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 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; P.A. 03-74, S. 1.)
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; P.A.
03-74 amended Subsec. (a) by changing time period from seventeen years to ten years in Subdiv. (1)(C) and making
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.
It is six years of undisturbed possession that is crucial to obtaining relief under section, not six years of possession by
one owner; therefore tacking prior owner's period of possession to party's period of possession is permitted to fulfill the
six-year requirement. 81 CA 808.
Cited. 16 CS 257.
Subsec. (a):
Subdiv. (1) cited. 188 C. 477, 480.
Subsec. (c):
Cited. 188 C. 477, 480, 484.
Because plaintiffs' properties were not encumbered by the notices of lis pendens, they could not properly invoke court's
authority under subsec. to discharge the lis pendens as liens against the properties. 77 CA 276.
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.
(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.
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.
(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. Id., 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. Id., 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. Deficiency judgment
provisions of section do not apply to tax lien foreclosure actions brought pursuant to Sec. 12-181. 255 C. 379. Deficiency
judgment rendered pursuant to this section may be obtained in judgment lien foreclosure actions pursuant to Sec. 52-380a(c). Id. Deficiency judgment rendered pursuant to this section may be obtained in condominium lien foreclosure
actions pursuant to Sec. 47-258(j). Id.
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.
Statute does not preclude recovery where a foreclosing mortgagee complies with the statutory provisions and seeks a
deficiency judgment against guarantor who is obligated pursuant to a limited guarantee. 70 CA 341.
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.
Sec. 49-15. Opening of judgments of strict foreclosure. (a) Any judgment foreclosing the title to real estate by strict foreclosure may, at the discretion of the court
rendering the same, upon the written motion of any person having an interest therein,
and for cause shown, be opened and modified, notwithstanding the limitation imposed
by section 52-212a, upon such terms as to costs as the court deems reasonable; but no
such judgment shall be opened after the title has become absolute in any encumbrancer.
(b) Upon the filing of a bankruptcy petition by a mortgagor under Title 11 of the
United States Code, any judgment against the mortgagor foreclosing the title to real
estate by strict foreclosure shall be opened automatically without action by any party
or the court, provided, the provisions of such judgment, other than the establishment of
law days, shall not be set aside under this subsection; but no such judgment shall be
opened after the title has become absolute in any encumbrancer or the mortgagee, or
any person claiming under such encumbrancer or mortgagee. The mortgagor shall file
a copy of the bankruptcy petition, or an affidavit setting forth the date the bankruptcy
petition was filed, with the clerk of the court in which the foreclosure matter is pending.
Upon the termination of the automatic stay authorized pursuant to 11 USC 362, the
mortgagor shall file with such clerk an affidavit setting forth the date the stay was
terminated.
(1949 Rev., S. 7196; 1967, P.A. 286; P.A. 75-11; P.A. 79-602, S. 75; P.A. 02-93, S. 2; P.A. 03-202, S. 9; P.A. 04-127,
S. 6; 04-257, S. 76.)
History: 1967 act deleted provision which specified that modification of foreclosure judgment is to be made "at the
same term or the term next following that at which it was rendered"; P.A. 75-11 specified that modification of judgment
may be made "notwithstanding that the term of court may have expired"; P.A. 79-602 replaced reference to expiration of
term of court with reference to limitation imposed by Sec. 52-212a; P.A. 02-93 designated existing provisions as Subsec.
(a) and added Subsec. (b) re automatic opening of judgment of strict foreclosure upon the filing of a bankruptcy petition
by the mortgagor, effective June 3, 2002; P.A. 03-202 amended Subsec. (b) by adding provisions re the filing of a copy
of the bankruptcy petition and affidavits by the mortgagor; P.A. 04-127 amended Subsec. (b) by deleting reference to
Chapter 13 and making a technical change; P.A. 04-257 made a technical change in Subsec. (b), effective June 14, 2004.
Error in opening judgment after law day may be waived. 115 C. 623. Petition for new trial by way of equitable relief
after law day has passed. 118 C. 226; 128 C. 700. Plaintiff may move to open judgment if appropriation on day prejudicial
or undesirable. 120 C. 26. Reopening as affected by bankruptcy proceedings. 123 C. 9. Whether or not "term" is construed
to mean "session" immaterial. Id. Denial of motion to reopen correct when title had become absolute in plaintiff. 124 C.
