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

Sec. 36a-832. Fidelity bond. Deposit of exchange funds. An exchange facilitator at all times shall: (1) Maintain a fidelity bond in an amount of not less than one million dollars executed by an insurer authorized to do business in this state; (2) Deposit all exchange funds in a s…

Sec. 36a-833. Errors and omissions insurance policy; cash or securities deposit; letters of credit. An exchange facilitator at all times shall: (1) Maintain an errors and omissions policy of insurance in an amount not less than two hundred fifty thousand dollars executed by an in…

Sec. 36a-834. Regulations. Damage claims. The Banking Commissioner may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of sections 36a-830 to 36a-837, inclusive. Any person claiming to have suffered damage by reason of the failure o…

Sec. 36a-835. Holding and investment of exchange funds. (a) An exchange facilitator shall hold all exchange funds, including money, property, other consideration or instruments received by the exchange facilitator from or on behalf of the client, but not including funds received …

Sec. 36a-836. Prohibited activities of exchange facilitators. No exchange facilitator or, in the case of an exchange facilitator that is an entity, no owner, officer, director or employee of such exchange facilitator, shall knowingly: (1) Make any material misrepresentations conc…

Sec. 36a-837. Civil action. Notice. (a) A person who violates any provision of sections 36a-831 to 36a-836, inclusive, is subject to civil suit in a court of competent jurisdiction. (b) Any person who commences a civil action pursuant to subsection (a) of this section shall notif…

Secs. 36a-838 to 36a-845. Reserved for future use. PART XIV STUDENT LOANS

Sec. 36a-846. Definitions. As used in this section and sections 36a-847 to 36a-855, inclusive: (1) “Advertise” or “advertising” has the same meaning as provided in section 36a-485; (2) “Branch office” means a location other than the main office at which a licensee or any person o…

Sec. 36a-847. Private student loan services license required. Application. Authority to conduct criminal history records check. Fees. Examination of records. Automatic suspension of license. Abandonment of application. (a) Except as provided in section 36a-847b, no person shall a…

Sec. 36a-847a. Federal student loan servicer registration required. Fees. Service of process and communication with commissioner. Civil penalty. (a) Except as provided in section 36a-847b, no person shall act as a federal student loan servicer, directly or indirectly, unless such…

Sec. 36a-847b. Exemptions. The provisions of sections 36a-846 to 36a-855, inclusive, shall not apply to the following persons: (1) Any bank, out-of-state bank, Connecticut credit union, federal credit union or out-of-state credit union; (2) any wholly owned subsidiary of any such…

Sec. 36a-848. Name and place of business. Change of name or location. License and registration not transferable or assignable. Change in any control persons. Automatic suspension of license and civil penalty against registrant. Required system filing or notice of commissioner. Un…

Sec. 36a-849. Records to be maintained by licensee. (a) Except as otherwise required pursuant to federal law, a federal student loan agreement or by a contract with the United States Department of Education, each private student loan servicer licensee and each federal student loa…

Sec. 36a-850. Prohibited activities of student loan servicers and control persons. No student loan servicer and no control person of a student loan servicer shall, directly or indirectly: (1) Employ any scheme, device or artifice to defraud or mislead student loan borrowers; (2) …

Sec. 36a-850a. Required activities of a private student loan servicer. Limitations to applicability. (a) In servicing a private student education loan, a private student education loan servicer shall: (1) Prior to sending the first billing statement on a private student education…

Sec. 36a-851. Commissioner's authority re investigations and examinations. Prohibited acts by subjects of investigation or examination. (a) In addition to any authority provided under this title, the commissioner shall have the authority to conduct investigations and examinations…

Sec. 36a-852. Suspension, revocation or refusal to renew license or registration. Removal from office and from employment or retention. Temporary order to cease business. (a) The commissioner may suspend, revoke or refuse to renew any license issued under section 36a-847, or take…

Sec. 36a-853. Compliance with federal laws and regulations. A student loan servicer shall comply with all applicable federal laws and regulations relating to student loan servicing, including, but not limited to, the Truth-in-Lending Act, 15 USC Section 1601 et seq., as from time…

Sec. 36a-854. Regulations. The Banking Commissioner shall adopt such regulations, in accordance with chapter 54, to implement the provisions of this section and sections 36a-846 to 36a-853, inclusive. (P.A. 15-162, S. 10.) History: P.A. 15-162 effective July 1, 2016.

