Table of Contents Sec. 49-1. When foreclosure a bar to further action on debt. The foreclosure
of a mortgage is a bar to any further action upon the mortgage debt, note or obligation
against the person or persons who are liable for the payment thereof who are made
parties to the foreclosure and also against any person or persons upon whom service of
process to constitute an action in personam could have been made within this state at
the commencement of the foreclosure; but the foreclosure is not a bar to any further
action upon the mortgage debt, note or obligation as to any person liable for the payment
thereof upon whom service of process to constitute an action in personam could not
have been made within this state at the commencement of the foreclosure. The judgment
in each such case shall state the names of all persons upon whom service of process has
been made as herein provided. Sec. 49-2. Inclusion of taxes and other items as part of mortgage debt. Open-
end mortgage. Reverse annuity mortgage. Negative amortization. (a) Premiums of
insurance, taxes and assessments paid by the mortgagee and payments of interest or
installments of principal due on any prior mortgage or lien by any subsequent mortgagee
or lienor of any property to protect his interest therein, are a part of the debt due the
mortgagee or lienor. Sec. 49-2a. Interest on funds held in escrow for payment of taxes and insurance. (a) On and after July 1, 1993, each state bank and trust company, national banking
association, state or federally chartered savings and loan association, savings bank,
insurance company and other mortgagee or mortgage servicing company holding funds
of a mortgagor in escrow for the payment of taxes and insurance premiums with respect
to mortgaged property located in this state shall pay interest on such funds, except as
provided in section 49-2c, at a rate of not less than the average rate paid, as of December
30, 1992, on savings deposits by insured commercial banks as published in the Federal
Reserve Board Bulletin and rounded to the nearest one-tenth of one percentage point,
except in no event shall the rate be less than one and one-half per cent. On and after
January 1, 1994, the rate for each calendar year shall be not less than the deposit index
as defined in subsection (c) of this section for that year and rounded to the nearest one-
tenth of one percentage point, except in no event shall the rate be less than one and one-
half per cent. Interest payments shall be credited on the thirty-first day of December
annually toward the payment of taxes or insurance premiums as the case may be, on
such mortgaged property in the ensuing year. If the mortgage debt is paid prior to December thirty-first in any year, the interest to the date of payment shall be paid to the mortgagor. The provisions of this section shall apply only with respect to mortgages on
owner-occupied residential property consisting of not more than four living units and
housing cooperatives occupied solely by the shareholders thereof. Any mortgagee or
mortgage servicing company violating the provisions of this section shall be fined not
more than one hundred dollars for each offense. Sec. 49-2b. (Formerly Sec. 37-10). Interest on escrow accounts; regulations of
Commissioner of Banking. The Commissioner of Banking shall adopt such regulations
as are necessary to carry out the provisions of section 49-2a and shall furnish forms to
mortgagees for the purpose of reporting to mortgagors the interest due under the provisions of section 49-2a. Sec. 49-2c. Exceptions. (a) In no event shall interest be required to be paid on
escrow accounts where (1) there is a contract between the mortgagor and the mortgagee,
entered into before October 1, 1975, which contains an express disclaimer of an obligation on the part of the mortgagee to pay interest on the accounts, (2) the payment of
such interest would violate any federal law or regulation, (3) the accounts are maintained
with a mortgage servicing company, neither affiliated with nor owned in whole or in
part by the mortgagee, under a written contract or any mortgage agreements underlying
the contracts, entered into before October 1, 1975, which contract does not permit the
mortgage servicing company to earn or receive a return from the investment of the
accounts or (4) the accounts are maintained in connection with mortgage loans entered
into (A) on and after October 1, 1977, and before January 1, 1989, and which are serviced
and held for sale for not more than one year by a mortgage servicing company, neither
affiliated with nor owned in whole or in part by the purchaser of the mortgage loan, and
(B) on and after January 1, 1989, and which are serviced and held for sale for not more
than six months by any such mortgage servicing company, provided such mortgage
servicing company shall pay interest on an escrow account maintained in connection
with such mortgage loan if the loan is sold within such specified periods and the mortgage
servicing company continues to service the loan. Sec. 49-3. Mortgage securing future advancements. (a) Any mortgage to secure
future advancements of money for construction or repair of buildings or improvements
on land in this state, including site improvements of every kind with or without the
construction or repair of any buildings, is sufficiently definite and certain and valid to
secure all money actually advanced under and in accordance with its provisions, up to
but not exceeding the amount of the full loan therein authorized, with the same priority
as if it had been advanced at the time the mortgage was delivered, (1) if the mortgage
contains a description of the loan in substantially the following form: "Whereas buildings or improvements on said premises are in process of construction or repair, or to be
erected or repaired; and whereas the said grantee has agreed to make the loan herein
described to be paid over to said grantor in installments as the work progresses, the time
and amount of each advancement to be at the sole discretion and upon the estimate of
said grantee, so that when all of the work on said premises shall have been completed
to the satisfaction of said grantee, said grantee shall then pay over to said grantor any
balance necessary to complete the full loan of $....; and whereas the grantor agrees to
complete the erection or repair of said buildings to the satisfaction of said grantee within
a reasonable time from the date hereof or at the latest on or before .... months from this
date", or (2) whenever one or more advances are to be made when a certain event or
condition occurs, if the mortgage contains the pertinent portions of the above clause,
and such additional clauses as shall set forth with reasonable certainty and accuracy the
particular sums which are to be advanced and the event or condition which determines
when such sums are to be advanced to the grantor. A mortgage that otherwise complies
with subdivision (1) of this subsection shall be valid notwithstanding any provision in
any other agreement between the mortgagee and mortgagor that sets forth either particular sums which are to be advanced or the event or condition which determines when
such sums are to be advanced, or both, whether or not such other agreement is recorded
on the land records. Nothing herein invalidates any mortgage which would be valid
without this subsection. Sec. 49-4. Mortgages by U.S. government and certain credit associations and
banks to secure future advancements. Any mortgage upon real property to secure
future advancements of money to the mortgagor to be made within one year of the
date of the mortgage by the United States or any department, agency or instrumentality
thereof, a production credit association, a bank for cooperatives organized under the
Farm Credit Act of 1933, a federal intermediate credit bank or a federal land bank is
sufficiently definite and certain and valid to secure all money actually advanced under
and in accordance with its provisions up to but not exceeding the amount of the full loan
therein stated with the same priority as if it had been advanced at the time the mortgage
was delivered, if the mortgage contains a description of the loan in substantially the
following form: Sec. 49-4a. Open-end mortgages, United States or its instrumentalities and
certain banks authorized to hold. (a) As used in this section, the term "mortgagee",
means the United States or any department, agency or instrumentality thereof, a production credit association, a bank for cooperatives organized under the Farm Credit Act of
1933, a federal intermediate credit bank or a federal land bank. Sec. 49-4b. Open-end mortgage as security for guaranty of an open-end loan.
Mortgage deed requirements. Description of loan and secondary liability. (a) If an
open-end mortgage meets the requirements of this section, such mortgage shall be
deemed to give sufficient notice of the nature of the obligation to secure the obligation
of any person who is secondarily liable for an open-end loan, including (1) a commercial
revolving loan, as defined in subsection (c) of section 49-2, without regard to whether the
authorized amount of indebtedness of such revolving loan constituting the underlying
obligation shall at that time or at any time have been fully advanced, (2) future advances
under such open-end loan, to the extent that such mortgagor is secondarily liable for
such future advances, and (3) a letter of credit. Such mortgagor's secondary liability for
such future advances shall be secured by such open-end mortgage equally with the
obligation secured by such mortgage at the time of recording such mortgage deed and
shall have the same priority over the rights of others who may acquire any rights in, or
liens upon, the mortgaged real estate subsequent to the recording of such mortgage deed. Sec. 49-4c. Mortgage as security for obligations under an electricity purchase
agreement. Any mortgage entered into subsequent to July 1, 1986, between a private
power producer, as defined in section 16-243b, or the owner or operator of a qualifying
facility, as defined in Part 292 of Title 18 of the Code of Federal Regulations, or a
guarantor of any of their respective obligations, as mortgagor, and an electric company,
as defined in section 16-1, as mortgagee, shall be valid to secure all obligations then
existing or thereafter arising of the mortgagor to the mortgagee under an electricity
purchase agreement, including without limitation recovery of amounts paid to the private
power producer or the owner or operator of a qualifying facility by the mortgagee in
excess of the mortgagee's avoided costs as defined in section 16-243a and all other
damages for failure to deliver electric energy or capacity or other breach of an electricity
purchase agreement, including, without limitation, the net replacement cost of the capacity being secured by such mortgage, together with accrued interest, if any, as computed
in accordance with the terms of the electricity purchase agreement or the mortgage, and
under a guarantee of such obligations or obligations created by the mortgage, and shall
have priority over the rights of others who shall acquire any rights in the property covered
by such mortgage subsequent to the recording of the mortgage in the land records of the
town in which the mortgaged property is situated provided: (1) The electricity purchase
agreement is substantially in the form approved by the Department of Public Utility
Control pursuant to section 16-243a and shall have been entered into by the mortgagor
and mortgagee prior to or simultaneously with or subsequent to the execution and delivery of the mortgage, (2) the caption to the mortgage shall contain the words "Open-End
Mortgage" and "Electricity Purchase Agreement", (3) the mortgage shall state that it is
entered into to secure the mortgagor's obligations to the mortgagee under an electricity
purchase agreement or under a guarantee of any electricity purchase agreement obligations and shall recite either the address of an office of the mortgagee or its assignee in
the state at which a copy of the electricity purchase agreement is on file and may be
inspected by the public during normal business hours or that the electricity purchase
agreement has been recorded, as an exhibit to the mortgage or otherwise, on or before
the date the mortgage is recorded, in the land records of the town in which the mortgaged
property is situated, provided the electricity purchase agreement shall be so recorded,
(4) the amount of the obligation from time to time secured by the mortgage may be
determined or reasonably approximated on the basis of records maintained by the mortgagee or its assignee in the state, which records and an estimate of the amount claimed by
the mortgagee to be secured are made available to the public with reasonable promptness
upon written request, and (5) the mortgage states the maximum amount which it shall
secure. Nothing in this section shall invalidate any mortgage which would be valid
without this section. For purposes of this section, "electricity purchase agreement"
means a contract or agreement to purchase and sell electric energy or capacity by and
between a private power producer, as defined in section 16-243b, or the owner or operator of a qualifying facility as defined in Part 292 of Title 18 of the Code of Federal
Regulations and an electric company, as defined in section 16-1. Sec. 49-5. Mortgages on property of public service companies. (a) Any corporation doing a light, heat, gas, power, water, telephone or natural gas transmission business
in, or owning property in, more than one town may secure its issue of bonds or other
evidences of indebtedness by mortgage or deed of trust of all or any part of its plant and
property, real, personal or mixed, wherever the same is situated, including, without
limitation, its goods, documents, instruments, general intangibles, chattel paper, accounts, contract rights and franchises, whether owned by it at the time of the mortgage