610. In absence of waiver reopening after law day erroneous. 128 C. 700. Cited. 130 C. 77. Title held not absolute in any
encumbrancer so as to nullify court's right to open judgment. 137 C. 277. Cited. 179 C. 246, 247; 181 C. 141, 143; id.,
367, 369. Cited. 187 C. 333, 334. Cited. 193 C. 128, 132. Cited. 216 C. 341-343, 345, 352, 353, 356, 357. Cited. 219 C.
314, 321. Appellate court should have found abuse of discretion in trial court's refusal to implement purpose of statute;
judgment of appellate court in Society for Savings v. Stramaglia, 25 CA 688 reversed. 225 C. 105, 110, 111, 113. Section
did not deprive trial court of jurisdiction to exercise its equitable discretion to open the judgment of strict foreclosure to
correct an inadvertent omission in mortgage foreclosure complaint; judgment reversed. 244 C. 251.
Cited. 3 CA 508. Cited. 10 CA 160, 162. Cited. 20 CA 163, 167. Cited. 22 CA 396, 399. Cited. Id., 468, 475. Cited.
24 CA 42, 43. Cited. Id., 469, 471. Cited. Id., 688, 690. Cited. 29 CA 508, 510. Cited. Id., 541, 542, 544-546. Cited. Id.,
628-630, 632. Cited. 30 CA 541, 549. Cited. 31 CA 1, 12. Cited. Id., 80, 86. Cited. Id., 621, 625, 626. Cited. 33 CA 401,
408, 409. Cited. 40 CA 115-117, 121, 122, 124-126. Cited. 44 CA 588. Trial court action will not be disturbed on appeal
unless a clear abuse of discretion. 48 CA 807. Legislature intended the phrase "after the title has become absolute in any
encumbrancer," to contemplate period commencing immediately after cessation of last day on which another party may
redeem, not a full business day later. 66 CA 606.
Rule of City Lumber v. Murphy, 120 C. 16, discussed. 2 CS 55. Action to open judgment of foreclosure is precluded
if title has vested in the defendant. 14 CS 311. While motion to open judgment after title had become absolute in tax lienor
town must be denied, foreclosed heirs may bring action in equity for relief from operation of judgment where enforcement
of it would be against conscience. 27 CS 504.
Sec. 49-16. Foreclosure certificate. Penalty. When any mortgage of real estate
has been foreclosed, and the time limited for redemption has passed, and the title to the
mortgaged premises has become absolute in the mortgagee, or any person claiming
under him, he shall, either in person or by his agent or attorney, forthwith make and
sign a certificate describing the premises foreclosed, the deed of mortgage on which the
foreclosure was had, the book and page where the same was recorded and the time when
the mortgage title became absolute. The certificate shall be recorded in the records of
the town where the premises are situated and shall be substantially in the form following:
To all whom it may concern. This certifies that a mortgage from .... of the town of ....,
county of ...., in the state of ...., to .... of the town of ...., county of ...., and state of ....,
bearing date the .... day of ...., A.D. ...., and recorded in the land records of the town
of ...., book ...., page ...., was foreclosed upon the complaint of .... against ...., the owner
of the equity of redemption in said mortgaged premises, and against ...., having an
interest therein, in the .... court .... held at .... within and for the county of .... and the
state of Connecticut on the .... day of ...., A.D. 20... The premises foreclosed are described
as follows, viz.: .... The time limited for redemption in said judgment of foreclosure has
passed and the title to said premises became absolute in the said .... on the .... day of ....,
A.D. 20...
Dated at ...., this .... day of ...., 20...
If such person neglects to lodge the certificate for one month after the title becomes
absolute, he shall be fined not more than five dollars.
(1949 Rev., S. 7197; P.A. 79-602, S. 76.)
History: P.A. 79-602 made minor changes in wording but made no substantive changes; (Revisor's note: In 2001 the
references in this section to the date "19.." were changed editorially by the Revisors to "20.." to reflect the new millennium).
Penalties for only one year before suit can be collected; filing of certificate before action no bar to action. 57 C. 52.
Filing certificate does not extinguish mortgage debt unless premises are actually appropriated to its satisfaction; what
constitutes such appropriation. 102 C. 648. Cited. 202 C. 566, 574.
Cited. 20 CA 163, 168.
Sec. 49-17. Foreclosure by owner of debt without legal title. When any mortgage
is foreclosed by the person entitled to receive the money secured thereby but to whom
the legal title to the mortgaged premises has never been conveyed, the title to such
premises shall, upon the expiration of the time limited for redemption and on failure of
redemption, vest in him in the same manner and to the same extent as such title would
have vested in the mortgagee if he had foreclosed, provided the person so foreclosing
shall forthwith cause the decree of foreclosure to be recorded in the land records in the
town in which the land lies.
