CHAPTER 579*
CONNECTICUT DEVELOPMENT AUTHORITY

      Secs. 32-10 and 32-11. Definitions. Connecticut Industrial Building Commission. Sections 32-10 and 32-11 are repealed.

      (1961, P.A. 542, S. 1, 2; 1963, P.A. 601, S. 1; February, 1965, P.A. 494, S. 1-3; 1971, P.A. 503, S. 1; 1972, P.A. 195, S. 26.)

      See Sec. 32-23d for definitions.

      Sec. 32-11a. Connecticut Development Authority. Board. Executive director. Surety bond. Conflict of interest. Establishment of subsidiary for redevelopment of contaminated real property. (a) There is hereby created as a body politic and corporate, constituting a public instrumentality and political subdivision of the state created for the performance of an essential public and governmental function, the Connecticut Development Authority which is empowered to carry out the purposes of the authority, as defined in subsection (t) of section 32-23d, which are hereby determined to be public purposes for which public funds may be expended. The Connecticut Development Authority shall not be construed to be a department, institution or agency of the state.

      (b) All notes, bonds or other obligations issued by the Connecticut Development Commission for the financing of any project or projects shall be in accordance with their terms of full force and effect and valid and binding upon the authority as the successor to the Connecticut Development Commission and with respect to any resolution, contract, deed, trust agreement, mortgage, conditional sale or loan agreement, commitment, obligation or liability or other such document, public record, right, remedy, special act or public act, obligation, liability or responsibility pertaining thereto, the authority shall be, and shall be deemed to be, the successor to the Connecticut Development Commission. All properties, rights in land, buildings and equipment and any funds, moneys, revenues and receipts or assets of such commission pledged or otherwise securing any such notes, bonds or other obligations shall belong to the authority as successor to the Connecticut Development Commission, subject to such pledges and other security arrangements and to agreements with the holders of the outstanding notes, bonds or other obligations. Any resolution with respect to the issuance of bonds of the commission for the purposes of the act and any other action taken by the commission with respect to assisting in the financing of any project shall be, or shall be deemed to be, a resolution of the authority or an action taken by the authority subject only to any agreements with the holders of outstanding notes, bonds or other obligations of the commission.

      (c) The board of directors of the authority shall consist of the Commissioner of Economic and Community Development, the State Treasurer and the Secretary of the Office of Policy and Management, each serving ex officio, four members appointed by the Governor who shall be experienced in the field of financial lending or the development of commerce, trade and business and four members appointed as follows: One by the president pro tempore of the Senate, one by the minority leader of the Senate, one by the speaker of the House of Representatives and one by the minority leader of the House of Representatives. Each ex-officio member may designate a deputy or any member of the agency staff to represent the member at meetings of the authority with full powers to act and vote on the member's behalf. The chairperson of the board shall be appointed by the Governor, with the advice and consent of both houses of the General Assembly. The board shall annually elect one of its members as vice chairperson. Each member appointed by the Governor shall serve at the pleasure of the Governor but no longer than the term of office of the Governor or until the member's successor is appointed and qualified, whichever is longer. Each member appointed by a member of the General Assembly shall serve in accordance with the provisions of section 4-1a. Members shall receive no compensation but shall be reimbursed for necessary expenses incurred in the performance of their duties under the authority legislation, as defined in subsection (hh) of section 32-23d. The Governor shall fill any vacancy for the unexpired term of a member appointed by the Governor. The appropriate legislative appointing authority shall fill any vacancy for the unexpired term of a member appointed by such authority. A member of the board shall be eligible for reappointment. Any member of the board may be removed by the Governor for misfeasance, malfeasance or wilful neglect of duty. Each member of the authority before entering upon his or her duties shall take and subscribe the oath or affirmation required by article XI, section 1, of the State Constitution. A record of each such oath shall be filed in the office of the Secretary of the State. Meetings of the board shall be held at such times as shall be specified in the bylaws adopted by the board and at such other time or times as the chairperson deems necessary. The board is empowered to adopt bylaws and regulations for putting into effect the provisions of said chapters and sections. Not later than November first, annually, the authority shall submit a report to the Commissioner of Economic and Community Development, the Auditors of Public Accounts and the joint standing committees of the General Assembly having cognizance of matters relating to the Department of Economic and Community Development, appropriations and capital bonding, which shall include the following information with respect to new and outstanding financial assistance provided by the authority during the twelve-month period ending on June thirtieth next preceding the date of the report for each financial assistance program administered by the authority: (1) A list of the names, addresses and locations of all recipients of such assistance, (2) for each recipient: (A) The business activities, (B) the Standard Industrial Classification Manual codes, (C) the gross revenues during the recipient's most recent fiscal year, (D) the number of employees at the time of application, (E) whether the recipient is a minority or woman-owned business, (F) a summary of the terms and conditions for the assistance, including the type and amount of state financial assistance, job creation or retention requirements, and anticipated wage rates, and (G) the amount of investments from private and other nonstate sources that have been leveraged by the assistance, (3) the economic benefit criteria used in determining which applications have been approved or disapproved, and (4) for each recipient of assistance on or after July 1, 1991, a comparison between the number of jobs to be created, the number of jobs to be retained and the average wage rates for each such category of jobs, as projected in the recipient's application, versus the actual number of jobs created, the actual number of jobs retained and the average wage rates for each such category. The report shall also indicate the actual number of full-time jobs and the actual number of part-time jobs in each such category and the benefit levels for each such subcategory. In addition, the report shall state (A) for each final application approved during the twelve-month period covered by the report, (i) the date that the final application was received by the authority, and (ii) the date of such approval; (B) for each final application withdrawn during the twelve-month period covered by the report, (i) the municipality in which the applicant is located, (ii) the Standard Industrial Classification Manual code for the applicant, (iii) the date that the final application was received by the authority, and (iv) the date of such withdrawal; (C) for each final application disapproved during the twelve-month period covered by the report, (i) the municipality in which the applicant is located, (ii) the Standard Industrial Classification Manual code for the applicant, (iii) the date that the final application was received by the authority, and (iv) the date of such disapproval; and (D) for each final application on which no action has been taken by the applicant or the agency in the twelve-month period covered by the report and for which no report has been submitted under this subsection, (i) the municipality in which the applicant is located, (ii) the Standard Industrial Classification Manual code for the applicant, and (iii) the date that the final application was received by the authority. The November first report shall include a summary of the activities of the authority, including all activities to assist small businesses and minority business enterprises, as defined in section 4a-60g, a complete operating and financial statement and recommendations for legislation to promote the purposes of the authority. The authority shall furnish such additional reports upon the written request of any such committee at such times and containing such information as the committee may request. The accounts of the authority shall be subject to annual audit by the state Auditors of Public Accounts. The authority may cause an audit of its books and accounts to be made at least once each fiscal year by certified public accountants. The powers of the authority shall be vested in and exercised by not less than six of the members of the board of directors then in office. Such number of members shall constitute a quorum and the affirmative vote of a majority of the members present at a meeting of the board shall be necessary for any action taken by the authority. No vacancy in the membership of the board shall impair the right to exercise all the rights and perform all the duties of the authority. Any action taken by the board under the provisions of said chapters and sections may be authorized by resolution at any regular or special meeting, and each such resolution shall take effect immediately and need not be published or posted. The authority shall be exempt from the provisions of section 4-9a.

