CHAPTER 668
NONDEPOSITORY FINANCIAL INSTITUTIONS

Table of Contents

Sec. 36a-485. (Formerly Sec. 36-440). Definitions.
Sec. 36a-486. (Formerly Sec. 36-440a). License required. Failure to obtain license. Civil penalty.
Sec. 36a-487. (Formerly Sec. 36-440b). Exemptions from licensure.
Sec. 36a-488. (Formerly Sec. 36-440c). Application for license.
Sec. 36a-489. (Formerly Sec. 36-440d). Findings re application.
Sec. 36a-490. (Formerly Sec. 36-440e). License.
Sec. 36a-491. (Formerly Sec. 36-440f). License fee.
Sec. 36a-492. (Formerly Sec. 36-440g). Bond required.
Sec. 36a-493. (Formerly Sec. 36-440h). Records. Examinations.
Sec. 36a-494. (Formerly Sec. 36-440i). Suspension, revocation or refusal to renew license.
Sec. 36a-495. (Formerly Sec. 36-440j). Regulations.
Sec. 36a-496. (Formerly Sec. 36-440k). Applications and referrals from unlicensed mortgage brokers.
Sec. 36a-497. (Formerly Sec. 36-440l). Advertisements.
Sec. 36a-498. (Formerly Sec. 36-440m). Refundability of advance fees. Exceptions.
Secs. 36a-499 to 36a-509.
Sec. 36a-510. (Formerly Sec. 36-224a). Definitions.
Sec. 36a-511. (Formerly Sec. 36-224b). License required. Violations.
Sec. 36a-512. (Formerly Sec. 36-224c). Persons exempt from license requirement.
Sec. 36a-513. (Formerly Sec. 36-224d). Application for license. Investigation. Issuance.
Sec. 36a-514. (Formerly Sec. 36-224e). Application and license fees.
Sec. 36a-515. (Formerly Sec. 36-224f). Assignment or transfer of license or certificate.
Sec. 36a-516. (Formerly Sec. 36-224g). Records to be maintained by licensee.
Sec. 36a-517. (Formerly Sec. 36-224h). Suspension, revocation or refusal to renew license. Enforcement powers of commissioner.
Sec. 36a-518. (Formerly Sec. 36-224i). Regulations.
Sec. 36a-519. (Formerly Sec. 36-224j). Prepayment penalties.
Sec. 36a-520. (Formerly Sec. 36-224k). Release of second mortgage. Notice of loan balance.
Sec. 36a-521. (Formerly Sec. 36-224l). Limitation on charges. Demand for payment prior to maturity. Liability of lender to borrower for noncompliance. Refundability of advance fees.
Sec. 36a-522. (Formerly Sec. 36-224m). Mortgage deeds.
Sec. 36a-523. (Formerly Sec. 36-224n). Applications and referrals from unlicensed mortgage brokers.
Sec. 36a-524. (Formerly Sec. 36-224o). Advertisements.
Secs. 36a-525 to 36a-534.
Sec. 36a-534a. Notice of discriminatory lending practices. Violation as grounds for license suspension, revocation or nonrenewal.
Sec. 36a-535. (Formerly Sec. 36-254). Definitions.
Sec. 36a-536. (Formerly Sec. 36-255). License required.
Sec. 36a-537. (Formerly Sec. 36-256a). Application.
Sec. 36a-538. (Formerly Sec. 36-256b). Payment of cost of investigation.
Sec. 36a-539. (Formerly Sec. 36-257). License fee.
Sec. 36a-540. (Formerly Sec. 36-258). Location of office.
Sec. 36a-541. (Formerly Sec. 36-259a). Refusal or issuance of license. Transaction of business under other name prohibited.
Sec. 36a-542. (Formerly Sec. 36-259b). Renewal of license.
Sec. 36a-543. (Formerly Sec. 36-260a). Suspension, revocation or refusal to renew license. Enforcement powers of commissioner.
Sec. 36a-544. (Formerly Sec. 36-260b). Regulations.
Sec. 36a-545. (Formerly Sec. 36-262a). Books and records.
Sec. 36a-546. (Formerly Sec. 36-263). Penalty.
Secs. 36a-547 to 36a-554.
Sec. 36a-555. (Formerly Sec. 36-225). Loan business to be licensed.
Sec. 36a-556. (Formerly Sec. 36-226). Requirements for granting license.
Sec. 36a-557. (Formerly Sec. 36-227). Application.
Sec. 36a-558. (Formerly Sec. 36-228). Fees. Examination expenses.
Sec. 36a-559. (Formerly Sec. 36-229). Miscellaneous license provisions.
Sec. 36a-560. (Formerly Sec. 36-230). Separate license for each place of business.
Sec. 36a-561. (Formerly Sec. 36-231). Conduct of business in association with other business.
Sec. 36a-562. (Formerly Sec. 36-232). Change of location.
Sec. 36a-563. (Formerly Sec. 36-233). Charges. Loan restrictions.
Sec. 36a-564. (Formerly Sec. 36-233a). "Cash advance" defined.
Sec. 36a-565. (Formerly Sec. 36-233b). Open-end loans. Annual percentage rate. Computation of interest. Loan charges. Credit life, accident and health insurance.
Sec. 36a-566. (Formerly Sec. 36-234). Credit life and accident and health insurance.
Sec. 36a-567. (Formerly Sec. 36-235). Prepayment of loan; receipts to borrower.
Sec. 36a-568. (Formerly Sec. 36-236). Form of security restricted. Loan contract.
Sec. 36a-569. (Formerly Sec. 36-237). Records. Reports to commissioner.
Sec. 36a-570. (Formerly Sec. 36-239). Regulations.
Sec. 36a-571. (Formerly Sec. 36-241). License suspension.
Sec. 36a-572. (Formerly Sec. 36-242). License revocation.
Sec. 36a-573. (Formerly Sec. 36-243). Charge of greater than legal interest.
Secs. 36a-574 to 36a-579.
Sec. 36a-580. (Formerly Sec. 36-564). Definitions. Applicability of provisions.
Sec. 36a-581. (Formerly Sec. 36-565). License required. Application.
Sec. 36a-582. (Formerly Sec. 36-566). License fee. Expenses of examination.
Sec. 36a-583. (Formerly Sec. 36-567). Posting of license required. License not transferable or assignable.
Sec. 36a-584. (Formerly Sec. 36-568). Maximum fees for the cashing of state checks. Regulations. Maximum amount of check that may be cashed by check cashing licensee. Exceptions.
Sec. 36a-585. (Formerly Sec. 36-569). Maximum fees set by Commissioner of Banking.
Sec. 36a-586. (Formerly Sec. 36-570). Records to be maintained by check cashing licensee. Reporting requirements.
Sec. 36a-587. (Formerly Sec. 36-571). Suspension, revocation or refusal to renew license. Hearings. Enforcement powers of commissioner.
Sec. 36a-588. (Formerly Sec. 36-572). Regulations.
Sec. 36a-589. (Formerly Sec. 36-573). Violations.
Secs. 36a-590 to 36a-594.
Sec. 36a-595. (Formerly Sec. 36-530). Short title: Money Order and Travelers Check Licensees Act.
Sec. 36a-596. (Formerly Sec. 36-531). Definitions.
Sec. 36a-597. (Formerly Sec. 36-532). License required.
Sec. 36a-598. (Formerly Sec. 36-533). Application.
Sec. 36a-599. (Formerly Sec. 36-534). Investigation and license fees. Term of license.
Sec. 36a-600. (Formerly Sec. 36-536). Investigation of applicant. Issuance of license.
Sec. 36a-601. (Formerly Sec. 36-537). Renewal of license.
Sec. 36a-602. (Formerly Sec. 36-538). Surety bond or investments required.
Sec. 36a-603. (Formerly Sec. 36-539). Investments equal to amount of outstanding instruments required.
Sec. 36a-604. (Formerly Sec. 36-540). Net worth requirements.
Sec. 36a-605. (Formerly Sec. 36-541). Examination of licensees.
Sec. 36a-606. (Formerly Sec. 36-542). Annual financial reports required.
Sec. 36a-606a. Federal reporting requirements.
Sec. 36a-607. (Formerly Sec. 36-543). Conduct of business by agent or subagent.
Sec. 36a-608. (Formerly Sec. 36-544). Enforcement powers of commissioner.
Sec. 36a-609. (Formerly Sec. 36-545). Exemptions.
Sec. 36a-610. (Formerly Sec. 36-546). Regulations.
Secs. 36a-611 to 36a-614.
Sec. 36a-615. (Formerly Sec. 36-577). Definitions.
Sec. 36a-616. (Formerly Sec. 36-578). Advance fees imposed by loan brokers prohibited.
Sec. 36a-617. (Formerly Sec. 36-580). Penalties for violations.
Sec. 36a-618. (Formerly Sec. 36-581). Remedies.
Sec. 36a-619. (Formerly Sec. 36-582). Remedies provided by sections 36a-615 to 36a-620, inclusive, not exclusive.
Sec. 36a-620. (Formerly Sec. 36-583). Regulations.
Secs. 36a-621 to 36a-624.
Sec. 36a-625. Short title: Connecticut Business and Industrial Development Corporation Act.
Sec. 36a-626. Definitions.
Sec. 36a-627. License required. Exemptions.
Sec. 36a-628. Application. Fee. Examination.
Sec. 36a-629. Safe and sound business practice required.
Sec. 36a-630. Licensees to provide financing and management assistance to small businesses.
Sec. 36a-631. Books and records. Annual financial reports.
Sec. 36a-632. Jurisdiction of Commissioner of Banking.
Sec. 36a-633. License fee. Costs of examination to be borne by applicants.
Sec. 36a-634. Regulations.
Secs. 36a-635 to 36a-644.


PART I
MORTGAGE LENDERS AND BROKERS

(A)
NONDEPOSITORY FIRST MORTGAGE LENDERS AND BROKERS

Sec. 36a-485. (Formerly Sec. 36-440). Definitions. As used in this section and sections 36a-486 to 36a-498, inclusive, unless the context otherwise requires:
(1) "Advance fee" means any consideration paid or given, directly or indirectly, to a mortgage lender or mortgage broker required to be licensed pursuant to sections 36a- 485 to 36a-498, inclusive, prior to the closing of a first mortgage loan to any person, including, but not limited to, loan fees, points, commissions, transaction fees or similar prepaid finance charges;
(2) "First mortgage loan" means a loan or an extension of credit, including, but not limited to, an extension of credit pursuant to a contract or an assigned contract for the sale of goods or services, made to a natural person, the proceeds of which are to be used primarily for personal, family or household purposes, and which is secured by a first mortgage upon any interest in one-to-four-family residential owner-occupied real property located in this state which is not subject to any prior mortgages and includes the renewal or refinancing of an existing first mortgage loan;
(3) "Mortgage broker" means a person who, for a fee, commission or other valuable consideration, negotiates, solicits, arranges, places or finds a first mortgage loan which is to be made by a mortgage lender, whether or not such lender is required to be licensed under sections 36a-485 to 36a-498, inclusive;
(4) "Mortgage lender" means any person engaged in the business of making first mortgage loans;
(5) "Principal officer" means the president or treasurer of any licensee which is organized as a corporation;
(6) "Residential property" means improved real property used or occupied, or intended to be used or occupied, for residential purposes;
(7) "Simulated check" means a document that imitates or resembles a check but is not a negotiable instrument; and
(8) "Advertise" or "advertisement" means the use of media, mail, computer, telephone, personal contact or any other means to offer the opportunity for a first mortgage loan.
(P.A. 85-399, S. 1; P.A. 87-9, S. 2, 3; P.A. 89-347, S. 9; P.A. 92-12, S. 87; 92-132, S. 3, 5; P.A. 94-122, S. 229, 340; P.A. 99-36, S. 23; 99-63, S. 2.)
History: (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 89-347 added Subsec. (g) defining "mortgage broker"; P.A. 92-12 redesignated Subdivs. and made technical changes; P.A. 92-132 added Subdiv. (8) defining "advance fee"; P.A. 94-122 deleted definitions of "commissioner" and "person", alphabetized remaining definitions and made technical changes, effective January 1, 1995; Sec. 36-440 transferred to Sec. 36a-485 in 1995; P.A. 99-36 made a technical change; P.A. 99-63 amended Subdiv. (2) to redefine "first mortgage loan", added new Subdivs. (7) and (8) defining "simulated check" and "advertise" or "advertisement", and made technical changes.

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Sec. 36a-486. (Formerly Sec. 36-440a). License required. Failure to obtain license. Civil penalty. (a) No person shall engage in the business of making first mortgage loans unless such person has first obtained a license in accordance with the provisions of sections 36a-485 to 36a-495, inclusive. No person shall engage in the first mortgage loan business in this state as a mortgage broker unless such person has first obtained a license in accordance with the provisions of said sections.
(b) Each first mortgage loan negotiated, solicited, placed, found or made without a license shall constitute a separate violation for purposes of section 36a-50.
(P.A. 85-399, S. 2; P.A. 89-347, S. 10; P.A. 93-32; P.A. 94-122, S. 230, 340; P.A. 96-71, S. 1, 8; 96-109, S. 10; 96- 180, S. 117, 166.)
History: P.A. 89-347 added requirements re mortgage brokers; P.A. 93-32 made previous provision Subsec. (a) and added new Subsec. (b) imposing civil penalty for those who do not obtain the license required; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440a transferred to Sec. 36a-486 in 1995; P.A. 96-71, 96-109 and 96-180 all amended Subsec. (a) to delete "loan" before "mortgage loan business in this state", effective July 1, 1996.

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Sec. 36a-487. (Formerly Sec. 36-440b). Exemptions from licensure. The following are exempt from licensing under sections 36a-485 to 36a-498, inclusive:
(1) Any bank, out-of-state bank, Connecticut credit union, federal credit union, or out-of-state credit union, provided subsidiaries of such institutions are not exempt from licensure;
(2) Persons granting five or fewer first mortgage loans within any period of twelve consecutive months;
(3) Bona fide nonprofit corporations granting first mortgage loans to promote home ownership for the economically disadvantaged;
(4) Agencies of the federal government, or any state or municipal government, or any quasi-governmental agency granting first mortgage loans under the specific authority of the laws of any state or the United States;
(5) Persons licensed under sections 36a-555 to 36a-573, inclusive, when making loans authorized by said sections;
(6) Persons licensed under sections 36a-510 to 36a-524, inclusive, when making loans authorized by said sections, provided such licensed lender makes less than twelve first mortgage loans within any period of twelve consecutive months;
(7) Any corporation or its affiliate which makes first mortgage loans exclusively for the benefit of its employees or agents;
(8) Any corporation, licensed in accordance with section 38a-41, or its affiliate or subsidiary, which grants first mortgage loans to promote home ownership in urban areas; and
(9) Persons acting as fiduciaries with respect to any employee pension benefit plan qualified under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, who make first mortgage loans solely to plan participants from plan assets.
(P.A. 85-399, S. 3; P.A. 88-65, S. 37; P.A. 89-211, S. 41; P.A. 92-12, S. 88; P.A. 94-122, S. 231, 340; P.A. 99-36, S. 24.)
History: P.A. 88-65 deleted a reference to industrial bank in Subsec. (a); P.A. 89-211 clarified reference to the Internal Revenue Code of 1986; P.A. 92-12 redesignated Subdivs.; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440b transferred to Sec. 36a-487 in 1995; P.A. 99-36 made a technical change.

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Sec. 36a-488. (Formerly Sec. 36-440c). Application for license. (a) An application for a license under sections 36a-485 to 36a-498, inclusive, or renewal of such license shall be made in writing, under oath and on a form provided by the commissioner.
(b) The application shall set forth: (1) The name and address of the applicant; (2) if the applicant is a firm or partnership, the name and address of each member of the firm or partnership; (3) if the applicant is a corporation, the name and address of each officer, director, authorized agent and each shareholder owning ten per cent or more of the outstanding stock of such corporation; (4) whether the applicant is a lender or a mortgage broker, or both, and (5) such other information pertaining to the applicant, its background, the background of its principals and employees, and its activities as the commissioner may require.
(P.A. 85-399, S. 4; P.A. 89-347, S. 11; P.A. 94-122, S. 232, 340; P.A. 99-36, S. 25.)
History: P.A. 89-347 amended Subsec. (b) by inserting new Subdiv. (4) re the applicant's status as a lender or a broker and renumbered the remaining Subdiv.; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440c transferred to Sec. 36a-488 in 1995; P.A. 99-36 made a technical change in Subsec. (a).

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Sec. 36a-489. (Formerly Sec. 36-440d). Findings re application. If the commissioner finds, upon the filing of an application for a license, that the financial responsibility, character, reputation, integrity and general fitness of the applicant and of the members thereof if the applicant is a partnership or association, and of the officers, directors and principal employees if the applicant is a corporation, are such as to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of sections 36a-485 to 36a-498, inclusive, the commissioner may thereupon issue the applicant a license (1) to engage in the business of granting first mortgage loans or (2) to be a mortgage broker. If the commissioner fails to make such findings, the commissioner shall not issue a license, and shall notify the applicant of the denial and the reasons for such denial.
(P.A. 85-399, S. 5; P.A. 89-347, S. 12; P.A. 94-122, S. 233, 340; P.A. 99-36, S. 26.)
History: P.A. 89-347 extended the application of the section to mortgage brokers; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440d transferred to Sec. 36a-489 in 1995; P.A. 99-36 made technical changes.

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Sec. 36a-490. (Formerly Sec. 36-440e). License. (a) Each license shall state the address at which the business is to be conducted and shall state fully the name of the licensee. If the licensee desires to grant first mortgage loans in more than one location or to act as a mortgage broker in more than one location, the licensee shall procure a license for each location where the business is to be conducted. Each license shall be prominently posted in each place of business of the licensee. Such license shall not be transferable or assignable. Any change of location of a place of business of a licensee shall require the prior approval of the commissioner and requests for relocation shall be in writing. No licensee shall use any name other than the name set forth on the license issued by the commissioner.
(b) The licensee shall promptly notify the commissioner, in writing, of the name, address and position of each new officer, partner, director or, if the licensee is a corporation, each new shareholder owning ten per cent or more of the outstanding stock of the corporation, and provide such other information as the commissioner may require.
(c) Every license shall remain in force and effect until it has been surrendered, revoked, suspended or expires in accordance with the provisions of sections 36a-485 to 36a-495, inclusive.
(P.A. 85-399, S. 6; P.A. 89-347, S. 13; P.A. 94-122, S. 234, 340; P.A. 97-22, S. 1.)
History: P.A. 89-347 amended Subsec. (a) by adding the reference to a licensee acting as a mortgage broker in more than one location; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440e transferred to Sec. 36a- 490 in 1995; P.A. 97-22 made a technical change in Subsec. (a).

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Sec. 36a-491. (Formerly Sec. 36-440f). License fee. (a)(1) Each applicant for a license to be a mortgage lender or to be both a mortgage lender and a mortgage broker shall, at the time of making such application, pay to the commissioner a license fee of four hundred dollars. Each applicant for a license to be a mortgage broker shall, at the time of making such application, pay to the commissioner a license fee of two hundred dollars. Each license issued pursuant to this section shall expire at the close of business on September thirtieth of each year unless such license is renewed. Such licensee shall, on or before September first of each year, pay to the commissioner the appropriate license fee as provided in this section for the succeeding year, commencing October first, together with such renewal application as the commissioner may require. Any renewal application filed with the commissioner after September first shall be accompanied by a one-hundred-dollar late fee.
(2) Whenever an application for a license, other than a renewal application, is filed under sections 36a-485 to 36a-498, inclusive, by any person who was a licensee under said sections and whose license expired less than sixty days prior to the date such application was filed, such application shall be accompanied by a one-hundred-dollar processing fee in addition to the application fee.
(b) No abatement of the license fee shall be made if the license is surrendered, revoked or suspended prior to the expiration of the period for which it was issued. All fees required by this section shall be nonrefundable.
(P.A. 85-399, S. 7; P.A. 88-150, S. 5; P.A. 89-347, S. 14; P.A. 92-89, S. 7, 20; P.A. 94-104, S. 5; P.A. 96-71, S. 2, 8; P.A. 99-36, S. 27.)
History: P.A. 88-150 amended Subsec. (a) by providing that the license fee is nonrefundable and adding the provision re the expiration of licenses on September thirtieth; P.A. 89-347 added references to mortgage brokers, establishing license fee for mortgage brokers; P.A. 92-89 increased the fee applicable to lender's and combination licenses from two hundred fifty to four hundred dollars and increased the fee applicable to broker's licenses from one hundred to two hundred dollars; P.A. 94-104 changed the license renewal deadline from September tenth to September first and added a one-hundred- dollar late fee in Subsec. (a), and added Subdiv. (2) to Subsec. (a) re applications filed by a licensee whose license expired within sixty days of his application; Sec. 36-440f transferred to Sec. 36a-491 in 1995; P.A. 96-71 clarified that all license fees required by this section are nonrefundable, effective July 1, 1996; P.A. 99-36 made a technical change in Subsec. (a).