or deed of trust or thereafter to be acquired by it, or both, and the mortgage or deed of
trust shall secure equally all such bonds as may be issued from time to time, under and
in pursuance of the terms and provisions specified in the mortgage or deed of trust. In
the mortgage or deed of trust it is sufficient to describe the plant, equipment, apparatus,
transmission or pipe lines, distribution systems and the personal property of such company by general terms. Sec. 49-5a. Master mortgage recording. (a) Any instrument containing a form
or forms of covenants, conditions, obligations, powers and other clauses of a mortgage
may be recorded in the land records of any town. The town clerk shall index such
instrument under the name of the person, lending institution or corporation causing it
to be recorded. Every such instrument shall be entitled on its face "Master form recorded
by (name of person or lending institution in whose name the instrument is to be recorded)." Sec. 49-5b. Required information in a mortgage contingency clause. Any mortgage contingency clause included in a bond for deed or a written agreement for sale of
real estate which conditions the purchaser's performance on his obtaining a mortgage
from a third party shall satisfy the provisions of section 52-550 if such mortgage contingency clause contains at least the following: (1) The principal amount in dollars of the
loan the purchaser must obtain to fulfill such contingency; (2) the limit of the time period
within which a commitment for such loan must be obtained, and (3) the term of the
mortgage expressed in years. Sec. 49-6. Trust mortgages. Section 49-6 is repealed. Sec. 49-6a. Definitions. Interim financing policy disclosure required. (a) For
the purposes of this section: Sec. 49-6b. Definitions. For the purposes of this section and sections 49-6c and
49-6d: Sec. 49-6c. Notice of late fee required. Exception. A creditor shall mail to a consumer debtor a written notice of the imposition of any delinquency charge, late fee or
similar assessment as a result of a late payment on a note, mortgage or installment
sales contract unless the creditor issues a periodic statement which may include any
delinquency charge, late fee, or similar assessment. Such notice shall be mailed within
sixty days of the imposition of such charge. Sec. 49-6d. Legal representation. (a) Each creditor shall notify a consumer debtor
in writing when a mortgage loan application is filed that such debtor: Sec. 49-7. Agreements concerning expenses and attorneys' fees. Any
agreement contained in a bill, note, trade acceptance or other evidence of indebtedness,
whether negotiable or not, or in any mortgage, to pay costs, expenses or attorneys' fees,
or any of them, incurred by the holder of that evidence of indebtedness or mortgage, in
any proceeding for collection of the debt, or in any foreclosure of the mortgage, or in
protecting or sustaining the lien of the mortgage, is valid, but shall be construed as an
agreement for fair compensation rather than as a penalty, and the court may determine
the amounts to be allowed for those expenses and attorneys' fees, even though the
agreement may specify a larger sum. Sec. 49-7a. Lenders prohibited from requiring multiple original notes. No
lender shall require a borrower, as a condition of obtaining a loan, to sign multiple
original notes to evidence such loan. Secs. 49-7b to 49-7e. Reserved for future use. Sec. 49-7f. Mortgage brokers and lenders prohibited from referring buyers
of real property to a real estate broker, salesperson or attorney for a fee or commission. Suspension or revocation of licenses. (a) No mortgage broker or lender, as defined
in subdivision (5) of section 49-31d, or any person affiliated with such mortgage broker
or lender shall receive a fee, commission or other form of referral fee for the referral of
any person to (1) a real estate broker, real estate salesperson, as defined in section 20-
311, or any person affiliated with such broker or salesperson or any person engaged in
the real estate business, as defined in said section 20-311, or (2) an attorney-at-law
admitted to practice within this state or any person affiliated with such attorney. Sec. 49-8. Release of satisfied or partially satisfied mortgage or ineffective attachment, lis pendens or lien. Damages. (a) The mortgagee or a person authorized by
law to release the mortgage shall execute and deliver a release to the extent of the
satisfaction tendered before or against receipt of the release: (1) Upon the satisfaction
of the mortgage or (2) upon a bona fide offer to satisfy the same in accordance with the
terms of the mortgage deed upon the execution of a release, or (3) when the parties in
interest have agreed in writing to a partial release of the mortgage where that part of the
property securing the partially satisfied mortgage is sufficiently definite and certain, or
(4) when the mortgagor has made a bona fide offer in accordance with the terms of the
mortgage deed for such partial satisfaction on the execution of such partial release. Sec. 49-8a. Release of mortgage. Affidavit. Recording of affidavit with town
clerk. Penalty for recording false information. (a) For purposes of this section and
section 49-10a: Sec. 49-9. Form of release of mortgage, mechanic's lien or power of attorney.
Index. (a) A mortgage of real or personal property, a mechanic's lien or a power of
attorney for the conveyance of land may be released by an instrument in writing executed, attested and acknowledged in the same manner as deeds of land, setting forth
that the mortgage, mechanic's lien or power of attorney for the conveyance of land is
discharged or that the indebtedness or other obligation secured thereby has been satisfied. That instrument vests in the person or persons entitled thereto such legal title as
is held by virtue of the mortgage, or mechanic's lien. An instrument in substantially the
form following is sufficient for the release: In Witness Whereof .... have hereunto set .... hand and seal, this .... day of ...., A.D. .... Signed, sealed and delivered (b) In the case of partial releases of mortgages as provided for in section 49-8,
the instrument shall state the extent to which the mortgage is partially released and a
sufficiently definite and certain description of that part of the property securing the
mortgage which is being released therefrom. (c) In addition to the requirements of subsection (b) of this section, whenever an
assignment of any residential mortgage loan (1) made by a lending institution organized
under the laws of or having its principal office in any other state, and (2) secured by
mortgage on residential real estate located in this state is made in writing, the instrument
shall contain the name and business or mailing address of all parties to such assignment. Sec. 49-10a. Request for payoff statement. A mortgagee shall, upon written request of the mortgagor or the mortgagor's attorney or other authorized agent provide a
payoff statement in writing to the person requesting such statement on or before the
date specified in such request, provided such request date is at least ten business days
from the date of receipt of the written request for a payoff statement. If the mortgagee
fails to provide such payoff statement on or before such request date, the mortgagee
shall not be entitled to the payment of any interest on the mortgage loan which is secured
by such mortgage which accrues after the expiration of such request date. If the mortgagee provides the payoff statement to the person requesting the same after the expiration
of such request date, interest on the mortgage loan which accrues after the receipt of
such payoff statement by the person who has requested it shall again be payable. The
burden of proof shall be on the mortgagor with respect to the receipt by the mortgagee
of the mortgagor's request for a payoff statement of the mortgage loan, and thereafter
shall be on the mortgagee with respect to the receipt of the payoff statement by the
mortgagor or the mortgagor's attorney or other authorized agent. Please be advised that a loan from ..., (lender) to .... (mortgagor) dated .... and recorded
in the land records in the town of .... in volume .... at page .... bearing loan number ....
secured by a mortgage on .... (address), or as otherwise shown on the attached payoff
statement, was paid at closing on .... (date of completion of the closing). If you do not
receive the mortgage payoff funds within five business days of the date of completion
of the closing, you are directed to notify this office immediately as follows: Notification agent's name .... Sec. 49-11. Release of mortgage by executor, administrator, spouse, next of
kin, guardian, conservator or other suitable person. The executor of the will or
administrator of the estate of any deceased mortgagee, or the spouse or next of kin, or
other suitable person whom the court deems to have a sufficient interest, to whom a
decree is issued under section 45a-273, and any guardian or conservator whose ward is
a mortgagee, may, on the payment, satisfaction or sale of the mortgage debt, release the
legal title to the party entitled thereto. Sec. 49-12. Release of mortgage by foreign executor, administrator, trustee,
conservator or guardian. The executor of the will or the administrator or trustee of
the estate of any deceased nonresident, or the conservator or guardian of any nonresident
person, may, by a release or assignment executed in the manner required for the execution of instruments conveying title to real estate in this state, release or assign any mortgage of real estate held by such deceased or nonresident person in this state, provided
the executor, administrator, trustee, guardian or conservator shall file for record, with
the town clerk of the town in which the real estate is situated, a certificate of his appointment and qualification, issued by the court having jurisdiction of the settlement of the
estate of the deceased or the estate of the nonresident person. Sec. 49-13. Petition for discharge of mortgages or of ineffective attachment,
lis pendens or lien. Damages. (a) When the record title to real property is encumbered
(1) by any undischarged mortgage, and (A) the mortgagor or those owning the mortgagor's interest therein have been in undisturbed possession of the property for at least six
years after the expiration of the time limited in the mortgage for the full performance
of the conditions thereof, and for six years next preceding the commencement of any
action under this section, or (B) when the promissory note or other written evidence of
the indebtedness secured by the mortgage is payable on demand and seventeen years
have passed without any payment on account of such note or other written evidence of
indebtedness, or (C) when the mortgage does not disclose the time when the note or
indebtedness is payable or disclose the time for full performance of the conditions of
the mortgage and seventeen years have passed without any payment on account of the
promissory note or other written evidence of indebtedness, or (D) when the note or
evidence of indebtedness has been paid or bona fide offer and tender of the payment
made pursuant to section 49-8, or (E) when the mortgage has become invalid, and in
any of such cases no release of the encumbrance to secure such note or evidence of
indebtedness has been given, or (2) by a foreclosed mortgage and the mortgagor has
made a bona fide offer and tender of payment of the foreclosure judgment on or before
the mortgagor's law day and the mortgagee has refused to accept payment, or (3) by an
attachment, lis pendens or other lien which has become of no effect, the person owning
the property, or the equity in the property, may bring a petition to the superior court
within the judicial district in which the property is situated, setting forth the facts and
claiming a judgment as hereinafter provided. The plaintiff may also claim in the petition
damages as set forth in section 49-8, if the plaintiff is aggrieved by the failure of the
defendant to execute the release therein prescribed. Sec. 49-13a. Undischarged mortgage invalid after forty years. When record
title to real property remains encumbered by any undischarged mortgage, and the mortgagor or those owning his interest therein have been in undisturbed possession of the
property for at least forty years after the expiration of the time limited in the mortgage
for the full performance of the conditions thereof, the mortgage shall be invalid as a
further lien against the real estate, provided an affidavit, subscribed and sworn to by the
party in possession, stating the fact of such possession, is recorded on the land records
of the town wherein the property is situated. Sec. 49-14. Deficiency judgment. (a) At any time within thirty days after the time
limited for redemption has expired, any party to a mortgage foreclosure may file a motion
seeking a deficiency judgment. Such motion shall be placed on the short calendar for
an evidentiary hearing. Such hearing shall be held not less than fifteen days following
the filing of the motion, except as the court may otherwise order. At such hearing the
court shall hear the evidence, establish a valuation for the mortgaged property and shall
render judgment for the plaintiff for the difference, if any, between such valuation and
the plaintiff's claim. The plaintiff in any further action upon the debt, note or obligation,
shall recover only the amount of such judgment.
Sec. 49-1. When foreclosure a bar to further action on debt.
Sec. 49-2. Inclusion of taxes and other items as part of mortgage debt. Open-end mortgage. Reverse annuity mortgage. Negative amortization.
Sec. 49-2a. Interest on funds held in escrow for payment of taxes and insurance.
Sec. 49-2b. (Formerly Sec. 37-10). Interest on escrow accounts; regulations of Commissioner of Banking.
Sec. 49-2c. Exceptions.
Sec. 49-3. Mortgage securing future advancements.
Sec. 49-4. Mortgages by U.S. government and certain credit associations and banks to secure future advancements.