      (d) The board of directors of the authority may delegate to three or more of its members such board powers and duties as it may deem proper. At least one of such members shall not be a state employee.

      (e) The board of directors of the authority shall adopt written procedures, in accordance with the provisions of section 1-121, for: (1) Adopting an annual budget and plan of operations, including a requirement of board approval before the budget or plan may take effect; (2) hiring, dismissing, promoting and compensating employees of the authority, including an affirmative action policy and a requirement of board approval before a position may be created or a vacancy filled; (3) acquiring real and personal property and personal services, including a requirement of board approval for any nonbudgeted expenditure in excess of five thousand dollars; (4) contracting for financial, legal, bond underwriting and other professional services, including a requirement that the authority solicit proposals at least once every three years for each such service which it uses; (5) issuing and retiring bonds, bond anticipation notes and other obligations of the authority; (6) awarding loans, grants and other financial assistance, including eligibility criteria, the application process and the role played by the authority's staff and board of directors and including deadlines for the approval or disapproval of applications for such assistance by the authority on and after July 1, 1996; and (7) the use of surplus funds to the extent authorized under this chapter or other provisions of the general statutes.

      (f) The board of directors of the authority shall appoint an executive director who shall not be a member of the board and who shall serve at the pleasure of the board and receive such compensation as shall be fixed by the board. The executive director may but need not be the deputy appointed under section 32-1d. He shall be the chief administrative officer of the authority and shall direct and supervise administrative affairs and technical activities in accordance with the directives of the board. He shall perform such other duties as may be directed by the board in carrying out the purposes of said chapters and sections. The executive director shall be exempt from the classified service. The executive director shall attend all meetings of the board, keep a record of the proceedings of the board and shall maintain and be custodian of all books, documents and papers filed with the authority and of the minute book or journal of the authority and of its official seal. He may cause copies to be made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that such copies are true copies, and all persons dealing with the authority may rely upon such certificates.

      (g) Each member of the board of directors of the authority shall execute a surety bond in the penal sum of fifty thousand dollars, or, in lieu thereof, the chairman of the board shall execute a blanket position bond covering each member and the executive director and the employees of the authority, each surety bond to be conditioned upon the faithful performance of the duties of the office or offices covered, to be executed by a surety company authorized to transact business in this state as surety and to be approved by the Attorney General and filed in the office of the Secretary of the State. The cost of each such bond shall be paid by the authority.

      (h) Notwithstanding any provision of the law to the contrary, it shall not constitute a conflict of interest for a trustee, director, partner, officer, stockholder, proprietor, counsel or employee of any person, or for any other individual having a financial interest in any person, to serve as a member of the board of directors of the authority; provided such trustee, director, partner, officer, stockholder, proprietor, counsel, employee or individual shall file with the authority a record of his capacity with or interest in such person and abstain and absent himself from any deliberation, action and vote by the board in specific respect to such person.

      (i) The authority shall continue, as long as it shall have bonds or other obligations outstanding and until its existence is terminated by law. Upon the termination of the existence of the authority, all its rights and properties shall pass to and be vested in the state of Connecticut.

      (j) Neither members of the board of directors of the authority nor any person executing the notes and bonds shall be liable personally on the notes or bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

      (k) Repealed by P.A. 00-136, S. 9.

      (l) (1) The authority may establish one or more subsidiaries to stimulate, encourage and carry out the remediation, development and financing of contaminated property within this state, in coordination with the Department of Environmental Protection, and to provide financial, development and environmental expertise to others including, but not limited to, municipalities, interested in or undertaking such remediation, development or financing which are determined to be public purposes for which public funds may be expended. Each subsidiary shall be deemed a quasi-public agency for purposes of chapter 12. The authority may transfer to any such subsidiary any moneys and real or personal property. Each such subsidiary shall have all the privileges, immunities, tax exemptions and other exemptions of the authority.

      (2) Each such subsidiary may sue and shall be subject to suit provided the liability of each such subsidiary shall be limited solely to the assets, revenues and resources of such subsidiary and without recourse to the general funds, revenues, resources or any other assets of the authority or any other subsidiary. No such subsidiary may provide for any bonded indebtedness of the state for the cost of any liability or contingent liability for the remediation of contaminated real property unless such indebtedness is specifically authorized by an act of the General Assembly. Each such subsidiary shall have the power to do all acts and things necessary or convenient to carry out the purposes of this subsection, section 12-81r, subsection (h) of section 22a-133m, subsection (a) of section 22a-133x, sections 22a-133aa, 22a-133bb and 22a-133dd, subsection (l) of section 22a-134, and sections 22a-452f, 32-7e and 32-23pp to 32-23rr, inclusive, including, but not limited to, (i) solicit, receive and accept aid, grants or contributions from any source of money, property or labor or other things of value, to be held, used and applied to carry out the purposes of this subsection, section 12-81r, subsection (h) of section 22a-133m, subsection (a) of section 22a-133x, sections 22a-133aa, 22a-133bb and 22a-133dd, subsection (l) of section 22a-134, and sections 22a-452f, 32-7e and 32-23pp to 32-23rr, inclusive, subject to the conditions upon which such grants and contributions may be made, including but not limited to, gifts, grants or loans, from any department, agency or quasi-public agency of the United States or the state; (ii) enter into agreements with persons upon such terms and conditions as are consistent with the purposes of such subsidiary to acquire or facilitate the remediation, development or financing of contaminated real or personal property; (iii) to acquire, take title, lease, purchase, own, manage, hold and dispose of real and personal property and lease, convey or deal in or enter into agreements with respect to such property; (iv) examine, inspect, rehabilitate, remediate or improve real or personal property or engage others to do so on such subsidiary's behalf, or enter into contracts therefor; (v) mortgage, convey or dispose of its assets and pledge its revenues in order to secure any borrowing, for the purpose of financing, refinancing, rehabilitating, remediating, improving or developing its assets, provided each such borrowing or mortgage shall be a special obligation of such subsidiary, which obligation may be in the form of notes, bonds, bond anticipation notes and other obligations issued by or to such subsidiary to the extent permitted under this chapter to fund and refund the same and provide for the rights of the holders thereof, and to secure the same by pledge of revenues, notes or other assets and which shall be payable solely from the assets, revenues and other resources of such subsidiary; (vi) to create real estate investment trusts or similar entities or to become a member of a limited liability company or to become a partner in limited or general partnerships or establish other contractual arrangements with private and public sector entities as such subsidiary deems necessary to remediate, develop or finance environmentally contaminated property in the state; and (vii) any other powers enumerated in subsection (e) of section 32-23 necessary or appropriate to carry out the purposes of this subsection, subsection (h) of section 22a-133m, subsection (a) of section 22a-133x, sections 22a-133aa, 22a-133bb and 22a-133dd, subsection (l) of section 22a-134, and sections 22a-452f, 32-7e, and 32-23pp to 32-23rr, inclusive. The board of directors, executive director, officers and staff of the authority may serve as members of any advisory or other board which may be established to carry out the purposes of this subsection, subsection (h) of section 22a-133m, subsection (a) of section 22a-133x, sections 22a-133aa, 22a-133bb and 22a-133dd, subsection (l) of section 22a-134, and sections 22a-452f, 32-7e, and 32-23pp to 32-23rr, inclusive.