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Sec. 36a-492. (Formerly Sec. 36-440g). Bond required. No such license, and no renewal thereof, shall be granted unless the applicant has filed a bond with the commissioner written by a surety authorized to write such bonds in this state, in the sum of forty thousand dollars, the form of which shall be approved by the Attorney General. Such bond shall be conditioned upon such licensee faithfully performing any and all written agreements or commitments with borrowers and prospective borrowers, truly and faithfully accounting for all funds received by the licensee in the licensee's capacity as a mortgage lender or a mortgage broker, and conducting such mortgage business consistent with the provisions of sections 36a-485 to 36a-498, inclusive. Any person who may be damaged by failure to perform any written agreements or commitments, or by the wrongful conversion of funds paid to a licensee, may proceed on such bond against the principal or surety thereon, or both, to recover damages. The bond shall run concurrently with the period of the license granted to the applicant, and the aggregate liability under the bond shall not exceed the penal sum of the bond.
(P.A. 85-399, S. 8; P.A. 89-347, S. 15; P.A. 90-277; P.A. 94-122, S. 235, 340; P.A. 99-36, S. 28.)
History: P.A. 89-347 extended the application of the section to mortgage brokers; P.A. 90-277 reduced the required bond sum from fifty thousand dollars to forty thousand dollars; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440g transferred to Sec. 36a-492 in 1995; P.A. 99-36 made technical changes.

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Sec. 36a-493. (Formerly Sec. 36-440h). Records. Examinations. (a) Each licensee shall maintain adequate records of each loan transaction at the place of business named in the license, or shall make such records available at such place of business not later than five business days after requested by the commissioner to do so. Such records shall provide the following information: (1) A copy of any disclosures required under part III of chapter 669; (2) whether the licensee acted as a mortgage lender, a mortgage broker or both; (3) if the licensee is acting as a mortgage lender, and retains the first mortgage loan or receives payments thereon, an adequate loan history for those loans retained or upon which payments are received, itemizing the amount and date of each payment and the unpaid balance at all times; (4) the purpose for which the loan was made; (5) the original or an exact copy of the note and mortgage deed; and (6) a statement signed by the borrowers acknowledging the receipt of such statement which discloses the full amount of any fee, commission or consideration paid to the broker for all services in connection with the mortgage loan.
(b) Each licensee acting as a mortgage lender shall retain records of each loan transaction for not less than one year following the final payment thereon.
(c) Each licensee acting as a mortgage broker shall retain the records of each loan transaction for not less than two years from the transaction or such longer period as may be required by any other provision of law.
(d) Any person who furnishes to a licensee any records required to be maintained under this section or any information necessary to complete such records may charge a fee to the licensee in an amount not to exceed fifty dollars.
(P.A. 85-399, S. 9; P.A. 89-347, S. 16; P.A. 90-184, S. 8; P.A. 94-122, S. 236, 340.)
History: P.A. 89-347 amended Subsec. (a) by inserting new Subdiv. (2) requiring the licensee to state whether it acted as a mortgage lender, a mortgage broker or any combination thereof and renumbering the remaining subdivisions in Subsec. (a) and adding Subdiv. (6) in Subsec. (a) re the borrower's statement, made a technical change in Subsec. (c) and added Subsec. (d) re record retention requirements for mortgage brokers; P.A. 90-184 added Subsec. (e) authorizing a fee to be charged for records or information furnished to a licensee; P.A. 94-122 changed "commissioner or his representative" to "commissioner" and "any combination thereof" to "both" in Subsec. (a), deleted Subsec. (b) re examination of books and records of licensees, and relettered former Subsecs. (c) through (e) as Subsecs. (b) through (d), effective January 1, 1995; Sec. 36-440h transferred to Sec. 36a-493 in 1995.

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Sec. 36a-494. (Formerly Sec. 36-440i). Suspension, revocation or refusal to renew license. (a) The commissioner may suspend, revoke or refuse to renew any license, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-485 to 36a-498, inclusive, or if the commissioner finds that the licensee or any owner, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following: (1) Made any material misstatement in the application; (2) committed any fraud or misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any first mortgage loan transaction, including disclosures required by subdivision (6) of subsection (a) of section 36a-493, or part III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled to such information; (3) violated any of the provisions of sections 36a-485 to 36a-498, inclusive, or of parts I, III and V of chapter 669 or of any regulations adopted pursuant thereto, or any other law or regulation applicable to the conduct of its business; or (4) failed to perform any agreement with a borrower.
(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-485 to 36a-498, inclusive, or any regulation adopted pursuant thereto, or any licensee has failed to perform any agreement with a borrower, the commissioner may take action against such person or licensee in accordance with section 36a-50.
(P.A. 85-399, S. 10; P.A. 86-403, S. 78, 132; P.A. 88-230, S. 1, 12; P.A. 89-347, S. 17; P.A. 90-98, S. 1, 2; P.A. 93- 142, S. 4, 7, 8; 93-194, S. 5, 7; P.A. 94-122, S. 237, 340; P.A. 99-36, S. 29; P.A. 00-61, S. 2, 9.)
History: P.A. 86-403 deleted reference to chapter 657a in Subsec. (a); P.A. 88-230 replaced "judicial district of Hartford- New Britain" with "judicial district of Hartford", effective September 1, 1991; P.A. 89-347 amended Subsec. (a) by adding failure to make disclosures required by Subdiv. (6) of Subsec. (a) of Sec. 36-440h as grounds for suspending, revoking or refusing to renew a license; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 93-194 specified that provisions apply to persons who are not licensed as well as to licensees, effective June 23, 1993; P.A. 94-122 deleted Subsec. (c) re cease and desist provisions and made technical changes, effective January 1, 1995; Sec. 36-440i transferred to Sec. 36a-494 in 1995; P.A. 99-36 made technical changes; P.A. 00-61 amended Subsec. (b) by adding language re licensee's failure to perform an agreement with a borrower, effective July 1, 2000.

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Sec. 36a-495. (Formerly Sec. 36-440j). Regulations. The commissioner may adopt regulations in accordance with the provisions of chapter 54 as may be necessary to carry out the provisions of sections 36a-485 to 36a-498, inclusive.
(P.A. 85-399, S. 11; P.A. 99-36, S. 30.)
History: Sec. 36-440j transferred to Sec. 36a-495 in 1995; P.A. 99-36 made a technical change.

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Sec. 36a-496. (Formerly Sec. 36-440k). Applications and referrals from unlicensed mortgage brokers. No person engaged in the business of making first mortgage loans in this state, whether licensed in accordance with the provisions of sections 36a- 485 to 36a-498, inclusive, or exempt from licensing, shall accept applications or referral of applicants from, or pay a fee to, any mortgage broker who is required to be licensed under said sections but is not licensed to act as such by the commissioner, if the mortgage lender has actual knowledge that the mortgage broker is not licensed by the commissioner.
(P.A. 91-306, S. 2.)
History: Sec. 36-440k transferred to Sec. 36a-496 in 1995.

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Sec. 36a-497. (Formerly Sec. 36-440l). Advertisements. No person licensed pursuant to section 36a-489 shall:
(1) Advertise or cause to be advertised in this state, any first mortgage loan in which such person intends to act only as a mortgage broker unless the advertisement includes the following statement, clearly and conspicuously expressed: BROKER ONLY, NOT A LENDER; or
(2) In connection with an advertisement in this state, use (A) a simulated check; (B) a comparison between the loan payments under the first mortgage loan offered and the loan payments under a hypothetical loan or extension of credit, unless the advertisement includes, with respect to both the hypothetical loan or extension of credit and the first mortgage loan being offered, the interest rate, the loan balance, the total amount of finance charges, the total number of payments and the monthly payment amount that would be required to pay off the outstanding loan balance shown; (C) representations such as "verified as eligible", "eligible", "preapproved", "prequalified" or similar words or phrases, without also disclosing, in immediate proximity to and in similar size print, language which sets forth prerequisites to qualify for the first mortgage loan, including, but not limited to, income verification, credit check, and property appraisal or evaluation; or (D) any words or symbols in the advertisement or on the envelope containing the advertisement that give the appearance that the mailing was sent by a government agency.
(P.A. 91-306, S. 3; P.A. 94-122, S. 238, 340; P.A. 99-63, S. 3.)
History: P.A. 94-122 made a technical change, effective January 1, 1995; Sec. 36-440l transferred to Sec. 36a-497 in 1995; P.A. 99-63 designated existing provisions as Subdiv. (1), changing "in any medium" to "in this state" and making technical changes, and added Subdiv. (2) re advertising restrictions.

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Sec. 36a-498. (Formerly Sec. 36-440m). Refundability of advance fees. Exceptions. (a) Except as provided in subsection (b) of this section, every advance fee paid or given, directly or indirectly, to a mortgage lender or mortgage broker required to be licensed pursuant to sections 36a-485 to 36a-498, inclusive, shall be refundable.
(b) Subsection (a) of this section shall not apply if: (1) The person providing the advance fee and the mortgage lender or mortgage broker agree in writing that the advance fee shall not be refundable, in whole or in part; and (2) the written agreement complies in all respects with the provisions of subsection (c) of this section.
(c) An agreement under subsection (b) of this section shall meet all of the following requirements to be valid and enforceable: (1) The agreement shall be dated, signed by both parties, and be executed prior to the payment of any advance fee; (2) the agreement shall expressly state the total advance fee required to be paid and any amount of the advance fee that shall not be refundable; (3) the agreement shall clearly and conspicuously state any conditions under which the advance fee will be retained by the licensee; (4) the term "nonrefundable" shall be used to describe each advance fee or portion thereof to which the term is applicable, and shall appear in boldface type in the agreement each time it is used; and (5) the form of the agreement shall (A) be separate from any other forms, contracts, or applications utilized by the licensee, (B) contain a heading in a size equal to at least ten-point boldface type that shall title the form "AGREEMENT CONCERNING NONREFUNDABILITY OF ADVANCE FEE", (C) provide for a duplicate copy which shall be given to the person paying the advance fee at the time of payment of the advance fee, and (D) include such other specifications as the commissioner may by regulation prescribe.
(d) An agreement under subsection (b) of this section that does not meet the requirements of subsection (c) of this section shall be voidable at the election of the person paying the advance fee.
(P.A. 92-132, S. 4, 5; P.A. 94-122, S. 239, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440m transferred to Sec. 36a-498 in 1995.

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Secs. 36a-499 to 36a-509. Reserved for future use.
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(B)*
SECONDARY MORTGAGE LENDERS

*Annotations to former chapter 646a (Sec. 36-224a et seq.):
Secondary mortgage act cited. 27 CA 628, 629, 631.

Sec. 36a-510. (Formerly Sec. 36-224a). Definitions. As used in sections 36a-510 to 36a-524, inclusive, unless the context otherwise requires:
(1) "Advance fee" means any consideration paid or given, directly or indirectly, to a licensee prior to the closing of a secondary mortgage loan to any person, including, but not limited to, loan fees, points, commissions, transaction fees, broker's fees or commissions, or similar prepaid finance charges;
(2) "Broker" means a person who, for a fee or other consideration, negotiates, solicits, places or finds a secondary mortgage loan which is to be made by a lender;
(3) "Lender" means a person who makes a secondary mortgage loan;
(4) "Licensee" means any person who is required to be licensed pursuant to section 36a-511;
(5) "Principal amount of the loan" means the gross loan amount the borrower is obligated to repay including any prepaid finance charge and other charges which are financed. The provisions of this subdivision apply to all loans negotiated before, on and after June 14, 1993;
(6) "Secondary mortgage loan" means (A) a loan or an extension of credit, including, but not limited to, an extension of credit pursuant to a contract or an assigned contract for the sale of goods or services, made to a person, the proceeds of which are to be used primarily for personal, family or household purposes, and which is secured in whole or in part by a mortgage upon any interest in one-to-four-family residential owner-occupied real property located in this state, provided such real property is subject to one or more prior mortgages, and (B) the renewal or refinancing of any existing loan or extension of credit described in subparagraph (A) of this subdivision;
(7) "Simulated check" means a document that imitates or resembles a check but is not a negotiable instrument; and
(8) "Advertise" or "advertisement" means the use of media, mail, computer, telephone, personal contact or any other means to offer the opportunity for a secondary mortgage loan.
(P.A. 77-228, S. 1; 77-614, S. 161, 587, 610; P.A. 78-216, S. 1, 7; 78-303, S. 85, 136; P.A. 80-482, S. 251, 345, 348; P.A. 87-9, S. 2, 3; P.A. 90-184, S. 1; P.A. 92-12, S. 64; 92-132, S. 1, 5; P.A. 93-130, S. 1, 3; P.A. 94-122, S. 240, 340; P.A. 99-63, S. 4.)
History: P.A. 77-614 and P.A. 78-303 replaced bank commissioner with banking commissioner within the department of business regulation, effective January 1, 1979; P.A. 78-216 added Subdivs. (e) and (f) defining "lender" and "broker"; P.A. 80-482 deleted reference to abolished department of business regulation and restored commissioner as head of independent banking department (as was the case before P.A. 77-614 which had made banking department a division within the department of business regulation); (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 90-184 amended the definition of "secondary mortgage loan" in Subsec. (a) and amended the definition of "broker" in Subsec. (f); P.A. 92-12 redesignated Subsecs. and Subdivs. and made technical changes; P.A. 92-132 added Subdiv. (7) defining "advance fee"; P.A. 93-130 added Subdiv. (8) defining "principal amount of the loan", effective June 14, 1993; P.A. 94-122 deleted definitions of "commissioner" and "person" and alphabetized remaining definitions with technical changes, effective January 1, 1995; Sec. 36-224a transferred to Sec. 36a-510 in 1995; P.A. 99-63 added new Subdivs. (7) and (8) defining "simulated check" and "advertise" or "advertisement".
Cited. 41 CA 754, 756, 764−767. P.A. 93-130 cited. Id. P.A. 93-130 Sec. 1(8) cited. Id.
Subdiv. (5):
Cited erroneously as Sec. 36a-510a(5). 41 CA 754, 756.

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Sec. 36a-511. (Formerly Sec. 36-224b). License required. Violations. (a) No person shall engage in the secondary mortgage loan business in this state as a lender or a broker unless such person has obtained a license under sections 36a-510 to 36a-524, inclusive. For the purposes of said sections, a person shall be deemed to be engaged in the secondary mortgage loan business if such person advertises, causes to be advertised, solicits, offers to make or makes a secondary mortgage loan, either directly or indirectly. A person shall not be deemed to be engaging in the secondary mortgage loan business if in the course of the person's business as a licensed real estate broker, an accountant, or an attorney, the person negotiates a secondary mortgage loan, and the beneficiaries of a licensee's estate shall not be deemed to be engaging in such business unless such beneficiaries make new secondary mortgage loans.
(b) Each secondary mortgage loan negotiated, solicited, placed, found or made without a license shall constitute a separate violation for purposes of section 36a-50.
(P.A. 77-228, S. 2; 77-604, S. 81, 84; P.A. 78-216, S. 2, 7; P.A. 90-184, S. 2; P.A. 94-122, S. 241, 340.)
History: P.A. 77-604 rephrased and relocated provision re beneficiaries of estate and deleted provision which had considered persons becoming subsequent holders of mortgage or promissory notes received in connection with secondary mortgage loans in ordinary course of business to be engaged in the secondary mortgage loan business; P.A. 78-216 added "as a lender or a broker" re engaging in secondary mortgage loan business; P.A. 90-184 designated former section as Subsec. (a) and added Subsec. (b) re civil penalty for engaging in the secondary mortgage loan business without a license; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-224b transferred to Sec. 36a-511 in 1995.
Secondary mortgage loan issued by lender in violation of licensing requirements is not enforceable in foreclosure action. 248 C. 769.
Trial court properly rendered summary judgment in favor of plaintiffs; because plaintiff's failure to meet licensing requirements of section to issue secondary mortgage loans did not render mortgage agreement a nullity or an illegal act relieving defendants of their obligations, defendant's claim that trial court was misled by plaintiff's affidavit stating plaintiffs were exempt from requirements of section did not create an issue of material fact. 48 CA 80.

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Sec. 36a-512. (Formerly Sec. 36-224c). Persons exempt from license requirement. The following are exempt from the licensing requirements of sections 36a-510 to 36a-524, inclusive: (1) Persons licensed as small business investment companies by the Small Business Administration; (2) persons owning real property who take back from the buyer of such property a secondary mortgage loan in lieu of any portion of the purchase price of the property; (3) persons granting secondary mortgage loans to persons related to the lender by blood or marriage; (4) any bank, out-of-state bank, Connecticut credit union, federal credit union or out-of-state credit union, provided subsidiaries of such institutions are not exempt from licensure; (5) persons granting five or fewer secondary mortgage loans within any twelve consecutive months, provided (A) the aggregate total of such loans does not exceed one hundred thousand dollars, (B) each individual loan does not exceed twenty thousand dollars and (C) such loans are written in compliance with section 36a-521; (6) nonprofit corporations granting secondary mortgage loans to promote home ownership or improvements for the disadvantaged; (7) agencies of the federal government or any state or municipal government or any quasi- governmental agency granting secondary mortgage loans under the specific authority of the laws of this state or the United States; (8) persons licensed under sections 36a- 555 to 36a-573, inclusive, when making loans authorized by said sections; (9) persons licensed under sections 36a-485 to 36a-498, inclusive, when making loans authorized by said sections, provided such licensed lender makes fewer than twelve secondary mortgage loans within any twelve consecutive months and such loans are written in compliance with section 36a-521; (10) any corporation or its affiliate which makes mortgage loans exclusively for the benefit of its employees or agents; (11) any corporation, licensed in accordance with section 38a-41, or its affiliate or subsidiary, which grants secondary mortgage loans to promote home ownership in urban areas; and (12) persons acting as fiduciaries with respect to any employee pension benefit plan qualified under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, who make secondary mortgage loans solely to plan participants from plan assets.
(P.A. 77-228, S. 3; 77-614, S. 161, 587, 610; P.A. 78-216, S. 3, 7; 78-303, S. 85, 136; P.A. 80-67, S. 1; P.A. 87-66; P.A. 89-211, S. 40; P.A. 90-184, S. 3; P.A. 94-122, S. 242, 340.)
History: P.A. 77-614 and P.A. 78-303 replaced bank commissioner with banking commissioner, effective January 1, 1979; P.A. 78-216 rephrased and clarified Subdiv. (4); P.A. 80-67 deleted former Subpara. (B), i.e. "secondary mortgage loans, the aggregate total of which is less than twenty-five thousand dollars" in Subdiv. (4); P.A. 87-66 replaced former exemption (4) re persons granting fewer than three secondary mortgage loans with exemption re banks and credit unions, inserted new exemption as (5) re persons granting five or fewer secondary mortgage loans, renumbering former Subdivs. (6) and (7) accordingly, deleted former Subdiv. (8) re entities subject to banking commissioner, etc. and added new exemptions as Subdivs. (9) to (13); P.A. 89-211 clarified reference to the Internal Revenue Code of 1986; P.A. 90-184 deleted former Subdiv. (8) re exemption for persons granting secondary mortgage loans used primarily for other than personal, family or household purposes, and renumbered remaining Subdivs. accordingly; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-224c transferred to Sec. 36a-512 in 1995.

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Sec. 36a-513. (Formerly Sec. 36-224d). Application for license. Investigation. Issuance. (a) An application for a secondary mortgage loan license or renewal of such license shall be in writing, under oath and on a form provided by the commissioner.
(b) The application shall set forth: (1) The name and address of the applicant; (2) if the applicant is a firm or partnership, the names and address of each member of the firm or partnership; (3) if the applicant is a corporation, the names and address of each officer, director, authorized agent and each shareholder owning ten per cent or more of the outstanding stock of such corporation; (4) if the applicant is a trust or the lead lender in one or more participation loans, the name and address of each trustee or lead lender and each beneficiary of the trust or other participant lenders in all outstanding participation loans, respectively; and (5) whether the applicant is a lender or a broker, or both.
(c) Upon the filing of the required application and license fee, the commissioner shall investigate the facts and may issue a license if the commissioner finds that the applicant is in all respects properly qualified and of good character and that granting such license would not be against the public interest. Any disapproval of an application by the commissioner shall, when applicable, be subject to the provisions of section 46a-80.
(P.A. 77-228, S. 4; P.A. 78-216, S. 4, 7; P.A. 80-67, S. 2; P.A. 94-122, S. 243, 340.)
History: P.A. 78-216 required that application set forth whether applicant is a lender and/or broker in Subsec. (b); P.A. 80-67 included renewal of licenses in Subsec. (a), reworded Subsec. (b) and specified applicability of Subdiv. (4) to lead and participant lenders and added Subsec. (c); P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36- 224d transferred to Sec. 36a-513 in 1995.