Sec. 49-4a. Open-end mortgages, United States or its instrumentalities and certain banks
authorized to hold.
Sec. 49-4b. Open-end mortgage as security for guaranty of an open-end loan. Mortgage deed
requirements. Description of loan and secondary liability.
Sec. 49-4c. Mortgage as security for obligations under an electricity purchase agreement.
Sec. 49-5. Mortgages on property of public service companies.
Sec. 49-5a. Master mortgage recording.
Sec. 49-5b. Required information in a mortgage contingency clause.
Sec. 49-6. Trust mortgages.
Sec. 49-6a. Definitions. Interim financing policy disclosure required.
Sec. 49-6b. Definitions.
Sec. 49-6c. Notice of late fee required. Exception.
Sec. 49-6d. Legal representation.
Sec. 49-7. Agreements concerning expenses and attorneys' fees.
Sec. 49-7a. Lenders prohibited from requiring multiple original notes.
Secs. 49-7b to 49-7e.
Sec. 49-7f. Mortgage brokers and lenders prohibited from referring buyers of real property to a real estate broker, salesperson or attorney for a fee or commission. Suspension
or revocation of licenses.
Sec. 49-8. Release of satisfied or partially satisfied mortgage or ineffective attachment, lis pendens or lien. Damages.
Sec. 49-8a. Release of mortgage. Affidavit. Recording of affidavit with town clerk. Penalty for recording false information.
Sec. 49-9. Form of release of mortgage, mechanic's lien or power of attorney. Index.
Sec. 49-10. Requirements for assignments of obligations. Form of instrument. Sufficient
notice required.
Sec. 49-10a. Request for payoff statement.
Sec. 49-10b. Residential real estate transaction involving payoff of mortgage loan. Disclosure statement prepared and sent to mortgage holder by notification agent. Form.
Sec. 49-11. Release of mortgage by executor, administrator, spouse, next of kin, guardian, conservator or other suitable person.
Sec. 49-12. Release of mortgage by foreign executor, administrator, trustee, conservator
or guardian.
Sec. 49-13. Petition for discharge of mortgages or of ineffective attachment, lis pendens
or lien. Damages.
Sec. 49-13a. Undischarged mortgage invalid after forty years.
Sec. 49-14. Deficiency judgment.
Sec. 49-15. Opening of judgments of foreclosure.
Sec. 49-16. Foreclosure certificate. Penalty.
Sec. 49-17. Foreclosure by owner of debt without legal title.
Sec. 49-18. Foreclosure by executor, administrator or trustee.
Sec. 49-19. Title to vest in encumbrancer paying debt and costs.
Sec. 49-20. Redemption by holder of encumbrance on part of property foreclosed.
Sec. 49-21. Defendant to receive and file certificate of satisfaction or certificates of
judgment of strict foreclosure or foreclosure by sale.
Sec. 49-22. Execution of ejectment on foreclosure judgment. Disposition of property.
Sec. 49-22a. Execution of ejectment on foreclosure judgment on mortgage guaranteed by Administrator of Veterans' Affairs.
Sec. 49-23. Ejectment by mortgagee barred by tender of debt and costs.
Sec. 49-24. Court may foreclose lien or mortgage on land by sale.
Sec. 49-25. Appraisal of property.
Sec. 49-26. Conveyance; title of purchaser.
Sec. 49-27. Disposal of proceeds of sale.
Sec. 49-28. When proceeds of sale will not pay in full.
Sec. 49-29. Expenses of sale and costs.
Sec. 49-30. Omission of parties in foreclosure actions.
Sec. 49-31. Actions against the state.
Sec. 49-31a. Subordination clauses.
Sec. 49-31b. Information in deed sufficient notice as to nature and amount of obligation.
Deed for variable rate mortgage loan.
Sec. 49-31c. When subordination not subject to statute of frauds and automatically effective.
Sec. 49-31d. Definitions.
Sec. 49-31e. Notice to homeowner of protections from foreclosure.
Sec. 49-31f. Application for protection from foreclosure action. Qualifications. Court
determination of eligibility. Stay of foreclosure action.
Sec. 49-31g. Restructuring of mortgage debt by court.
Sec. 49-31h. Partial payment by homeowner mandated by court as condition for granting of
restructuring order.
Sec. 49-31i. Determination of restructured mortgage debt. Limitations on amount of mortgage debt following restructuring. Computation of new mortgage debt.
Sec. 49-31j. Regulations.
(1949 Rev., S. 7191; 1957, P.A. 443; P.A. 79-602, S. 74.)
History: P.A. 79-602 made minor changes in wording, substituting "the" for "such", etc., but made no substantive
changes.
See Sec. 49-14 re deficiency judgments.
Before the statute, foreclosure was a bar to further action on the mortgage debt. 1 R. 203; 3 C. 63; 5 C. 535; 18 C. 136;
91 C. 586. The provisions of this section requiring persons liable for the mortgage debt to be made parties to the foreclosure
applies only to foreclosure proceedings begun after the section was enacted. 56 C. 146. This section applies to mortgages
of personalty. 58 C. 257. Consideration of separate action against endorser after foreclosure and deficiency judgment
against maker only. 100 C. 710; 102 C. 648. Cited. 112 C. 611; 116 C. 332; 120 C. 671; 141 C. 179. Parties liable in
separate action even though deficiency not claimed in foreclosure suit. 109 C. 333. Guarantors named in foreclosure
allowed same credit as mortgagor. 113 C. 246. Failure to name one a party defendant merely bars the remedy. 119 C. 586.
Effect of failing to name parties in foreclosure of prior mortgages 122 C. 314. Does not change requirements of section
49-14. 154 C. 216. Cited. 185 C. 579, 582. Cited. 199 C. 368, 370−372, 376, 377. Cited. 216 C. 443, 448, 449. Cited. 220
C. 152, 154, 160, 162. Cited. Id., 643, 647. Cited. 228 C. 929. Section prohibits a personal remedy against mortgagor but
does not eliminate the underlying mortgage debt and does not supersede bank's continuing access to equitable foreclosure
proceedings; judgment reversed. 244 C. 251. Statute did not apply because original common charges debt was not extinguished by foreclosure action based on a statutorily created lien. 247 C. 575.
Cited. 25 CA 159−163. Cited. 28 CA 809, 814, 817, 821, 822. Cited. 31 CA 80, 83. Cited. Id., 476, 482, 483. Cited.
32 CA 309, 310. Cited. 33 CA 388, 389, 391−395. Cited. 35 CA 81, 90. Cited. 38 CA 198, 206. Cited. 40 CA 434−436,
438, 444, 445. Cited. 44 CA 588. Trustee's sale of property in another state does not bar action here since defendant not
a person on whom service of process in Connecticut could have been made at commencement of trustee's sale in the other
state. 48 CA 531.
Cited. 2 CS 98; 6 CS 300. When a mortgagee takes property on foreclosure, the taking of the property satisfies the debt
only pro tanto to value of property on date it is appropriated. 3 CS 261. Distinction between this section and 49-14 discussed.
6 CS 123.
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(b) Advancements may be made by a mortgagee for repairs, alterations or improvements and are a part of the debt due the mortgagee, provided (1) advancements for those
repairs, alterations or improvements shall not be made if the indebtedness at the time
of the advancement exceeds the amount of the original mortgage debt; (2) the advancements shall not exceed the difference between the indebtedness at the time of the advancement and the original mortgage debt, if the original mortgage debt is greater than
the then indebtedness; (3) the total amount of all of the advancements for repairs, alterations and improvements outstanding at any time shall not exceed one thousand dollars;
(4) the original mortgage shall be executed and recorded after October 1, 1947; and (5)
the terms of repayment of the advancements shall not increase the time of repayment
of the original mortgage debt.
(c) Advancements may also be made by a mortgagee, or the assignee of any mortgagee, under an open-end mortgage to the original mortgagor, or to the assign or assigns
of the original mortgagor who assume the existing mortgage, or any of them, and any
such mortgage debt and future advances shall, from the time such mortgage deed is
recorded, without regard to whether the terms and conditions upon which such advances
will be made are contained in the mortgage deed and, in the case of an open-end mortgage
securing a commercial revolving loan, a consumer revolving loan or a letter of credit,
without regard to whether the authorized amount of indebtedness shall at that time or
any time have been fully advanced, be a part of the debt due such mortgagee and be
secured by such mortgage equally with the debts and obligations secured thereby at the
time of recording the mortgage deed and have the same priority over the rights of others
who may acquire any rights in, or liens upon, the mortgaged real estate subsequent to
the recording of such mortgage deed, provided: (1) The heading of any such mortgage
deed shall be clearly entitled "Open-End Mortgage"; (2) the mortgage deed shall contain
specific provisions permitting such advancements and, if applicable, shall specify that
such advancements are made pursuant to a commercial revolving loan agreement, a
consumer revolving loan agreement or a letter of credit; (3) the mortgage deed shall
state the full amount of the loan therein authorized; (4) the terms of repayment of such
advancements shall not extend the time of repayment beyond the maturity of the original
mortgage debt, provided this subdivision shall not be applicable where such advancements are made or would be made pursuant to a commercial revolving loan agreement,
a consumer revolving loan agreement or a letter of credit, and the mortgage deed specifies that such advancements are repayable upon demand or by a date which shall not be
later than thirty years from the date of the mortgage; (5) such advancements shall be
secured or evidenced by a note or notes signed by the original mortgagor or mortgagors
or any assign or assigns of the original mortgagor or mortgagors who assume the existing
mortgage, or any of them, but no note shall be required with respect to any advancements
made pursuant to a commercial revolving loan agreement, a consumer revolving loan
agreement or a letter of credit as long as such advancements are recorded in the books
and records of the original mortgagee or its assignee; (6) the original mortgage shall be
executed and recorded after October 1, 1955; (7) the original mortgagor or mortgagors,
or any assign or assigns of the original mortgagor or mortgagors who assume the existing
mortgage, or any of them, are hereby authorized to record a written notice terminating
the right to make such optional future advances secured by such mortgage or limiting
such advances to not more than the amount actually advanced at the time of the recording
of such notice, provided a copy of such written notice shall also be sent by registered
or certified mail, postage prepaid and return receipt requested, to the mortgagee, or a
copy of such written notice shall be delivered to the mortgagee by a proper officer or
an indifferent person and a receipt for the same received from the mortgagee, and such
notice, unless a later date is recorded or specified in the notice, shall be effective from
the time it is received by the mortgagee; (8) except that if any such optional future
advance or advances are made by the mortgagee, or the assignee of any mortgagee, to
the original mortgagor or mortgagors, or any assign or assigns who assume the existing
mortgage, or any of them, after receipt of written notice of any subsequent mortgage,
lien, attachment, lis pendens, legal proceeding or adjudication against such real property,
then the amount of any such advance, other than an advance made pursuant to a commercial revolving loan agreement or a letter of credit, shall not be a priority as against any
such mortgage, lien, attachment, lis pendens or adjudication of which such written notice
was given; (9) any notice given to the mortgagee under the terms of subdivision (8) of
this subsection shall be deemed valid and binding upon the original mortgagee or any
assignee of the original mortgagee, in the case of a mortgagee other than a banking
institution, on the next business day following receipt by such mortgagee of such notice
sent by registered or certified mail, postage prepaid and return receipt requested or by
hand delivery with a signed receipt, and in the case of a mortgagee which is a banking
institution, on the next business day following receipt at the main office of such banking
institution of such notice sent by registered or certified mail, postage prepaid and return
receipt requested or by hand delivery with a signed receipt. For the purposes of this
subsection: (A) "Banking institution" means a bank and trust company, a national banking association having its main office in this state, a savings bank, a federal savings
bank having its main office in this state, a savings and loan association, a federal savings
and loan association having its main office in this state, a credit union having assets of
two million dollars or more, or a federal credit union having its main office in this state
and having assets of two million dollars or more; (B) "commercial revolving loan"
means a loan to a foreign or domestic corporation, partnership, sole proprietorship,
association or entity, or any combination thereof, organized for profit and engaged primarily in commercial, manufacturing or industrial pursuits, which loan entails advances
of all or part of the loan proceeds and repayments of all or part of the outstanding balance
of the loan from time to time; and (C) "consumer revolving loan" means a loan to one
or more individuals, the proceeds of which are intended primarily for personal, family
or household purposes, which is secured by a mortgage on residential real property,
and is made pursuant to an agreement between the mortgagor and mortgagee which (i)
provides for advancements of all or part of the loan proceeds during a period of time
which shall not exceed ten years from the date of such agreement and for repayments
of the loan from time to time, (ii) provides for payments to be applied at least in part to
the unpaid principal balance not later than ten years from the date of the loan, (iii) does
not authorize access to the loan proceeds by a credit card or any similar instrument or
device, whether known as a credit card, credit plate, or by any other name, issued with
or without a fee by an issuer for the use of the cardholder in obtaining money, goods,
services, or anything else of value on credit, and (iv) does not provide that such a revolving loan to more than one mortgagor will be immediately due and payable upon the
death of fewer than all the mortgagors who signed the revolving loan agreement. Nothing
in this subsection shall affect the validity or enforceability of any loan agreement which
provides for future advancements by a lender to a borrower as between such parties or
their heirs, successors or assigns, or shall affect the validity or enforceability of any
mortgage securing any such loan that would be valid and enforceable without the provisions of this subsection.