      (3) Each such subsidiary shall act through its board of directors at least one-half of which shall be members of the board of directors of the authority or their designees or officers or employees of the authority. A resolution of the authority shall prescribe the purposes for which each such subsidiary is formed.

      (4) The provisions of section 1-125 and this subsection shall apply to any officer, director, designee, or employee appointed as a member, director, or officer of any such subsidiary. Neither any such persons so appointed nor the directors, officers or employees of the authority shall be personally liable for the debts, obligations, or liabilities of any such subsidiary as provided in said section 1-125. Each subsidiary shall and the authority may provide for the indemnification to protect, save harmless and indemnify such officer, director, designee or employee as provided by said section 1-125.

      (5) The authority or any such subsidiary may take such actions as are necessary to comply with the provisions of the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as from time to time amended, to qualify and maintain any such subsidiary as a corporation exempt from taxation under said Internal Revenue Code.

      (6) The authority may make loans or grants to, and may guarantee specified obligations of, any such subsidiary, following standard authority procedures, from the authority's assets and the proceeds of its bonds, notes, and other obligations, provided however, that the source and security, if any, for the repayment of any such loans or guarantees is derived from the assets, revenues and resources of such subsidiary.

      (7) Notwithstanding any other provisions of law, the Commissioner of Environmental Protection shall issue to the authority or any subsidiary a covenant not to sue, pursuant to section 22a-133aa or section 22a-133bb, as applicable, without fee, as otherwise required in subsection (c) of said section 22a-133aa for the remediation of a facility in accordance with an approved remediation plan.

      (P.A. 73-599, S. 5; P.A. 75-60, S. 1, 2; P.A. 77-370, S. 8, 13; 77-614, S. 19, 284, 610; P.A. 78-303, S. 106, 107, 136; P.A. 81-384, S. 1, 13; P.A. 84-512, S. 17, 18, 30; P.A. 88-225, S. 8, 14; 88-265, S. 1, 2, 36; 88-266, S. 11, 46; P.A. 93-382, S. 2, 69; June Sp. Sess. P.A. 93-1, S. 41, 45; P.A. 95-249, S. 2, 4; 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 97-219, S. 1; P.A. 98-253, S. 7; P.A. 99-30, S. 2; P.A. 00-136, S. 9; P.A. 01-179, S. 4-6; P.A. 03-19, S. 74, 75.)

      History: P.A. 75-60 included references to stockholders in Subsec. (f); P.A. 77-370 added Subsec. (i) re disclosure of information; P.A. 77-614 replaced commissioner of finance and control with secretary of the office of policy and management and, effective January 1, 1979, replaced commissioner and department of commerce with commissioner and department of economic development; P.A. 78-303 deleted references to Sec. 4-60a in Subsecs. (a) and (c); P.A. 81-384 added "proprietor" to Subsec. (f) concerning conflicts of interest; P.A. 84-512 deleted references to Secs. 4-5 and 4-24a in Subsecs. (a) and (c); P.A. 88-225 amended Subsec. (f) to apply provisions to individuals "having financial interest in any person"; P.A. 88-265 made technical changes and removed the Connecticut development authority from the department of economic development in Subsec. (a) and made technical changes re appointment of members, added reporting requirements and exempted the authority from the requirements of Sec. 4-9a in Subsec. (c); P.A. 88-266 amended Subsec. (a) by inserting reference to governmental function and providing that the authority shall not be construed to be department, institution or agency of state, amended Subsec. (c) by inserting reference to board of directors of the authority, requiring chairperson of board to be appointed by governor with advice and consent of general assembly instead of requiring that commissioner of economic development be chairman and substituting "board" for "authority", designated provisions in Subsec. (c) re delegation of powers and duties as Subsec. (d) and in that Subsec. authorized board to delegate powers and duties to three or more of its members, at least one of whom shall not be a state employee, instead of to one or more its members, or its officers, agent or employees, added Subsec. (e) re adoption of written procedures, relettered former Subsecs. (d), (e), (f), (g), (h) and (i) as Subsecs. (f), (g), (h), (i), (j) and (k), respectively, and, in said Subsecs., added "board of directors of the" and substituted "board" for "authority"; (Revisor's note: In 1993 the obsolete references in Subsecs. (a) and (c) to repealed Sec. 36-322 were deleted editorially and the wording adjusted accordingly); P.A. 93-382 amended Subsec. (c) to require authority to report semiannually instead of annually and also submit reports to auditors of public accounts and general assembly committee having cognizance of matters relating to appropriations and to substantially revise content of reports, effective July 1, 1993; June Sp. Sess. P.A. 93-1 amended Subsec. (c) to add four legislative appointments to the board of directors, to revise length of terms of gubernatorial appointees and to specify term length for legislative appointees and to clarify procedure for filling unexpired terms, effective July 1, 1993; P.A. 95-249 amended Subsec. (e)(6) to require board to adopt procedures for deadlines for approving or disapproving assistance applications, effective July 1, 1995; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 97-219 amended Subsec. (c) to require semiannual reports to include data re final applications approved, withdrawn, disapproved and not acted on; P.A. 98-253 added Subsec. (l) re establishment of subsidiaries for redevelopment of contaminated real property (Revisor's note: In Subsec. (l)(2)(iv) the Revisors editorially changed the phrase "... or enter into contracts therefore" to "... or enter into contracts therefor"); P.A. 99-30 changed a requirement for a biannual report regarding financial assistance provided by the authority to an annual report; P.A. 00-136 repealed Subsec. (k) which had exempted information contained in applications for financial assistance and all information obtained by the authority or the department from provisions of Sec. 1-210(a); P.A. 01-179 amended Subsec. (a) to redefine the purposes of the authority by deleting former references and adding reference to Sec. 32-23d(t), amended Subsec. (c) by making technical changes for purposes of gender neutrality and, re duties for which the members of the authority may be reimbursed, by deleting former references and adding provision re authority legislation as defined in Sec. 32-23d(hh) and amended Subsec. (l)(6) to add provisions authorizing the authority to make grants to or guarantee obligations of subsidiaries; P.A. 03-19 made technical changes in Subsecs. (c) and (l)(6), effective May 12, 2003.

      See Sec. 32-23e re powers of authority.

      See Sec. 32-23s re interpretation of amendments to this section effective on June 29, 1981.

      Subsec. (c):

      Cited. 230 C. 24.

      Secs. 32-12 and 32-13. Executive secretary. Powers of commission. Sections 32-12 and 32-13 are repealed.