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Sec. 36a-514. (Formerly Sec. 36-224e). Application and license fees. (a)(1) Each applicant for a license to be a lender or to be both a lender and broker, at the time of making such application, shall pay to the commissioner a license fee of four hundred dollars. Each applicant for a license to be a broker, but not a lender, at the time of making such application, shall pay to the commissioner a license fee of two hundred dollars. Each license issued pursuant to this section shall expire at the close of business on June thirtieth of each year unless such license is renewed. Each licensee shall, on or before June first of each year, file a renewal application and pay to the commissioner the appropriate license fee as provided in this section to renew the license for the succeeding year, commencing July first. Any renewal application filed with the commissioner after June first shall be accompanied by a one-hundred-dollar late fee. (2) Whenever an application for a license, other than a renewal application, is filed under this section by any person who was a licensee under sections 36a-510 to 36a-524, inclusive, and whose license expired less than sixty days prior to the date such application was filed, such application shall be accompanied by a one-hundred-dollar processing fee in addition to the application fee.
(b) Each applicant or licensee shall pay the expenses of any examination or investigation made under sections 36a-510 to 36a-524, inclusive.
(c) No abatement of the license fee shall be made if the license is surrendered, revoked or suspended prior to the expiration of the period for which it was issued. All fees required by this section shall be nonrefundable.
(P.A. 77-228, S. 5; P.A. 78-216, S. 5, 7; P.A. 88-150, S. 2; P.A. 92-89, S. 4, 20; P.A. 94-104, S. 1; P.A. 96-71, S. 3, 8.)
History: P.A. 78-216 made previous license fees applicable to lender's and combination licenses and added provisions for broker's fee; P.A. 88-150 amended Subsec. (a) by providing that the license fees are nonrefundable, increasing the license fee to be a broker to two hundred dollars and adding the provision re expiration of licenses on June thirtieth of each year; P.A. 92-89 increased the fee applicable to lender's and combination licenses from two hundred fifty to four hundred dollars; P.A. 94-104 changed the license renewal deadline from June twentieth to June first, added a one-hundred-dollar late fee and added a one-hundred-dollar processing fee for a person whose license expired within sixty days of his application in Subsec. (a); Sec. 36-224e transferred to Sec. 36a-514 in 1995; P.A. 96-71 clarified that all fees required by this section are nonrefundable, effective July 1, 1996.

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Sec. 36a-515. (Formerly Sec. 36-224f). Assignment or transfer of license or certificate. No license shall be assignable nor shall any license or certificate be transferable to cover a place of business located in another city or town unless the licensee moves his place of business to another city or town after written notice of such move is given to the commissioner. Each such license shall be kept conspicuously posted in the respective place of business of the licensee for which such license was issued. Every license shall remain in force and effect until the same has been surrendered, revoked or suspended in accordance with the provisions of sections 36a-510 to 36a-524, inclusive. Any license which is revoked or suspended shall be immediately surrendered to the commissioner. If any change occurs in the personnel of the partners, directors or officers of a licensee or, if the licensee is a trust or lead lender in any participation loans, a change in the trustees or other participant lenders, respectively, the licensee shall forthwith notify the commissioner, and the commissioner may require a statement under oath giving such information as he may reasonably require with respect to such change.
(P.A. 77-228, S. 6; P.A. 80-67, S. 3; P.A. 81-472, S. 69, 159.)
History: P.A. 80-67 clarified provision re posting of license and added reference to lead and participant lenders; P.A. 81-472 made technical changes; Sec. 36-224f transferred to Sec. 36a-515 in 1995.

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Sec. 36a-516. (Formerly Sec. 36-224g). Records to be maintained by licensee. (a) Each licensee shall maintain adequate records of each loan transaction. Such records shall provide the following information: (1) A copy of any disclosures required under part III of chapter 669; (2) whether the licensee acted as lender, broker or both; (3) in the case of a licensee acting as a lender, an adequate loan history, itemizing the amount and date of each payment and the unpaid balance at all times; (4) the purpose for which the loan was made; (5) the original or an exact copy of the note, contract or other evidence of indebtedness and the mortgage deed; and (6) the name and address of the broker, if any, involved in the loan transaction.
(b) Each licensee acting as a lender shall retain records of each loan transaction as required under subsection (a) of this section, for not less than one year from the date of the final payment to the licensee on such loan transaction, or such longer period as may be required by any other provision of law.
(c) Each licensee acting as a broker shall retain the records required under subsection (a) of this section for not less than two years from the date of the transaction or such longer period as may be required by any other provision of law.
(P.A. 77-228, S. 7; P.A. 78-216, S. 6, 7; P.A. 80-67, S. 4; P.A. 87-9, S. 2, 3; P.A. 88-14; P.A. 90-184, S. 4; P.A. 94- 122, S. 244, 340.)
History: P.A. 78-216 revised requirements re records to be maintained in Subsec. (a); P.A. 80-67 authorized examination of books and records in Subsec. (b) and added Subsec. (c); (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 88-14 amended Subsec. (c) and added a new Subsec. (d) re record retention schedule; P.A. 90-184 amended Subsec. (a) by requiring records of secondary mortgage loan transactions to include the original or an exact copy of the contract or other evidence of indebtedness and the name and address of the broker, if any, involved in the transaction, and amended Subsec. (b) by authorizing a representative of the commissioner of banking to examine books and records of licensees; P.A. 94-122 deleted Subsec. (b) re examination of books and records, relettered Subsecs. (c) and (d) as Subsecs. (b) and (c) and made technical changes, effective January 1, 1995; Sec. 36-224g transferred to Sec. 36a-516 in 1995.

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Sec. 36a-517. (Formerly Sec. 36-224h). Suspension, revocation or refusal to renew license. Enforcement powers of commissioner. (a) The commissioner may suspend, revoke or refuse to renew any license, in accordance with section 36a-51 for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-510 to 36a-524, inclusive, or if the commissioner finds that the licensee or any owner, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following: (1) Made any material misstatement in the application; (2) committed any fraud or misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any secondary mortgage loan transaction, including disclosures required by part III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled to such information; (3) violated any of the provisions of sections 36a-510 to 36a-524, inclusive, parts I, III and V of chapter 669, sections 46a-65 to 46a- 67, inclusive, or section 46a-98, or of any regulations adopted pursuant thereto; or (4) failed to perform any agreement with a borrower.
(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-510 to 36a-524, inclusive, or any licensee has failed to perform any agreement with a borrower, the commissioner may take action against such person or licensee in accordance with section 36a-50.
(P.A. 77-228, S. 8; P.A. 80-67, S. 5; P.A. 82-174, S. 1, 14; P.A. 86-403, S. 76, 132; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S. 245, 340; P.A. 00-61, S. 3, 9.)
History: P.A. 80-67 specified that commissioner may suspend, revoke etc. license "for any reason which would be sufficient grounds for the commissioner to deny an application under this chapter" in Subsec. (a), specified "intentional" omission or failure to disclose information in Subdiv. (2) "including disclosures required by chapter 657 or regulations adopted thereto", added reference to chapters 647a, 657, 657a, 659 and 660 and substituted "adopted" for "promulgated" in Subdiv. (3) and added Subsec. (b); P.A. 82-174 amended Subsec. (b) by deleting a provision authorizing the commissioner to issue cease and desist orders and added Subsec. (c) containing new provisions re issuance of cease and desist orders; P.A. 86-403 amended Subsec. (a) to delete reference to Chapters 657a and 660 and to add reference to Secs. 46a-65 to 46a-67 and 46a-98; P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective September 1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 94-122 deleted Subsec. (c) re cease and desist provisions and made technical changes, effective January 1, 1995; Sec. 36-224h transferred to Sec. 36a-517 in 1995; P.A. 00-61 amended Subsec. (a)(4) by replacing "a written agreement" with "any agreement" and amended Subsec. (b) by adding language re licensee's failure to perform an agreement with a borrower, effective July 1, 2000.

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Sec. 36a-518. (Formerly Sec. 36-224i). Regulations. The commissioner shall adopt, pursuant to chapter 54, such regulations as may be necessary to carry out the provisions of sections 36a-510 to 36a-524, inclusive.
(P.A. 77-228, S. 9.)
History: Sec. 36-224i transferred to Sec. 36a-518 in 1995.

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Sec. 36a-519. (Formerly Sec. 36-224j). Prepayment penalties. In any transaction subject to part III of chapter 669, no licensee shall impose any charge as a penalty for the prepayment of principal of a second mortgage loan which exceeds five per cent of the balance prepaid, provided no penalty shall be imposed for any prepayment occurring more than three years after the date of such loan.
(P.A. 80-67, S. 6; P.A. 94-122, S. 246, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-224j transferred to Sec. 36a-519 in 1995.

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Sec. 36a-520. (Formerly Sec. 36-224k). Release of second mortgage. Notice of loan balance. (a) Each licensee shall deliver to the mortgagor a release of a second mortgage: (1) Upon receipt by such licensee of cash or a certified check in the amount of the outstanding balance of the obligation secured by such mortgage; or (2) upon payment by the payor bank, as defined in section 42a-4-105, of any check which is payable to such licensee or its assignee in the amount of the outstanding balance of the obligation secured by such mortgage.
(b) Each licensee shall advise any person designated by the mortgagor of the amount of the outstanding balance of the obligation secured by the second mortgage granted to such licensee no later than the second business day after the licensee receives a request for such information.
(P.A. 80-67, S. 7.)
History: Sec. 36-224k transferred to Sec. 36a-520 in 1995.

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Sec. 36a-521. (Formerly Sec. 36-224l). Limitation on charges. Demand for payment prior to maturity. Liability of lender to borrower for noncompliance. Refundability of advance fees. (a) No person engaged in the secondary mortgage loan business in this state as a lender, or a broker, including any licensee under sections 36a- 510 to 36a-524, inclusive, and any person who is exempt from licensing under section 36a-512, may (1) charge, impose or cause to be paid, directly or indirectly, as an incident to or a condition of the extension of credit in any secondary mortgage loan transaction, any loan fees, points, commissions, transaction fees or similar prepaid finance charges determined in accordance with sections 36a-675 to 36a-685, inclusive, and regulations adopted thereunder which, when added to any broker's fee or commission for which the borrower may be obligated, exceed in the aggregate eight per cent of the principal amount of the loan or (2) include in the loan agreement upon which loan fees, points, commissions, transaction fees or similar prepaid finance charges have been assessed any provision which permits the lender to demand payment of the entire loan balance prior to the scheduled maturity, except that such loan agreement may contain a provision which permits the lender to demand payment of the entire loan balance if any scheduled installment is in default for more than sixty days or if any condition of default set forth in the mortgage note exists.
(b) Any lender who fails to comply with the provisions of this section shall be liable to the borrower in an amount equal to the sum of: (1) The amount by which the total of all loan fees, points, commissions, transaction fees, other prepaid finance charges, and broker's fees and commissions exceeds eight per cent of the principal amount of the loan; (2) eight per cent of the principal amount of the loan or two thousand five hundred dollars, whichever is less; and (3) the costs incurred by the borrower in bringing an action under this section, including reasonable attorney's fees, as determined by the court, provided no such lender shall be liable for more than the amount specified in this subsection in a secondary mortgage loan transaction involving more than one borrower.
(c) Except as provided in subsection (d) of this section, every advance fee shall be refundable.
(d) Subsection (c) of this section shall not apply if: (1) The person providing the advance fee and the licensee agree in writing that the advance fee shall not be refundable, in whole or in part; and (2) the written agreement complies in all respects with the provisions of subsection (e) of this section.
(e) An agreement under subsection (d) of this section shall meet all of the following requirements to be valid and enforceable: (1) The agreement shall be dated, signed by both parties, and be executed prior to the payment of any advance fee; (2) the agreement shall expressly state the total advance fee required to be paid and any amount of the advance fee that shall not be refundable; (3) the agreement shall clearly and conspicuously state any conditions under which the advance fee will be retained by the licensee; (4) the term "nonrefundable" shall be used to describe each advance fee or portion thereof to which the term is applicable and shall appear in boldface type in the agreement each time it is used; and (5) the form of the agreement shall (A) be separate from any other forms, contracts or applications utilized by the licensee, (B) contain a heading printed in a size equal to at least ten-point boldface type that shall title the form "AGREEMENT CONCERNING NONREFUNDABILITY OF ADVANCE FEE", (C) provide for a duplicate copy, which shall be given to the person paying the advance fee at the time of payment of the advance fee, and (D) include such other specifications as the commissioner may by regulation prescribe.
(f) An agreement under subsection (d) of this section that does not meet the requirements of subsection (e) of this section shall be voidable at the election of the person paying the advance fee.
(P.A. 83-460, S. 1−3; P.A. 84-69, S. 1, 3; P.A. 90-184, S. 5; P.A. 91-306, S. 6; P.A. 92-132, S. 2, 5; P.A. 93-130, S. 2, 3.)
History: P.A. 84-69 repealed section 2 of public act 83-460, which was originally slated for codification as Subsec. (b) of this section, and incorporated its language in section 1 of public act 83-460, i.e., this section, by amendment; P.A. 90- 184 designated former section as Subsec. (a), provided that limitation on charges and restriction on demand for payment prior to maturity applies to any person engaged in the secondary mortgage loan business in this state as a lender or a broker, and added Subsec. (b) re liability of lender to borrower for noncompliance with provisions of section; P.A. 91-306 amended Subsec. (a) by adding broker's fees or commissions for which the borrower may be obligated to the limitation on fees and charges in Subdiv. (1); P.A. 92-132 added Subsecs. (c) to (f), inclusive, concerning the refundability of advance fees; P.A. 93-130 decreased from "ten" to "eight" the amount by which the total of all loan fees, points, commissions, transaction fees, other prepaid finance charges and broker's fees and commission exceed the principal amount of the loan, effective July 1, 1993; Sec. 36-224l transferred to Sec. 36a-521 in 1995; (Revisor's note: In 1997 a reference in Subsec. (a) to "sections 36a-510 to 361-524," was changed editorially by the Revisors to "sections 36a-510 to 36a-524," thereby correcting a clerical error which occurred during the preparation of the 1995 revision).
Annotations to former section 36-224l:
Cited. 223 C. 80−82, 85−87, 93, 94, 103−105, 107, 109−116.
Subsec. (a):
Cited. 223 C. 80, 103, 105.
Cited. 27 CA 628, 629, 631.
Subsec. (b):
Cited. 223 C. 80, 105.
Annotations to present section:
Cited. 41 CA 754, 757, 758, 764−767. P.A. 93-130 cited. Id.
Subsec. (a):
Cited. 41 CA 754, 765.

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Sec. 36a-522. (Formerly Sec. 36-224m). Mortgage deeds. Any mortgage deed to secure a secondary mortgage loan that is recorded in the land records of any town shall contain the word "Mortgage" in the heading, either in capital letters or underscored, and shall contain the principal amount of the loan.
(P.A. 90-184, S. 6.)
History: Sec. 36-224m transferred to Sec. 36a-522 in 1995.

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Sec. 36a-523. (Formerly Sec. 36-224n). Applications and referrals from unlicensed mortgage brokers. No person engaged in the secondary mortgage loan business in this state as a lender, whether licensed in accordance with the provisions of sections 36a-510 to 36a-524, inclusive, or exempt from licensing, shall accept applications or referral of applicants from, or pay a fee to, any broker who is required to be licensed under said sections but is not licensed to act as such by the commissioner, if the lender has actual knowledge that the broker is not licensed by the commissioner.
(P.A. 91-306, S. 4; P.A. 94-122, S. 247, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-224n transferred to Sec. 36a-523 in 1995.

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Sec. 36a-524. (Formerly Sec. 36-224o). Advertisements. No person licensed pursuant to section 36a-513 shall:
(1) Advertise or cause to be advertised in this state, any secondary mortgage loan in which such person intends to act only as a broker unless the advertisement includes the following statement, clearly and conspicuously expressed: BROKER ONLY, NOT A LENDER; or
(2) In connection with an advertisement in this state, use (A) a simulated check; (B) a comparison between the loan payments under the secondary mortgage loan offered and the loan payments under a hypothetical loan or extension of credit, unless the advertisement includes, with respect to both the hypothetical loan or extension of credit and the secondary mortgage loan being offered, the interest rate, the loan balance, the total amount of finance charges, the total number of payments and the monthly payment amount that would be required to pay off the outstanding loan balance shown; (C) representations such as "verified as eligible", "eligible", "preapproved", "prequalified" or similar words or phrases, without also disclosing, in immediate proximity to and in similar size print, language which sets forth prerequisites to qualify for the secondary mortgage loan, including, but not limited to, income verification, credit check, and property appraisal or evaluation; or (D) any words or symbols in the advertisement or on the envelope containing the advertisement that give the appearance that the mailing was sent by a government agency.
(P.A. 91-306, S. 5; P.A. 94-122, S. 248, 340; P.A. 99-63, S. 5.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-224o transferred to Sec. 36a-524 in 1995; P.A. 99-63 designated existing provisions as Subdiv. (1), changing "in any medium" to "in this state" and making technical changes, and added Subdiv. (2) re advertising restrictions.

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Secs. 36a-525 to 36a-534. Reserved for future use.

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(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, as defined in section 36a-485 and licensed pursuant to section 36a- 486, and any broker or lender, as defined in section 36a-510 and licensed pursuant to section 36a-511, shall notify the commissioner by written affidavit if any such broker or lender, as a result of a transaction in which such broker or lender was involved, reasonably believes that the lending practices of a financial institution or federal bank violate section 36a-737 or 46a-66. Such broker or lender shall provide the commissioner with any written document containing lending restrictions which a financial institution or federal bank has provided to such broker or lender. In the event the commissioner finds that there is a reasonable basis for said notification, the commissioner shall notify the Commission on Human Rights and Opportunities of said notification and the action the commissioner plans to take with respect thereto.
(b) The commissioner may suspend, revoke or refuse to renew the license of any broker or lender who violates subsection (a) of this section.
(P.A. 98-221; P.A. 99-36, S. 31.)
History: P.A. 99-36 made technical changes.

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PART II*
FINANCE COMPANIES

*See Sec. 36a-676 for definitions under the Truth-in-Lending Act applicable to this chapter.
Annotations to former chapter 650 (Sec. 36-254 et seq.):
Cited. 139 C. 425.

Sec. 36a-535. (Formerly Sec. 36-254). Definitions. As used in sections 36a-535 to 36a-546, inclusive, unless the context otherwise requires:
(1) The terms "goods", "retail installment sale", "retail installment contract", "installment loan contract", "retail seller" and "retail buyer" have the same meanings as provided in section 36a-770;
(2) "Sales finance company" means any person engaging in this state in the business, in whole or in part, of acquiring retail installment contracts from retail sellers, or installment loan contracts from the holders thereof, by purchase, discount or pledge, or by loan or advance to the holder of either on the security thereof, or otherwise, but does not include a bank, out-of-state bank, Connecticut credit union, federal credit union, or out-of-state credit union, if so engaged.
(1949 Rev., S. 5963; 1949, 1955, S. 2767d; 1957, P.A. 356, S. 1; March, 1958, P.A. 27, S. 50; 1959, P.A. 589, S. 1; 1961, P.A. 116, S. 18; 1969, P.A. 454, S. 27; P.A. 77-604, S. 51, 84; 77-614, S. 161, 610; P.A. 78-121, S. 108, 113; P.A. 80-482, S. 256, 345, 348; P.A. 81-128, S. 5; 81-158, S. 12, 17; P.A. 82-18, S. 2, 4; P.A. 87-9, S. 2, 3; P.A. 88-65, S. 34; P.A. 91-69; P.A. 92-12, S. 74; P.A. 94-122, S. 249, 340.)
History: 1959 act amended Subdiv. (b) by specifying goods means all chattels included in one contract and raising the aggregate price to $6000; 1961 act made various changes to conform to uniform commercial code; 1969 act specified that amount for "other itemized charges ..." is part of time sale price where previously reference was to amount for insurance, other benefits and filing fees in Subsec. (c); P.A. 77-604 revised references to Sec. 42a-9-105; P.A. 77-614 replaced bank commissioner with banking commissioner within the department of business regulation and made banking department a division within said department, effective January 1, 1979; P.A. 78-121 deleted reference to private bankers in Subdiv. (h); P.A. 80-482 restored banking division as independent department and abolished the department of business regulation, allowing corresponding revision of commissioner's name; P.A. 81-128 eliminated the specific definitions for "goods", "retail instalment sale", "retail instalment contract", "instalment loan contract", "retail seller" and "retail buyer" and provided those terms would have the definitions found in Sec. 42-83; P.A. 81-158 amended Subsec. (c) by replacing "section 36-396", which had been repealed, with chapter 657, effective March 31, 1982; P.A. 82-18 changed effective date of P.A. 81-158 from March 31, 1982, to "the effective date of Title VI of Public Law 96-221, as contained in Section 625(a) of Public Law 96-221, as amended", i.e. October 1, 1982; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 88-65 redefined "sales finance company" by deleting reference to industrial banks; P.A. 91-69 made technical changes and amended Subsec. (c) to provide that the term "sales finance company" does not include a bank, savings bank, savings and loan association, industrial bank or credit union; P.A. 92-12 redesignated Subdivs.; P.A. 94-122 deleted the definitions of "person" and "commissioner", renumbered the remaining Subdivs. and made technical changes, effective January 1, 1995; Sec. 36-254 transferred to Sec. 36a-535 in 1995.