(d) (1) Any mortgage to secure advancements made by a mortgagee or its assignee
to a mortgagor pursuant to the terms of a mortgage securing a reverse annuity mortgage
loan, as defined in subdivision (4) of subsection (a) of section 36a-265, shall be sufficiently definite and certain and valid to secure all money actually advanced pursuant to
and in accordance with its terms, whether at or subsequent to closing of the loan, up to
but not exceeding the full amount of the loan therein authorized with the same priority
as if all such money had been advanced at the time such mortgage was delivered if such
mortgage sets forth: (A) That it is a "reverse annuity mortgage loan" and contains a
reference to subdivision (4) of subsection (a) of section 36a-265; (B) the full amount
of the loan authorized; (C) a statement of the dates on which such advancements are to
be made and the amounts of such advancements; and (D) the events which will give
rise to the maturity of the loan.
(2) The mortgagee or its assignee and the mortgagor may subsequently modify
the dates set forth in the mortgage for advancements by a writing setting forth such
modification signed by the mortgagee or its assignee and the mortgagor and recorded
upon the proper land records. Such modification shall in no way limit or otherwise affect
the priority of such mortgage.
(e) Any mortgagee of real property located in this state may contract with the mortgagor in connection with the mortgage loan for interest to be paid currently or to accrue,
and, if such interest is to accrue, for such accrued interest to be added to the principal
mortgage debt on which interest may be charged and collected. Such accrued interest
which is added to the principal mortgage debt shall be secured by the mortgage to the
same extent as the original principal of such mortgage debt.
(1949 Rev., S. 7192; 1955, S. 2969d; P.A. 73-587; P.A. 79-158, S. 2; 79-359, S. 1; 79-602, S. 61; P.A. 80-423, S. 1,
3; 80-483, S. 130, 186; P.A. 81-251; P.A. 82-243, S. 1, 3; P.A. 88-271, S. 1; P.A. 89-84; P.A. 96-180, S. 160, 166; P.A.
99-36, S. 33.)
History: P.A. 73-587 replaced Subdiv. (3) in Subsec. (c) which had stated that advancements "shall not exceed the
difference between the indebtedness at the time of such advancement and the original mortgage debt" with provision
prohibiting indebtedness from exceeding the stated amount of the mortgage; P.A. 79-158 added Subsec. (d); P.A. 79-359
amended Subsec. (c) to specify that mortgage debt and future advances are part of debt due "without regard to whether
the terms ... upon which such advances will be made are contained in the mortgage deed, and, in the case of an open-end
mortgage securing a commercial revolving loan, without regard to whether the stated amount of indebtedness shall ... have
been fully advanced", to add provision re advancements made pursuant to commercial revolving loan agreement in Subdivs.
(2), (5) and (8) to rephrase Subdiv. (3) and to define "commercial revolving loan" for purposes of the Subsec.; P.A. 79-
602 made minor changes in wording of Subsecs. (a) and (b); P.A. 80-423 added references to letters of credit in Subsec.
(c) and made minor changes in wording; P.A. 80-483 made technical grammatical changes in Subsec. (a) and replaced
numeric Subdiv. indicators with alphabetic indicators in Subsec. (d)(1); P.A. 81-251 amended Subsec. (c) by adding the
words "partnership, association or entity, or any combination thereof" in the definition of a commercial revolving loan;
P.A. 82-243 amended Subsec. (c) by providing that Subdiv. (4) is not applicable to certain advancements which are
repayable upon demand, and by including a loan to a "sole proprietorship" in the definition of a commercial revolving
loan and added Subsec. (e) authorizing a mortgagee to contract with the mortgagor for the accrual of interest and the addition
of that accrued interest to the principal mortgage debt; P.A. 88-271 amended Subsec. (c) by extending the application of
the section to consumer revolving loans; P.A. 89-84 amended Subdiv. (9) of Subsec. (c) by adding Subpara. designations
and adding Subpara. (B) re notice to a mortgagee which is a banking institution and made technical changes; P.A. 96-180
changed the first reference in Subsec. (d)(1) from "subdivision (5) of subsection (a) of section 36a-265" to "subdivision
(4) of subsection (a) of section 36a-265", effective June 3, 1996, while the second such reference was changed editorially
by the Revisors for consistency; P.A. 99-36 made technical changes in Subsec. (c).
See Sec. 49-4b re open-end mortgage as security for guarantor.
These payments give no right to foreclosure apart from debt. 75 C. 375; 124 C. 337. Provisions not exclusive; payments
made by second mortgagee on principal of first mortgage and for appraisal after fire may be added to debt secured by
second mortgage. 105 C. 176. Recovery for payments on prior mortgage by mortgagor from his grantee. 112 C. 611. Cited.
115 C. 655; 116 C. 334; 120 C. 671; 139 C. 373; 146 C. 523. Cited. 185 C. 463, 466. Cited. 219 C. 772, 774, 785.
Cited. 2 CS 142; 3 CS 105. Inclusion of taxes and assessments in the mortgage debt allowed only if paid by mortgagee.
11 CS 454.
Subsec. (c):
Cited. 202 C. 566, 574.
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(b) Each mortgagee or mortgage servicing company subject to the provisions of
this section may contact the Department of Banking to ascertain the published deposit
index to determine the minimum rate paid on funds of a mortgagor held in escrow for
the payment of taxes and insurance premiums.
(c) The deposit index for each calendar year shall be equal to the average rate paid
on savings deposits by insured commercial banks as last published in the Federal Reserve
Board Bulletin in November of the prior year. The commissioner shall determine the
deposit index for each calendar year and publish such deposit index in the Department
of Banking news bulletin no later than December fifteenth of the prior year. For purposes
of this section, "Federal Reserve Board Bulletin" means the monthly survey of selected
deposits published as a special supplement to the Federal Reserve Statistical Release
Publication H.6 published by the Board of Governors of the Federal Reserve System
or, if such bulletin is superseded or becomes unavailable, a substantially similar index
or publication.
(P.A. 73-607, S. 1; P.A. 75-385, S. 1; P.A. 77-355, S. 1; P.A. 85-368, S. 4; P.A. 92-4, S. 2; P.A. 93-198, S. 1, 2.)
History: P.A. 75-385 applied provisions to mortgage serving companies, changed date for initial credit of interest
payment from September 30, 1974, to December 31, 1975, and correspondingly changed following date reference; P.A.
77-355 increased interest rate to four per cent on and after January 1, 1978, and rephrased provisions to delete obsolete
reference to December 31, 1975, and to specify applicability of provisions to housing cooperatives occupied solely by
their shareholders; P.A. 85-368 increased the rate of interest paid on funds held in escrow from four per cent to five and
one-quarter per cent as of October 1, 1985; P.A. 92-4 required interest paid on funds held in escrow at the rate of four per
cent on and after October 1, 1992, and at the rate of five and one-quarter per cent on and after October 1, 1994; P.A. 93-
198 required that the interest rate paid on funds held in escrow be based on the rate paid on savings deposits by insured
commercial banks as published in the Federal Reserve Board Bulletin and rounded to the nearest one-tenth of one per cent,
added Subsec. (b) re mortgagee or mortgage servicing companies' contacting the department of banking to ascertain the
published deposit index to determine the minimum rate paid on funds of a mortgagor held in escrow for the payment of
taxes and insurance premiums and added Subsec. (c) re calculation and application of the deposit index, effective July
1, 1993.
See Sec. 49-2b re Banking Commissioner's adoption of regulations concerning interest on escrow accounts and re
commissioner's duty to furnish mortgagees with forms to report interest due to mortgagors.
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(P.A. 73-607, S. 4; P.A. 77-604, S. 30, 84; 77-614, S. 161, 610; P.A. 80-482, S. 337, 348; P.A. 86-403, S. 82, 132; P.A.
87-9, S. 2, 3.)
History: Sec. 37-10 transferred to Sec. 49-2b in 1977 and reference to Sec. 47-23a revised to reflect its transfer; P.A.
77-604 reiterated substitution of Sec. 47a-22 for Sec. 47-23a; P.A. 77-614 replaced bank commissioner with banking
commissioner within the department of business regulation and made banking department a division within that department,
effective January 1, 1979; P.A. 80-482 restored banking commissioner and division to prior independent status and abolished the department of business regulation; P.A. 86-403 deleted reference to regulations necessary to carry out provisions
of Sec. 47a-22(a); (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors
to "commissioner of banking").
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(b) In no event shall interest be required to be paid at a rate in excess of two per
cent per annum where (1) there is a contract between the mortgagor and the mortgagee
entered into before October 1, 1977, which contains an express agreement to pay interest
at the rate of two per cent per annum, or (2) such accounts are maintained in connection
with mortgage loans entered into prior to October 1, 1977, and which are serviced and
held for sale for not more than one year by a mortgage servicing company, neither
affiliated with nor owned in whole or in part by the purchaser of the mortgage loan.
(P.A. 75-385, S. 2; P.A. 77-355, S. 2; P.A. 78-23; P.A. 79-602, S. 85; P.A. 88-271, S. 2, 3.)