      (1961, P.A. 542, S. 3, 4; 1963, P.A. 601, S. 2; February, 1965, P.A. 494, S. 4, 5; 1972, P.A. 195, S. 26.)

      See Sec. 32-23e re powers of Connecticut Development Authority.

      Sec. 32-14. Mortgage and Loan Insurance Fund. There is created a Mortgage and Loan Insurance Fund. To this fund shall be charged all payments required by loan defaults, all direct expenses and payments for the protection of the state's interest in connection with defaulted or delinquent insured mortgages or loans, or in property possessed in consequence thereof and all operating expenses of the authority which are attributable to the maintenance of the fund, and to the fund shall be credited all receipts of insurance premiums and all money, other than proceeds of insurance hereunder, or other assets of whatever nature received by the authority as a result of default or delinquency with respect to insured mortgages and loans or agreements with respect to which payments from the insurance fund have been made, including proceeds from the sale, disposal, lease or rental of real or personal property which the authority may receive under the provisions of this chapter. Moneys in the fund not needed currently to meet the expenses and obligations of the authority may be invested in the manner provided by section 3-31a, and all income from such investments shall become part of the Mortgage and Loan Insurance Fund.

      (1961, P.A. 542, S. 5; 1963, P.A. 601, S. 3; February, 1965, P.A. 494, S. 6; 1972, P.A. 195, S. 18; P.A. 73-599, S. 26; P.A. 75-461, S. 2, 6; P.A. 77-370, S. 6, 13; 77-614, S. 19, 610; P.A. 78-236, S. 6, 20; 78-357, S. 13, 16; P.A. 79-215; P.A. 93-360, S. 1, 19; June Sp. Sess. P.A. 93-1, S. 29, 45.)

      History: 1963 act specified that application and commitment fees to be credited to fund; 1965 act deleted provision specifying use of fund as "nonlapsing, revolving fund" to carry out provisions of chapter, clarified what expenses of commission are chargeable to fund where previously "any and all expenses" were charged, deleted provision crediting application and commitment fees to fund, instead crediting "all money or other assets of whatever nature received by the commissioner as a result of loan default or delinquency", authorized borrowing from general fund, deleted provisions re treasurer's power to receive funds and invest them and re transfer of excess funds to general fund and authorized transfers from industrial building mortgage insurance fund to industrial building operating expense fund; 1972 act deleted provision re transfer of funds from mortgage insurance fund to operating expense fund; P.A. 73-599 replaced Connecticut industrial building commission with Connecticut development authority; P.A. 75-461 rephrased provisions for clarity; P.A. 77-370 specified that all income from investments to become part of fund; P.A. 77-614 replaced commissioner of finance and control with secretary of the office of policy and management; P.A. 78-236 substituted reference to Sec. 3-31a for reference to Sec. 3-29; P.A. 78-357 specified that conditions in which money may be borrowed from general fund are to meet obligation as provided in this chapter and to bid for and purchase mortgaged property at foreclosure sale; P.A. 79-215 specified that authority's operating expenses attributable to fund maintenance are chargeable to fund; P.A. 93-360 renamed fund, added references to loans and deleted provision authorizing authority to borrow from general fund to meet obligations of fund or to bid for and purchase mortgaged property at foreclosure sale, effective June 14, 1993; June Sp. Sess. P.A. 93-1 paralleled P.A. 93-360 by deleting provision re borrowing from the general fund, effective July 1, 1993; (Revisor's note: In 1995 an incorrect reference to "mortgage insurance and loan fund" was changed editorially by the Revisors to "Mortgage and Loan Insurance Fund" in conformance with other statutory references).

      See Sec. 32-477 re priority for applicants establishing work environments consistent with criteria in Sec. 32-475.

      Sec. 32-15. Applications for insurance. All applications for insurance shall be forwarded, together with an application fee, if any, prescribed by the authority, to the executive director of the authority. The executive director, after preparing necessary records for the authority, shall prepare a report which may include, but shall not be limited to, such facts about the company under consideration as its history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro-forma income statements, present and future markets and prospects, and integrity of management. Such report shall conclude with a brief discussion and opinion as to whether the applicant would contribute to the development and advancement of the business prosperity and economic welfare of the state of Connecticut. Such report shall be submitted to the authority through its executive director and shall be advisory in nature only. After receipt and consideration of the above report and after such other action as is deemed appropriate, the authority shall approve or deny the application. The applicant shall be promptly notified of such action by the authority. If the application is approved, notice of such approval shall be transmitted to the proposed mortgagee or lender chosen by the applicant. Such approval shall be conditioned upon payment to the authority, within such reasonable time after notification of approval as may be specified by the authority, of a commitment fee prescribed by the authority. No mortgage or loan shall be accepted for insurance unless the authority finds that the project with respect to which the mortgage or loan is executed is financially sound.

      (1961, P.A. 542, S. 6; 1963, P.A. 601, S. 4; February, 1965, P.A. 494, S. 7; 1972, P.A. 195, S. 19; June, 1972, P.A. 1, S. 15; P.A. 73-599, S. 27; P.A. 88-265, S. 3, 36; P.A. 93-360, S. 2, 19.)

      History: 1963 act required that applications be accompanied by fee prescribed by commission and specified that approval conditioned upon payment of commitment fee prescribed by commission; 1965 act authorized three-person committee to investigate and report re loan applications; 1972 acts deleted requirements that executive secretary forward a copy of each application to development commission and that copy of report be submitted to development commission "which may submit its recommendation and report to the commission", i.e. industrial building commission, and replaced executive secretary with director; P.A. 73-599 replaced industrial building commission and its director with Connecticut development authority and its executive director; P.A. 88-265 made technical changes and deleted references to the Connecticut Development Credit Corporation; P.A. 93-360 added "if any" after application fee, required executive director instead of committee to prepare reports on applications, deleted provision authorizing payment of committee members on consultant basis and added references to lender and loans, effective June 14, 1993.

      Cited. 150 C. 341.