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Sec. 36a-536. (Formerly Sec. 36-255). License required. 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 licensed as provided in sections 36a-535 to 36a-546, inclusive. A licensee under said sections shall not be required to obtain any other license in this state in order to perform any act permitted or required to be performed by such licensee under said sections.
(1949 Rev., S. 5964 (1), (6); March, 1958, P.A. 27, S. 32; P.A. 81-128, S. 6; P.A. 94-122, S. 250, 340.)
History: P.A. 81-128 eliminated reference to repealed Subsec. (h) of Sec. 36-254 and clarified licensing exemption; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-255 transferred to Sec. 36a-536 in 1995.

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Sec. 36a-537. (Formerly Sec. 36-256a). Application. The application for a license as a sales finance company shall be on a form prescribed by the commissioner, in writing and under oath, together with such exhibits and other pertinent information as the commissioner may require.
(1967, P.A. 631, S. 1; P.A. 77-614, S. 161, 610; P.A. 87-9, S. 2, 3; P.A. 94-122, S. 251, 340.)
History: P.A. 77-614 replaced bank commissioner with banking commissioner, effective January 1, 1979; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 94-122 changed "commissioner of banking" to "commissioner", effective January 1, 1995; Sec. 36-256a transferred to Sec. 36a-537 in 1995.

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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 made of such person by the commissioner.
(1967, P.A. 631, S. 7; P.A. 94-122, S. 252, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-256b transferred to Sec. 36a-538 in 1995.

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Sec. 36a-539. (Formerly Sec. 36-257). License fee. (a) Each person applying for a license under sections 36a-535 to 36a-546, inclusive, shall pay a license fee of four hundred dollars. Each license issued pursuant to said sections shall expire at the close of business on June thirtieth of each year unless such license is renewed. Whenever an application for a license is filed under this section by any person who was a licensee under sections 36a-535 to 36a-546, inclusive, and whose license expired less than sixty days prior to the date such application was filed, such application shall be accompanied by a one-hundred-dollar processing fee in addition to the application fee. Not more than one place of business shall be maintained under the same license, but the commissioner may issue more than one license to the same licensee upon receipt of an application and the payment of the appropriate license fee.
(b) No abatement of the license fee shall be made if the license is surrendered, revoked or suspended prior to the expiration of the period for which it was issued. All fees required by this section and section 36a-542, shall be nonrefundable.
(1949 Rev., S. 5964 (3); 1953, S. 2768d; 1959, P.A. 204, S. 1; 1967, P.A. 631, S. 2; P.A. 73-392; P.A. 88-150, S. 4; P.A. 92-89, S. 6, 20; P.A. 94-104, S. 3; 94-122, S. 253, 340; P.A. 96-71, S. 4, 8.)
History: 1959 act increased fees by 50%; 1967 act added provision requiring applicant to pay fee for period ending June thirtieth next succeeding the issuance of license and specifying that fee will be returned if application is denied or withdrawn, retaining fee amounts and dates as before; P.A. 73-392 increased one hundred fifty and seventy-five dollars fees previously in effect to two hundred and one hundred dollars, respectively; P.A. 88-150 amended the section by providing that the license fee is nonrefundable, increasing the fee to two hundred dollars and adding the provision re expiration of licenses on June thirtieth; P.A. 92-89 increased the license fee from two hundred to four hundred dollars; P.A. 94-104 added a one-hundred-dollar processing fee for a person whose license expired within sixty days of his application; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-257 transferred to Sec. 36a-539 in 1995; P.A. 96-71 deleted "nonrefundable" in Subsec. (a) and added Subsec. (b) to make all fees required by this section and section 36a-542 nonrefundable, effective July 1, 1996.

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Sec. 36a-540. (Formerly Sec. 36-258). Location of office. Each license shall specify the location of the office and shall be conspicuously displayed there. If such location is changed, the commissioner shall endorse the change of location on the license without charge. No other reference to the licensing or supervision by the commissioner may be made.
(1949 Rev., S. 5964 (4); 1957, P.A. 356, S. 2.)
History: Sec. 36-258 transferred to Sec. 36a-540 in 1995.

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Sec. 36a-541. (Formerly Sec. 36-259a). Refusal or issuance of license. Transaction of business under other name prohibited. (a) Upon the filing of an application for a license as a sales finance company and receipt of the fee therefor, the commissioner (1) may refuse to issue the license if the commissioner finds that the applicant, or any person who at the time of the filing of such application is an owner, director, officer, member, partner, employee, agent or spouse of the applicant, has suffered revocation of a license under sections 36a-535 to 36a-546, inclusive, or has been found to have violated any of the provisions of sections 36a-535 to 36a-546, inclusive, or part XI of chapter 669 or of any other law regulating retail installment sales contracts, or has been responsible for any act or omission in consequence of which a license issued under sections 36a-535 to 36a-546, inclusive, to any person was revoked. The commissioner may likewise refuse to issue a license if the commissioner finds the experience, character or general fitness of the applicant are not such as to command the confidence of the community and to warrant the belief that the business will be conducted honestly and fairly within the purposes and intent of sections 36a-535 to 36a-546, inclusive. For the purpose of this subsection, the applicant shall be deemed to include all the members of the applicant if it is a partnership or an unincorporated association, and all the trustees, officers and directors of the applicant if it is a corporation; or (2) shall issue and deliver to the applicant a nonassignable license to engage in the business of a sales finance company in accordance with the provisions of sections 36a-535 to 36a-546, inclusive, for a period which shall expire on June thirtieth next following the date of its issuance.
(b) No licensee shall transact any business provided for by sections 36a-535 to 36a- 546, inclusive, under any other name.
(1967, P.A. 631, S. 3; P.A. 94-122, S. 254, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-259a transferred to Sec. 36a-541 in 1995.

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Sec. 36a-542. (Formerly Sec. 36-259b). Renewal of license. Each person licensed as a sales finance company may renew such license for the succeeding year commencing July first by filing with the commissioner on or before June first a form prescribed by the commissioner, in writing and under oath, together with such exhibits and other pertinent information as the commissioner may require. The license fee shall be four hundred dollars. Any renewal application filed with the commissioner under this section after June first shall be accompanied by a one-hundred-dollar late fee.
(1967, P.A. 631, S. 4; P.A. 74-235, S. 1, 2; P.A. 94-104, S. 4; 94-122, S. 255, 340; P.A. 96-71, S. 5, 8.)
History: P.A. 74-235 raised fee from one hundred fifty to two hundred dollars; P.A. 94-104 changed fee to nonrefundable fee, increased the fee from two to four hundred dollars and added a one-hundred-dollar late fee; P.A. 94-122 changed "him" to "the commissioner", effective January 1, 1995; Sec. 36-259b transferred to Sec. 36a-542 in 1995; P.A. 96-71 substituted "license fee" for "nonrefundable fee", effective July 1, 1996.

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Sec. 36a-543. (Formerly Sec. 36-260a). Suspension, revocation or refusal to renew license. Enforcement powers of commissioner. (a) The commissioner may suspend, revoke or refuse to renew any license, in accordance with section 36a-51 if the commissioner finds that: (1) The licensee, knowingly or without the exercise of due care to prevent such violation, has violated any provision of sections 36a-535 to 36a- 546, inclusive, or of any other law regulating installment sales financing, or has failed to comply with any demand or requirement, made by the commissioner under and within the authority of sections 36a-535 to 36a-546, inclusive; or (2) there has been any material misstatement or failure to give a true reply to a question in the application for the license; or (3) the licensee has defrauded any retail buyer to the buyer's damage; or wilfully failed to perform any written agreement with any retail buyer; or (4) any fact or condition exists which, if it had existed at the time of the original application for such license, would have warranted the commissioner's refusal to issue such license originally; or (5) in the case of a licensee other than a natural person, (A) any officer, director, trustee or partner of such licensee has been guilty of any act or omission which would be cause for revoking or suspending a license of such party as an individual; or (B) any other agent or employee of such licensee has been guilty of such act or omission and the licensee has approved or had knowledge thereof and, after such approval or knowledge, has retained the benefit, proceeds, profit or advantage of such act or omission or otherwise ratified it.
(b) The commissioner in the commissioner's discretion may revoke or suspend only the particular license with respect to which grounds for revocation or suspension are of general application to all places of business, or if to more than one place of business, operated by such licensee, the commissioner shall revoke or suspend all of the licenses issued to such licensee or those licenses to which the grounds for revocation or suspension apply, as the case may be.
(c) No suspension, revocation or surrender of any license shall impair or affect the obligation of any installment contract, obligation or credit agreement lawfully acquired previously thereto by the licensee.
(d) The commissioner shall establish rules as to the form of hearings, findings and orders, which shall be reasonable and in the public interest.
(e) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of sections 36a-535 to 36a-546, inclusive, or any regulation adopted under said sections, the commissioner may take action against such person in accordance with section 36a-50.
(1967, P.A. 631, S. 5; 1971, P.A. 179, S. 22; 870, S. 93; P.A. 74-254, S. 11; P.A. 82-174, S. 4, 13, 14; P.A. 92-12, S. 75; P.A. 93-194, S. 3, 7; P.A. 94-122, S. 256, 340.)
History: 1971 acts required appeal to return day between twelve and thirty days after service rather than to "next" or "next but one" return day after service and, effective September 1, 1971, replaced superior court with court of common pleas except that courts with cases pending retain jurisdiction unless pending matters deemed transferable; P.A. 74-254 repealed Subsec. (g) which had contained appeal provisions; P.A. 82-174 amended Subsec. (a) by authorizing the commissioner to "refuse to renew" a license and providing that after ten days written notice and allowing the licensee a reasonable opportunity to be heard the commissioner may suspend, revoke or refuse to renew a license repealing former Subsec. (b) re mandatory hearing prior to revocation or suspension; P.A. 92-12 redesignated Subsecs. and made technical changes; P.A. 93-194 amended Subsec. (c) re effectiveness of a surrender of any license by a licensee when the commissioner has instituted a proceeding to suspend, revoke or refuse to renew such license, effective June 23, 1993; P.A. 94-122 deleted Subsec. (c) re surrender of licenses, relettered former Subsecs. (d) and (e) as Subsecs. (c) and (d), deleted Subsec. (f) re investigating complaints of violations by licensees, added new Subsec. (e) re enforcement actions against violators and made technical changes, effective January 1, 1995; Sec. 36-260a transferred to Sec. 36a-543 in 1995.

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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-546, inclusive, including the defining of any terms, whether or not used in said sections, so far as the definitions are not inconsistent with the provisions of said sections.
(b) No regulation may be adopted under this section unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of purchasers and consistent with the purposes fairly intended by the policy and provisions of sections 36a-535 to 36a-546, inclusive.
(1967, P.A. 631, S. 6; P.A. 94-122, S. 257, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-260b transferred to Sec. 36a-544 in 1995.

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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 such books and records available at such place of business not later than five business days after requested by the commissioner. All such books and records shall be preserved for at least two years after the making of the final entry therein.
(1967, P.A. 631, S. 8; P.A. 00-61, S. 4, 9.)
History: Sec. 36-262a transferred to Sec. 36a-545 in 1995; P.A. 00-61 added provision re availability of books and records at place of business, effective July 1, 2000..

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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 provisions of sections 36a-535 to 36a-545, inclusive, or who engages in business as a sales finance company without being licensed as a sales finance company by the commissioner in accordance with the provisions of said sections, shall be fined not more than five hundred dollars or imprisoned not more than six months or both.
(1949 Rev., S. 5968.)
History: Sec. 36-263 transferred to Sec. 36a-546 in 1995.
Annotations to former section 36-263:
Cited. 139 C. 425.

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Secs. 36a-547 to 36a-554. Reserved for future use.
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PART III*
SMALL LOAN LENDERS

*See Sec. 42a-9-203 (2) re attachment of security interest.
Annotations to former chapter 647 (Sec. 36-225 et seq.):
Cited. 23 CS 184.

Sec. 36a-555. (Formerly Sec. 36-225). Loan business to be licensed. No person shall engage in the business of making loans of money or credit in the amount or to the value of fifteen thousand dollars or less for loans made under section 36a-563 or section 36a-565, and charge, contract for or receive a greater rate of interest, charge or consideration than twelve per cent per annum therefor, except (1) a bank, (2) an out-of-state bank, (3) a Connecticut credit union, (4) a federal credit union, (5) an out-of-state credit union, (6) a savings and loan association wholly owned subsidiary service corporation, (7) a person to the extent that such person makes loans for agricultural, commercial, industrial or governmental use or extends credit through an open-end credit plan, as defined in subdivision (8) of section 36a-676, for the retail purchase of consumer goods or services, (8) a nondepository first mortgage lender licensed pursuant to sections 36a- 485 to 36a-498, inclusive, (9) a secondary mortgage lender licensed pursuant to sections 36a-510 to 36a-524, inclusive, or (10) a licensed pawnbroker, unless licensed to do so by the commissioner as provided in sections 36a-555 to 36a-573, inclusive.
(1949 Rev., S. 5937; 1949, S. 2753d; 1957, P.A. 439, S. 1; 1963, P.A. 175, S. 1; 1969, P.A. 242, S. 1; P.A. 77-129, S. 1; 77-183, S. 1, 2; P.A. 78-121, S. 71, 113; 78-303, S. 50, 136; P.A. 87-9, S. 2, 3; P.A. 88-65, S. 33; P.A. 89-338, S. 1; P.A. 92-12, S. 65; P.A. 94-122, S. 258, 340; P.A. 97-13, S. 1; P.A. 98-264.)
History: 1963 act increased limit from six hundred to one thousand dollars and added reference to charge or consideration in provision re twelve per cent interest; 1969 act increased limit to one thousand eight hundred dollars and deleted reference to loans of "goods or things in action"; P.A. 77-129 increased limit to five thousand dollars; P.A. 77-183 authorized loans by building or savings and loan associations and wholly owned subsidiary service corporations; P.A. 78-121 included federal credit unions, deleted private bankers and referred to savings and loan associations rather than "building or" savings and loan associations in authority to make loans; P.A. 78-303 replaced banking commission with banking commissioner in keeping with requirements of P.A. 77-614 which repealed the commission; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 88-65 deleted a reference to industrial banks; P.A. 89-338 increased the limit from five thousand to ten thousand dollars for loans made under Sec. 36-233b, clarified that the section applies to out-of-state institutions and added the exception for entities making loans for agricultural, commercial, industrial or governmental use or extending credit through certain open-end credit plans; P.A. 92-12 made technical changes; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-225 transferred to Sec. 36a-555 in 1995; P.A. 97-13 increased limit from five thousand to fifteen thousand dollars for loans made under Sec. 36a-563, deleted reference to limit of ten thousand dollars for loans made under Sec. 36a-565, and made reference to limit of fifteen thousand dollars applicable to loans made under Sec. 36a-565 to conform to existing provisions of Sec. 36a-565; P.A. 98-264 added exceptions for licensed nondepository first mortgage lenders and secondary mortgage lenders and made technical changes.
Annotations to former section 36-225:
Cited. 149 C. 158.

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Sec. 36a-556. (Formerly Sec. 36-226). Requirements for granting license. Before filing an application for a license under sections 36a-555 to 36a-573, inclusive, the applicant shall give public notice of the applicant's intention to apply for a license by advertising daily, in a newspaper published or having a circulation in the town where the applicant's place of business is to be located, for two successive weeks, in a manner approved by the commissioner, and satisfactory proof of such advertising shall be filed with the commissioner. Upon the filing of the required application and license fee, the commissioner shall investigate the facts and, if the commissioner finds that (1) the experience, character and general fitness of the applicant, and of the members thereof if the applicant is a partnership or association, and of the officers and directors thereof if the applicant is a corporation, are satisfactory, (2) a license to such applicant will be for the convenience and advantage of the community in which the applicant's business is to be conducted and (3) the applicant has the capital investment required by this section, the commissioner shall issue a license to the applicant to make loans in accordance with sections 36a-555 to 36a-573, inclusive. The capital investment shall be not less than twenty-five thousand dollars for each licensed place of business in a city or town with a population of ten thousand or more inhabitants and ten thousand dollars for each licensed place of business in a city or town with a smaller population. Population shall be determined according to the last United States census at the time a license is granted. The required capital investment shall be maintained permanently at the licensed place of business. The requirement for a capital investment shall not apply to any person who has been continuously licensed under sections 36a-555 to 36a-573, inclusive, on and after May 14, 1929.
(1949 Rev., S. 5940; 1949, S. 2756d; P.A. 78-303, S. 51, 136; P.A. 87-9, S. 2, 3; P.A. 91-357, S. 52, 78; P.A. 92-12, S. 66; P.A. 94-122, S. 259, 340.)
History: P.A. 78-303 specified commissioner referred to in section as banking commissioner and substituted banking commissioner for banking commission elsewhere in section in keeping with P.A. 77-614 which repealed the banking commission; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 91-357 made technical changes; P.A. 92-12 made technical changes; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-226 transferred to Sec. 36a-556 in 1995.

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Sec. 36a-557. (Formerly Sec. 36-227). Application. An application for such license shall be in writing, under oath and in the form prescribed by the commissioner. The application shall contain the full name and the address, both of the residence and place of business, of the applicant, and, if the applicant is a partnership, of each member thereof, or, if a corporation, of each director and officer thereof. The application shall also contain the county and municipality, with street and number, if any, where the business is to be conducted and such other pertinent information as the commissioner may require.
(1949 Rev., S. 5938; 1949, S. 2754d; P.A. 94-122 S. 260, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-227 transferred to Sec. 36a-557 in 1995.

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Sec. 36a-558. (Formerly Sec. 36-228). Fees. Examination expenses. (a) Each applicant for a license, at the time of making such application, shall pay to the commissioner a license fee of four hundred dollars. Each license issued pursuant to sections 36a-555 to 36a-573, inclusive, shall expire at the close of business on June thirtieth of each year, unless such license is renewed. Each licensee shall, on or before June first of each year, file a renewal application and pay to the commissioner a four-hundred- dollar license fee to renew the license for the succeeding year, commencing July first. Any renewal application filed with the commissioner after June first shall be accompanied by a one-hundred-dollar late fee. Whenever an application for a license, other than a renewal application, is filed under this section by any person who was a licensee under sections 36a-555 to 36a-573, inclusive, and whose license expired less than sixty days prior to the date such application was filed, such application shall be accompanied by a one-hundred-dollar processing fee in addition to the application fee. Each applicant shall pay the expenses of any examination or investigation made under sections 36a- 555 to 36a-573, inclusive.
(b) No abatement of the license fee shall be made if the license is surrendered, revoked or suspended prior to the expiration of the period for which it was issued. All fees required by this section shall be nonrefundable.
(1949 Rev., S. 5938; 1949, S. 2754d; March, 1958, P.A. 27, S. 47; P.A. 88-150, S. 3; P.A. 92-89, S. 5, 20; P.A. 94- 104, S. 2; 94-122, S. 338, 340; P.A. 96-71, S. 6, 8.)
History: P.A. 88-150 specified that the license fee is nonrefundable and added the provision re expiration of licenses on June thirtieth; P.A. 92-89 increased the license fees from two hundred to four hundred dollars; P.A. 94-104 changed the license renewal deadline from June twentieth to June first, added a one-hundred-dollar late fee and added a one-hundred- dollar processing fee for a person whose license expired within sixty days of his application; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-228 transferred to Sec. 36a-558 in 1995; P.A. 96-71 amended Subsec. (a) to delete "nonrefundable" modifying "license fee" and added Subsec. (b) to make all fees required by this section nonrefundable, effective July 1, 1996.

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Sec. 36a-559. (Formerly Sec. 36-229). Miscellaneous license provisions. No license shall be assignable nor shall any license be transferable to cover a place of business not located in either the same or an adjacent city or town. Such license shall be kept conspicuously posted in the place of business of the licensee. Every license shall remain in force and effect until the same has been surrendered, revoked or suspended in accordance with the provisions of sections 36a-555 to 36a-573, inclusive. Any license which is revoked or suspended shall be immediately surrendered to the commissioner. If any change occurs in the personnel of the partners, principals, directors, officers or managers of any licensee, the licensee shall forthwith notify the commissioner, and the commissioner may require a statement under oath giving such information as the commissioner may reasonably require with respect to such change.
(1949 Rev., S. 5940; 1949, S. 2756d; P.A. 84-32, S. 2; P.A. 94-122, S. 261, 340.)
History: P.A. 84-32 permitted a license to be transferred to cover a place of business located in an adjacent city or town; P.A. 94-122 changed "he" to "the commissioner", effective January 1, 1995; Sec. 36-229 transferred to Sec. 36a-559 in 1995.

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Sec. 36a-560. (Formerly Sec. 36-230). Separate license for each place of business. No licensee shall make any loan provided for by sections 36a-555 to 36a-573, inclusive, under any other name or at any other place of business than that named in the license. Not more than one place of business shall be maintained under the same license, but the commissioner may issue more than one license to the same licensee upon compliance with the provisions of sections 36a-555 to 36a-573, inclusive, as to each new license.
(1949 Rev., S. 5943; P.A. 78-303, S. 52, 136; P.A. 87-9, S. 2, 3; P.A. 94-122, S. 262, 340.)
History: P.A. 78-303 replaced banking commission with banking commissioner in keeping with provisions of P.A. 77- 614; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-230 transferred to Sec. 36a- 560 in 1995.

