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.
(P.A. 88-235.)
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.
(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.
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)."
(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.
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.
(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.
Sec. 49-6. Trust mortgages. Section 49-6 is repealed.
(1949 Rev., S. 7104; P.A. 77-614, S. 161, 610; P.A. 79-602, S. 132.)
Sec. 49-6a. Definitions. Interim financing policy disclosure required. (a) For
the purposes of this section:
(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.)
Sec. 49-6b. Definitions. For the purposes of this section and sections 49-6c and
49-6d:
(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.
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.
(P.A. 86-268, S. 5.)
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:
(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").
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.
(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.
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.
(P.A. 95-200.)
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.
(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 Banking Commissioner, 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 Banking Commissioner shall have
the power temporarily to suspend or permanently to revoke any license issued under
the provisions of subpart (A) of part I of chapter 668 and, in addition to or in lieu of
such suspension or revocation, may, in the commissioner's 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; P.A. 03-84, S. 38.)
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 changed editorially by the Revisors to "subdivision (A) of part I of chapter 668".
In 2003 the reference to "subdivision (A)" was changed editorially by the Revisors to "subpart (A)" for clarity of reference);
P.A. 03-84 changed "Commissioner of Banking" to "Banking Commissioner" and made a technical change in Subsec.
(b), effective June 3, 2003.
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; (2) upon a bona fide offer to satisfy the mortgage in accordance with
the terms of the mortgage deed upon the execution of a release; (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.
(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; P.A. 03-19, S. 111.)
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;
P.A. 03-19 made technical changes in Subsecs. (a) and (c), effective May 12, 2003.
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.
Sec. 49-8a. Release of mortgage. Affidavit. Recording of affidavit with town
clerk. Penalty for recording false information. (a) For the purposes of this section
and section 49-10a:
(1) "Mortgage loan" means a loan secured by a mortgage on one, two, three or four
family residential real property located in this state, 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; and 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) "Institutional payor" means any bank or lending institution that, as part of making a new mortgage loan, pays off the previous mortgage loan.
(9) "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 either a title insurance company or an institutional payor 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 or more than five years, or both fined and imprisoned.
(P.A. 86-341, S. 1; P.A. 95-79, S. 173, 189; 95-102, S. 2; P.A. 03-19, S. 112; 03-196, S. 21.)
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; P.A. 03-19 made technical changes in Subsecs. (a), (b), (c), (e) and (h), effective
May 12, 2003; P.A. 03-196 amended Subsec. (a) by defining "institutional payor" in new Subdiv. (8) and redesignating
existing Subdiv. (8) as Subdiv. (9), and amended Subsec. (b) by adding provisions re institutional payors and making
technical changes, effective July 1, 2003.
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:
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 Witness Whereof .... have hereunto set .... hand and seal, this .... day of ...., A.D. ....
Signed, sealed and delivered
in the presence of
(Seal)
(Acknowledgment)
(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) 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.
Sec. 49-9a. Validation of release of mortgage. Affidavit. (a) Notwithstanding
the provisions of this chapter, a release of mortgage executed by any person other than
an individual that is invalid because it is not issued or executed by, or fails to appear in
the name of the record holder of the 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, shall be as valid
as if it had been issued or executed by, or appeared in the name of the record holder of
such mortgage unless an action challenging the validity of the release is commenced
and a notice of lis pendens is recorded in the land records of the town where the release
is recorded within five years after the release is recorded, provided an affidavit is recorded in the land records where the mortgage was recorded which states the following:
(1) The affiant has been the record owner of the real property described in the mortgage for at least two years prior to the date of the affidavit;
(2) The recording information for the mortgage, any assignments and release;
(3) Since the date of the recording of the release, the affiant has received no demand
for payment of all or any portion of the debt secured by said mortgage and has received
no notice or communication that would indicate that all or any portion of the mortgage
debt remains due or owing;
(4) To the best of the affiant's knowledge and belief, the mortgage has been paid
in full.
(b) The provisions of subsection (a) of this section shall not apply to any release
obtained by forgery or fraud.
(P.A. 04-67, S. 1.)
History: P.A. 04-67 effective July 1, 2004.
Sec. 49-10. Requirements for assignments of obligations. Form of instrument.
Sufficient notice required. (a) As used in this section, "mortgage debt" means a debt
or other obligation secured by mortgage, assignment of rent or assignment of interest
in a lease.