(1949 Rev., S. 7198.)
Failure to produce mortgage, if it is admitted in the pleadings, held of no consequence. 81 C. 422.
Section provides avenue for holder of note to foreclose on property when mortgage has not been assigned to him. 75
CA 791.
Sec. 49-18. Foreclosure by executor, administrator or trustee. When any executor, administrator or trustee obtains a decree of foreclosure, the premises foreclosed,
or the proceeds thereof if sold by him, shall be held by him in the same manner and for
the benefit of the same persons and to be used for the same purposes and subject to the
same rules as the money secured by the mortgage would have been if collected without
foreclosure. If such premises are not sold by him, the same shall be distributed, or
otherwise disposed of, to the persons who would have been entitled to the money if
collected.
(1949 Rev., S. 7199; P.A. 79-602, S. 77.)
History: P.A. 79-602 substituted "proceeds" for "avails" and made another minor change in wording, creating two
sentences from single previously existing sentence.
The heirs of a mortgage cannot sustain a bill for a foreclosure. 5 C. 139. Cited. 120 C. 671.
Sec. 49-19. Title to vest in encumbrancer paying debt and costs. In actions of
foreclosure, when a judgment of strict foreclosure is rendered and there are subsequent
encumbrances, the judgment may provide that, upon the payment of the debt and costs
by any encumbrancer, after all subsequent parties in interest have been foreclosed, the
title to the property shall vest absolutely in such encumbrancer making such payment,
subject to such unpaid encumbrances, if any, as precede him.
(1949 Rev., S. 7200.)
Right of junior encumbrancer, not a party to foreclosure, to redeem. 68 C. 298. Effect of foreclosure decree in determining
priorities among junior mortgagees. 78 C. 475. Right of attaching creditor to redeem. 83 C. 514; 89 C. 59; 102 C. 434.
Effect of provision in judgment vesting title in subsequent encumbrancer who redeems; title of redeeming encumbrancer
where there is no such provision. 95 C. 4. Foreclosing mortgagee gets no better title than mortgagor had at time mortgage
was given. 96 C. 539. Statute does not require that judgment shall vest title in an encumbrancer who redeems, but it
authorizes such a judgment. A judgment of foreclosure, as regards the lien of an attaching creditor, may condition title
secured by lien. 134 C. 395. Cited. 188 C. 286, 288. Cited. 216 C. 443, 446.
Cited. 20 CA 163, 166.
Cited. 25 CS 516. Cloud on title agreement effecting strict foreclosure, when. 30 CS 56.
Sec. 49-20. Redemption by holder of encumbrance on part of property foreclosed. When a strict foreclosure judgment contains a provision that title to the real
estate being thereby foreclosed shall vest in the encumbrancer who redeems pursuant
to the judgment, or specifies that the title shall vest in any particular person or persons
who redeem as therein provided, the validity and effect of the judgment and of the
provision therein shall not be limited or otherwise affected by the fact that the encumbrance or interest of the person so redeeming applies to or covers only a portion of the
property described and being foreclosed in the judgment. In such case, if the foreclosure
judgment requires that person to pay the entire amount thereof or be foreclosed of all
equity to redeem the premises described in the judgment, the person shall, by the judgment, acquire all the rights and title of the foreclosing party granted by the judgment,
as fully as if his interest or encumbrance covered all of the property described in the
judgment.
(1949 Rev., S. 7201; P.A. 79-602, S. 78.)
History: P.A. 79-602 made minor changes in wording, substituting "the" for "such" where appearing, etc.
Cited. 25 CA 688, 691.
Sec. 49-21. Defendant to receive and file certificate of satisfaction or certificates of judgment of strict foreclosure or foreclosure by sale. When, in any action
of foreclosure, any defendant has paid the debt and costs and the title to the mortgaged
premises has become absolute in such defendant, or any person claiming under him, in
accordance with the provisions of sections 49-19 and 49-20, the plaintiff or person
receiving such payment, either in person or by his agent or attorney, shall sign and
deliver to the defendant a certificate of satisfaction of the judgment of foreclosure stating
the name and residence of the defendant. The certificate shall be filed by him forthwith
with the clerk of the court in which the judgment was rendered. A certified copy of the
certificate of satisfaction of judgment, and of the judgment, or of a certificate of judgment
of strict foreclosure or a certificate of judgment of foreclosure by sale shall be forthwith
filed by the defendant for record in the land records of the town where such premises
are situated.
(1949 Rev., S. 7202; 1949, S. 2971d; P.A. 79-602, S. 79; P.A. 92-38, S. 1.)