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Sec. 36a-561. (Formerly Sec. 36-231). Conduct of business in association with other business. No licensee shall conduct the business of making loans under the provisions of sections 36a-555 to 36a-573, inclusive, in association or conjunction with any other type of business or within any office or room where any other type of business is solicited or engaged in, except as may be authorized in writing by the commissioner upon being satisfied that such other business is of such a character that the granting of such authority would not permit or easily facilitate evasions of the provisions of sections 36a-555 to 36a-573, inclusive, or of any regulations adopted under section 36a-570.
(1949 Rev., S. 5948 (1); P.A. 94-122, S. 263, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-231 transferred to Sec. 36a-561 in 1995.

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Sec. 36a-562. (Formerly Sec. 36-232). Change of location. Whenever the licensee wishes to change the licensee's place of business either within the same city or town or to an adjacent city or town, the licensee shall give written notice thereof to the commissioner, who shall investigate the facts and, if the commissioner finds (1) that allowing the licensee to engage in business in the proposed location is not detrimental to the convenience and advantage of the community and (2) that the proposed location is reasonably accessible to borrowers under existing loan contracts, the commissioner shall enter an order permitting the change and shall amend the license accordingly. If the commissioner does not so find, the commissioner shall enter an order denying the licensee such permission.
(1949 Rev., S. 5944; 1949, S. 2759d; P.A. 84-32, S. 1; P.A. 92-12, S. 67; P.A. 94-122, S. 264, 340.)
History: P.A. 84-32 permitted a licensee to change his place of business to an adjacent city or town with the approval of the banking commissioner; P.A. 92-12 made technical changes; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-232 transferred to Sec. 36a-562 in 1995.

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Sec. 36a-563. (Formerly Sec. 36-233). Charges. Loan restrictions. (a) Every licensee under sections 36a-555 to 36a-573, inclusive, may loan any sum of money not exceeding fifteen thousand dollars, excluding charges, and may charge, contract for and receive thereon charges at a rate not to exceed the following: (1) On any loan which does not exceed one thousand eight hundred dollars, excluding charges, or on any unsecured loan or on any loan secured only by credit life insurance, seventeen dollars per one hundred dollars on that part of the cash advance, not exceeding six hundred dollars, and eleven dollars per one hundred dollars on any remainder when the loan is made payable over a period of one year, and proportionately at those rates over a longer or shorter term of loan; (2) on a loan which exceeds one thousand eight hundred dollars, excluding charges, and which is secured by property other than credit life insurance, eleven dollars per one hundred dollars on the entire cash advance when the loan is made payable over a period of one year, and proportionately at that rate over a longer or shorter term of loan. Such charges shall be computed at the time the loan is made on the full amount of the cash advance for the full term of the loan contract, notwithstanding any agreement to repay the loan in installments. Such charges shall be added to the cash advance and the resulting sum may become the face amount of the note. All payments made on account of any loan, except those applied to default and deferment charges, shall be deemed to be applied to the unpaid installments in the order in which they are due.
(b) For the purpose of computations, whether at the maximum rate or less, a month shall be that period of time from any date in one month to the corresponding date in the next month, but if there is no such corresponding date, then to the last day of the next month, and a day shall be considered one-thirtieth of a month when such computation is made for a fraction of a month. For loans originally scheduled to be repaid over a period of forty-eight months and fifteen days or less, the portion of the charges applicable to any particular monthly installment period, as originally scheduled or following a deferment, shall bear the same ratio to the total charges, excluding any adjustment made under subsection (c) of this section, as the balance scheduled to be outstanding during that monthly period bears to the sum of all the monthly balances scheduled originally by the contract of loan. For loans originally scheduled to be repaid over a period in excess of forty-eight months and fifteen days, the portion of the charges applicable to any particular monthly installment period, as originally scheduled or following a deferment, shall be the charges which would be incurred for that monthly installment period if the annual percentage rate disclosed to the borrower pursuant to sections 36a- 675 to 36a-685, inclusive, were charged, by the actuarial method, on the disclosed amount financed and all payments were made according to schedule.
(c) Notwithstanding the requirement in subsection (a), a borrower and licensee may agree that the first installment due date may be not more than fifteen days more than one month, and the charge for each day in excess of one month shall be one-thirtieth of the portion of the charges applicable to a first installment period of one month. The charges for the extra days shall be added to the first installment, but shall be excluded in computing deferment charges and refunds. When a loan contract provides for extra days in a first installment period, for the purposes of sections 36a-555 to 36a-573, inclusive, such extra days shall be treated as the first days in the first installment period and the due dates of the remaining installments shall be calculated from the due date of such first installment.
(d) If any installment remains unpaid for ten or more consecutive days, including Sundays and holidays, after it is due, the licensee may charge and collect a default charge not exceeding the lesser of seven dollars and fifty cents or five cents per dollar, or fraction thereof, of such scheduled installment, except a minimum default charge of three dollars may be charged and collected. Default charges may be collected when due or at any time thereafter, but may not be accumulated until the last payment date.
(e) If, as of an installment due date, the payment date of all wholly unpaid installments is deferred one or more full months and the maturity of the contract is extended for a corresponding period, the licensee may charge and collect a deferment charge not exceeding the charge applicable to the first of the installments deferred, multiplied by the number of months in the deferment period. The deferment period is that period during which no payment is made or required by reason of such deferment, except that no deferment made pursuant to this subsection shall extend the maturity of any contract made under sections 36a-555 to 36a-573, inclusive, for more than (1) three months, for loans originally repayable in twenty-four months or less, (2) five months, for loans originally repayable in more than twenty-four months but not more than forty-eight months, and (3) eight months, for loans originally repayable in more than forty-eight months. The deferment charge may be collected at the time of deferment or at any time thereafter. The portion of the charges contracted for under subsection (a) applicable to each deferred balance and installment period following the deferment period shall remain the same as that applicable to such balance and period under the original contract of loan. No installment on which a default charge has been collected, or on account of which any partial payment has been made, shall be deferred or included in the computation of the deferment charge unless such default charge or partial payment is refunded to the borrower or credited to the deferment charge. Any payment received at the time of deferment may be applied first to the deferment charge and the remainder, if any, applied to the unpaid balance of the contract, but if such payment is sufficient to pay, in addition to the appropriate deferment charge, any installment which is in default and the applicable default charge, it shall be first so applied and any such installment shall not be deferred or subject to the deferment charge. If a loan is prepaid in full during the deferment period, the borrower shall receive, in addition to the refund required under subsection (f) of this section, a refund of that portion of the deferment charge applicable to any unexpired full month or months of such deferment period.
(f) If the contract of loan is prepaid in full by cash, a new loan or otherwise, before the final installment date, the portion of the charges applicable to the full installment periods, as scheduled originally in the loan contract or as rescheduled by reason of any deferment made pursuant to sections 36a-555 to 36a-573, inclusive, following the date of prepayment shall be refunded or credited to the borrower. Where prepayment occurs on other than a monthly installment due date, it shall be deemed to have occurred on the preceding or succeeding installment due date nearest to the date of prepayment. Where prepayment occurs on a date midpoint between the preceding and succeeding monthly installment due dates, it shall be deemed to have occurred on the preceding monthly due date. In all cases where prepayment occurs before the first monthly installment due date, it shall be deemed to have occurred on the first monthly installment due date. If judgment is obtained before the final installment date, the judgment shall reflect the refund which would be required for prepayment in full as of the date judgment is obtained. No refund of less than one dollar or for partial prepayments need be made.
(g) If part or all of the consideration for a loan contract is the unpaid balance, excluding default charges, of a prior loan with the same licensee, the cash advance under such new loan contract may include the balance of the prior contract which remains after giving the required refund.
(h) In addition to the charges provided for by sections 36a-555 to 36a-573, inclusive, and service charges that are imposed for a check that is dishonored as provided in subsection (i) of section 52-565a, no further or other charge or amount for any examination, service, brokerage, commission or other thing, or otherwise, shall be directly or indirectly charged, contracted for or received. If interest or any other charges in excess of those permitted by said sections are charged, contracted for or received, except as the result of a bona fide error, the contract of loan shall be void and the licensee shall have no right to collect or receive any principal, interest or charges. No person shall owe any licensee, as such, at any time more than fifteen thousand dollars for principal as a borrower, comaker or guarantor for loans made under said sections. No licensee shall induce or permit any borrower or borrowers to split or divide any loan or loans made under said sections, or permit any borrower to become obligated, directly or indirectly, under more than one contract of loan under said sections at the same time primarily for the purpose of obtaining a higher rate of charge than would otherwise be permitted by said sections. No contract made under said sections, except as deferred in accordance with subsection (e) of this section, shall provide for a greater rate of interest than twelve per cent per annum on the balance remaining unpaid twenty-four months and fifteen days after the date of making such contract if the original cash advance was one thousand dollars or less or thirty-six months and fifteen days if the original cash advance was in excess of one thousand dollars but not in excess of one thousand eight hundred dollars. No contract made under said sections with an original cash advance in excess of one thousand eight hundred dollars, except as deferred in accordance with subsection (e) of this section, shall provide for a greater rate of interest than twelve per cent per annum on the balance remaining unpaid on the scheduled maturity date of said contract. No part of the principal balance remaining unpaid by a borrower twenty-four months and fifteen days after making such contract where the original cash advance was one thousand dollars or less or thirty-six months and fifteen days where the original cash advance was in excess of one thousand dollars but not in excess of one thousand eight hundred dollars, shall directly or indirectly be renewed or refinanced by the lender who made such loan. If the maturity date of a loan made under said sections has been extended by deferred payments, the maximum renewal period that such loan may be extended shall be the number of months such loan is deferred. When a contract is renewed or refinanced prior to twenty-four months and fifteen days where the original cash advance was one thousand dollars or less or thirty-six months and fifteen days where the original cash advance exceeded one thousand dollars but did not exceed one thousand eight hundred dollars, from the date of making such contract, such renewal or refinancing shall, for the purposes of this section, be deemed a separate loan transaction.
(i) Notwithstanding the provisions of subsection (a) of this section, on any loan secured by real property a licensee may include in the amount of the loan the following closing costs, provided such costs are bona fide, reasonable in amount and not assessed for the purpose of circumventing or otherwise limiting any applicable provision of sections 36a-555 to 36a-573, inclusive: (1) Fees or premiums for title examination, abstract of title, title insurance, surveys, or similar purposes; (2) appraisals, if made by a person who is not an employee or affiliated with the licensee, and (3) fees and taxes paid to public officials for the recording and release of any document related to the real estate security. A licensee may collect costs incurred in the event of foreclosure which shall not include any attorney's fee.
(j) No agreement with respect to a loan under sections 36a-555 to 36a-573, inclusive, may provide for charges resulting from default by the borrower, other than those authorized by said sections.
(1949 Rev., S. 5949; 1949, S. 2762d; 1957, P.A. 439, S. 3; 1963, P.A. 175, S. 2; 1969, P.A. 242, S. 2, 3; P.A. 73-419; P.A. 75-99, S. 1−4, 6; P.A. 77-129, S. 2−5; P.A. 80-45, S. 1, 2; P.A. 81-102, S. 1−3; P.A. 83-358, S. 1, 2; P.A. 92-12, S. 68; P.A. 97-13, S. 2; P.A. 00-164, S. 1.)
History: 1963 act incorporated previous provisions as Subsecs. (a) and (h) substituting "charges" for "interest" where occurring, raised loan limit in Subsec. (a) from six hundred to one thousand dollars "excluding charges" and changing method of calculating charges, raised limit in Subsec. (h) from six hundred to one thousand dollars, substituted twenty- four months and fifteen days for twenty months, deleted prohibition against granting additional loan to borrower until unpaid balance of previous loan is paid in full and required consideration of renewed or refinanced contract as separate loan transaction in same Subsec. and inserted Subsecs. (b) to (g); 1969 act increased loan limit in Subsecs. (a) and (h) to one thousand eight hundred dollars, raised amount charged on excess of three hundred dollars from nine to eleven dollars per hundred in Subsec. (a), specified applicability of provisions to loans under chapter in Subsec. (h) and made twenty- four month and fifteen day period applicable where cash advance was one thousand dollars or less and allowed thirty-six month and fifteen day period where advance exceeded that amount; P.A. 73-419 added provisions governing date when prepayment is deemed to have occurred in Subsec. (f); P.A. 75-99 raised loan limit in Subsecs. (a) and (h) from one thousand eight hundred to five thousand dollars and in Subsec. (a) made previous charge rates applicable to loans not exceeding former limit and added rates for other allowed loans, amending Subsec. (h) accordingly and adding reference to loans secured by real estate, replaced default charge of five cents per dollar with charge consisting of the lesser of five dollars or five cents per dollar and added Subsec. (i) authorizing loans in excess of one thousand eight hundred dollars if secured by real estate; P.A. 77-129 clarified loan limits in Subsec. (a) by referring to unsecured or secured loans and to types of security, made previous provisions of Subsec. (b) applicable to loans originally scheduled for repayment within forty-eight months and fifteen days and added provisions re loans with longer repayment period, deleted references to loans secured by real estate in Subsec. (h) and added provision which allowed extension of renewal period to the number of months loan maturity day has been extended through deferred payments and repealed Subsec. (i); P.A. 80-45 raised amount which determines charge rate in Subsec. (a)(1) from three hundred to six hundred dollars; P.A. 81-102 amended Subsec. (d) by increasing the maximum default charge from five dollars to seven dollars and fifty cents and establishing a minimum default charge of three dollars, and amended Subsec. (e) to make the length of the extension of the maturity of a contract subject to the original repayment period of the loan; P.A. 83-358 added Subsec. (j) concerning allowable closing costs on loans secured by real estate and added Subsec. (k) prohibiting unauthorized charges for default on any loan; P.A. 92-12 made technical changes; Sec. 36-233 transferred to Sec. 36a-563 in 1995; P.A. 97-13 increased limit from five thousand to fifteen thousand dollars in Subsecs. (a) and (h) and made technical changes (Revisor's note: A reference in Subsec. (a) to Secs. "36-555 to 36a-573", inclusive, was changed editorially by the Revisors to Secs. "36a-555 to 36a-573", inclusive; P.A. 00-164 amended Subsec. (h) by adding provision re service charges imposed for dishonored checks.
See Sec. 36a-565 (j) re inapplicability of section to certain open-end loans.
Annotations to former section 36-233:
Annotations to former statute which applied to loans not exceeding three hundred dollars. Loan violates this section and is void where it results in accommodation comaker becoming obligated for more than $300. 109 C. 116. Cited. 115 C. 104; 120 C. 155. Provision in chattel mortgage for attorney's fees in case of reclamation will render note void. 120 C. 193. Effect of receipt showing more than 3% interest was charged. 124 C. 349. Where no security was in fact given, erroneous printed statement as to security was not fatal. Id., 353.
Cited. 149 C. 159.
Subsec. (a):
Cited. 201 C. 89, 98.

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Sec. 36a-564. (Formerly Sec. 36-233a). "Cash advance" defined. As used in section 36a-563 and section 36a-568, "cash advance" means the cash or its equivalent received by the borrower or paid out on the borrower's behalf or at the borrower's direction or request.
(1963, P.A. 175, S. 8; P.A. 94-122, S. 265, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-233a transferred to Sec. 36a-564 in 1995.

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Sec. 36a-565. (Formerly Sec. 36-233b). Open-end loans. Annual percentage rate. Computation of interest. Loan charges. Credit life, accident and health insurance. (a) "Open-end loan" means a loan made by a licensee under sections 36a-555 to 36a-573, inclusive, pursuant to an agreement between the licensee and the borrower whereby: (1) The licensee may permit the borrower to obtain advances of money from the licensee from time to time or the licensee may advance money on behalf of the borrower from time to time as directed by the borrower, not exceeding at any one time an unpaid principal balance of fifteen thousand dollars; (2) the amount of each advance and permitted interest, charges and costs are debited to the borrower's account and payments and other credits are credited to the same account; (3) the interest is computed on the unpaid principal balance or balances of the account from time to time; (4) the borrower has the privilege of paying the account in full at any time or, if the account is not in default, in monthly installments of fixed or determinable amounts as provided in the agreement; and (5) the agreement expressly states that it covers open-end loans pursuant to said sections.
(b) "Billing cycle" means the time interval between periodic billing dates. A billing cycle shall be considered monthly if the closing date of the cycle is the same date each month or does not vary by more than four days from such date.
(c) A licensee may make open-end loans and may charge, contract for and receive thereon interest at an annual percentage rate not to exceed nineteen and eight-tenths per cent for any open-end loan agreement entered into on and after July 1, 1991. A licensee may also receive, pursuant to any such agreement entered into on and after July 1, 1991, one or more of the following charges if the agreement so provides: (1) An annual fee not to exceed fifty dollars for the privileges made available to the borrower under the open-end loan agreement; (2) a default charge subject to the conditions and restrictions set forth in subsection (d) of section 36a-563; (3) service charges that are imposed for a check that is dishonored as provided in subsection (i) of section 52-565a; and (4) reasonable attorneys' fees subject to the conditions and restrictions set forth in section 42-150aa. In addition to the charges provided for by this section, no further or other charge or amount for any examination, service, brokerage, commission or other thing, or otherwise, shall be directly or indirectly charged, contracted for or received. If interest or any charges in excess of those permitted by this section are charged, contracted for or received, except as the result of a bona fide error, the contract of loan shall be void and the licensee shall have no right to collect or receive any principal, interest or charges. No person shall owe any licensee, as such, at any time more than fifteen thousand dollars for principal as a borrower, comaker or guarantor for loans made under this section. As used in this section, the term "bona fide error" includes, but shall not be limited to, clerical, calculation, computer malfunction and programming and printing errors, but does not include an error of legal judgment with respect to a person's obligations under sections 36a-555 to 36a-573, inclusive.
(d) A licensee shall not compound interest or charges by adding any unpaid interest or charges authorized by this section to the unpaid principal balance of the borrower's account.
(e) Interest authorized by this section shall be computed in each billing cycle by any of the following methods: (1) By converting the annual percentage rate to a daily rate and multiplying such daily rate by the daily unpaid principal balance of the account, in which case the daily rate is determined by dividing the annual percentage rate by three hundred and sixty-five; or (2) by converting the annual percentage rate to a monthly rate and multiplying the monthly rate by the average daily unpaid principal balance of the account in the billing cycle, in which case the monthly rate is determined by dividing the annual percentage rate by twelve and the average daily unpaid principal balance is the sum of the amount unpaid each day during the cycle divided by the number of days in the cycle.
(f) For all of the methods of computation specified in subsection (e) of this section, the billing cycle shall be monthly and the unpaid principal balance on any day shall be determined by adding to any balance unpaid as of the beginning of that day all advances and other permissible amounts charged to the borrower and deducting all payments and other credits made or received that day.
(g) Credit life insurance and credit accident and health insurance may be sold to the borrower on open-end loans subject to the conditions and restrictions set forth in section 36a-566. In the case of credit life insurance, the amount of the insurance shall be sufficient to pay the total balance of the loan due on the date of the insured's death. The additional charge for credit life insurance and credit accident and health insurance shall be calculated in each billing cycle by applying the current monthly premium rate for such insurance, as such rate may be determined by the Insurance Commissioner, to the unpaid balances in the account, using any of the methods specified in subsection (e) of this section for the calculation of loan charges. No credit life insurance or credit accident and health insurance written in connection with an open-end loan shall be cancelled by the licensee because of delinquency of the borrower in the making of the required minimum payments on the loan unless one or more of such payments is past due for a period of ninety days or more; and the licensee shall advance to the insurer the amounts required to keep the insurance in force during such period, which amounts may be debited to the borrower's account. The borrower shall have the right to cancel credit accident and health insurance at any time by giving written notice of cancellation to the licensee. Such cancellation shall be effective at the end of the billing cycle in which the notice is received and the licensee shall discontinue any further charges for credit accident and health insurance.
(h) No licensee shall take any confession of judgment or any power of attorney. No licensee shall take a mortgage, lien, security interest in or assignment or pledge of household goods or assignment of wages as security for any open-end loan made pursuant to this section. No licensee shall take a security interest in chattels, tangible or intangible personal property, motor vehicles or real property to secure an open-end loan made pursuant to this section.
(i) A copy of the open-end loan agreement shall be delivered by the licensee to the borrower at the time the open-end account is opened.
(j) Sections 36a-563, 36a-567 and 36a-568 shall not apply to open-end loans made in accordance with the provisions of this section.
(P.A. 79-249; P.A. 89-338, S. 2; P.A. 90-99, S. 1, 2; P.A. 91-25, S. 1, 2; P.A. 95-28; P.A. 96-38; P.A. 00-164, S. 2.)
History: P.A. 89-338 increased the loan limit in Subsecs. (a) and (c) from five to ten thousand dollars and made one- hundred-twenty-month and fifteen-day payment period where a cash advance brought the balance in excess of five thousand dollars; P.A. 90-99 amended Subsec. (c) by defining "bona fide error" and amended Subsec. (h) by authorizing the sale of credit accident and health insurance on open-end loans and specifying borrowers right to terminate coverage; P.A. 91- 25 amended Subsec. (a) by adding "interest" to Subdiv. (2) and changing "charges are" to read "interest is" in Subdiv. (3), amended Subsec. (c) by limiting interest on open-end loans to an annual percentage rate not to exceed nineteen and eight- tenths per cent and adding Subdivs. (1) to (4), inclusive, re permissible loan charges, amended Subsec. (d) by adding "interest or", amended Subsec. (e) by changing "charges" to read "interest" and made technical changes to Subdivs. (f) and (g); Sec. 36-233b transferred to Sec. 36a-565 in 1995; P.A. 95-28 changed "ten" to "fifteen" in Subsecs. (a)(1), defining "open-end loan", and (c), deleted Subsec. (g) re maximum term for full payment and re maximum specified annual percentage rates, and relettered Subsecs. (h) to (k), inclusive, as Subsecs. (g) to (j) (Revisor's note: A reference in Subsec. (g) to "Commissioner of Insurance" was changed editorially by the Revisors to "Insurance Commissioner" for consistency with customary statutory usage; P.A. 96-38 amended Subsec. (c)(1) to increase permitted annual fee from "thirty-five" to "fifty" dollars; P.A. 00-164 amended Subsec. (c)(3) by replacing language re bad check charge with language re service charges for dishonored check.