History: P.A. 77-355 added Subdiv. (4) re accounts maintained in connection with mortgage loans entered into on and
after October 1, 1977, and added Subsec. (b) re exceptions to two per cent interest rate; P.A. 78-23 referred to accounts
serviced "and" held for sale rather than accounts serviced "or" held for sale in Subsecs. (a)(4) and (b)(2); P.A. 79-602
substituted "the" for "such" throughout section; P.A. 88-271 amended Subdiv. (4) by adding the words "and before January
1, 1989" in Subpara. (A) and adding a new Subpara. (B) re payment of interest on escrow accounts by mortgage servicing
company when the loan is sold within certain specified periods and the company continues to service the loan.
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(b) The parties may subsequently modify the time set forth in the mortgage for the
grantor to complete the erection or repair of said buildings or improvements as well as
the payment dates for interest and principal necessitated by the change in the completion
date by a writing to that effect, signed by the parties and recorded upon the proper land
records. The modification shall in no way affect or limit the priority of the mortgage.
(c) If the mortgagor under a mortgage to secure future advances containing a description of the loan as specified in subsection (a) hereof is in default under the mortgage
or note, the mortgagee may complete the erection or repair and the cost thereof shall be
a part of the debt due the mortgagee and secured by the mortgage, provided in no such
case may the total debt due exceed the face amount of the note.
(1949 Rev., S. 7194; 1949, S. 2970d; 1971, P.A. 809; P.A. 73-545; P.A. 79-178; 79-602, S. 62.)
History: 1971 act specifically included site improvements in previous provisions and added Subsecs. (b) to (d); P.A.
73-545 incorporated former Subsec. (b) in Subsec. (a) as Subdiv. (2), relettering as necessary; P.A. 79-178 added provision
in Subsec. (a) validating mortgages which comply with Subdiv. (1) notwithstanding other agreements re particular sums
to be advanced or conditions determining advances, etc.; P.A. 79-602 made minor changes in wording but made no
substantive changes.
Statute does not annul Matz v. Arick, which still provides the test for future advances not framed in the form suggested
by the statute. 143 C. 582. Cited. 146 C. 523. Cited. 185 C. 463, 466. Cited. 202 C. 566, 574. Cited. 219 C. 772, 774, 785,
786. Cited. 232 C. 294, 307.
Cited. 10 CA 251−254, 256.
Cited. 17 CS 52.
Subsec. (a):
Subdiv. (1) cited. 10 CA 251, 252. Cited. 33 CA 563, 568.
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"Whereas a loan to the mortgagor has been authorized by the mortgagee in the amount
of $.... to be paid over to the mortgagor in installments from time to time at the discretion
of the mortgagee, and whereas, the mortgagee herein agrees to complete disbursement
of the proceeds of this loan on or before ...., or on said date to apply any balance of said
loan not then disbursed to the principal of said loan in inverse order of maturity."
(November, 1955, S. N221; 1959, P.A. 553; P.A. 79-602, S. 63.)
History: 1959 act applied provisions of section to mortgages by product credit associations, banks for cooperatives,
federal intermediate credit banks and federal land banks; P.A. 79-602 substituted "is" for "shall be" and "the" for "such"
where appearing.
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(b) Advancements may be made by a mortgagee, or the assignee of any mortgagee
under an open-end mortgage to the original mortgagor, or to the assign or assigns of the
original mortgagor who assumes the existing mortgage, or any of them, and the mortgage
debt and future advances shall, from the time the mortgage deed is recorded, be a part
of the debt due the mortgagee, and be secured by the mortgage equally with the debts
and obligations secured thereby at the time of recording the mortgage deed for record
and have the same priority over the rights of others who may acquire any rights in, or
liens upon, the mortgaged real estate subsequent to the recording of the mortgage deed,
provided: (1) The heading of the mortgage deed shall be clearly entitled "Open-End
Mortgage"; (2) the mortgage deed shall state the full amount of the loan therein authorized; (3) the mortgage deed shall contain specific provisions permitting the advancements; (4) the advancements shall not exceed the difference between the indebtedness
at the time of the advancement and the full amount of the loan authorized in the mortgage
deed; (5) the advancements shall be secured or evidenced by the original note or notes
signed by the original mortgagor, or original mortgagors, or any assign or assigns of
the original mortgagor who assume the existing mortgage, or any of them; (6) the mortgage shall not secure any advances made after twenty years from the date of the original
mortgage; (7) the original mortgagor or original mortgagors or any assign or assigns of
the original mortgagor who assume the existing mortgage, or any of them, are hereby
authorized to record a written notice terminating such optional future advances secured
by the mortgage, or limiting the advances to not more than the amount actually advanced
at the time of the recording of the notice, provided a copy of the written notice shall
also be sent by registered or certified mail, postage prepaid and return receipt requested,
to the mortgagee or a copy of the written notice shall be delivered to the mortgagee by
a proper officer or an indifferent person and a receipt for the same received from the
mortgagee, and the notice, unless otherwise specified in the notice, shall be effective
from the time it is received by the mortgagee; (8) except that, if the optional future
advance or advances are made by the mortgagee or the assignee of any mortgagee, to
the original mortgagor, original mortgagors or any assign or assigns who assume the
existing mortgage or any of them, after receipt of written notice of any subsequent
mortgage, lien, attachment, lis pendens, legal proceeding or adjudication against the
real property, then the amount of the advance shall not be a priority as against the
mortgage, lien, attachment, lis pendens or adjudication of which the written notice was
given; (9) any notice given to the mortgagee under the terms of this subsection shall be
deemed valid and binding upon the original mortgagee or any assignee of the original
mortgagee from the time of the receipt of the notice by the mortgagee or assignee.
(P.A. 74-320, S. 1, 2; P.A. 77-265; P.A. 79-602, S. 64.)
History: P.A. 77-265 specified in Subsec. (b)(5) that advancements to be secured by "the original" note or notes; P.A.
79-602 changed wording slightly but made no substantive changes.
Subsec. (b):
Cited. 202 C. 566, 575.
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(b) The heading of such mortgage deed shall be clearly entitled "Open-End
Mortgage".
(c) The loan constituting the underlying obligation for which the mortgagor is secondarily liable, which secondary liability is secured by such open-end mortgage, shall
be described in such open-end mortgage deed. A description of such loan meets the
requirements of this subsection if such open-end mortgage deed states: (1) The name
and address of the person who is primarily liable for such loan; (2) that such underlying
obligation specifically permits such advancements and, if applicable, that such advancements are made pursuant to a revolving loan agreement; (3) the full amount of the loan
authorized; and (4) the maximum term of the loan.
(d) The secondary liability of the mortgagor shall be described in such open-end
mortgage deed. A description of such secondary liability meets the requirements of this
subsection if such open-end mortgage deed states: (1) The full amount of the obligation
of the mortgagor if such amount is different from the full amount of the loan authorized
for the underlying obligation; and (2) the date, if any, on which the secondary liability
of the mortgagor will terminate.
(e) As used in this section, "mortgagee" includes any assignee of the mortgagee, and
"mortgagor" includes any assignee of the mortgagor, and "any person who is secondarily
liable" includes any person who has guaranteed or endorsed an open-end loan.
(f) Nothing in this section, as in effect both before and after July 10, 1997, invalidates
any mortgage that would be valid without this section.
(P.A. 79-359, S. 2; P.A. 80-423, S. 2, 3; P.A. 82-243, S. 2; P.A. 97-320, S. 2, 11.)
History: P.A. 80-423 included letters of credit in Subsec. (a) and made minor changes in wording; P.A. 82-243 amended
Subsec. (e) by adding a definition of "any person who is secondarily liable"; P.A. 97-320 amended Subsec. (a) by adding
"be deemed to give sufficient notice of the nature of the obligation", amended Subsec. (d) by deleting Subdivs. (3) and
(4) and added Subsec. (f) providing nothing in effect before and after July 10, 1995, invalidates any mortgage, effective
July 10, 1997.
Cited. 202 C. 566, 573, 574. Legislature authorized a type of secured guaranty not enforced under common law of state;
mortgage subject to this section enforceable only if deed satisfies the section's requirements. 232 C. 294−296, 300−302,
305−310.
Subsec. (a):
Cited. 232 C. 294, 306.
Subsec. (b):
Cited. 202 C. 566, 575. Cited. 232 C. 294, 306, 308.
Subsec. (c):
Cited. 202 C. 566, 575. Cited. 232 C. 294, 306, 308.
Subsec. (d):
Cited. 202 C. 566, 575. Subdiv. (2) cited. 232 C. 294, 304. Cited. Id., 294, 306, 308.
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(P.A. 88-235.)
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(b) The mortgage or deed of trust or, if the mortgage or deed of trust has been
previously recorded, whether within or without this state, a copy of the record of the
mortgage or deed of trust certified by the recording authority, may be recorded in the
office of the Secretary of the State and when so recorded need not be recorded or filed
in the records of the towns within which the property, plant or transmission or pipe lines
or distribution systems included in the mortgage or deed of trust are situated, and shall
be valid and effectual as respects all property therein included as aforesaid, provided a
certificate shall be recorded in the office of the town clerk of each of such towns setting
forth the names of the mortgagor and the mortgagee, the date of the mortgage or deed
of trust and the fact that the mortgage or deed of trust is recorded in the office of the
Secretary of the State.
(c) The provisions of sections 16-218 to 16-227, inclusive, concerning the foreclosure of mortgages of railroad companies, apply to all mortgages or bonds issued by
companies doing a light, heat, gas, power, water, telephone or natural gas transmission
business.
(1949 Rev., S. 7097; 1951, 1953, S. 2952d; 1963, P.A. 446; P.A. 73-367; P.A. 79-602, S. 65.)
History: 1963 act specified that corporation's goods, documents, instruments, general intangibles, chattel paper, accounts and contract rights may be mortgaged as security for bonds or other indebtedness; P.A. 73-367 specified that copy
of record of previously recorded mortgage or deed of trust may be recorded in office of secretary of the state; P.A. 79-602
divided section into Subsecs. and made minor changes in wording, substituting "the" for "such", etc.
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(b) After the recordation any of the provisions of such master form instrument may
be incorporated by reference in any mortgage of real estate situated within such town,
if such reference in the mortgage refers to the master form instrument and states the
date when and the volume and page where such master form instrument was recorded.
The recording of any mortgage which has so incorporated by reference in it any or all
of the provisions of a master form instrument recorded as provided in this section shall
have like effect as if such provisions of the master form had been set forth fully in the
mortgage.
(c) Whenever a mortgage is presented for recording on which is set forth matter
purporting to be a copy or reproduction of a master form instrument or part of it, identified
by its title and recording information as provided in subsection (a) hereof, preceded by
the words "do not record" or "not to be recorded" or words of similar import and plainly
separated from the matter to be recorded as a part of the mortgage in such manner that
it will not appear on a photographic or other reproduction of any page containing any
part of the mortgage, such matter shall not be recorded by the town clerk to whom the
instrument is presented for recording. The clerk shall record only the mortgage apart
from that matter and shall not be liable for so doing, any other provisions of law to the
contrary notwithstanding.
(d) The fee for recording any mortgage which has incorporated by reference any
of the provisions of a master form instrument recorded as provided by this section shall
be as provided in section 7-34a but not less than ten dollars.
(1971, P.A. 578, S. 1−4; P.A. 79-602, S. 36.)
History: P.A. 79-602 made minor changes in wording but did not make substantive changes.
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(P.A. 76-69, S. 1, 2.)