Sec. 36a-855. Action for damages, fees, costs and equitable relief. Class actions. (a) Any student loan borrower, class of student loan borrowers or the legal representative of such borrower or borrowers aggrieved by a violation of any provision of sections 36a-846 to 36a-854, in…

Sec. 36a-856. Definitions. Registration. Disclosures. Internet web site. Enforcement powers of commissioner. Penalty. (a) For purposes of this section: (1) “Commissioner” means the Banking Commissioner; (2) “Consumer collection agency” has the same meaning as provided in section …

Secs. 36a-857 to 36a-859. Reserved for future use. PART XV FINANCIAL PLANNERS

Sec. 36a-860. Financial planners. (a) For purposes of this section and section 36a-860a, (1) “fiduciary duty” means a duty to act with prudence in the best interests of a consumer with undivided loyalty to such consumer, and (2) “financial planner” means a person offering individ…

Sec. 36a-860a. Links to educational materials re financial planning and investment advisers on department's Internet web site. (a) To the extent practicable, the Banking Commissioner shall provide on the department's Internet web site links to educational materials on (1) financi…

Sec. 36a-861. Definitions. As used in this section and sections 36a-862 to 36a-872, inclusive: (1) “Commercial financing” means any extension of sales-based financing by a provider in an amount not exceeding two hundred fifty thousand dollars, the proceeds of which the recipient …

Sec. 36a-862. Reliance on statement of intended purpose made by recipient. For purposes of determining whether financing is commercial financing, a provider may rely on any statement of intended purpose made by the recipient. The statement may be (1) a separate statement signed b…

Sec. 36a-863. Disclosures required when specific offer extended. A provider shall provide to a recipient, when the provider extends a specific offer for sales-based financing, the following disclosures in a format prescribed by the Banking Commissioner: (1) The total amount of th…

Sec. 36a-864. Disclosures required if recipient required to pay off existing commercial financing as condition. If as a condition of obtaining commercial financing the provider requires the recipient to pay off the balance of existing commercial financing from the same provider, …

Sec. 36a-865. Signature of recipient required on disclosures. The provider shall obtain the recipient's signature, which may be fulfilled by an electronic signature, on all disclosures required to be presented to the recipient pursuant to sections 36a-861 to 36a-866, inclusive, b…

Sec. 36a-866. Disclosure of additional information. Nothing in this section or sections 36a-861 to 36a-865, inclusive, shall prevent a provider from providing or disclosing additional information concerning commercial financing offered to a recipient, provided such additional inf…

Sec. 36a-867. Use of commercial financing disclosure form approved by another state. If the Banking Commissioner determines that the laws of another state require commercial financing disclosures that meet or exceed the commercial financing disclosure requirements established und…

Sec. 36a-868. Waiver provisions re provider obtaining prejudgment remedy. Unenforceable provisions. No commercial financing contract entered into on or after July 1, 2024, shall contain any provision waiving a recipient's right to notice, judicial hearing or prior court order und…

Sec. 36a-869. Revocation, withdrawal or modification of specific offer based on preliminary review. (a) A provider shall not revoke, withdraw or modify a specific offer made on or after July 1, 2024, until midnight of the third calendar day after the date of the specific offer. A…

Sec. 36a-870. Registration. Authority to transact business. Application. Fees. (a) Not later than October 1, 2024, each provider and commercial financing broker shall: (1) Register with the Banking Commissioner in a manner prescribed by the commissioner; and (2) unless such provi…

Sec. 36a-871. Regulations. The Banking Commissioner may adopt regulations, in accordance with the provisions of chapter 54, to carry out the provisions of sections 36a-861 to 36a-872, inclusive. (P.A. 23-201, S. 11.) History: P.A. 23-201 effective July 1, 2024.

Sec. 36a-872. Penalties. (a) Any provider who violates any provision of sections 36a-861 to 36a-870, inclusive, or any regulation adopted pursuant to section 36a-871 shall be liable for a civil penalty pursuant to section 36a-50. (b) In addition to any civil penalty imposed under…