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Substitute House Bill No. 5457

Public Act No. 02-112

AN ACT CONCERNING PAYMENT OF MORTGAGE LOAN PROCEEDS BY WIRE TRANSFER.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2002) Any person or entity engaged in the business of making first mortgage loans in this state and licensed in accordance with sections 36a-485 to 36a-498, inclusive, of the general statutes, as amended by public act 02-111, that chooses to utilize a wire transfer to send the loan proceeds to the mortgagee's attorney, shall transfer the loan proceeds to the bank which holds the account of the mortgagee's attorney by a wire transfer in a timely manner, but in any event not later than the scheduled date and time of the closing of the loan, except that in the case of a mortgage refinancing where any right of rescission under 12 CFR 226. 23 has terminated, any such wire transfer shall be in a timely manner, but in any event not later than the disbursement date.

Sec. 2. (NEW) (Effective October 1, 2002) The Banking Commissioner may suspend, revoke or refuse to renew a license pursuant to section 36a-51 of the general statutes, as amended, issued to a person or entity engaged in the business of making first mortgage loans in this state and licensed in accordance with sections 36a-485 to 36a-498, inclusive, of the general statutes, as amended by public act 02-111, that fails to comply with section 1 of this act.

Approved June 7, 2002