Cited. 177 C. 569, 571. Cited. 202 C. 566, 573−575. Cited. 220 C. 553−555. Cited. 232 C. 294, 306.
Cited. 23 CA 579, 582−584.
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(1949 Rev., S. 7104; P.A. 77-614, S. 161, 610; P.A. 79-602, S. 132.)
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(1) "Creditor" means any state bank and trust company or national banking association, state or federal savings bank, state or federal savings and loan association, state or
federal credit union, licensed first mortgage lender or other financial institution;
(2) "Mortgage loan" means a loan which is secured by a first mortgage on one to
four family residential real property located in this state;
(3) "Applicant" means any person who applies for a mortgage loan; and
(4) "Interim financing" means a short term loan, the proceeds of which are to be
used by an applicant to purchase one to four family residential real property, which is
due and payable upon the sale of the applicant's current residence.
(b) Each creditor who has a policy of not offering interim financing shall disclose
such policy to the applicant in writing in plain language at the time the mortgage loan
application is filed. The applicant shall sign the disclosure statement to acknowledge
its receipt.
(P.A. 86-160.)
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(1) "Person" includes individuals, partnerships, associations, limited liability companies and corporations;
(2) "Creditor" means any person or the assignee of any person who in the ordinary
course of business extends credit to a consumer debtor residing in this state;
(3) "Consumer debtor" means any natural person to whom credit for personal, family or household purposes has been extended;
(4) The adjective "consumer" characterizes the transaction as one in which the party
to whom credit is offered or extended is a natural person, and the money, property or
services which are the subject of the transaction are primarily for personal, family, or
household use.
(P.A. 86-268, S. 4; P.A. 95-79, S. 172, 189.)
History: P.A. 95-79 redefined "person" to include limited liability companies, effective May 31, 1995.
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(P.A. 86-268, S. 5.)
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(1) May have legal interests that differ from the creditor's;
(2) May not be required by the creditor to be represented by the creditor's attorney;
(3) May waive the right to be represented by an attorney;
(4) May direct any complaints concerning violations of this section to the Department of Banking.
(b) The notice shall be written in plain language and shall be signed by the consumer
debtor to acknowledge its receipt.
(P.A. 86-268, S. 6; P.A. 87-9, S. 2, 3.)
History: (Revisor's note: Pursuant to P.A. 87-9 "banking department" was changed editorially by the Revisors to
"department of banking").
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(1949 Rev., S. 7193; P.A. 79-602, S. 67.)
History: P.A. 79-602 substituted "is" for "shall be" and "those", "that" or "the" for "such" where appearing.
Cited. 120 C. 671. Imposition of attorneys fee does not render note usurious as such fee is not interest within meaning
of section 37-4. 141 C. 301. Attorneys' fees properly awarded for defense of antitrust suit and in bankruptcy proceedings
as well as for the foreclosure proceedings. 178 C. 640, 647, 648.
Cited. 1 CA 30, 35−37.
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(P.A. 95-200.)
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(b) Any person who violates the provisions of subsection (a) of this section shall
upon a verified complaint in writing of any person, provided such complaint, or such
complaint together with evidence, documentary or otherwise, presented in connection
therewith, shall make out a prima facie case, to the Commissioner of Banking, who shall
investigate the actions of any mortgage broker or lender, or any person who assumes
to act in any of such capacities within this state. The Commissioner of Banking shall
have the power temporarily to suspend or permanently to revoke any license issued
under the provisions of subdivision (A) of part I of chapter 668 and, in addition to or
in lieu of such suspension or revocation, may, in his discretion, impose a fine of not
more than one thousand dollars for each offense for any violation of the provisions of
subsection (a) of this section.
(P.A. 94-240, S. 13; P.A. 96-200, S. 26.)
History: P.A. 96-200 amended Subsec. (a) to substitute "salesperson" for "salesman"; (Revisor's note: In 1997 a reference in Subsec. (b) to "chapter 660a" was corrected editorially by the Revisors to "subdivision (A) of part I of chapter 668").
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(b) The plaintiff or the plaintiff's attorney shall execute and deliver a release when
an attachment has become of no effect pursuant to section 52-322 or section 52-324 or
when a lis pendens or other lien has become of no effect pursuant to section 52-326.
(c) The mortgagee or plaintiff or the plaintiff's attorney, as the case may be, shall
execute and deliver a release within sixty days from the date a written request for a
release of such encumbrance (1) was sent to such mortgagee, plaintiff or plaintiff's
attorney at the person's last-known address by registered or certified mail, postage prepaid, return receipt requested or (2) was received by such mortgagee, plaintiff or plaintiff's attorney from a private messenger or courier service or through any means of
communication, including electronic communication, reasonably calculated to give the
person the written request or a copy of it. The mortgagee or plaintiff shall be liable for
damages to any person aggrieved at the rate of two hundred dollars for each week after
the expiration of such sixty days up to a maximum of five thousand dollars or in an
amount equal to the loss sustained by such aggrieved person as a result of the failure of
the mortgagee or plaintiff or the plaintiff's attorney to execute and deliver a release,
whichever is greater, plus costs and reasonable attorney's fees.
(1949 Rev., S. 7112; 1963, P.A. 590, S. 1; 1969, P.A. 595, S. 1; P.A. 79-10; 79-602, S. 68; P.A. 89-347, S. 18; P.A.
93-147; P.A. 95-102, S. 1.)
History: 1963 act applied provisions with respect to bona fide offers to satisfy mortgage wholly or partially upon
execution of release or partial release and with respect to agreements for partial release; 1969 act applied provisions when
an attachment has become of no effect pursuant to Sec. 52-322 or 52-324 and when lis pendens or other lien has become
of no effect, required that request be sent to last-known address by registered or certified mail, postage prepaid and return
receipt requested, and raised fine from five to fifty dollars per week, imposing ceiling of one thousand dollars; P.A. 79-
10 raised fine to one hundred dollars per week, raised dollar amount of ceiling to five thousand and provided for maximum
payment of amount equal to loss sustained because of failure to execute and deliver release, if that amount is greater; P.A.
79-602 divided section into Subsecs. and restated provisions but made no substantive changes; P.A. 89-347 amended
Subsec. (c) by increasing liability from one to two hundred dollars per week for failure to provide a release and removed
the five thousand dollars ceiling; P.A. 93-147 amended Subsec. (c) to allow written request for release to be conveyed,
carried or delivered by a private messenger or courier; P.A. 95-102 revised wording of Subsec. (c), changed time for release
from thirty to sixty days and imposed maximum fine of five thousand dollars plus costs and reasonable attorney's fees.
Tender of expense held excused. 76 C. 705. No tender or offer of release need be made until debt is paid. 93 C. 495.
When mortgagor pays he is entitled to a release but not to an assignment. 95 C. 586. Cited. 122 C. 27. Cited. 162 C. 31.
Section provided new, affirmative remedy and contains no express or implied intention to abrogate or supersede common-
law remedy. Section provides additional, but not exclusive, remedy. 172 C. 152. Cited. 196 C. 172, 180. Cited. 223 C.
419, 421.
Cited. 18 CA 313, 314.
This section must be construed as expressly limiting the mortgagor to total damages of one thousand dollars in suit for
damages for refusal to give a partial release of mortgage. 33 CS 41. Cited. 41 CS 130, 138.
Subsec. (a):
Cited. 196 C. 172, 180.
Subsec. (c):
Cited. 18 CA 313−315.
Cited. 41 CS 130, 131, 138.
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(1) "Mortgage loan" means a loan secured by a mortgage on one, two, three or four
family residential real property located in the state of Connecticut, including but not
limited to, a residential unit in any common interest community as defined in section
47-202.
(2) "Person" means an individual, corporation, limited liability company, business
trust, estate, trust, partnership, association, joint venture, government, governmental
subdivision or agency, or other legal or commercial entity.
(3) "Mortgagor" means the grantor of a mortgage.
(4) "Mortgagee" means the grantee of a mortgage; provided, if the mortgage has
been assigned of record, "mortgagee" means the last person to whom the mortgage has
been assigned of record; provided further, if the mortgage has been serviced by a mortgage servicer, "mortgagee" means the mortgage servicer.
(5) "Mortgage servicer" means the last person to whom the mortgagor has been
instructed by the mortgagee to send payments of the mortgage loan. The person who
has transmitted a payoff statement shall be deemed to be the mortgage servicer with
respect to the mortgage loan described in that payoff statement.
(6) "Attorney-at-law" means any person admitted to practice law in this state and
in good standing.
(7) "Title insurance company" means any corporation or other business entity authorized and licensed to transact the business of insuring titles to interests in real property
in this state.
(8) "Payoff statement" means a statement of the amount of the unpaid balance on
a mortgage loan, including principal, interest and other charges properly assessed pursuant to the loan documentation of such mortgage and a statement of the interest on a per
diem basis with respect to the unpaid principal balance of the mortgage loan.
(b) If a mortgagee fails to execute and deliver a release of mortgage to the mortgagor
or to the mortgagor's designated agent within sixty days from receipt by the mortgagee
of payment of the mortgage loan (1) in accordance with the payoff statement furnished
by the mortgagee or (2) if no payoff statement was provided pursuant to a request made
under section 49-10a, in accordance with a good faith estimate by the mortgagor of the
amount of the unpaid balance on the mortgage loan using (A) a statement from the
mortgagee indicating the outstanding balance due as of a date certain and (B) a reasonable estimate of the per diem interest and other charges due, any attorney-at-law or duly
authorized officer of a title insurance company may, on behalf of the mortgagor or any
successor in interest to the mortgagor who has acquired title to the premises described
in the mortgage or any portion thereof, execute and cause to be recorded in the land
records of each town where the mortgage was recorded, an affidavit which complies
with the requirements of this section.
(c) An affidavit pursuant to this section shall state that:
(1) The affiant is an attorney-at-law or the authorized officer of a title insurance
company, and that the affidavit is made in behalf of and at the request of the mortgagor
or the current owner of the interest encumbered by the mortgage;
(2) The mortgagee has provided a payoff statement with respect to the mortgage
loan or the mortgagee has failed to provide a payoff statement requested pursuant to
section 49-10a;
(3) The affiant has ascertained that the mortgagee has received payment of the mortgage loan (A) in accordance with the payoff statement or (B) in the absence of a payoff
statement requested pursuant to section 49-10a, in accordance with a good faith estimate
by the mortgagor of the amount of the unpaid balance on the mortgage loan calculated
in accordance with subdivision (2) of subsection (b) of this section, as evidenced by a
bank check, certified check, attorney's clients' funds account check or title insurance
company check, which has been negotiated by the mortgagee or by other documentary
evidence of such receipt of payment by the mortgagee, including a confirmation of a
wire transfer;
(4) More than sixty days have elapsed since payment was received by the mortgagee; and
(5) At least fifteen days prior to the date of the affidavit, the affiant has given the
mortgagee written notice by registered or certified mail, postage prepaid, return receipt
requested of intention to execute and cause to be recorded an affidavit in accordance
with this section, with a copy of the proposed affidavit attached to such written notice;
and that the mortgagee has not responded in writing to such notification, or that any
request for additional payment made by the mortgagee has been complied with at least
fifteen days prior to the date of the affidavit.