      Sec. 32-16. Insurance of mortgages and loans on economic development projects and information technology projects. (a)(1) The authority may (A) upon application of the proposed mortgagee, insure and make advance commitments to insure all or a portion of mortgage payments required by a mortgage on any (i) economic development project, exclusive of machinery, equipment, furniture, fixtures and other personal property, or (ii) any information technology project, and (B) upon application of a borrower, insure and make advance commitments to insure, (i) all or a portion of loan payments required for an information technology project, (ii) a loan for an economic development project used for manufacturing, industrial, research, retail, small business, product development, product warehousing, distribution or other purposes which will create or retain jobs, maintain or diversify industry, including new or emerging technologies, or maintain or increase the tax base, or (iii) a secured or unsecured working capital loan necessary for the start-up or continuation of such a project, upon such terms and conditions as the authority may prescribe, provided the aggregate amount of contracts of insurance or advance commitments issued under this section, together with contracts of insurance or advance commitments insured under subsection (b) or (d) of this section, outstanding at any one time shall not exceed four times the sum of the amounts available in the Mortgage and Loan Insurance Fund plus the amount of any unpaid grants authorized to be made by the Department of Economic and Community Development to the authority for deposit in such fund which remain available for purposes of the fund pursuant to the bond authorization in section 32-22, provided the amount of any such contract of insurance or advance commitment shall be measured by the portion of unpaid principal which is insured by the authority and shall exclude for purposes of such limitation the amount of any contract of insurance or advance commitment to the extent that the liability of the authority with respect thereto has been reinsured by, or participated in by, an eligible financial institution with a long-term credit rating equal to or higher than that of the state. The aggregate amount of principal obligations of all mortgages and loans so insured shall not constitute indebtedness of the state of Connecticut for purposes of computing the debt limit under section 3-21, provided bonds authorized to be issued pursuant to section 32-22 shall constitute indebtedness of the state of Connecticut for such purposes, whether or not obligations of the state of Connecticut are issued and outstanding in anticipation of the sale of such bonds. Any contract of insurance executed by the authority under this section shall be conclusive evidence of eligibility for such mortgage or loan insurance, and the validity of any contract of insurance so executed or of an advance commitment to insure shall be incontestable in the hands of an approved mortgagee or lender from the date of the execution of such contract of insurance or advance commitment, except for (I) fraud or misrepresentation on the part of such approved mortgagee or lender, or (II) noncompliance with the terms of the contract of insurance or advance commitment and authority written procedures in force at the time of issuance of the contract or the advance commitment.

      (2) To be eligible for insurance under the provisions of this chapter, a mortgage or agreement for the extension of credit or making of a loan by the authority or other lender shall: (A) Be one which is made to and held by the authority or an eligible financial institution approved by the authority as responsible and able to service the mortgage or loan properly; (B) in the case of a mortgage under subparagraph (A) of subdivision (1) of this subsection, involve principal not to exceed twenty-five million dollars for any one economic development project exclusive of machinery, equipment, furniture, fixtures and other personal property, and not to exceed ninety per cent of the cost of such project, except that the authority may insure a portion of a mortgage or agreement for the extension of credit or making of a loan by the authority that otherwise satisfies the requirements of this section and the requirements prescribed by the authority by written procedure if such mortgage or agreement involves principal in excess of twenty-five million dollars, provided any approved contract of insurance shall not exceed twenty-five million dollars and in the case of a loan under subparagraph (B) of subdivision (1) of this subsection, involve principal not to exceed ten million dollars; (C) have a maturity satisfactory to the authority but in no case later than twenty-five years from the date of the issuance of the insurance; (D) contain amortization provisions satisfactory to the authority requiring payments by the borrower or mortgagor, not in excess of the borrower's or mortgagor's reasonable ability to pay as determined by the authority; (E) be in such form and contain such terms and provisions with respect to property insurance, repairs, alterations, payment of taxes and assessments, default reserves, delinquency charges, default remedies, anticipation of maturity, additional and secondary liens and other matters as the authority may prescribe.

      (b) The authority may, upon application of the proposed mortgagee or borrower, insure and make advance commitments to insure all or a portion of mortgage or loan payments required by a mortgage or loan on new or used machinery, equipment, furniture, fixtures or other personal property, upon such terms and conditions as the authority may, by written procedure, prescribe, provided (1) such machinery, equipment, furniture, fixtures or other personal property has been acquired for use as or in connection with any economic development project; (2) such machinery, equipment, furniture, fixtures or other personal property shall have been actually installed or located therein within two years after the execution of a commitment to insure mortgage payments signed on behalf of the authority; and (3) the owner thereof has agreed not to remove such machinery, equipment, furniture, fixtures or other personal property from the state until the principal obligation of the mortgage attributable to the cost of such machinery, equipment, furniture, fixtures or other personal property has been paid in full.

      (c) To be eligible for insurance under the provisions of subsection (b) of this section, a mortgage or loan shall: (1) Be one which is made to and held by an eligible financial institution approved by the authority; (2) involve principal not to exceed ten million dollars for any one project and not to exceed eighty per cent of the cost of the mortgaged machinery, equipment, furniture, fixtures or other personal property, provided the authority may insure a portion of a mortgage or loan that otherwise satisfies the requirements of this section and the requirements prescribed by the authority by written procedures if it involves principal in excess of ten million dollars and the principal portion of the loan which is insured does not exceed ten million dollars; (3) have a maturity date satisfactory to the authority but in no case later than ten years from the date of the mortgage or loan; (4) contain amortization provisions satisfactory to the authority requiring payments by the mortgagor or borrower which may include principal and interest payments, cost of local real or personal property taxes and assessments, hazard insurance and such mortgage or loan insurance premium as is required under section 32-18, as the authority shall from time to time prescribe or approve; (5) be in such form and contain such terms and provisions, with respect to property insurance, maintenance, alterations, payment of taxes and assessments, restriction of location of the machinery, equipment, furniture, fixtures and other personal property, default reserves, delinquency charges, default remedies, acceleration of maturity, additional and secondary liens and such other matters as the authority may prescribe.

      (d) All payments required to be paid under the terms of any mortgage or other agreement for the extension of credit or making of a loan by the authority for an economic development project, including machinery, equipment, furniture, fixtures and other personal property, financed by the issuance of bonds or other obligations of the authority, or of notes issued in anticipation of such bonds or other obligations, shall at all times that such bonds, obligations or notes are outstanding be eligible for insurance pursuant to this chapter. The authority may insure any eligible mortgage or other agreement by designating such mortgage in the resolution authorizing the bonds, obligations or notes issued to provide funds to finance the economic development project or by endorsing an appropriate certificate on such mortgage or other agreement. In the case of a default in payment with respect to any mortgage or other agreement so insured, the amount of such payment shall immediately, and at all times during the continuance of such default, constitute a charge on the insurance fund and shall be applied by the authority to the payment of taxes or insurance on the economic development project or of any bonds or notes of the authority secured by such mortgage or other agreement, regardless of the availability of other revenues or surplus of the authority for such payments. The authority shall take or cause to be taken all reasonable steps to enforce the payment of amounts in default on any such mortgage or other agreement and to exercise all available remedies necessary to enforce such mortgage or other agreement and protect the security of the authority's obligations, and in connection therewith may use any amounts in the Mortgage and Loan Insurance Fund to bid for and purchase in foreclosure or other judicial proceedings any property on which it holds a second or other subordinate mortgage the payments on which are insured under this subsection. The trustee for any bond or other obligation of the authority or note issued in anticipation thereof or, if there be no such trustee, the holder of any such bond, obligation or note, shall have the right to bring suit to require the application as provided in this section of any amounts in the insurance fund.