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Sec. 36a-566. (Formerly Sec. 36-234). Credit life and accident and health insurance. (a) Subject to the conditions provided in this section, insurance may be sold to the borrower at his request (1) for insuring the life of persons obligated on a loan pursuant to sections 38a-645 to 38a-658, inclusive, and (2) providing accident and health insurance covering one person on a loan pursuant to sections 38a-645 to 38a-658, inclusive. Credit accident and health insurance shall not provide indemnity against the risk of a borrower becoming disabled for a period of less than fourteen days, except that it may provide for retroactive coverage if the disability continues for the period stated in the policy. Irrespective of the number of obligors only one obligor may be insured, except that life insurance may cover both a borrower and such borrower's spouse where both are obligors on a loan. A licensee shall not require the purchasing of insurance as a condition precedent to the making of a loan. A licensee shall, both verbally and in writing, inform the borrower prior to his entering into any loan contract of his right not to purchase credit insurance. Any gain or benefit to the licensee directly or indirectly from such insurance or the sale or provision thereof shall not be deemed to be additional or further charges, interest or consideration in connection with a loan made under sections 36a-555 to 36a-573, inclusive, nor a charge in excess of that permitted by said sections.
(b) If a borrower obtains credit accident and health insurance, the borrower shall have the right for a period of fifteen days after the loan is made to cancel the entire insurance coverage. Notification of this right shall be made in the borrower's insurance election. All persons obligated on the loan must agree in writing to the cancellation and return all certificates. Upon cancellation, the licensee shall, at his option, either refund the insurance charges to the borrower or apply them to the unpaid balance of the loan.
(1957, P.A. 439, S. 5; 1959, P.A. 555; 1963, P.A. 175, S. 3; 1969, P.A. 242, S. 4; P.A. 79-134; P.A. 83-345, S. 1, 2.)
History: 1959 act expanded and clarified insurance refund provisions; 1963 act clarified provision re amount of life insurance required; 1969 act deleted detailed provisions re insurance amounts, charges and refunds and specified that gain or benefit to licensee not deemed additional or excess charges; P.A. 79-134 added exception re coverage of married couple; P.A. 83-345 authorized the providing of accident and health insurance covering one person on a loan, required licensees to inform the borrower of his right not to purchase credit insurance and permitted borrowers to cancel any insurance coverage up to fifteen days after the loan is made; Sec. 36-234 transferred to Sec. 36a-566 in 1995.

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Sec. 36a-567. (Formerly Sec. 36-235). Prepayment of loan; receipts to borrower. Every licensee shall (1) permit payment of the loan in whole or in part prior to its maturity, and (2) upon repayment of the loan in full, mark indelibly each paper signed by the borrower with the word "paid" or "cancelled", and cancel and return any note or, in lieu thereof, transmit or deliver to the borrower a duplicate of the original document clearly identifying the loan, showing such loan has been paid in full and the note cancelled.
(1949 Rev., S. 5950; 1949, S. 2763d; 1963, P.A. 175, S. 4; 1969, P.A. 454, S. 35; P.A. 92-12, S. 69; P.A. 94-84.)
History: 1963 act specified in Subdiv. (a) that only certain Subsecs. of Sec. 36-233 need be stated, and amended Subdiv. (b) to require receipt for cash payments only where previously receipt required for all forms of payments; 1969 act deleted former Subdivs. (a) and (b) which required delivery to borrower of statement containing amount owed, scheduled payments, etc. and receipts for cash payments, relettering accordingly; P.A. 92-12 made technical changes; P.A. 94-84 authorized returning to the borrower a duplicate of the original document clearly identifying the loan, showing such loan has been paid in full and the note cancelled; Sec. 36-235 transferred to Sec. 36a-567 in 1995.
See Sec. 36a-565 (j) re inapplicability of section to certain open-end loans.
Annotations to former section 36-235:
Actual amount of loan must be stated; "for value received" and amount of note are not sufficient. 115 C. 102. Rate of interest must be clearly stated. Id. Under former requirement of statement re maturity, failure to state all contingencies which would accelerate payment of principal rendered note unenforceable. 120 C. 152; 124 C. 349. Not necessary that receipt state period for which interest was due or state balance due. 124 C. 351. Statement held insufficient because it stated different day of week for instalment payments from day designated in note. 127 C. 523.

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Sec. 36a-568. (Formerly Sec. 36-236). Form of security restricted. Loan contract. No licensee shall take any confession of judgment or any power of attorney, nor shall he take any note or promise to pay that does not state the actual amount of the loan, the time for which it is made and the charges, or any instrument in which blanks are left to be filled after the loan is made. No licensee shall take a mortgage, lien, security interest in or assignment or pledge of household goods or an assignment of wages as security for any loan made under sections 36a-555 to 36a-573, inclusive. A licensee may take a security interest in chattels or personal property other than household goods, except a security interest in an automobile may not be taken as security for any loan where the cash advance is one thousand eight hundred dollars or less. A licensee may take a security interest in real estate on loans made under said sections where the cash advance is in excess of one thousand eight hundred dollars, but may not take such a security interest in real estate where the cash advance is one thousand eight hundred dollars or less. A contract for a loan under said sections shall not originally schedule any repayment of the cash advance over a period in excess of twenty-four months and fifteen days if the amount of the original cash advance was one thousand dollars or less or thirty-six months and fifteen days if the amount of the original cash advance was more than one thousand dollars but not in excess of one thousand eight hundred dollars or seventy-two months and fifteen days if the amount of the original cash advance was in excess of one thousand eight hundred dollars, and shall be repayable in installments of cash advance and charges combined which are substantially equal in amount or so arranged that no installment is substantially greater in amount than any preceding installment and which are payable at approximately equal intervals not exceeding one month, except that the first installment may be payable not more than one month and fifteen days after the date of such contract. The requirements of section 36a-785 shall apply to any repossession under sections 36a-555 to 36a-573, inclusive, of property other than real estate.
(1949 Rev., S. 5951; 1949, S. 2764d; 1963, P.A. 175, S. 5; 1969, P.A. 242, S. 5; 454, S. 36; P.A. 75-99, S. 5, 6; P.A. 77-129, S. 6.)
History: 1963 act rephrased provisions and increased maximum repayment period from twenty months to twenty-four months and fifteen days and time for payment of first instalment from forty-five days to one month and fifteen days; 1969 acts prohibited taking mortgage or lien except as authorized in Sec. 36-234, made previous repayment period applicable to loans not exceeding one thousand dollars and allowed thirty-six months and fifteen days for larger loans and deleted provision prohibiting licensee from taking any note or promise to pay which "does not state the actual amount of the loan, the time for which it is made and the charges" and from taking "any instrument in which blanks are left to be filled after the loan is made"; P.A. 75-99 specified conditions for taking security interest in real estate and stated that time for repayment of loan secured by real estate may not be restricted; P.A. 77-129 clarified use of chattels and personal property as loan security and deleted reference to security authorized in Sec. 36-234, allowed repayment period of seventy-two months and fifteen days in cases where cash advance exceeded one thousand eight hundred dollars, deleted statement that time for loan repayment where loan secured by real estate is not to be limited and added provision re applicability of Sec. 42-98 to repossession of property other than real estate; Sec. 36-236 transferred to Sec. 36a-568 in 1995.
See Sec. 36a-564 re definition of "cash advance".
See Sec. 36a-565(j) re inapplicability of section to certain open-end loans.
Annotations to former section 36-236:
Cited. 115 C. 105.

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Sec. 36a-569. (Formerly Sec. 36-237). Records. Reports to commissioner. Each licensee shall keep books and records at the place of business specified in the license in such form and in such manner as the commissioner prescribes and shall preserve all books, accounts and records, including cards used in the card system, if any, for at least two years after making the final entry recorded therein. Each such licensee shall, annually, on or before January thirtieth, furnish a sworn statement of the condition of the business of such licensee as of December thirty-first, together with such other information and statements as the commissioner may, from time to time, require. Each licensee which fails to furnish any such sworn statement or required information in connection with this section, shall pay to the state ten dollars for each day that such failure continues, unless excused by the commissioner for cause. The commissioner may, upon the failure of any such licensee to furnish such sworn statement or other information, after a hearing thereon, cancel the license of such licensee.
(1949 Rev., S. 5946; 1951, S. 2760d; 1971, P.A. 199.)
History: 1971 act imposed ten-dollar penalty for each day that licensee fails to furnish required information or sworn statement; Sec. 36-237 transferred to Sec. 36a-569 in 1995.

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Sec. 36a-570. (Formerly Sec. 36-239). Regulations. The commissioner may adopt such regulations, in accordance with chapter 54, and make such findings as may be necessary for the conduct of the small loan business and the enforcement of the provisions of sections 36a-555 to 36a-573, inclusive.
(1949 Rev., S. 5948 (3); P.A. 94-122, S. 266, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-239 transferred to Sec. 36a-570 in 1995.

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Sec. 36a-571. (Formerly Sec. 36-241). License suspension. At any time during any investigation of any licensee under the provisions of sections 36a-555 to 36a-573, inclusive, the commissioner may, without notice or hearing, suspend any license for a period not to exceed fifteen days. Nothing herein shall prevent any licensee, during any period his license may be suspended, from collecting any interest or principal payments on loans lawfully made under the provisions of said sections.
(1949 Rev., S. 5948 (2).)
History: Sec. 36-241 transferred to Sec. 36a-571 in 1995.

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Sec. 36a-572. (Formerly Sec. 36-242). License revocation. The commissioner may, in accordance with section 36a-51, revoke any license issued under the provisions of section 36a-556 if the commissioner finds that the licensee has failed to pay the annual license fee or has violated any provision of sections 36a-555 to 36a-573, inclusive, or any regulation or order lawfully made pursuant to and within the authority of said sections, or if the commissioner finds that any fact or condition exists which, if it had existed at the time of the original application for the license, clearly would have warranted refusing to issue such license.
(1949 Rev., 5942; 1949, S. 2758d; P.A. 74-254, S. 5; P.A. 78-303, S. 53, 136; P.A. 94-122, S. 267, 340.)
History: P.A. 74-254 required that notice be in form required in Sec. 4-177(b) rather than that it state "the contemplated action and in general the grounds therefor"; P.A. 78-303 deleted requirement that at least one member of banking commission (in addition to commissioner) find fact or condition which would warrant refusal to issue license as ground for revocation, that commission having been abolished by P.A. 77-614; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-242 transferred to Sec. 36a-572 in 1995.

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Sec. 36a-573. (Formerly Sec. 36-243). Charge of greater than legal interest. No person, except as authorized by the provisions of sections 36a-555 to 36a-573, inclusive, shall, directly or indirectly, charge, contract for or receive any interest, charge or consideration greater than twelve per cent per annum upon the loan, use or forbearance of money or credit of the amount or value of (1) five thousand dollars or less for any such transaction entered into before October 1, 1997, and (2) fifteen thousand dollars or less for any such transaction entered into on and after October 1, 1997. The provisions of this section shall apply to any person who, as security for any such loan, use or forbearance of money or credit, makes a pretended purchase of property from any person and permits the owner or pledgor to retain the possession thereof, or who, by any device or pretense of charging for the person's services or otherwise, seeks to obtain a greater compensation than twelve per cent per annum. No loan for which a greater rate of interest or charge than is allowed by the provisions of sections 36a-555 to 36a-573, inclusive, has been contracted for or received, wherever made, shall be enforced in this state, and any person in any way participating therein in this state shall be subject to the provisions of said sections, provided, a loan lawfully made after June 5, 1986, in compliance with a validly enacted licensed loan law of another state to a borrower who was not, at the time of the making of such loan, a resident of Connecticut but who has become a resident of Connecticut, may be acquired by a licensee and its interest provision shall be enforced in accordance with its terms.
(1949 Rev., S. 5952; 1949, S. 2765d; 1957, P.A. 439, S. 4; 1963, P.A. 175, S. 7; 1969, P.A. 242, S. 7; P.A. 77-129, S. 7; P.A. 86-216, S. 1, 3; P.A. 94-122, S. 268, 340; P.A. 97-13, S. 3.)
History: 1963 act included "charge" in provision re twelve per cent interest and raised applicable loan limit from six hundred to one thousand dollars; 1969 act raised limit to one thousand eight hundred dollars and deleted reference to loan, etc. of "goods or things in action"; P.A. 77-129 raised limit to five thousand dollars and added proviso re loans exceeding allowed interest rate or charge; P.A. 86-216 amended section to permit a licensed small loan company to enforce an interest provision against an out of state borrower who becomes a Connecticut resident, even if the interest rate exceeds the maximum rate permitted under Connecticut law; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36- 243 transferred to Sec. 36a-573 in 1995; P.A. 97-13 increased limit from five thousand to fifteen thousand dollars for loan transactions entered into on and after October 1, 1997.
Annotations to former section 36-243:
Under former statute note is void and unenforceable if maker owes licensee more than $300. 109 C. 116. Cited. 115 C. 106; 149 C. 159.
Cited. 149 C. 159. Cited. 201 C. 89, 99.

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Secs. 36a-574 to 36a-579. Reserved for future use.

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PART IV
CHECK CASHING SERVICES

Sec. 36a-580. (Formerly Sec. 36-564). Definitions. Applicability of provisions. (a) For purposes of this chapter:
(1) "General facility" means a facility at a fixed location where a licensee may engage in the business of cashing checks, drafts or money orders and which is open to the general public for at least six hours per day four days per week.
(2) "Limited facility" means a mobile facility, where on no more than two days per week, on property occupied by an employer, a licensed operator of a general facility may, under written contract with such employer, engage in the business of cashing payroll checks for the employees of the employer.
(b) The provisions of this section and sections 36a-581 to 36a-589, inclusive, shall not apply to: (1) Checks, drafts or money orders cashed without consideration or charge; (2) checks, drafts or money orders cashed as an incident to the conduct of any other lawful business where not more than fifty cents is charged for cashing such check, draft or money order; or (3) any institution subject to and under the general supervision of any agency of the United States or any entity subject to the general supervision of the commissioner.
(P.A. 88-200, S. 1; P.A. 94-122, S. 269, 340; P.A. 95-253, S. 12, 19.)
History: Sec. 21-111 transferred to Sec. 36-564 in 1991; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-564 transferred to Sec. 36a-580 in 1995; P.A. 95-253 added the definitions of "general facility" and "limited facility" as Subsec. (a) and designated prior provisions as Subsec. (b), effective July 6, 1995.

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Sec. 36a-581. (Formerly Sec. 36-565). License required. Application. (a) Except as provided for in section 36a-580, no person shall engage in the business of cashing checks, drafts or money orders for consideration without obtaining a license to operate a general facility or a license to operate a limited facility for each location where such business is to be conducted.
(b) Each licensee of a limited facility shall continuously maintain at least one operating general facility. A licensee of a limited facility shall not pay any compensation or consideration to any employer.
(c) An application for a check cashing license or renewal of such license shall be in writing, under oath and on a form provided by the commissioner. The application shall set forth: (1) The name and address of the applicant; (2) if the applicant is a firm or partnership, the names and addresses of each member of the firm or partnership; (3) if the applicant is a corporation, the names and addresses of each officer, director, authorized agent and each shareholder owning ten per cent or more of the outstanding stock of such corporation; (4) each location where the check cashing business is to be conducted and the type of facility that will be operated at that location; (5) the business plan, which shall include the proposed days and hours of operation; (6) the amount of liquid assets available for each location which shall not be less than the amount specified in subdivision (6) of subsection (e) of this section; (7) for each limited facility, a copy of the executed contract evidencing the proposed arrangement between the applicant and the employer; and (8) any other information the commissioner may require.
(d) No change shall be made in the location specified in the application without filing an application for change in location accompanied by the applicable location transfer fee. No change shall be made in the type of facility without filing a new application for licensure of the changed facility accompanied by the applicable application fee. No change shall be made to the days and hours of operation specified in any application without the prior written approval of the commissioner.
(e) Upon the filing of the required application and the applicable application and license fees, the commissioner shall investigate the facts and may issue a license if the commissioner finds that (1) the applicant is in all respects properly qualified and of good character, (2) if the applicant is a firm or partnership, each member of the firm or partnership is in all respects properly qualified and of good character, (3) if the applicant is a corporation, each officer, director, authorized agent and each shareholder owning ten per cent or more of the outstanding stock of such corporation is in all respects properly qualified and of good character, (4) granting such license would not be against the public interest, (5) the applicant has a feasible plan for conducting business, and (6) the applicant has available and shall continuously maintain liquid assets of at least ten thousand dollars for each general facility location and at least two thousand five hundred dollars for each limited facility location specified in the application.
(P.A. 88-200, S. 2; P.A. 89-178, S. 2, 8; P.A. 91-11, S. 1; P.A. 94-122, S. 270, 340; P.A. 95-253, S. 13, 19.)
History: P.A. 89-178 substituted the commissioner of banking for the commissioner of consumer protection in Subsec. (a); Sec. 21-112 transferred to Sec. 36-565 in 1991; P.A. 91-11 amended Subsec. (c) to insert Subdiv. indicators, adding provisions to require the commissioner, prior to issuing a license, to find a need in the community for the services to be provided by the applicant and that the applicant has a feasible business plan; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-565 transferred to Sec. 36a-581 in 1995; P.A. 95-253 amended Subsec. (a) to provide for separate licenses for general and limited facilities, added a new Subsec. (b) to require a licensee of a limited facility to maintain at least one general facility, relettered Subsec. (b) as (c) and amended Subsec. (c) by providing for the form of application and by adding Subdivs. (4) to (7), inclusive, re the contents of the application, added a new Subsec. (d) re change in location, in type of facility or in time of operation, relettered Subsec. (c) as (e) and amended Subsec. (e) by adding new Subdivs. (2) and (3) re applications by firms, partnerships or corporations, deleting former Subdiv. (3) re need for services, renumbering Subdivs. (4) and (5) as (5) and (6), respectively, and adding a fee for each limited facility in Subdiv. (6), effective July 6, 1995.

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Sec. 36a-582. (Formerly Sec. 36-566). License fee. Expenses of examination. (a) Each applicant for a check cashing license shall pay to the commissioner, a nonrefundable initial application fee of one thousand dollars and a nonrefundable license fee of one hundred dollars for each location. Each licensee shall pay to the commissioner a nonrefundable location transfer fee of one hundred dollars for each application to transfer a location. Each license issued pursuant to section 36a-581 shall expire at the close of business on June thirtieth of each year unless such license is renewed. Each licensee shall, on or before June twentieth of each year, pay to the commissioner a renewal application fee of seven hundred fifty dollars and a renewal license fee for each location of fifty dollars for the succeeding year, commencing July first.
(b) Each applicant or licensee shall pay the expenses of any examination or other investigation under sections 36a-580 to 36a-589, inclusive.
(c) No abatement of the application, license or location transfer fee shall be made if the license is surrendered, cancelled, revoked or suspended prior to the expiration of the period for which it was issued.
(P.A. 88-200, S. 3; P.A. 89-178, S. 3, 8; P.A. 92-89, S. 16, 20; P.A. 94-122, S. 271, 340; P.A. 95-253, S. 14, 19.)
History: P.A. 89-178 substituted the commissioner of banking for the commissioner of consumer protection in Subsec. (a); Sec. 21-113 transferred to Sec. 36-566 in 1991; P.A. 92-89 increased the license fees in Subsec. (a) from two hundred fifty to one thousand dollars; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-566 transferred to Sec. 36a-582 in 1995; P.A. 95-253 amended Subsec. (a) to change the license fee and renewal license fee and to add application and location transfer fees, and made technical changes to Subsecs. (b) and (c), effective July 6, 1995.