History: P.A. 79-602 changed wording slightly but made no substantive changes; P.A. 92-38 required that certified
copies of certificates of judgment of strict foreclosure and certificates of judgment of foreclosure by sale be filed by
defendant on land records.
A certificate foreclosure merely evidential of title. 111 C. 507.
Where defendant owner redeems, title need not become absolute in defendant owner as a condition precedent to applicability of section. 77 CA 276.
Sec. 49-22. Execution of ejectment on foreclosure judgment. Disposition of
property. (a) In any action brought for the foreclosure of a mortgage or lien upon land,
or for any equitable relief in relation to land, the plaintiff may, in his complaint, demand
possession of the land, and the court may, if it renders judgment in his favor and finds
that he is entitled to the possession of the land, issue execution of ejectment, commanding
the officer to eject the person or persons in possession of the land and to put in possession
thereof the plaintiff or the party to the foreclosure entitled to the possession by the
provisions of the decree of said court, provided no execution shall issue against any
person in possession who is not a party to the action except a transferee or lienor who
is bound by the judgment by virtue of a lis pendens. The officer shall eject the person
or persons in possession and may remove such person's possessions and personal effects
and set them out on the adjacent sidewalk, street or highway.
(b) Before any such removal, the state marshal charged with executing upon the
ejectment shall give the chief executive officer of the town twenty-four hours notice of
the ejectment, stating the date, time and location of such ejectment as well as a general
description, if known, of the types and amount of property to be removed from the land.
Before giving such notice to the chief executive officer of the town, the state marshal
shall use reasonable efforts to locate and notify the person or persons in possession of
the date and time such ejectment is to take place and of the possibility of a sale pursuant
to subsection (c) of this section.
(c) Whenever a mortgage or lien upon land has been foreclosed and execution of
ejectment issued, and the possessions and personal effects of the person in possession
thereof are set out on the sidewalk, street or highway, and are not immediately removed
by such person, the chief executive officer of the town shall remove and store the same.
Such removal and storage shall be at the expense of such person. If the possessions and
effects are not called for by such person and the expense of the removal and storage is
not paid to the chief executive officer within fifteen days after such ejectment, the chief
executive officer shall sell the same at public auction, after using reasonable efforts to
locate and notify such person of the sale and after posting notice of the sale for one week
on the public signpost nearest to the place where the ejectment was made, if any, or at
some exterior place near the office of the town clerk. The chief executive officer shall
deliver to such person the net proceeds of the sale, if any, after deducting a reasonable
charge for removal and storage of such possessions and effects. If such person does not
demand the net proceeds within thirty days after the sale, the chief executive officer
shall turn over the net proceeds of the sale to the town treasury.
(1949 Rev., S. 7203; 1955, S. 2972d; P.A. 79-602, S. 80; P.A. 82-234; P.A. 84-146, S. 17; 84-539; P.A. 00-99, S. 99, 154.)
History: P.A. 79-602 substituted "the" for "such" where appearing; P.A. 82-234 authorized an officer to remove the
possessions and personal effects of a person ejected from the land and set them out on the adjacent sidewalk, street or
highway, and added Subsecs. (b) and (c) concerning the procedure for the removal and disposition of such possessions
and personal effects; P.A. 84-146 included a reference to posting of notice on a place other than a signpost; P.A. 84-539
amended Subsec. (a) with respect to persons against whom execution may issue by replacing "unless the person" with
"except a transferee or lienor who"; P.A. 00-99 replaced reference to sheriff and deputy sheriff with state marshal in Subsec.
(b), effective December 1, 2000 (Revisor's note: A second reference in Subsec. (b) to "sheriff or deputy" was changed
editorially by the Revisors to "state marshal" to conform with P.A. 00-99).
This section not unconstitutional as infringing right of trial by jury. 46 C. 513. Action of administrator of deceased
mortgagee who foreclosed in taking out execution after his death irregular. 79 C. 682. Right of mortgagee to possession
of property; 75 C. 369; 83 C. 159; 87 C. 405; effect of stay of execution; 74 C. 683; appeal stays execution; 89 C. 413; if
law day has passed, supreme court may extend time. 70 C. 92; 85 C. 383. Illegal ejectment against tenant not a party to
foreclosure. 102 C. 437; 114 C. 93. Actual possession can be secured only by this method or by supplementary proceedings.
102 C. 649. Officer holding execution of ejectment need not make demand for payment of debt. 114 C. 438. Care which
officer must exercise in handling personal property. Id. Sec. 47a-23c shields tenants who qualify for its protections from
executions of judgments of ejectment pursuant to this section. 237 C. 679.