(d) Such affidavit shall state the names of the mortgagor and the mortgagee, the
date of the mortgage, and the volume and page of the land records where the mortgage is
recorded. The affidavit shall provide similar information with respect to every recorded
assignment of the mortgage.
(e) The affiant shall attach to the affidavit (1) photostatic copies of the documentary
evidence that payment has been received by the mortgagee, including the mortgagee's
endorsement of any bank check, certified check, attorney's clients' funds account check,
title insurance company check, or confirmation of a wire transfer and (2) (A) a photostatic copy of the payoff statement, or (B) in the absence of a payoff statement requested
pursuant to section 49-10a, a copy of a statement from the mortgagee that is in the
possession of the mortgagor indicating the outstanding balance due on the mortgage
loan as of a date certain and a statement setting out the mortgagor's basis for the estimate
of the amount due, and shall certify on each that it is a true copy of the original document.
(f) Such affidavit, when recorded, shall constitute a release of the lien of such mortgage or the property described therein.
(g) The town clerk shall index the affidavit in the name of the original mortgagee
and the last assignee of the mortgage appearing of record as the grantors, and in the
name of the mortgagors and the current record owner of the property as grantees.
(h) Any person who causes an affidavit to be recorded in the land records of any
town in accordance with this section having actual knowledge that the information and
statements therein contained are false shall be fined not more than five thousand dollars
or imprisoned not less than one year nor more than five years or both.
(P.A. 86-341, S. 1; P.A. 95-79, S. 173, 189; 95-102, S. 2.)
History: P.A. 95-79 amended Subsec. (a) to redefine "person" to include a limited liability company, effective May
31, 1995; P.A. 95-102 amended Subsec. (a) to replace definition of "mortgage" with "mortgage loan", amended Subsec.
(b) by changing time for release from thirty to sixty days and adding Subdiv. (2) re remedy if no payoff statement was
provided pursuant to request made under Sec. 49-10a, amended Subsec. (c) to include current owner of interest encumbered
by mortgage as person who may request affidavit, to include provision re failure to provide payoff statement requested
pursuant to Sec. 49-10a, to change time for release from thirty to sixty days and require that written notice by affiant
be sent to mortgagee by registered or certified mail, postage prepaid, return receipt requested, amended Subsec. (e) re
requirements re affidavit and amended Subsec. (h) changing "knowing" to "having actual knowledge that" and increasing
penalty for false statements from five hundred to five thousand dollars or imprisonment of not less than one nor more than
five years or both fine and imprisonment.
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Know all Men by these Presents, That .... of .... in the county of .... and state of .... do
hereby release and discharge a certain (mortgage, mechanic's lien or power of attorney
for the conveyance of land) from .... to .... dated .... and recorded in the records of the
town of .... in the county of .... and state of Connecticut, in book .... at page ....
in the presence of
(c) Town clerks shall note the discharge or partial release as by law provided and
shall index the record of each such instrument under the name of the releasor and of the
mortgagor.
(1949 Rev., S. 7113; 1963, P.A. 590, S. 2; 1967, P.A. 120, S. 1; P.A. 79-602, S. 69.)
History: 1963 act applied provisions to power of attorney for the conveyance of land, designated previous provisions
as Subsecs. (a) and (c) and inserted new Subsec. (b) re partial release of mortgages; 1967 act removed judgment liens from
purview of section; P.A. 79-602 made minor changes in wording.
See Sec. 7-34a re town clerks' fees.
See Sec. 52-380d re release of judgment lien on real or personal property.
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(d) If a mortgage debt is assigned, a party obliged to pay such mortgage debt may
discharge it, to the extent of the payment, by paying the assignor until the party obliged
to pay receives sufficient notice in accordance with subsection (f) of this section that
the mortgage debt has been assigned and that payment is to be made to the assignee. In
addition to such notice, if requested by the party obliged to pay, the assignee shall furnish
reasonable proof that the assignment has been made, and until the assignee does so, the
party obliged to pay may pay the assignor. For purposes of this subsection, "reasonable
proof" means (1) written notice of assignment signed by both the assignor and the assignee, (2) a copy of the assignment instrument, or (3) other proof of the assignment as
agreed to by the party obliged to pay such mortgage debt.
(e) If a mortgage debt is assigned, a party obliged to pay such mortgage debt who,
in good faith and without sufficient notice of the assignment in accordance with subsection (f) of this section, executes with the assignor a modification or extension of the
mortgage, assignment of rent or assignment of interest in a lease, shall have the benefit
of such modification or extension, provided, the assignee shall acquire corresponding
rights under the modified or extended mortgage, assignment of rent or assignment of
interest in a lease. The assignment may provide that modification or extension of the
mortgage, assignment of rent or assignment of interest in a lease, signed by the assignor
after execution of the assignment, is a breach by the assignor of the assignor's contract
with the assignee.
(f) Notice of assignment is sufficient for purposes of subsections (d) and (e) of this
section if the assignee notifies a party obliged to pay the mortgage debt (1) by mailing
to the party obliged to pay, at the party's last billing address, a notice of the assignment
identifying the instrument and mortgage debt assigned, the party obliged to pay such
debt, the names of the assignor and assignee, the date of the assignment, and the name
and address of the person to whom payments should be made, (2) by giving notice of
the assignment pursuant to 12 USC Section 2605, Section 6 of the federal Real Estate
Settlement Procedures Act of 1974 and the regulations promulgated pursuant to said
section, as from time to time amended, or (3) by giving actual notice of the assignment,
reasonably identifying the rights assigned, in any other manner. No signature on any
such notice is necessary to give sufficient notice of the assignment under this subsection
and such notice may include any other information.
(g) Recordation of an assignment of mortgage debt is not sufficient notice of the
assignment to the party obliged to pay for purposes of subsection (d) or (e) of this section.
(1949 Rev., S. 7114; P.A. 75-24; P.A. 79-602, S. 70; P.A. 83-564, S. 1; P.A. 98-147, S. 1; June Sp. Sess. P.A. 98-1, S. 88.)
History: P.A. 75-24 applied provisions with respect to assignment of rent or assignment of interest in lease and added
form for instrument of assignment; P.A. 79-602 substituted "is" for "shall be" and "that" or "the" for "such" where appearing; P.A. 83-564 added Subsec. (b) concerning the assignment of residential mortgage loans; P.A. 98-147 added new
Subsec. (a) defining "mortgage debt", redesignated existing Subsecs. (a) and (b) as Subsecs. (b) and (c), and added new
Subsecs. (d), (e), (f) and (g) requiring sufficient notice of assignment by assignee and reasonable proof of assignment
before party obliged to pay assignee; June Sp. Sess. P.A. 98-1 made technical changes in Subsec. (c).
See Sec. 7-34a re town clerks' fees.
Cited. 121 C. 267. Assignment held valid even though assignee gave no consideration and did not know of assignment
until after the death of the assignor. 148 C. 466. Cited. 202 C. 566, 574.
Cited. 2 CA 98, 102, 103. Section does not indicate that a flaw in the instrument or its recordation would make it
inadmissible as evidence. 51 CA 733. Assignment of note evidencing a debt automatically carries with it assignment of
the mortgage even when mortgage is in the hands of another. 52 CA 374.
Validating act of 1933 cured the assignment of a mortgage which was defective because it was not under seal. 3 CS 321.
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(P.A. 83-564, S. 2; P.A. 86-341, S. 2; P.A. 95-102, S. 3.)
History: P.A. 86-341 deleted former provisions and added new provision re request for payoff statement for mortgage
on real estate located in this state which has been assigned; P.A. 95-102 deleted condition limiting applicability of provisions
to assignments of mortgages on real estate located within state.
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Address ....
Telephone number ....
Fax number ....
(P.A. 97-267, S. 2; P.A. 98-49.)
History: P.A. 98-49 amended Subsec. (a) by adding definition of "date of completion of the closing" and amended
Subsec. (b) by deleting requirement that disclosure statement shall be executed by all parties or their attorneys, permitting
disclosure statement to be sent by confirmed facsimile transmission, changing "mortgage lender" to "mortgage holder"
and "pay off date" to "date of completion of the closing" (Revisor's note: Opening and closing parentheses were inserted
editorially by the Revisors around the words "date of completion of the closing" in the notification form in Subsec. (b)).
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(1949 Rev., S. 7115; P.A. 79-193, S. 2; P.A. 80-483, S. 131, 186; P.A. 81-82, S. 2.)
History: P.A. 79-193 authorized spouse or next of kin to release legal title; P.A. 80-483 made slight change in wording
for clarity; P.A. 81-82 permitted any suitable person deemed to have a sufficient interest by the court to release a mortgage
of a deceased mortgagee.
Mortgage title does not revest by payment of mortgage money after law day. 17 C. 146. Under this section part of the
land may be released on payment of part of the debt. 50 C. 266.
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(1949 Rev., S. 7116; 1953, S. 2953d; P.A. 79-602, S. 71.)
History: P.A. 79-602 substituted "the" for "such" where appearing.
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(b) The petition shall be served upon all persons interested in the mortgage, attachment, lis pendens or other lien in the manner provided by law for process in civil actions
and, in any action where the parties who may have an interest in the property and should
be made parties thereto cannot be located by and are unknown to the petitioner in the
action, the petitioner or the petitioner's attorney shall annex to the petition in the action
an affidavit stating that the petitioner does not know who the interested parties are or
where they reside, or, if the party interested in the property is a corporation whose
corporate existence has been legally terminated, or the corporation is no longer in existence or doing business, and the petitioner or the petitioner's attorney states that fact in
an affidavit, the court to which the action is brought or the clerk, assistant clerk or any
judge thereof may make such order relative to the notice which shall be given in the
cause as the court, clerk, assistant clerk or judge deems reasonable.
(c) Such notice having been given according to the order and duly proven, the court
may proceed to a hearing of the cause at such time as it deems proper, and, if no evidence
is offered of any payment on account of the debt secured by the mortgage within a period
set out in subsection (a) of this section, or of any other act within such a period as
provided in said subsection (a) in recognition of its existence as a valid mortgage, or if
the court finds the mortgage has been satisfied but no release given as evidence of such
satisfaction, or if the court finds that a bona fide offer and tender of payment of the
foreclosure judgment or mortgage has been made and refused, or if the court finds the
attachment, lis pendens or other lien has become of no effect, the court may render a
judgment reciting the facts and its findings in relation thereto and declaring the mortgage,
foreclosure judgment, attachment, lis pendens or other lien invalid as a lien against the
real estate, and may order payment of any balance of indebtedness due on the mortgage
or foreclosure judgment to the clerk of the court to be held for the benefit of the mortgagee
or the persons interested and to be paid to the mortgagee by the clerk of the court upon
application of the mortgagee or persons interested following the execution of a release
of mortgage.
(d) Upon deposit of the balance of indebtedness with the clerk, such judgment shall
issue, which judgment shall, within thirty days thereafter, be recorded in the land records
of the town in which the property is situated, and the encumbrance created by the mortgage, foreclosure judgment, attachment, lis pendens or other lien shall be null and void
and totally discharged. The town clerk of the town in which the real estate is situated
shall, upon the request of any person interested, endorse on the record of the encumbrance or lien the words "discharged by judgment of the Superior Court", and list the
volume and page number in the land records where the judgment is recorded.