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Sec. 36a-583. (Formerly Sec. 36-567). Posting of license required. License not transferable or assignable. The license for each facility shall be conspicuously posted in that facility during the hours of operation. Such license shall not be transferable or assignable.
(P.A. 88-200, S. 4; P.A. 95-253, S. 15, 19.)
History: Sec. 21-114 transferred to Sec. 36-567 in 1991; Sec. 36-567 transferred to Sec. 36a-583 in 1995; P.A. 95-253 made technical changes re the contents, location and timing of the postings, effective July 6, 1995.

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Sec. 36a-584. (Formerly Sec. 36-568). Maximum fees for the cashing of state checks. Regulations. Maximum amount of check that may be cashed by check cashing licensee. Exceptions. (a) A check cashing licensee shall not charge or collect in fees, charges or otherwise, a sum in excess of one per cent of the check for cashing a check drawn by the state of Connecticut and payable within this state to a recipient of public assistance, as defined in section 36a-304, if the check is negotiated to the licensee by the original payee of the check, and if the payee produces reasonable identification, as provided for in regulations adopted pursuant to section 36a-305.
(b) No check cashing licensee shall cash an item if the amount exceeds two thousand five hundred dollars. This subsection shall not apply to (1) the cashing of any check, draft or money order drawn by the United States, any state or any political subdivision of a state, or by any department, bureau, agency, authority, instrumentality or officer, acting in such officer's official capacity, of the United States, any state or any political subdivision of a state, (2) the cashing of any check which has been certified by the depository institution on which it has been drawn, (3) the cashing of any check drawn by an insurance company for the payment of a claim, and (4) the cashing of any check drawn by an attorney from the attorney's clients' funds account.
(P.A. 88-200, S. 5; P.A. 89-178, S. 4, 8; P.A. 91-11, S. 2; P.A. 94-122, S. 272, 340; P.A. 95-253, S. 16, 19.)
History: P.A. 89-178 amended Subsec. (a) by imposing a cap of one per cent per check on certain state checks and requiring the commissioner of banking to establish by regulation a fee schedule for other checks; Sec. 21-115 transferred to Sec. 36-568 in 1991; P.A. 91-11 amended Subsec. (b) by adding Subdivs. (1) to (4), inclusive, re exceptions to the maximum amount of a check that may be cashed by a check cashing service; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-568 transferred to Sec. 36a-584 in 1995; P.A. 95-253 changed "check cashing service" to "check cashing licensee", effective July 6, 1995.

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Sec. 36a-585. (Formerly Sec. 36-569). Maximum fees set by Commissioner of Banking. The commissioner shall, by regulation adopted in accordance with the provisions of chapter 54, establish the maximum fees which may be charged by a licensee for cashing a check, draft or money order drawn on a depository institution. No check cashing licensee shall charge any sum in excess of that established by such regulation. In establishing maximum fees under this section, the commissioner shall consider: (1) The effect any change in rates will have on consumers; (2) start-up costs, operational expenses, volume of business, and any other information the commissioner deems relevant. The licensee shall conspicuously post and at all times display, at each place of business, a schedule of fees permitted under sections 36a-580 to 36a-589, inclusive. The sum of any payment made by an employee or by an employer on behalf of the employee to a licensee of a limited facility for cashing payroll checks shall not exceed the percentage limitation for maximum fees established by the commissioner in regulations adopted pursuant to this section.
(P.A. 89-178, S. 5, 8; P.A. 94-122, S. 273, 340; P.A. 95-253, S. 17, 19.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-569 transferred to Sec. 36a-585 in 1995; P.A. 95-253 added the ceiling on the sum of payments to a licensee of a limited facility and changed "check cashing service" to "checking cashing licensee", effective July 6, 1995.

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Sec. 36a-586. (Formerly Sec. 36-570). Records to be maintained by check cashing licensee. Reporting requirements. (a) Each check cashing licensee shall use and maintain at a general facility in this state, in the form satisfactory to the commissioner, such books, records and accounts as will enable the commissioner to determine whether the licensee is complying with the provisions of sections 36a-580 to 36a-589, inclusive. Each licensee shall retain such books, records and accounts for not less than the periods of time specified in regulations adopted by the commissioner in accordance with section 36a-588.
(b) Before a licensee deposits with any financial institution a check, draft or money order cashed by such licensee, the item shall be endorsed with the actual name under which the licensee is doing business and must have the words "licensed check cashing service" legibly written or stamped immediately after or below such name.
(c) Each check cashing licensee shall comply with the applicable provisions of the Currency and Foreign Transactions Reporting Act, 31 USC Section 5311 et seq., as from time to time amended, and any regulations adopted under such provisions, as from time to time amended.
(P.A. 88-200, S. 6; P.A. 89-178, S. 6, 8; P.A. 94-122, S. 274, 340; P.A. 95-253, S. 18, 19; P.A. 98-192, S. 2.)
History: P.A. 89-178 amended Subsec. (a) by substituting the commissioner of banking for the commissioner of consumer protection; Sec. 21-116 transferred to Sec. 36-570 in 1991; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-570 transferred to Sec. 36a-586 in 1995; P.A. 95-253 changed "check cashing service" to "check cashing licensee" and made technical changes in Subsec. (a), effective July 6, 1995; P.A. 98-192 added new Subsec. (c) re compliance with federal Currency and Foreign Transactions Reporting Act.

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Sec. 36a-587. (Formerly Sec. 36-571). Suspension, revocation or refusal to renew license. Hearings. Enforcement powers of commissioner. (a) The commissioner may suspend, revoke or refuse to renew any license issued pursuant to section 36a-581, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-580 to 36a-589, inclusive, or if the commissioner finds that the licensee or any owner, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following: (1) Made any material misstatement in the application; (2) committed any fraud, engaged in dishonest activities or made any misrepresentation; (3) violated any provision of sections 36a-580 to 36a-589, inclusive, or any regulation promulgated under said sections; or (4) demonstrated incompetency or untrustworthiness to act as a licensed check cashing service.
(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate the provisions of sections 36a-580 to 36a-589, inclusive, the commissioner may take action against such person in accordance with section 36a-50.
(P.A. 88-200, S. 7; 88-230, S. 1, 12; P.A. 89-178, S. 7, 8; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S. 275, 340.)
History: P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective September 1, 1991; P.A. 89-178 amended Subsec. (a) by substituting the commissioner of banking for the commissioner of consumer protection; Sec. 21-117 transferred to Sec. 36-571 in 1991; P.A. 90-98 changed the effective date of P.A. 88- 230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 94-122 deleted Subsec. (c) re cease and desist provisions and made technical changes, effective January 1, 1995; Sec. 36-571 transferred to Sec. 36a-587 in 1995.

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Sec. 36a-588. (Formerly Sec. 36-572). Regulations. The commissioner shall adopt, pursuant to chapter 54, such regulations as may be necessary to carry out the provisions of sections 36a-580 to 36a-589, inclusive.
(P.A. 88-200, S. 8.)
History: Sec. 21-118 transferred to Sec. 36-572 in 1991; Sec. 36-572 transferred to Sec. 36a-588 in 1995.

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Sec. 36a-589. (Formerly Sec. 36-573). Violations. A violation of any of the provisions of sections 36a-580 to 36a-589, inclusive, shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b.
(P.A. 88-200, S. 9.)
History: Sec. 21-119 transferred to Sec. 36-573 in 1991; Sec. 36-573 transferred to Sec. 36a-589 in 1995.
Annotations to former section 36-573:
Cited. 231 C. 707, 727.

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Secs. 36a-590 to 36a-594. Reserved for future use.

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PART V
MONEY ORDERS, TRAVELERS CHECKS
AND ELECTRONIC PAYMENT INSTRUMENTS

Sec. 36a-595. (Formerly Sec. 36-530). Short title: Money Order and Travelers Check Licensees Act. Sections 36a-595 to 36a-610, inclusive, shall be known and may be cited as the "Money Order and Travelers Check Licensees Act".
(P.A. 81-264, S. 1.)
History: Sec. 36-530 transferred to Sec. 36a-595 in 1995.

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Sec. 36a-596. (Formerly Sec. 36-531). Definitions. As used in sections 36a-595 to 36a-610, inclusive:
(1) "Electronic payment instrument" means a card or other tangible object for the transmission or payment of money which contains a microprocessor chip, magnetic stripe, or other means for the storage of information, that is prefunded and for which the value is decremented upon each use, but does not include a card or other tangible object that is redeemable by the issuer in the issuer's goods or services.
(2) "Holder" means a person, other than a purchaser, who is either in possession of a Connecticut instrument and is the named payee thereon or in possession of a Connecticut instrument issued or endorsed to him or bearer or in blank. "Holder" does not include any person who is in possession of a lost, stolen or forged Connecticut instrument.
(3) "Instrument" means a money order, travelers check or electronic payment instrument that evidences either an obligation for the transmission or payment of money, or the purchase or the deposit of funds for the purchase of such money order, travelers check or electronic payment instrument. An instrument is a "Connecticut instrument" if it is sold in this state.
(4) "Licensee" means any person licensed pursuant to sections 36a-595 to 36a-610, inclusive.
(5) "Money order" means any check, draft, money order or other instrument for the transmission or payment of money. "Money order" does not include a travelers check or electronic payment instrument.
(6) "Net worth" means the excess of assets over liabilities as determined by generally accepted accounting principles.
(7) A money order, travelers check or electronic payment instrument is "outstanding" if: (A) It is sold in the United States; (B) a report of it has been received by a licensee from its agents or subagents; and (C) it has not yet been paid by the issuer.
(8) "Permissible investment" means: (A) Cash in United States currency; (B) time deposits, as defined in subdivision (63) of section 36a-2, or other debt instruments of a bank; (C) bills of exchange or bankers acceptances which are eligible for purchase by member banks of the Federal Reserve System; (D) commercial paper of prime quality; (E) interest-bearing bills, notes, bonds, debentures or other obligations issued or guaranteed by: (i) The United States or any of its agencies or instrumentalities, or (ii) any state, or any agency, instrumentality, political subdivision, school district or legally constituted authority of any state if such investment is of prime quality; (F) interest- bearing bills or notes, or bonds, debentures or preferred stocks, traded on any national securities exchange or on a national over-the-counter market, if such debt or equity investments are of prime quality; (G) receivables due from selling agents consisting of the proceeds of the sale of instruments which are not past due or doubtful of collection; (H) gold; and (I) any other investments approved by the commissioner. Notwithstanding the provisions of this subdivision, if the commissioner at any time finds that an investment of a licensee is unsatisfactory for investment purposes, the investment shall not qualify as a permissible investment.
(9) An investment is of "prime quality" if it is within the top four rating categories in any rating service recognized by the commissioner unless the commissioner determines for any licensee that only those investments in the top three rating categories qualify as "prime quality".
(10) "Purchaser" means a person who buys or has bought a Connecticut instrument.
(11) "Travelers check" means an instrument for the payment of money that contains a provision for a specimen signature of the purchaser to be completed at the time of a purchase of the instrument and a provision for a countersignature of the purchaser to be completed at the time of negotiation.
(P.A. 81-264, S. 2; P.A. 87-9, S. 2, 3; P.A. 92-12, S. 96; P.A. 94-122, S. 276, 340; P.A. 98-192, S. 3; 98-258, S. 4.)
History: (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 92-12 redesignated Subdivs. and Subparas.; P.A. 94-122 deleted former Subdivs. (1) and (2) defining "commissioner" and "financial institution", renumbered former Subdivs. (3) through (9) as Subdivs. (1) through (7), deleted Subdiv. (10) defining "person" and renumbered former Subdivs. (11) through (13) as Subdivs. (8) through (10), effective January 1, 1995; Sec. 36-531 transferred to Sec. 36a-596 in 1995; (Revisor's note: In 1997 the reference in Subdiv. (7) to "... time deposits, as defined in subdivision (55) of section 36a-2 ..." was corrected editorially by the Revisors to "... time deposits, as defined in subdivision (62) of section 36a-2 ..." to reflect the current internal numbering of that section); P.A. 98-192 added new Subdiv. (1) defining "electronic payment instrument", made conforming changes and redesignated existing Subdivs. (1) to (10) as Subdivs. (2) to (11); P.A. 98-258 made a technical change in Subdiv. (7).

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Sec. 36a-597. (Formerly Sec. 36-532). License required. No person shall engage in the business of issuing Connecticut instruments, or engage in the business of receiving money for transmitting the same, without first obtaining a license from the commissioner as provided in section 36a-600. No person shall engage in such business or in the business of selling Connecticut instruments as an agent or subagent, except as an agent or subagent of a licensee as provided in section 36a-607.
(P.A. 81-264, S. 3.)
History: Sec. 36-532 transferred to Sec. 36a-597 in 1995.

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Sec. 36a-598. (Formerly Sec. 36-533). Application. Each application for an original or renewal license required under sections 36a-595 to 36a-610, inclusive, shall be made in writing and under oath to the commissioner in such form as the commissioner may prescribe. The application shall state:
(1) The exact name of the applicant and, if incorporated, the date of incorporation and the state where incorporated;
(2) The complete address of the principal office from which the business is to be conducted, and of the office where the books and records of the applicant are maintained and to be maintained, including the street and number, if any, and the municipality and county of such offices;
(3) The complete name and address of each of the applicant's branches, subsidiaries, affiliates and agents and subagents, if any, engaging in this state in the business of selling or issuing Connecticut instruments, or of receiving money for transmitting the same;
(4) The name, title, address and telephone number of the person to whom notice of the commissioner's approval or disapproval of the application shall be sent and to whom any inquiries by the commissioner concerning the application shall be directed;
(5) The name and residence address (A) of the applicant, if an individual; (B) if a partnership, of its partners; or (C) if a corporation or association, of its directors, trustees, principal officers, and any shareholder owning twenty per cent or more of each class of its stock;
(6) The most recently audited unconsolidated financial statement of the applicant, including its balance sheet and receipts and disbursements for the preceding year, prepared by an independent certified public accountant acceptable to the commissioner;
(7) A list of the applicant's permissible investments, the book and market values of such investments, and the dollar amount of the applicant's aggregate outstanding instruments (A) as of the date of the financial statement filed in accordance with subsection (6) of this section; and (B) as of a date no earlier than thirty business days prior to the filing of the application;
(8) (A) The surety bond required by subsection (a) of section 36a-602, if applicable;
(B) A list of the investments maintained in accordance with subsection (b) of section 36a-602, if applicable, and the book and market values of any such investments (i) as of the date of the financial statement filed in accordance with subdivision (6) of this section; and (ii) as of a date no earlier than thirty business days prior to the filing of the application;
(C) The commissioner may defer compliance with the provisions of this subsection until after the commissioner rules on the application, but the commissioner shall not issue a license until an applicant complies with the provisions of this subdivision;
(9) A statement of whether the applicant will engage in the money order, travelers check or electronic payment instrument business, or any two or all of such businesses, in this state;
(10) Any other information the commissioner may require.
(P.A. 81-264, S. 4; P.A. 92-12, S. 97; P.A. 94-122, S. 277, 340; P.A. 98-192, S. 4.)
History: P.A. 92-12 redesignated Subsecs. and Subdivs.; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-533 transferred to Sec. 36a-598 in 1995; P.A. 98-192 amended Subdiv. (9) by adding reference to electronic payment instrument and making conforming changes.

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Sec. 36a-599. (Formerly Sec. 36-534). Investigation and license fees. Term of license. (a) Each application for an original or renewal license shall be accompanied by a nonrefundable investigation fee of five hundred dollars and a license fee of one thousand dollars. The license fee shall be refunded if the application is denied or is withdrawn prior to issuance of a license by the commissioner.
(b) A license issued pursuant to sections 36a-595 to 36a-610, inclusive, shall remain in full force and effect through the thirtieth day of June following its date of issuance, unless earlier surrendered, suspended or revoked pursuant to said sections.
(P.A. 81-264, S. 5; P.A. 88-150, S. 8; P.A. 92-89, S. 15, 20; P.A. 98-192, S. 5.)
History: P.A. 88-150 amended Subsec. (a) by increasing the investigation fee to five hundred dollars and increasing the license fee to five hundred dollars, and deleted obsolete Subsec. (c) concerning license fees and the term of a license; P.A. 92-89 deleted the five-hundred-dollar investigation fee and increased the license fee from five hundred to one thousand dollars in Subsec. (a); Sec. 36-534 transferred to Sec. 36a-599 in 1995; P.A. 98-192 amended Subsec. (a) by imposing a nonrefundable investigation fee of five hundred dollars.

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Sec. 36a-600. (Formerly Sec. 36-536). Investigation of applicant. Issuance of license. (a) Upon the filing of an application for an original license, and the payment of the fees for investigation and license, the commissioner shall investigate the financial condition and responsibility, financial and business experience, character and general fitness of the applicant. The commissioner shall approve conditionally any application, if the commissioner finds that:
(1) The applicant's financial condition is sound;
(2) The applicant's business will be conducted honestly, fairly, equitably, carefully and efficiently within the purposes and intent of sections 36a-595 to 36a-610, inclusive, and in a manner commanding the confidence and trust of the community;
(3) The applicant is in compliance with the provisions of sections 36a-603 and 36a-604;
(4) No person on behalf of the applicant knowingly has made any incorrect statement of a material fact in the application, or in any report or statement made pursuant to sections 36a-595 to 36a-610, inclusive;
(5) No person on behalf of the applicant knowingly has omitted to state any material fact necessary to give the commissioner any information lawfully required by the commissioner.
(b) If the commissioner conditionally approves an application, the applicant shall have thirty days, which the commissioner may extend for cause, to comply with the requirements of section 36a-602. Upon such compliance, the commissioner's conditional approval shall become final, and the commissioner shall issue a license to the applicant. The commissioner shall not issue a license to any applicant unless the applicant is in compliance with all the requirements of subsection (a) of this section and section 36a-602.
(P.A. 81-264, S. 7; P.A. 94-122, S. 278, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-536 transferred to Sec. 36a-600 in 1995.

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Sec. 36a-601. (Formerly Sec. 36-537). Renewal of license. A license may be renewed for the ensuing twelve-month period upon the filing of an application containing all information required by section 36a-598, including the information required by subdivisions (6), (7) and (8) of said section if not previously filed with the commissioner. Such renewal application shall be filed no later than a date specified each year by the commissioner in writing to the licensee. No investigation fee shall be payable to the commissioner in connection with such renewal application. If an application for a renewal license has been filed with the commissioner on or before the date the commissioner has specified, the license sought to be renewed shall continue in full force and effect until the issuance by the commissioner of the renewal license applied for or until the commissioner has notified the licensee in writing of the commissioner's refusal to issue such renewal license together with the grounds upon which such refusal is based. The commissioner may refuse to issue a renewal license on any ground on which the commissioner might refuse to issue an original license.
(P.A. 81-264, S. 8; P.A. 94-122, S. 279, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-537 transferred to Sec. 36a-601 in 1995.

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Sec. 36a-602. (Formerly Sec. 36-538). Surety bond or investments required. (a) As a condition for the issuance and retention of the license, applicants for a license and licensees shall file with the commissioner a corporate surety bond in a form satisfactory to the commissioner and issued by a bonding company or insurance company authorized to do business in this state. The bond shall be in favor of the commissioner, shall remain in place for two years after such licensee ceases to engage in business in this state, and shall be in the principal sum of (1) three hundred thousand dollars for any applicant and any licensee that engages in the business of issuing Connecticut instruments with an average daily balance of outstanding Connecticut instruments during the two previous reporting quarters of three hundred thousand dollars or less or any licensee that engages in the business of receiving money for transmitting the same with an average weekly amount of money or equivalent thereof transmitted during the two previous reporting quarters of one hundred fifty thousand dollars or less; (2) five hundred thousand dollars for any licensee that engages in the business of issuing Connecticut instruments with an average daily balance of outstanding Connecticut instruments during the two previous reporting quarters of greater than three hundred thousand dollars but less than five hundred thousand dollars or any licensee that engages in the business of receiving money for transmitting the same with an average weekly amount of money equivalent thereof transmitted during the two previous reporting quarters of greater than one hundred fifty thousand dollars but less than two hundred fifty thousand dollars; and (3) one million dollars for any licensee that engages in the business of issuing Connecticut instruments with an average daily balance of outstanding Connecticut instruments during the two previous reporting quarters equal to or greater than five hundred thousand dollars or any licensee that engages in the business of receiving money for transmitting the same with an average weekly amount of money or equivalent thereof transmitted during the two previous reporting quarters of two hundred fifty thousand dollars or greater. The proceeds of the bond shall constitute a trust fund for the exclusive benefit of the purchasers and holders of Connecticut instruments issued by such licensee.
(b) In lieu of all or part of the principal sum of such corporate surety bonds, applicants for a license and licensees may invest such sum as provided in this subsection. The book or market value, whichever is lower, of such investments shall be equal to the amount of the bond required by subsection (a) of this section less the amount of the bond filed with the commissioner by the applicant or licensee. Such investments may be:
(1) Deposits with such banks as such applicants or licensees may designate and the commissioner may approve, and in accordance with such regulations as the commissioner may adopt; or
(2) Interest-bearing bills, notes, bonds, debentures or other obligations issued or guaranteed by (A) the United States or any of its agencies or instrumentalities, or (B) any state, or any agency, instrumentality, political subdivision, school district or legally constituted authority of any state if such investment is of prime quality.
(c) The investments provided for in subsection (b) of this section shall secure the same obligation as would a corporate surety bond filed under this section. As long as a licensee continues business in the ordinary course, it shall be permitted to collect interest on such investments and at any time to exchange, examine, and compare such investments. The investments made pursuant to this section shall be maintained in trust for the exclusive benefit of the purchasers and holders of Connecticut instruments issued by such licensee.
(P.A. 81-264, S. 9; P.A. 91-306, S. 1; P.A. 94-122, S. 280, 340; P.A. 98-192, S. 6.)
History: P.A. 91-306 amended Subsec. (a) by deleting existing provisions re amount of bond and added Subdivs. (1), (2) and (3) re principal sum of bond; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-538 transferred to Sec. 36a-602 in 1995; P.A. 98-192 amended Subsec. (a) by adding provision re two-year time period for bond to remain in place and adding specific requirements for licensees that engage in the business of receiving money for transmitting the same.