Injunction issued against execution of ejectment determined to be in violation of constitutional due process rights of
tenants who were given no notice of the foreclosure action against owner of property occupied by the tenants. 38 CS 70-
73, 79. Cited. 43 CS 467, 469.
Subsec. (a):
Cited. 237 C. 679. Prohibits issuance of an execution of ejectment against tenant who was not named as a party to the
foreclosure action. 265 C. 741.
Cited. 43 CS 467, 468.
Sec. 49-22a. Execution of ejectment on foreclosure judgment on mortgage
guaranteed by Administrator of Veterans' Affairs. In any action brought for the
foreclosure of a mortgage upon land where the court may, in accordance with the provisions of section 49-22, issue execution of ejectment to the plaintiff and the mortgage
loan has been guaranteed by the Administrator of Veterans' Affairs pursuant to Title
III of an Act of Congress entitled "Servicemen's Readjustment Act of 1944", the court
may issue execution of ejectment to put in possession of such land the Administrator
of Veterans' Affairs, upon the filing by the plaintiff of an affidavit that (1) the guarantee
has been honored by the Administrator of Veterans' Affairs, (2) the plaintiff's title to the
property has been conveyed to the Administrator of Veterans' Affairs who has become
subrogated to all the rights of the plaintiff in the property and (3) the foreclosure judgment has been assigned to the Administrator of Veterans' Affairs.
(1971, P.A. 251.)
Sec. 49-23. Ejectment by mortgagee barred by tender of debt and costs. In any
action brought by a mortgagee of real estate, or any person holding title under him,
against the mortgagor, or any person holding title to the estate under him, to obtain
possession of the estate by virtue of title derived by mortgage, a tender by the defendant
of the amount of the debt, with interest and the costs of the suit, is a bar to its further
prosecution.
(1949 Rev., S. 7204; P.A. 79-602, S. 81.)
History: P.A. 79-602 substituted "is" for "shall be" and "the" for "such" where appearing.
Sec. 49-24. Court may foreclose lien or mortgage on land by sale. All liens and
mortgages affecting real property may, on the written motion of any party to any suit
relating thereto, be foreclosed by a decree of sale instead of a strict foreclosure at the
discretion of the court before which the foreclosure proceedings are pending.
(1949 Rev., S. 7205.)
Nature of sale. 98 C. 152. Procedure where one of two mortgages foreclosed is invalid in part. 103 C. 743. Whether
foreclosure by sale will be ordered rests in discretion of court; refusal to order held proper. 108 C. 30. Remedy of second
mortgagee order of sale and not apportionment. 119 C. 455. Cited. 179 C. 232, 238. Cited. 196 C. 172, 184. Cited. 199 C.
368, 374.
Cited. 11 CA 53, 55. Cited. 13 CA 239, 247. Cited. 21 CA 275, 279. Cited. 23 CA 192, 195. Cited. 35 CA 81, 90, 91.
Cited. 25 CS 516.
Sec. 49-25. Appraisal of property. When the court in any such proceeding is of
the opinion that a foreclosure by sale should be decreed, it shall, in its decree, appoint
a person to make the sale and fix a day therefor, and shall direct whether the property
shall be sold as a whole or in parcels, and how the sale shall be made and advertised;
but, in all cases in which such sale is ordered, the court shall appoint one disinterested
appraiser who shall, under oath, appraise the property to be sold and make return of the
appraisal to the clerk of the court. Upon motion of the owner of the equity of redemption,
the court shall appoint a second appraiser in its decree. If the plaintiff is the purchaser
at sale, or if the property is redeemed at any time prior to the approval of the sale, or if
for any reason the sale does not take place, the expense of the sale and appraisal or
appraisals shall be paid by the plaintiff and be taxed with the costs of the case. If, after
judgment has been rendered, the amount found to be due and for which foreclosure is
decreed, together with the interest and the costs, is paid to the plaintiff before the sale,
all further proceedings in the suit shall be stayed.
(1949 Rev., S. 7206; P.A. 79-602, S. 82; P.A. 91-50.)
History: P.A. 79-602 substituted "the" for "such" where appearing; P.A. 91-50 changed requirement of appointment
of three appraisers to appointment of one appraiser and deleted language concerning acceptance by court of amount agreed
upon by majority if lack of agreement by appraisers and substituted "Upon motion of the owner of the equity of redemption,
the court shall appoint a second appraiser in its decree. If the plaintiff is the purchaser at sale, or if the property is redeemed
at any time prior to the approval of the sale, or if for any reason the sale does not take place ...".