      (e) In the case of applications for insurance under subdivision (2) of subsection (a) of this section, (1) the authority shall not issue loan guarantees to insure loans for commercial real estate development projects or for passive real estate ownership, (2) the authority may issue loan guarantees for projects in which the borrower intends to purchase commercial real estate for use in its principal business operations, (3) no loan guarantee shall be issued pursuant to this section for the financing or refinancing of any project unless the authority determines that the project is otherwise unable to obtain financing in satisfactory amounts or under reasonable terms or conditions or unless the authority determines that the borrower is unable to start, continue to operate, expand or maintain operations or relocate to this state without such guarantee, (4) no loan guarantee shall be issued pursuant to this section for the financing or refinancing of any project which the authority determines may be financed commercially, upon reasonable terms and conditions, without such a guarantee, and which an eligible financial institution nonetheless has attempted to shift into this program, (5) the authority shall determine whether a project has been inappropriately diverted into this program consistent with the credit availability principles set forth in any applicable guidelines for the loan guarantee program of the Connecticut Works Fund, (6) the authority may require the participating institution to submit its loan criteria and such other information as may be appropriate and, in reviewing projects that involve the refinancing of existing loans, may require submission of the classification assigned to that loan by examiners for any federal financial regulatory institution, (7) the authority shall maximize the leveraging capability of loan guarantees to the extent feasible and (8) no loan guarantee shall be issued to an eligible financial institution for any loan to any executive officer, director or shareholder owning more than five per cent of the outstanding stock of such institution, or any executive officer of any other eligible financial institution or any director or shareholder owning more than five per cent of the outstanding stock of any such institution, or a member of the immediate family of such an executive officer, director or shareholder or to any company or entity controlled by any such persons.

      (1961, P.A. 542, S. 7; 1963, P.A. 601, S. 5; February, 1965, P.A. 494, S. 8; 1967, P.A. 552, S. 1; 1971, P.A. 503, S. 2; 1972, P.A. 195, S. 20; P.A. 73-599, S. 28; P.A. 75-461, S. 3, 6; P.A. 77-370, S. 7, 13; P.A. 78-357, S. 14, 16; P.A. 80-267, S. 9; P.A. 81-384, S. 2, 13; 81-388, S. 10, 12; P.A. 86-212, S. 1, 3; P.A. 87-536, S. 3, 7; P.A. 88-265, S. 4, 36; P.A. 91-161, S. 1, 9; P.A. 93-360, S. 3, 19; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 00-178, S. 1; June Sp. Sess. P.A. 00-1, S. 43, 46; P.A. 01-96, S. 2; 01-195, S. 177, 181.)

      History: 1963 act included provisions re advance commitments to insure and increased maximum amount of principal obligation for one project from five million to seven million five hundred thousand dollars; 1965 act excluded machinery and equipment from mortgage amount in Subsec. (a), consisting of previous provisions, changed maximum amount of insured mortgages outstanding from twenty-five million dollars or amount approved by bond commission to two times the total amount of bonds authorized for issuance by bond commission, specified when bonds constitute state indebtedness, increased maximum amount of obligation for one project to ten million dollars and added Subsecs. (b) and (c) re insurance of mortgage or machinery and equipment; 1967 act defined "refurbished and remodeled machinery and equipment" and allowed consideration of such machinery and equipment as new in Subsec. (b); 1971 act added Subsecs. (d) and (e) authorizing commitments for machinery and equipment to abate pollution and creating industrial pollution abatement loan fund; 1972 act deleted Subsecs. (d) and (e); P.A. 73-599 replaced industrial building commission with Connecticut development authority; P.A. 75-461 subtracted aggregate amount of outstanding capital reserve fund bonds from aggregate principal amount limit and included agreements for extension of credit or making loan by authority in Subsec. (a) and added Subsec. (d) re eligibility for insurance and payments in default; P.A. 77-370 changed limit on all outstanding insured mortgages to one hundred forty million dollars, included in that figure aggregate amount of outstanding capital reserve fund bonds which amount was previously excluded and also included notes issued in anticipation of such bonds; P.A. 78-357 made defaulted payments a charge on insurance fund regardless of availability of other revenues where previously such payments were charged to fund only "to the extent that the then current revenues and surplus of the authority available therefor are insufficient for such payments" and authorized use of insurance fund to bid for and purchase property in foreclosure and other judicial proceedings; P.A. 80-267 included as eligible in Subsec. (b) machinery used in connection with "significant servicing, overhauling or rebuilding of ... products, or for research, office, or industrial, commercial warehouse, wholesale distribution or trucking freight terminal facilities, or for any combination thereof" where previously research facilities alone were mentioned and replaced "commitment agreement signed by all interested parties" with "commitment to insure mortgage payments signed on behalf of the authority" in Subdiv. (2); P.A. 81-384 specified projects in Subsec. (d) as "industrial" projects; P.A. 81-388 amended Subsec. (a) to reduce the ceiling on insured mortgages from one hundred forty million to one hundred million dollars; P.A. 86-212 applied provisions of Subsec. (b) to used machinery, deleting prior applicability to "refurbished and remodeled" machinery; P.A. 87-536 set mortgage insurance limit at four hundred fifty million dollars; P.A. 88-265 deleted first mortgage limitation, authorized insurance of all or a portion of mortgage payments, changed industrial project to economic development project, added provisions excluding the amount of certain insured mortgages from the maximum insurable amount, authorized insurance of mortgage payments for furniture, fixtures or other personal property, deleted definition of "used machinery and equipment", deleted reference to capital reserve fund bonds, authorized the issuance of other obligations of the authority in Subsec. (d) and made other technical changes; P.A. 91-161 amended Subsec. (a) to add provisions re advance commitments and partial insurance, raised the principal amount of a mortgage on real property from ten million dollars to twenty-five million dollars and made technical changes and amended Subsec. (b) to increase the size of mortgages on machinery from five million dollars to ten million dollars; P.A. 93-360 added Subdiv. (2) to Subsec. (a), authorizing authority to insure and make advance commitments to insure loan payments for economic development project loans, made changes throughout the section for consistency with said Subdiv. (2), also amended Subsec. (a) to reformulate limit on aggregate amount of contracts of insurance or advance commitments that may be issued and added Subsec. (e) setting forth provisions re applications for insurance under said Subdiv. (2), effective June 14, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 00-178 amended Subsec. (a) to make provisions applicable to information technology projects; June Sp. Sess. P.A. 00-1 changed effective date of P.A. 00-178 from October 1, 2000, to July 1, 2000, effective July 1, 2000; P.A. 01-96 amended Subsec. (a) to make technical changes, including changes for purposes of gender neutrality; P.A. 01-195 reordered Subdiv., Subpara. and clause designators and made other technical changes in Subsec. (a), effective July 11, 2001.

      See Sec. 32-23s re interpretation of amendments to this section effective on June 29, 1981.

      Cited. 150 C. 344.

      Sec. 32-16a. Industrial Pollution Abatement Loan Fund. Section 32-16a is repealed and any funds in the Industrial Pollution Abatement Loan Fund shall be transferred to the authority and deposited in the Mortgage and Loan Insurance Fund.

      (1972, P.A. 195, S. 21; 259, S. 1; P.A. 73-599, S. 38; P.A. 74-338, S. 8, 94.)