(1949 Rev., S. 7123; 1959, P.A. 425; 1969, P.A. 595, S. 2; 1971, P.A. 536; P.A. 78-280, S. 2, 127; P.A. 79-602, S. 72;
P.A. 95-102, S. 4.)
History: 1959 act added provision re invalidity of mortgage as lien against real estate when title remains encumbered
by undischarged mortgage and mortgagor or those owning his interest have been in possession of property for sixty years
after time limited in mortgage for performance of its conditions; 1969 act clarified provisions re passage of seventeen
years, re failure to give release and re attachments, lis pendens or other liens of no effect and deleted provision added by
1959 act; 1971 act added provisions re foreclosure and clarified provisions re court action; P.A. 78-280 replaced "county"
with "judicial district"; P.A. 79-602 divided section into Subsecs. and restated provisions but made no substantive changes;
P.A. 95-102 changed requirement of undisturbed possession from seventeen to six years and made technical changes.
See Sec. 7-34a re town clerks' fees.
Does not declare mortgage invalid; merely gives court right to declare it invalid under proper circumstances. 131 C.
38. This is not a statute of limitations. Id. Plaintiff held entitled to have mortgage declared invalid. 134 C. 420. Cited. 140
C. 474. Statute does not apply to those who recognize existence and validity of encumbering mortgage. 156 C. 49. Inequitable release of lis pendens, when. 162 C. 26. The procedure used by defendant in seeking to have his lis pendens discharged
and the granting by the court of defendant's motion does not meet the essential conditions prescribed. 165 C. 675. Cited.
188 C. 477, 478, 481−484, 486−488. Cited. 223 C. 419, 421.
Cited. 16 CS 257.
Subsec. (a):
Subdiv. (1) cited. 188 C. 477, 480.
Subsec. (c):
Cited. 188 C. 477, 480, 484.
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(1969, P.A. 595, S. 3; P.A. 79-602, S. 73; P.A. 95-102, S. 5.)
History: P.A. 79-602 substituted "the" for "such" where appearing; P.A. 95-102 required "forty" rather than "sixty"
years of undisturbed possession and deleted reference to "presumed" invalidity of mortgage.
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(b) Upon the motion of any party and for good cause shown, the court may refer
such motion to a state referee, who shall have and exercise the powers of the court with
respect to trial, judgment and appeal in such case.
(c) Any party to a mortgage foreclosure who has moved for an appraisal of property
for the purpose of obtaining a deficiency judgment, but has not been granted a deficiency
judgment, or has not received full satisfaction of any deficiency judgment obtained
subsequent to the filing of such motion, may make a motion to the court for a deficiency
judgment as set forth in subsection (a) of this section. If such motion is made on or
before November 1, 1979, such moving party shall be deemed to have complied with
all of the requirements of subsection (a) of this section and shall be entitled to the benefit
of any deficiency judgment rendered pursuant to said subsection (a).
(d) Any appeal pending in the Supreme Court with regard to any deficiency judgment or proceedings relating thereto shall be stayed until a hearing is held pursuant to
subsection (a) of this section. Any appellant in such an appeal shall have the right for
a period of thirty days after the rendering of judgment pursuant to subsection (a) of this
section to amend his appeal. There shall be no stay of such an appeal if no motion has
been filed pursuant to this section on or before November 1, 1979.
(1949 Rev., S. 7195; P.A. 79-110, S. 1, 2.)
History: P.A. 79-110 entirely replaced previous provisions re appraisal of property and use of appraised value in
determining awards to mortgage creditor and plaintiff in foreclosure proceedings.
A mortgage may be foreclosed for interest overdue on the mortgage note, where the principal is not yet due. 45 C. 159.
Appraisers should report whole value of mortgaged property without reference to prior mortgages. 50 C. 292. Where
creditor had a mortgage and a judgment lien on different lands for the same debt, debtor could not have appraisal of
mortgaged property, and collection of balance of debt only from lien property; this section is not applicable. 54 C. 106.
Effect of requirement as to crediting one-half the difference between the appraisal and the debt upon rights of subsequent
mortgages. 89 C. 103. Deficiency judgment not proper if appraisal exceeds debt; reduction in value by prior encumbrances
must be pleaded. 90 C. 618. This remedy for collection of deficiency not exclusive. 55 C. 443; 91 C. 587; 102 C. 648; 109
C. 329; 128 C. 695. If all three appraisers consider appraisal, and two concur in written report, statute is satisfied. 107 C.
275. However, all appraisers must have opportunity to participate in consideration of appraisal. 111 C. 492. Applies to
purchase money mortgage. 116 C. 332. Appraisers act in quasi-judicial capacity and their report is final. 107 C. 272; 116
C. 333; However, a remonstrance will lie against their report for irregularity. 117 C. 239; 122 C. 455. Appraisal may not
be made before the law day. 118 C. 570. Cited. 120 C. 671; 128 C. 693; 133 C. 154. Principles governing appraisal and
limited function of court on review of same. 122 C. 455 Et seq. Mistake of single appraiser insufficient to invalidate
appraisal reached by all three. Id., 458. Date title vests in plaintiff controlling. Id., 459. Under former statute, judgment
rendered after ninety days erroneous unless objection waived. 123 C. 583. Amount of deficiency against purchaser giving
second mortgage as affected by his failure to assume first mortgage. 124 C. 604. Cited. 153 C. 274. Fact that statute does
not require appraisers to hold hearings and receive evidence not violative of due process. 153 C. 292, 293. Trial court not
in error in refusing to deduct from appraised value a contingent sewer assessment in such amount as should ultimately be
determined to be due upon completion of the constructions. 153 C. 457. Appointment of appraisers pursuant to this statute
necessary to obtain a deficiency judgment. Section 49-1 does not affect this section. 154 C. 216. Cited. 168 C. 554. To
determine property value, statute does not bar court-appointed appraiser from consulting outside sources, including text
books, public records and realtors or professional appraisers. 174 C. 77, 78−84. Cited. Id., 268, 271. Section held unconstitutional since it provides no statutory hearing and defendant deprived of right to be heard at a meaningful time and in a
meaningful manner; violative of due process clauses of both state and federal constitutions. 176 C. 563−565, 567−569,
571−574, 577. Cited. Id., 578. Cited. 180 C. 71, 82−84. Cited. 183 C. 85, 91. Cited. 184 C. 569, 570, 572, 574. Cited. 190
C. 60, 62, 69. By its terms statute applicable only to claims by foreclosing plaintiffs. 199 C. 368, 370−374, 376, 377. Cited.
216 C. 443−451, 454, 457. Cited. 222 C. 784, 786, 791, 792. Cited. 227 C. 270, 283. Cited. 228 C. 766, 770. Cited. Id.,
929. Cited. 233 C. 153, 155, 168. Cited. 241 C. 269. Statute applies only where title has vested in a foreclosing plaintiff.
Because plaintiff did not acquire possession of units in foreclosure action, trial court in that action could not have made
required determination that value of units was insufficient to satisfy plaintiff's debt. 247 C. 575.
The fact that this statute makes no provision for attorneys' fees is not controlling. The mandate of Sec. 49-7 is crystal
clear so that such provision in this statute would be unnecessary and repetitive. Legal fees for services not yet performed
discussed. 1 CA 30, 34−37. Cited. 4 CA 426, 429. Cited. 6 CA 691, 694. Cited. 19 CA 291, 295. Cited. 20 CA 638, 641.
Cited. 23 CA 266, 268. Cited. Id., 159, 160, 162. Cited. 28 CA 809, 814−817, 822. Cited. 31 CA 1, 5, 7, 10. Cited. Id., 80,
81, 83−85. Cited. Id., 260−263. Cited. Id., 266, 268. Cited. Id., 476, 478, 483. Cited. Id., 621, 625, 626. Cited. 32 CA 309,
311, 313, 315. Cited. 33 CA 388−390, 392, 394, 395. Cited. Id., 401, 404. Cited. 34 CA 204, 205, 207. Cited. 35 CA 81,
90. Cited. 38 CA 198, 199, 201−203, 205, 206, 208−210. Cited. 39 CA 684, 686, 689, 690, 693, 697. Cited. Id., 829−831.
Cited. 40 CA 115, 119, 127, 130. Cited. 41 CA 324, 327, 329, 330. Cited. 44 CA 439. Cited. Id., 588. In determining value,
trier must consider everything that might legitimately affect value; failure requires a new deficiency hearing. 49 CA 452.
Rule of People's Holding Co. v. Bray, 118 C. 568, upheld. 1 CS 45. A remonstrance to such a report alleging an
irregularity as a matter of law should be joined by demurrer or answer. 3 CS 232. Cited. Id., 261. In the third sentence, the
word "may" is permissive and not mandatory except as to the period of time in which the appraisal is to be made. Purpose
of appraisal. Id., 395. No particular form for appraiser's oath is provided. 4 CS 427. The action of two of the three appraisers
acting without notice to the third could not make a legal determination of the value unless the third appraiser had knowledge
of the meeting and an opportunity to be present. 5 CS 358. The fact that both causes, one seeking foreclosure and one on
the mortgage debt, can be brought in one proceeding takes nothing away from the fundamental distinction between them.
The complaint must allege facts descriptive of the essential elements of an action in equity in rem and one in personam at
law. 6 CS 121. Appraisal made before time limited for redemption is invalid. Id., 398. On motion for deficiency judgment
following foreclosure, it was not a valid objection that the report of the appraisers failed to give any indication that its
compilation followed a public hearing, the reception of testimony or notice to the defendant. 12 CS 402. Section, to extent
that it permits deficiency judgment, is in derogation of common law. It becomes increasingly more suspect as violative of
due process clause. Since its appraisal provisions are for benefit of mortgagor, it must therefore be strictly construed. 34
CS 147, 148, 150−152. Cited. 41 CS 587, 592.
Subsec. (a):
Application of procedures of this section effectively and constitutionally empowered by Sec. 49-14(d). 184 C. 569−
572, 574. Cited. 216 C. 443, 449. Pursuant to Sec. 52-380a(c) provisions of this section concerning deficiency judgments
apply to strict foreclosures on judgment liens. 220 C. 643−646, 648−651. Thirty-day time limitation is inapplicable to
motion for deficiency judgment following a judgment of foreclosure by sale. 222 C. 784−789, 791, 792. Cited. 227 C. 270,
271, 278, 279, 283. Cited. 233 C. 153−157, 161−164, 169−174. Cited. 234 C. 905. Cited. 237 C. 378, 386.
Cited. 6 CA 691, 692, 694. Cited. 19 CA 291, 292, 294. Cited. 25 CA 159, 162. Cited. 31 CA 80, 81. Cited. Id., 260−
263. Cited. Id., 266, 269. Cited. Id., 476, 482, 483. Cited. 34 CA 204, 206. Cited. 35 CA 81, 91. Cited. 37 CA 423−426,
429. Cited. 38 CA 198, 199. Cited. 39 CA 684, 689. Cited. Id., 822, 823, 825, 826, 831. Cited. 40 CA 115, 117, 127. Cited.
44 CA 439.
Cited. 41 CS 587, 590. Cited erroneously as Sec. 49-14a. 42 CS 302.
Subsec. (b):
Cited. 38 CA 198, 200.
Subsec. (d):
This section effectively and constitutionally empowered the trial court to apply the procedures of Sec. 49-14(a). 184
C. 569−572, 574.
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