See note to Sec. 49-28 re 113 C. 241. Appraisal upon a foreclosure by sale not conclusive as to value of property. 128
C. 694. Cited. 153 C. 269, 274; 157 C. 594. Cited. 189 C. 490, 499. Cited. 220 C. 643, 646. Cited. 222 C. 784, 789. Cited.
227 C. 270, 274, 279. Cited. 241 C. 269. Statute recognizes that foreclosed property may be redeemed at any time prior
to confirmation of the sale by the trial court; judgment of appellate court in Washington Trust Co. v. Smith, 42 CA 330 et
seq. reversed. Id., 734. Conduct of judicial sale. 252 C. 623.
"Of such sale" not limited to ratified sales. 13 CA 239, 245-248, 251. Cited. 20 CA 638, 640, 641. Cited. 21 CA 275,
278-281. Cited. 22 CA 396, 398. Cited. 27 CA 549, 552. Cited. 36 CA 313-320. Trial court is not bound to accept appraised
value but may use the appraisal to assist in the exercise of its discretion in accepting or rejecting proposed sale. 75 CA
355. Statute does not permit court to order defendant to pay expenses of the sale. 80 CA 399.
Sec. 49-26. Conveyance; title of purchaser. When a sale has been made pursuant
to a judgment therefor and ratified by the court, a conveyance of the property sold shall
be executed by the person appointed to make the sale, which conveyance shall vest in
the purchaser the same estate that would have vested in the mortgagee or lienholder if
the mortgage or lien had been foreclosed by strict foreclosure, and to this extent such
conveyance shall be valid against all parties to the cause and their privies, but against
no other persons. The court, at the time of or after ratification of the sale, may order
possession of the property sold to be delivered to the purchaser and may issue an execution of ejectment after the time for appeal of the ratification of the sale has expired.
(1949 Rev., S. 7207; P.A. 90-280; P.A. 92-38, S. 2.)
History: P.A. 90-280 amended section to permit court to issue an execution of ejectment at the time of or after ratification
of sale, effective after time for appeal of the ratification of sale has expired; P.A. 92-38 changed provision re issuance of
execution of ejectment by permitting issuance after the time for appeal of ratification of the sale has expired.
Purchaser does not get title which will prevent redemption by subsequent encumbrancer not made party to foreclosure.
89 C. 64. Necessity and effect of ratification by court. 98 C. 153. Right of committee to require deposit without court order.
Id., 154. Procedure where purchaser defaults. Id., 155 ff. Cited. 235 C. 741, 745.
Cited. 9 CA 446, 447. Cited. 13 CA 239, 248. Cited. 22 CA 396, 399.
Cited. 43 CS 467, 470.
Sec. 49-27. Disposal of proceeds of sale. The proceeds of each such sale shall be
brought into court, there to be applied if the sale is ratified, in accordance with the
provisions of a supplemental judgment then to be rendered in the cause, specifying the
parties who are entitled to the same and the amount to which each is entitled. If any part
of the debt or obligation secured by the mortgage or lien foreclosed or by any subsequent
mortgage or lien was not payable at the date of the judgment of foreclosure, it shall
nevertheless be paid as far as may be out of the proceeds of the sale as if due and payable,
with rebate of interest where the debt was payable without interest, provided, if the
plaintiff is the purchaser at any such sale, he shall be required to bring into court only
so much of the proceeds as exceed the amount due upon his judgment debt, interest
and costs.
(1949 Rev., S. 7208; P.A. 79-602, S. 83.)
History: P.A. 79-602 made minor changes in wording but made no substantive changes.
Procedure. 98 C. 154 ff. Rights of parties to fund realized from sale should be determined by a supplementary judgment.
103 C. 744. Cited. 120 C. 671. Cited. 166 C. 195. The decree of foreclosure by sale should not adjudicate the rights of the
parties to the funds realized; those rights should be determined by way of supplemental judgment. 142 C. 200. On sale of
four mortgaged parcels as one tract, after satisfying first mortgage debt, proceeds remaining were apportioned between
second mortgagees according to the respective values of their securities and not according to a rule of priority in time. 153
C. 267. Cited. 195 C. 418, 420. Cited. 219 C. 620, 629. Cited. 235 C. 741, 743.
Cited. 27 CA 549, 556.
Claim of mechanic's lienor which has not expired at time of mortgage sale is transferred to proceeds of sale. 20 CS 460.