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Sec. 36a-603. (Formerly Sec. 36-539). Investments equal to amount of outstanding instruments required. (a) Each licensee shall at all times maintain permissible investments having a value, computed in accordance with generally accepted accounting principles, at least equal to the aggregate amount of its outstanding instruments.
(b) As used in subsection (a) of this section, "value" means the lower of book or market value, except that with regard to debt obligations which the licensee as a matter of policy retains until maturity, "value" means the greater of book or market value unless the commissioner orders that for some or all investments of a particular licensee, "value" means the lower of book or market value.
(P.A. 81-264, S. 10.)
History: Sec. 36-539 transferred to Sec. 36a-603 in 1995.

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Sec. 36a-604. (Formerly Sec. 36-540). Net worth requirements. (a) Each licensee which issues Connecticut instruments which are money orders shall at all times have a net worth of at least one hundred thousand dollars.
(b) Each licensee which issues Connecticut instruments which are travelers checks or electronic payment instruments shall at all times have a net worth of at least one million dollars.
(c) Each licensee that engages in the business of receiving money for transmitting the same shall at all times have a net worth of at least five hundred thousand dollars.
(P.A. 81-264, S. 11; P.A. 98-192, S. 7.)
History: Sec. 36-540 transferred to Sec. 36a-604 in 1995; P.A. 98-192 amended Subsec. (b) by adding reference to electronic payment instruments and added new Subsec. (c) re net worth requirements for licensees that engage in the business of receiving money for transmitting the same.

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Sec. 36a-605. (Formerly Sec. 36-541). Examination of licensees. At least once each year, the commissioner shall visit each licensee and examine its books, accounts, records, files and other papers to ascertain whether it is in sound financial condition and whether its business has been and is being carried on pursuant to law. In lieu of or in addition to any examination required by this section, the commissioner may require a licensee to file a report certified to by an independent certified public accountant containing such information and in such form as the commissioner may require.
(P.A. 81-264, S. 12; P.A. 87-9, S. 2, 3; P.A. 94-122, S. 281, 340.)
History: (Revisor's note: Pursuant to P.A. 87-9 "banking department" was changed editorially by the Revisors to "department of banking"); P.A. 94-122 deleted language allowing authorized employees of the commissioner to examine a licensee's books and records, language allowing employees of a licensee to be examined by the commissioner and language requiring a licensee to pay the cost of such examination, effective January 1, 1995; Sec. 36-541 transferred to Sec. 36a-605 in 1995.

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Sec. 36a-606. (Formerly Sec. 36-542). Annual financial reports required. (a) On or before the thirtieth day of April each year, each licensee shall file with the commissioner:
(1) Its most recently audited unconsolidated financial statement, including its balance sheet and receipts and disbursements for the preceding year, prepared by an independent certified public accountant acceptable to the commissioner;
(2) A list of permissible investments, the book and market value of such investments, and the dollar amount of the licensee's aggregate outstanding instruments; and
(3) A list of investments maintained in accordance with subsection (b) of section 36a-602, if applicable, the book and market values of such investments and the dollar amount of the licensee's aggregate outstanding Connecticut instruments.
(b) The lists and other information filed as provided in subdivisions (2) and (3) of subsection (a) of this section shall be as of the same date as the financial statement filed in accordance with subdivision (1) of subsection (a) of this section.
(c) The commissioner may require of any licensee such additional reports, under oath, certified, or otherwise, concerning such licensee's business in this state as the commissioner may consider necessary for the enforcement of sections 36a-595 to 36a- 610, inclusive.
(P.A. 81-264, S. 13; P.A. 94-122, S. 282, 340.)
History: P.A. 94-122 changed "he" to "the commissioner", effective January 1, 1995; Sec. 36-542 transferred to Sec. 36a-606 in 1995.

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Sec. 36a-606a. Federal reporting requirements. Each licensee shall comply with the applicable provisions of the Currency and Foreign Transactions Reporting Act, 31 USC Section 5311 et seq., as from time to time amended, and any regulations adopted under such provisions, as from time to time amended.
(P.A. 98-192, S. 8; P.A. 99-36, S. 32.)
History: P.A. 99-36 made a technical change.

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Sec. 36a-607. (Formerly Sec. 36-543). Conduct of business by agent or subagent. A licensee may conduct its business at one or more locations within this state as follows:
(1) The business may be conducted by the licensee or through or by means of such agents and subagents as the licensee may periodically designate or appoint.
(2) No license under sections 36a-595 to 36a-610, inclusive, shall be required of any agent or subagent of a licensee.
(3) Each agent and subagent shall, from the moment of receipt, hold the proceeds of a sale or delivery of a licensee's Connecticut instruments in trust for the benefit of such licensee or of an agent of the licensee on behalf of such licensee.
(4) A licensee shall be liable for the loss caused to any purchaser or holder of the licensee's Connecticut instruments by the failure of an agent or subagent of the licensee to forward to the licensee the amount due from the proceeds of a sale or delivery of the licensee's Connecticut instruments.
(P.A. 81-264, S. 14; P.A. 92-12, S. 98.)
History: P.A. 92-12 redesignated Subdivs; Sec. 36-543 transferred to Sec. 36a-607 in 1995.

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Sec. 36a-608. (Formerly Sec. 36-544). Enforcement powers of commissioner. (a) The commissioner shall make such investigations and conduct such hearings as the commissioner considers necessary to determine whether any licensee or any other person has violated any of the provisions of sections 36a-595 to 36a-610, inclusive, or whether any licensee has acted in such manner as otherwise would justify the suspension or revocation of the license. The provisions of section 36a-17 shall apply to such investigation.
(b) The commissioner may suspend or revoke a license, in accordance with section 36a-51, on any ground on which the commissioner might refuse to issue an original license, for any wilful violation of sections 36a-595 to 36a-610, inclusive, or of any regulation adopted under said sections, for noncompliance with an order which the commissioner may issue under said sections to a licensee, or for failure of the licensee to pay a judgment ordered by any court within or outside this state within thirty days after the judgment becomes final or within thirty days after expiration or termination of a stay of execution of the judgment.
(c) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of sections 36a-595 to 36a-610, inclusive, or any regulation adopted under said sections, the commissioner may take action against such person in accordance with section 36a-50.
(d) The commissioner may order a licensee to terminate its agency relationship with any agent who refuses to allow an examination of its books and records regarding the business of such licensee as provided in section 36a-605.
(P.A. 81-264, S. 15; P.A. 94-122, S. 283, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-544 transferred to Sec. 36a-608 in 1995.

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Sec. 36a-609. (Formerly Sec. 36-545). Exemptions. The provisions of sections 36a-595 to 36a-610, inclusive, shall not apply to:
(1) Except in its capacity as an agent of a licensee, any bank the insurable deposits in which are insured by the Federal Deposit Insurance Corporation;
(2) The United States Postal Service; and
(3) The receipt of money by an incorporated telegraph or cable company at any office or agency of such company for immediate transmission by telegraph or cable.
(P.A. 81-264, S. 16; P.A. 91-357, S. 58, 78 P.A. 92-12, S. 99; P.A. 94-122, S. 284, 340.)
History: P.A. 91-357 deleted reference to the Federal Savings and Loan Insurance Corporation from Subsec. (a); P.A. 92-12 redesignated Subdivs.; P.A. 94-122 changed "financial institution" to "bank", effective January 1, 1995; Sec. 36- 545 transferred to Sec. 36a-609 in 1995.

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Sec. 36a-610. (Formerly Sec. 36-546). Regulations. The commissioner may adopt regulations in accordance with chapter 54 which are necessary or appropriate for the enforcement of sections 36a-595 to 36a-609, inclusive.
(P.A. 81-264, S. 17.)
History: Sec. 36-546 transferred to Sec. 36a-610 in 1995.

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Secs. 36a-611 to 36a-614. Reserved for future use.

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PART VI
LOAN BROKERS

Sec. 36a-615. (Formerly Sec. 36-577). Definitions. As used in sections 36a-615 to 36a-620, inclusive, unless the context otherwise requires:
(1) "Advance fee" means any consideration paid or given, directly or indirectly, to a loan broker prior to the distribution of the proceeds of an unsecured loan to any person.
(2) "Loan broker" means any person who: (A) For or in expectation of a fee (i) arranges, negotiates, places, solicits or finds an unsecured loan; (ii) assists or advises a person in obtaining an unsecured loan; or (iii) offers or attempts to engage in the activities described in subparagraph (i) or (ii) of this subdivision; (B) acts for or on behalf of a loan broker; (C) holds himself out to the public generally as a person engaging in the activities described in subdivision (A) of this subsection. A principal, officer, director, partner, joint venturer, manager or other person with similar supervisory or managerial responsibility for persons engaging in the activities described in subdivisions (A) to (C), inclusive, of this subsection shall be deemed to be a loan broker. "Loan broker" shall not include any bank, out-of-state bank, Connecticut credit union, federal credit union, out-of-state credit union, small loan licensee, nondepository first mortgage lender or broker, secondary mortgage loan lender or broker, sales finance company, securities broker-dealer or investment adviser, investment company as defined in the Investment Company Act of 1940, as from time to time amended, forwarder of money, trustee under a mortgage or deed of trust of real property, corporation exercising fiduciary powers, money order and travelers check licensee, check cashing licensee, real estate broker or agent, attorney, Federal Housing Authority or Veterans' Administration approved lender, or insurance company; provided any such person or entity so excluded is licensed by and subject to the regulation and supervision of the appropriate regulatory agency of the United States or this state or any other state and is acting within the scope of the license.
(3) "Unsecured loan" means any loan of money or extension of credit that is not secured by a security interest, as defined in Regulation Z, 12 CFR Section 226.2(a)(25), as from time to time amended.
(P.A. 92-67, S. 1, 9; P.A. 94-122, S. 285, 340.)
History: P.A. 94-122 deleted definition of "commissioner" in Subdiv. (2), renumbered the remaining Subdivs. and made technical changes, effective January 1, 1995; Sec. 36-577 transferred to Sec. 36a-615 in 1995.

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Sec. 36a-616. (Formerly Sec. 36-578). Advance fees imposed by loan brokers prohibited. No loan broker may assess, collect, charge, impose or cause to be paid, directly or indirectly, an advance fee as an incident to, condition of or in connection with providing the services of a loan broker.
(P.A. 92-67, S. 2, 9.)
History: Sec. 36-578 transferred to Sec. 36a-616 in 1995.

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Sec. 36a-617. (Formerly Sec. 36-580). Penalties for violations. Any loan broker who knowingly violates any provision of sections 36a-615 to 36a-620, inclusive, or any regulation or order adopted or issued under said sections, shall be fined not more than one thousand dollars or imprisoned not more than one year, or both, for each violation. Each loan of money or extension of credit in which an advance fee was charged, imposed or caused to be paid shall constitute a separate violation.
(P.A. 92-67, S. 4, 9; P.A. 94-122, S. 286, 340.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-580 transferred to Sec. 36a-617 in 1995.

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Sec. 36a-618. (Formerly Sec. 36-581). Remedies. Any loan broker who violates any provision of sections 36a-615 to 36a-620, inclusive, with respect to any person shall be liable to such person for actual damages, a reasonable attorney's fee, court costs and such punitive damages as may be awarded by the Superior Court. In addition to such remedies, such person shall have a right of rescission of any contract such person may have with the loan broker.
(P.A. 92-67, S. 5, 9.)
History: Sec. 36-581 transferred to Sec. 36a-618 in 1995.

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Sec. 36a-619. (Formerly Sec. 36-582). Remedies provided by sections 36a-615 to 36a-620, inclusive, not exclusive. The remedies provided by sections 36a-615 to 36a-620, inclusive, are in addition to any other remedies provided by state or federal law.
(P.A. 92-67, S. 6, 9.)
History: Sec. 36-582 transferred to Sec. 36a-619 in 1995.

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Sec. 36a-620. (Formerly Sec. 36-583). Regulations. The commissioner may adopt regulations, in accordance with the provisions of chapter 54, as may be necessary to carry out the provisions of sections 36a-615 to 36a-620, inclusive.
(P.A. 92-67, S. 7, 9.)
History: Sec. 36-583 transferred to Sec. 36a-620 in 1995.

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Secs. 36a-621 to 36a-624. Reserved for future use.

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PART VII
CONNECTICUT BUSINESS AND INDUSTRIAL
DEVELOPMENT CORPORATION ACT

Sec. 36a-625. Short title: Connecticut Business and Industrial Development Corporation Act. Sections 36a-625 to 36a-634, inclusive, shall be known and may be cited as the "Connecticut Business and Industrial Development Corporation Act".
(P.A. 93-382, S. 56, 69; P.A. 94-122, S. 287, 340.)
History: P.A. 93-382 effective July 1, 1993; P.A. 94-122 made a technical change, effective January 1, 1995.

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Sec. 36a-626. Definitions. As used in sections 36a-625 to 36a-634, inclusive, unless the context otherwise requires:
(1) "Business and industrial development corporation" means a person approved or seeking approval by the federal Small Business Administration as a participating lender under its loan guarantee programs, which applies to the commissioner for a license in accordance with sections 36a-625 to 36a-634, inclusive.
(2) "License" means a license issued under sections 36a-625 to 36a-634, inclusive, authorizing a person to transact business as a business and industrial development corporation.
(3) "Licensee" means a person that is licensed under sections 36a-625 to 36a-634, inclusive.
(P.A. 93-382, S. 57, 69; P.A. 94-122, S. 288, 340.)
History: P.A. 93-382 effective July 1, 1993; P.A. 94-122 deleted definitions of "commissioner" and "person" and made technical changes, effective January 1, 1995.

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Sec. 36a-627. License required. Exemptions. (a) No person shall engage in the business of a business and industrial development corporation as a participating lender under the loan guarantee programs of the federal Small Business Administration in this state without having received a license under sections 36a-625 to 36a-634, inclusive.
(b) Notwithstanding subsection (a) of this section, the following shall be exempt from the provisions of sections 36a-625 to 36a-634, inclusive: (1) Any person licensed by the federal Small Business Administration as a small business investment company or a small business lending company; (2) any bank, out-of-state bank, Connecticut credit union, federal credit union or out-of-state credit union; or (3) any person that is not approved or is not seeking approval by the federal Small Business Administration as a participating lender under one or more of its loan guarantee programs.
(P.A. 93-382, S. 58, 69; P.A. 94-122, S. 289, 340.)
History: P.A. 93-382 effective July 1, 1993; P.A. 94-122 made technical changes, effective January 1, 1995.

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Sec. 36a-628. Application. Fee. Examination. (a) An application for a license shall be in writing upon forms to be furnished by the commissioner and shall contain the full name and address of the applicant and, if the applicant is a corporation, each of the officers and directors thereof, and a statement of the assets and liabilities of the applicant in such form as the commissioner requires. Such application shall be accompanied by a copy of the applicant's business plan and such other information and exhibits as the commissioner shall require.
(b) Upon the filing of the required application and license fee, the commissioner shall investigate the facts and may issue a license if the commissioner finds that:
(1) The applicant has a net worth which is not less than two million five hundred thousand dollars and which is adequate for the applicant to transact business as a business and industrial development corporation;
(2) If the applicant is a corporation, the directors and officers of the applicant are each of good character, each competent to perform their functions with respect to the applicant and collectively adequate to manage the business of the applicant as a business and industrial development corporation;
(3) It is reasonable to believe that the applicant, if licensed, will comply with all applicable provisions of sections 36a-625 to 36a-634, inclusive, and of any regulation adopted pursuant to said sections; and
(4) The licensing of the applicant will promote the public convenience and advantage.
(P.A. 93-382, S. 59, 69; P.A. 94-122, S. 290, 340.)
History: P.A. 93-382 effective July 1, 1993; P.A. 94-122 made technical changes, effective January 1, 1995.

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Sec. 36a-629. Safe and sound business practice required. (a) Each licensee shall transact its business in a safe and sound manner and shall maintain itself in a safe and sound condition.
(b) No licensee or the directors or officers of such licensee, if such licensee is a corporation, shall commit any unsafe or unsound act.
(P.A. 93-382, S. 60, 69; P.A. 94-122, S. 291, 340.)
History: P.A. 93-382 effective July 1, 1993; P.A. 94-122 inserted "if such licensee is a corporation" in Subsec. (b), effective January 1, 1995.

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Sec. 36a-630. Licensees to provide financing and management assistance to small businesses. Each licensee shall use its best efforts to provide financing assistance to small business firms in cooperation with the federal Small Business Administration pursuant to Section 7(a) of the Small Business Act of 1953 (15 USC Section 631 et seq.), as from time to time amended, and otherwise to cooperate with the federal Small Business Administration for the purpose of providing financing assistance and management assistance to business firms.
(P.A. 93-382, S. 61, 69.)
History: P.A. 93-382 effective July 1, 1993.

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Sec. 36a-631. Books and records. Annual financial reports. (a) Each licensee shall make and keep such books, accounts and other records in such form and in such manner as the commissioner may by regulation or order require. All records so required shall be kept at such place and shall be preserved for such time as the commissioner may by regulation or order specify.
(b) Each licensee shall, not more than ninety days after the close of each of its fiscal years or within such longer period as the commissioner may by regulation specify, file with the commissioner an annual report containing:
(1) A financial statement, including balance sheet, statement of income or loss, statement of changes in capital accounts and statement of changes in financial position, for or as of the end of such fiscal year, prepared with an audit by an independent certified public accountant in accordance with generally accepted accounting principles;
(2) A report, certificate or opinion of such independent certified public accountant, stating that such financial statements were prepared in accordance with generally accepted accounting principles;
(3) A report as to (A) the number and aggregate dollar amount of loans made by such licensee during such fiscal year; (B) the geographic distribution, by census tract, of the borrowers that received such loans; (C) the percentage of such loans that were made in the principal amount of fifty thousand dollars or less; (D) the percentage of such loans that were made to minority or women-owned businesses; (E) the dollar amount of the licensee's loan portfolio as of the end of such fiscal year; (F) the percentage amount of the licensee's loan portfolio that represents loans for which scheduled loan payments were more than ninety days past due as of the end of such fiscal year; (G) the number and dollar amount of loans in liquidation as of the end of such fiscal year; and (H) a summary of the licensee's policies and performance with regard to management assistance provided to small business firms during such fiscal year; and
(4) Such other information as the commissioner may require.
(P.A. 93-382, S. 62, 69.)
History: P.A. 93-382 effective July 1, 1993 (Revisor's note: In Subsec. (b)(3)(D) the reference to "woman-owned businesses" was changed editorially by the Revisors to "women-owned businesses" for consistency with other statutory references).

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Sec. 36a-632. Jurisdiction of Commissioner of Banking. Each licensee shall be an institution subject to the jurisdiction of the commissioner for purposes of sections 36a-17 and 36a-53.
(P.A. 93-382, S. 64, 69; P.A. 94-122, S. 292, 340.)
History: P.A. 93-382 effective July 1, 1993; P.A. 94-122 made a technical change, effective January 1, 1995.

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Sec. 36a-633. License fee. Costs of examination to be borne by applicants. Each applicant for a license, at the time of making such application, shall pay to the commissioner a nonrefundable license fee of four hundred dollars. Each license issued pursuant to this section shall expire at the close of business on June thirtieth of each year, unless such license is renewed. Each licensee shall, on or before June twentieth of each year, pay to the commissioner the sum of four hundred dollars as a license fee for the succeeding year, commencing July first. Each applicant or licensee shall pay the expenses of any examination or investigation made under sections 36a-625 to 36a-634, inclusive.
(P.A. 93-382, S. 65, 69.)
History: P.A. 93-382 effective July 1, 1993.

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Sec. 36a-634. Regulations. The commissioner shall adopt, pursuant to chapter 54, such regulations as may be necessary to carry out the provisions of sections 36a-625 to 36a-633, inclusive.
(P.A. 93-382, S. 66, 69.)
History: P.A. 93-382 effective July 1, 1993.

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Secs. 36a-635 to 36a-644. Reserved for future use.


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