      History: (Revisor's note: In 1995 a reference to the "Industrial Building Mortgage Insurance Fund" was changed editorially by the Revisors to "Mortgage and Loan Insurance Fund" to conform section to Sec. 32-14 as amended by P.A. 93-360).

      Sec. 32-17. Proceedings on default by mortgagor. Section 32-17 is repealed.

      (1961, P.A. 542, S. 8; 1963, P.A. 601, S. 7.)

      See Sec. 32-17a.

      Sec. 32-17a. Procedure on default by mortgagor or borrower. (a) In the case of default by the mortgagor or borrower, the mortgagee or lender shall take reasonable steps to correct any such default. In the case of a default which continues for more than sixty days, the mortgagee or lender shall take reasonable steps to effect an orderly disposition of the property, if any. If institution of foreclosure proceedings or of default proceedings under article 9 of title 42a or otherwise is requested by the authority, the mortgagee or lender shall commence such action within thirty days after receipt of such request. If institution of foreclosure proceedings or of default proceedings under said article 9 of title 42a is determined by the mortgagee or lender, the mortgagee or lender shall give the authority thirty days' notice before it commences such action. When it appears feasible, the authority may itself make payments to the mortgagee or lender of installments of principal or interest or both, and of taxes and insurance, which payments shall be repaid, under such conditions as the authority may prescribe, for a temporary period upon default or threatened default by the mortgagor or borrower, and the authority may also agree to revised terms of financing when such appears prudent. The mortgagee or lender shall be entitled to receive the benefit of the insurance as hereinafter provided, upon: (1) Any sale of the mortgaged property by court order in foreclosure or a sale with the consent of the authority by the mortgagor or subsequent owner of the property or by the mortgagee after foreclosure or acquisition by deed in lieu of foreclosure, or a sale with the consent of the authority pursuant to default proceedings under article 9 of title 42a, provided all claims of the mortgagee against the mortgagor or others arising from the mortgage, foreclosure, default proceedings or any deficiency judgment shall be assigned to the authority without recourse, excepting such claims as may have been released with the consent of the authority and claims relating to contracts of insurance insuring only a portion of the mortgage payments required by the mortgage; (2) the expiration of six months after the mortgagee has taken title to the mortgaged property under judgment of strict foreclosure, foreclosure or other judicial sale, or a deed in lieu of foreclosure or default proceedings under article 9 of title 42a, if during such period the mortgagee has made a bona fide attempt to sell such property, and, if and to the extent required by the authority, upon the conveyance of the property to the authority and the assignment without recourse to the authority of all claims of the mortgagee against the mortgagor or others arising out of the mortgage, foreclosure, default proceedings or deficiency judgment; (3) the entering of a judgment against the borrower and the realization upon any assets of the borrower available to satisfy such judgment, provided all remaining claims of the lender against the borrower shall be assigned to the authority, or (4) when the authority determines it imprudent to have proceedings under (1), (2) and (3) above, the acceptance by the authority of a conveyance of title to the property to the authority or the acceptance of an assignment of the mortgage without recourse to the authority in accordance with written procedures of the authority in effect at the time the mortgage was insured or the assignment to the authority of any remaining claims. The authority may prescribe by written procedures or in a contract of insurance or in the advance commitment to insure variations to the applicability of subdivision (1), (2), (3) or (4) of this subsection because such contract or advance commitment insures only a part and not all of the payments required by a mortgage or loan. Such variations may include, but shall not be limited to, the assignment or conveyance of an interest in any claim of the mortgagee against the mortgagor or borrower, the property or the mortgage which is proportionate to the amount of the insurance provided under the contract or advance commitment. Upon the occurrence of either (1), (2), (3) or (4) hereof, the obligation of the mortgagee to pay premium charges for insurance shall cease, and the authority shall, within thirty days thereafter, pay to the mortgagee or lender ninety-eight per cent or less than ninety-eight per cent if such lesser amount is provided for in the contract of insurance prepared pursuant to the procedures in effect at the time of issuance of the contract of insurance of the sum of (A) the then unpaid principal balance of the insured indebtedness, (B) all unpaid interest accruing with respect to the insured indebtedness at the rate approved by the authority to the date of conveyance or assignment to the authority, as the case may be, (C) the amount of all payments made by the mortgagee or lender for which it has not been reimbursed for taxes, insurance, assessments and insurance premiums, and (D) such other necessary fees, costs or expenses of the mortgagee or lender as may be approved by the authority.

      (b) Upon request of the mortgagee, the authority may at any time, under such equitable terms and conditions as it may prescribe, consent to the release of the mortgagor from his liability under the mortgage or consent to the release of parts of the mortgaged property from the lien of the mortgage.

      (c) When vacancies in an economic development project are deemed by the authority to prejudice mortgage payments insured by the authority, the authority may grant to the mortgagor or borrower permission to lease or rent the mortgaged property to a tenant for any use, such lease or rental to be temporary in nature and subject to such conditions as the authority may prescribe.

      (d) Upon the ultimate disposition of property acquired by the authority under this section and of the claims assigned therewith, the net amount realized by the authority shall be computed, taking into account all expenses incurred by the authority in handling, dealing with and disposing of such property and in collecting such claims. If the net amount so realized exceeds the amount paid to the mortgagee or lender and the expenses of the authority, such excess shall be retained by the authority and added to the fund created under section 32-14 but, if the net amount realized is less than the amount paid to the mortgagee and the expenses of the authority, the mortgagor or borrower shall remain liable therefor as upon a deficiency judgment.

      (e) No claim for the benefit of the insurance provided in this chapter shall be accepted by the authority except within one year after any sale or acquisition of title of the mortgaged property described in subdivision (1) or (2) of subsection (a) of this section or the entry of any judgment against the borrower as described in subdivision (3) of subsection (a) of this section.

      (f) Any contract of insurance made by the authority under the authorization of this chapter shall provide that claims payable under such contract shall first be paid from any amounts readily available in the Mortgage and Loan Insurance Fund, established under section 32-14, before any amounts available from the bond authorization contained in section 32-22 are utilized for claim payment. The faith and credit of the state is hereby pledged, pursuant to such bond authorization and in accordance with section 3-20, to provide to the insurance fund moneys as and when necessary to make timely payments of all amounts required to be paid under the terms of any insurance contract executed by the authority pursuant to this chapter, but not in excess of the amount of bonds so authorized by the State Bond Commission for such purpose less the amounts paid by the state for deposit to such insurance fund. The obligation of the authority to make payments under any such insurance contract shall be limited solely to such sources and shall not constitute a debt or liability of the authority or the state. Any insurance contract and any rule or regulation of the authority implementing the insurance program may contain such other terms, provisions or conditions as the authority deems necessary or appropriate, including, but not limited to, the payment of insurance premiums, the giving of notice, claim procedures, the sources for payment of claims, the priority of competing claims for payment, the release or termination of loan security and borrower liability, the timing of payment, the maintenance and disposition of projects and the use of amounts received during periods of loan delinquency or upon default, and any other provisions concerning the rights of insured parties or conditions of the payment of insurance claims.