(b) Whenever any mortgage debt is assigned by an instrument in writing containing
a sufficient description to identify the mortgage, assignment of rent or assignment of
interest in a lease, given as security for the mortgage debt, and that assignment has been
executed, attested and acknowledged in the manner prescribed by law for the execution,
attestation and acknowledgment of deeds of land, the title held by virtue of the mortgage,
assignment of rent or assignment of interest in a lease, shall vest in the assignee. An
instrument substantially in the following form is sufficient for such assignment:
Know all Men by these Presents, That .... of .... in the county of .... and state of ....
does hereby grant, bargain, sell, assign, transfer and set over a certain (mortgage, assignment of rent or assignment of interest in a lease) from .... to .... dated .... and recorded
in the records of the town of .... county of .... and state of Connecticut, in book .... at
page ....
In Witness Whereof .... have hereunto set .... hand and seal, this .... day of .... A.D. ....
Signed, sealed and delivered
in the presence of
(SEAL)
(Acknowledged)
(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.
(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.
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. The mortgagee shall
not impose any fee or charge for the first payoff statement requested within a calendar
year, unless the mortgagor or the mortgagor's attorney or other authorized agent requests
expedited delivery of the payoff statement, agrees to pay a fee for such expedited delivery
and the payoff statement is provided by the agreed upon date.
(P.A. 83-564, S. 2; P.A. 86-341, S. 2; P.A. 95-102, S. 3; P.A. 01-34, S. 15.)
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; P.A. 01-34 added provisions re fee or charge for the first
payoff statement provided in a calendar year.
Sec. 49-10b. Residential real estate transaction involving payoff of mortgage
loan. Disclosure statement prepared and sent to mortgage holder by notification
agent. Form. (a) For the purposes of this section:
(1) "Date of completion of the closing" means the date that payoff funds become
available for transmittal to the mortgage holder.
(2) "Notification agent" means: (A) The buyer's attorney, where the buyer is represented by an attorney and the seller is represented by a separate attorney who assumes
the responsibility for transmitting the mortgage payoff funds to the mortgage holder;
(B) the new lender, in a refinance situation where the attorney representing the mortgagor
is also the attorney representing the new lender; (C) the seller, where the seller is not
represented by an attorney and the attorney representing the buyer has taken the responsibility for transmitting the payoff funds to the mortgage holder; or (D) the seller's attorney, where the buyer is represented by a separate attorney who assumes the responsibility
for disbursing the mortgage payoff funds to the mortgage holder;
(3) "Mortgage holder" or "holder of the mortgage" means the owner of the mortgage
or the mortgage servicer as set forth in the mortgage payoff letter provided to the notification agent;
(4) "Residential real estate transaction" means any real estate transaction involving
a one-to-four family dwelling.
(b) At any residential real estate transaction involving the payoff of a mortgage
loan, a disclosure statement shall be prepared by the notification agent and shall be sent
by the notification agent by certified mail, return receipt requested or by confirmed
facsimile transmission or by overnight carrier, to the holder of the mortgage which is
to be paid off, within two business days from the date of completion of the closing.
The disclosure statement shall include a copy of the payoff statement or other written
authorization provided by the mortgage holder. The person or entity charged with the
responsibility of securing the mortgage payoff statement shall transmit a copy of such
payoff statement in a timely manner to the notification agent but, in any event, not later
than the date of closing. To the extent not shown on the payoff statement, the disclosure
statement shall identify the mortgage, the names of the mortgagors or borrowers, the loan
number, the property address and the date of completion of the closing. The disclosure
statement shall direct that, if funds are not received by the mortgage holder within five
business days from the date of completion of the closing, notice of that fact shall be
given to the notification agent. Such statement shall include the name, address, telephone
and fax number, if available, of the notification agent. Such disclosure statement may
be in substantially the following form:
NOTIFICATION
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 ....
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)).
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.
(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.
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.
(1949 Rev., S. 7116; 1953, S. 2953d; P.A. 79-602, S. 71.)
History: P.A. 79-602 substituted "the" for "such" where appearing.
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) 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) 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 ten years have passed without any payment on account of the promissory note or
other written evidence of indebtedness, or (D) the note or evidence of indebtedness has
been paid or a bona fide offer and tender of the payment has been made pursuant to
section 49-8, or (E) 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 for the judicial district in which the
property is situated, setting forth the facts and claiming a judgment as provided in this
section. 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
prescribed in said section.
(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 petitio