections 36a-770 to 36a-788, inclusive, 42-100b and 42-100c, except a violation with respect to disclosure which is subject to the provisions of section 36…

Sec. 36a-787. (Formerly Sec. 42-100). Penalty. Any person and any responsible officer, partner or employee of such person who wilfully and deliberately fails to comply with or violates any of the provisions of sections 36a-770 to 36a-788, inclusive, 42-100b and 42-100c except a v…

Sec. 36a-788. (Formerly Sec. 42-100a). Enforcement action. Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of sections 36a-770 to 36a-788, inclusive, 42-100b and 42-100c, the commissioner may take action agai…

Sec. 36a-789. Definitions. Debt waiver not insurance. Amount charged or financed for debt waiver. Cancellation and refund. (a) As used in this section: (1) “Borrower” means a debtor, retail buyer or lessee under a loan, retail installment contract or lease for the purchase, refin…

Secs. 36a-790 to 36a-799. Reserved for future use. PART XII CONSUMER COLLECTION AGENCIES

Sec. 36a-800. (Formerly Sec. 42-127). Consumer collection agency. Definitions. As used in this section and sections 36a-801 to 36a-814, inclusive, unless the context otherwise requires: (1) “Advertise” or “advertising” has the same meaning as provided in section 36a-485; (2) “Bra…