Sec. 49-28. When proceeds of sale will not pay in full. If the proceeds of the sale
are not sufficient to pay in full the amount secured by any mortgage or lien thereby
foreclosed, the deficiency shall be determined, and thereupon judgment may be rendered
in the cause for the deficiency against any party liable to pay the same who is a party
to the cause and has been served with process or has appeared therein, and all persons
liable to pay the debt secured by the mortgage or lien may be made parties; but all other
proceedings for the collection of the debt shall be stayed during the pendency of the
foreclosure suit, and, if a deficiency judgment is finally rendered therein, the other
proceedings shall forthwith abate. If the property has sold for less than the appraisal
provided for in section 49-25, no judgment shall be rendered in the suit or in any other
for the unpaid portion of the debt or debts of the party or parties upon whose motion
the sale was ordered, nor shall the same be collected by any other means than from the
proceeds of the sale until one-half of the difference between the appraised value and
the selling price has been credited upon the debt or debts as of the date of sale; and,
when there are two or more debts to which it is to be applied, it shall be apportioned
between them.
(1949 Rev., S. 7209; P.A. 79-602, S. 84.)
History: P.A. 79-602 substituted "the" for "such" where appearing.
Provision for crediting one-half difference between appraisal and sale price not applicable against subsequent encumbrancer. 89 C. 101. Liability of endorsers for balance of deficiency judgment in separate action. 100 C. 711. Guarantor of
note allowed same statutory credit as mortgagor. 113 C. 241. Cited. 120 C. 671. See note to Sec. 49-25 re 128 C. 694.
Cited. 220 C. 152, 154, 160, 161. Cited. Id., 643, 646, 650. Cited. 222 C. 784, 789-791. Cited. 227 C. 270-272, 274, 275,
277, 279, 281-283. Cited. 235 C. 741-743. Cited. 241 C. 269.
Cited. 23 CA 266, 268-270. Cited. 28 CA 809, 814, 821, 822. Cited. 31 CA 1, 9. Cited. 31 CA 621, 625. Cited. 36 CA
313, 320. Cited. 38 CA 240, 241, 246.
Sec. 49-29. Expenses of sale and costs. The court shall order the judgment and
costs of the plaintiff to be first paid out of the proceeds of such sale and shall allow, to
such of the parties as receive the balance of such proceeds, the costs usually allowed to
successful parties, which costs shall be paid in addition to their respective claims and
in the same order.
(1949 Rev., S. 7210.)
Sec. 49-30. Omission of parties in foreclosure actions. When a mortgage or lien
on real estate has been foreclosed and one or more parties owning any interest in or
holding an encumbrance on such real estate subsequent or subordinate to such mortgage
or lien has been omitted or has not been foreclosed of such interest or encumbrance
because of improper service of process or for any other reason, all other parties foreclosed by the foreclosure judgment shall be bound thereby as fully as if no such omission
or defect had occurred and shall not retain any equity or right to redeem such foreclosed
real estate. Such omission or failure to properly foreclose such party or parties may be
completely cured and cleared by deed or foreclosure or other proper legal proceedings
to which the only necessary parties shall be the party acquiring such foreclosure title,
or his successor in title, and the party or parties thus not foreclosed, or their respective
successors in title.
(1949 Rev., S. 7211.)
Cited. 37 CA 764-766, 769, 771, 772. Section establishes procedure for foreclosing an encumbrance that is omitted in
the original foreclosure. Term "encumbrance" refers to recorded encumbrances. Section intended to benefit foreclosing
party who, through mistake or oversight, omitted an encumbrance; it is not intended to be used as a sword by the omitted
party. 63 CA 624.
Sec. 49-31. Actions against the state. In any action to foreclose a mortgage or
lien on any land in which the state, or any officer or agent thereof, claims to have an
interest subordinate to that of the party seeking the foreclosure, the state, or such officer
or agent, as the case may be, may be made a party defendant, and such interest may be
foreclosed in the same manner and with the same effect as if such interest were held by
an individual, except that no judgment may be rendered against the state or any officer
or agent for money or costs of suit.
(1949 Rev., S. 7212.)
Cited. 206 C. 484, 489.
Cited. 11 CA 53, 57.
Sec. 49-31a. Subordination clauses. Section 49-31a is repealed.
(P.A. 76-357, S. 1, 3; P.A. 78-89, S. 2, 3.)
Sec. 49-31b. Information in deed sufficient notice as to nature and amount of
obligation. Deed for variable rate mortgage loan. (a) A mortgage deed given to secure
payment of a promissory note, which furnishes information from which there can be
determined the date, principal amount and maximum term of the note, shall be deemed
to give sufficient notice of the nature and amount of the obligation to constitute a valid
lien securing payment of all sums owed under the terms of such note.
(b) With regard to a mortgage deed given to secure payment of a promissory note
which contains a provision expressly providing that the interest rate set forth in the note
may vary one or more times during the life of the note and that such changes in rate
may cause the term of the note to change, the "maximum term" shall be adequately
disclosed if the mortgage deed furnishes information from which can be determined:
(1) A statement that the interest rate is subject to variation, (2) the conditions under
which such rate may vary, (3) the manner, including changes in payment amounts,
number of scheduled periodic payments, or change in the amount due at maturity, in
which any increase and decrease in the rate may be effected, and (4) the date, if applicable, by which according to the terms of the note, remaining amounts of principal and
interest, if any, shall be due and payable in full, regardless of changes in the interest
rate. The mortgagee shall give written notice of any change in the interest rate to a
second or subsequent encumbrancer, provided such encumbrancer has given written
notice by registered mail, return receipt requested, of its encumbrance to the mortgagee.
The provisions of this section shall not invalidate any mortgage which would be valid
without this section.
(P.A. 76-357, S. 2, 3; P.A. 81-391, S. 1.)
History: P.A. 81-391 added Subsec. (b) concerning the information required in a mortgage deed to adequately disclose
the maximum term of a note with a variable interest rate and requiring the mortgagee to give notice of any change in the
interest rate to a second or subsequent encumbrancer.
Cited. 202 C. 566. Cited. 232 C. 294, 306, 307.
Subsec. (a):
Supplements but does not supplant relevant common law standards for validity of mortgages. 202 C. 566, 568-576,
578, 582. Cited. 210 C. 221, 226, 227. Cited. 230 C. 828, 836. Cited. 232 C. 294, 305, 308.
Sec. 49-31c. When subordination not subject to statute of frauds and automatically effective. A subordination agreement which provides that a mortgage, lease or
other interest in real property shall be subordinated to one or more future mortgages is
not subject to the provisions of section 52-550 and is valid and binding notwithstanding
that the subordination agreement does not contain any of the terms or provisions of the
future mortgage or mortgages. If the subordination agreement so provides, the subordination is automatically effective at such time or times as the future mortgage or mortgages come into existence without the necessity for the subordinating party to execute
any further instruments, provided the mortgage does not violate the terms of the original
subordination agreement.
(P.A. 78-89, S. 1, 3; P.A. 79-602, S. 66.)
History: P.A. 79-602 rephrased provisions but made no substantive changes.
Sec. 49-31d. Definitions. For the purposes of sections 49-31d to 49-31i, inclusive:
(1) "Unemployed person" means a person who is unemployed for purposes of chapter 567.
(2) "Homeowner" means a person who has an ownership interest in residential real
property secured by a mortgage which is the subject of a foreclosure action, and who
has owned and occupied such property as his principal residence for a continuous period
of not less than two years immediately preceding the commencement of such foreclosure
action.
(3) "Restructured mortgage debt" means the adjustment by a court of a mortgage
debt to give protection from a foreclosure action.
(4) "Protection from foreclosure" means a court-ordered restructuring of a mortgage
debt designed to eliminate an arrearage in payments on such debt and to provide a period
not to exceed six months during which foreclosure is stayed.
(5) "Lender" means any person who makes or holds mortgage loans in the ordinary
course of business and who is the holder of any first mortgage on residential real estate
which is the subject of a foreclosure action.
(6) "Underemployed person" means a person whose earned income during the
twelve-month period immediately preceding the commencement of the foreclosure action is (A) less than fifty thousand dollars and (B) less than seventy-five per cent of his
average annual earned income during the two years immediately preceding such twelve-month period.
(P.A. 83-547, S. 6; June Sp. Sess. P.A. 83-29, S. 71; P.A. 84-373, S. 1; 84-546, S. 107, 173.)
History: June Sp. Sess. P.A. 83-29 revised section, changed definition of "homeowner", deleted definition of "financial
institution", added definitions of "lender" and "underemployed person" and made technical changes; P.A. 84-373 amended
Subsec. (6) to require an "underemployed person" to have an earned income which is less than fifty thousand dollars; P.A.
84-546 made technical change; (Revisor's note: In 1995 the indicators (1) and (2) in Subdiv. (6) were changed editorially
by the Revisors to (A) and (B) respectively for consistency with statutory usage).
Only persons who have been employed previously may be considered "unemployed" as defined in this section. 245
C. 744.
Cited. 29 CA 541, 542, 544, 546. Cited. 31 CA 260, 261. Cited. 34 CA 138, 139.
Subdiv. (2):
Cited. 29 CA 541, 544-546.