      (1963, P.A. 601, S. 6; February, 1965, P.A. 494, S. 9; 1972, P.A. 195, S. 22; P.A. 73-599, S. 29; P.A. 88-265, S. 5, 36; P.A. 91-161, S. 2, 9; P.A. 93-360, S. 4, 19.)

      History: 1965 act made provisions applicable with respect to default proceedings under article 9 of title 42a; 1972 act substituted reference to Sec. 32-23d(d) for reference to Sec. 32-10(b) in Subsec. (c); P.A. 73-599 replaced industrial building commission with Connecticut development authority; P.A. 88-265 changed industrial project to economic development project, made technical changes and added Subsec. (f) re payment of claims; P.A. 91-161 amended Subsec. (a) by applying provision to partial insurance and authorizing the Connecticut Development Authority to pay less than ninety-eight per cent of a contract in the case of a default; P.A. 93-360 added references to borrower, lender and loans throughout the section, inserted new Subdiv. (3) in Subsec. (a) re entering of judgment against borrower and renumbered former Subdiv. (3) as (4), amended Subsec. (c) to delete restriction on use of mortgaged property by a tenant, amended Subsec. (e) by adding "or the entry of any judgment against the borrower as described in subdivision (3) of this section" and amended Subsec. (f) to limit state's pledge to provide moneys to insurance fund to amount of bonds authorized for such purpose less amounts paid by state for deposit to fund, effective June 14, 1993.

      Sec. 32-18. Insurance premiums. The authority shall fix insurance premiums for the insurance of mortgage or loan payments under the provisions of this chapter, such premiums to be computed as a percentage of the principal of the insured indebtedness outstanding at the beginning of each mortgage or loan year. Such insurance premiums shall not be more than two per cent per year of such insured indebtedness outstanding at the beginning of the relevant mortgage or loan year and shall be calculated on the basis of all pertinent, available data. Such premiums shall be payable by the mortgagors or the mortgagees in such manner as is prescribed by the authority. The amount of premium need not be uniform among the various loans insured.

      (1961, P.A. 542, S. 9; February, 1965, P.A. 494, S. 10; 1972, P.A. 195, S. 23; P.A. 73-599, S. 30; P.A. 91-161, S. 3, 9; P.A. 93-360, S. 5, 19.)

      History: 1965 act referred to "principal" rather than "principal obligation" of mortgage; 1972 act made technical correction; P.A. 73-599 replaced industrial building commission with Connecticut development authority; P.A. 91-161 substituted "insured indebtedness" for "mortgage" and "principal"; P.A. 93-360 applied provisions of section to loans as well as to mortgages, effective June 14, 1993.

      Sec. 32-19. Insured mortgages as legal investments. Loans secured by mortgages insured by the authority and loans to a proposed mortgagor for the purpose of a proposed economic development project owned by such proposed mortgagor when a proposed mortgagee has been given an advance commitment by the authority to insure mortgage payments required by a mortgage upon the completed economic development project shall be legal investments for all public officers and public bodies of the state and its political subdivisions, all insurance companies, credit unions, trust companies, banks, investment companies, savings banks, savings and loan associations, executors, administrators, guardians, conservators, trustees and other fiduciaries, and pension, profit-sharing and retirement funds, provided such loans shall be treated similarly to loans insured or to be insured by the Federal Housing Administrator for the purpose of determining the percentage of capital, surplus, assets or deposits which may be invested therein by an institution under the supervision of the Banking Commissioner, and such loans shall not be subject to limitations, conditions or restrictions imposed by law except as provided by this chapter.

      (1961, P.A. 542, S. 10; 1963, P.A. 601, S. 8; February, 1965, P.A. 494, S. 11; 1972, P.A. 195, S. 24; P.A. 73-599, S. 31; P.A. 77-614, S. 161, 610; P.A. 80-482, S. 213, 348; 80-483, S. 98, 186; P.A. 87-9, S. 2, 3; P.A. 88-265, S. 6, 36; P.A. 03-84, S. 18.)

      History: 1963 act added provisions re loans for building and improving industrial projects, deleted insurance companies from eligibility for consideration of loans under section as legal investments and specified that loans are not subject to limitations, conditions or restriction of law except as provided in section, that real estate mortgaged to secure loan is unencumbered except as stated and that certificate of title or policy of title insurance is lodged with mortgagee until mortgage is paid; 1965 act specified that real or personal property may be used to secure loans; 1972 act made technical correction; P.A. 73-599 replaced industrial building commission with Connecticut development authority; P.A. 77-614 replaced bank commissioner and department with banking commissioner and division of banking within department of business regulation, effective January 1, 1979; P.A. 80-482 restored banking division as independent department with commissioner as its head and abolished department of business regulation; P.A. 80-483 removed building and loan associations as legal investors in loans under section; (Revisor's note: Pursuant to P.A. 87-9, "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 88-265 deleted first mortgage limitation, changed industrial project to economic development project, made public officers, public bodies, political subdivisions, insurance companies and credit unions legal investors in loans under section and deleted requirements re unencumbered property, certificate of title and loan advances; P.A. 03-84 changed "Commissioner of Banking" to "Banking Commissioner", effective June 3, 2003.

      Secs. 32-20 and 32-21. Accounts; use of fund. Commission members not to act on contracts in which they have interest. Sections 32-20 and 32-21 are repealed.

      (1961, P.A. 542, S. 11, 12; February, 1965, P.A. 494, S. 12; P.A. 74-338, S. 50, 94.)

      Sec. 32-22. Bond issue. (a) The State Bond Commission may authorize the issuance of bonds of the state in one or more series in accordance with section 3-20 and in principal amounts necessary to carry out the purposes of section 32-16 but not in excess of the aggregate amount of twenty-six million dollars. All of said bonds shall be payable at such place or places as may be determined by the Treasurer pursuant to section 3-19 and shall bear such date or dates, mature at such time or times, not exceeding twenty years from their respective dates, bear interest at such rate or different or varying rates and payable at such time or times, be in such denominations, be in such form with or without interest coupons attached, carry such registration and transfer privileges, be payable in such medium of payment and be subject to such terms of redemption with or without premium as, irrespective of the provisions of said section 3-20, may be provided by the authorization of the State Bond Commission or fixed in accordance therewith.

      (b) The proceeds of the sale of such bonds shall be used by the Department of Economic and Community Development to make grants to the authority for deposit in the Mortgage and Loan Insurance Fund created by section 32-14. The terms and conditions of said grants shall be governed in accordance with a grant contract between the department and the authority. Payments of principal on such bonds as they mature and interest thereon shall be payable first from the Mortgage and Loan Insurance Fund and secondly from the state General Fund.

      (1961, P.A. 542, S. 13; February, 1965, P.A. 494, S. 14; 1971, P.A. 503, S. 3; 1972, P.A. 195, S. 25; 259, S. 2; P.A. 74-338, S. 9, 94; P.A. 75-461, S. 4, 6; P.A. 81-388, S. 11, 12; P.A. 87-536, S. 4, 7; P.A. 88-265, S. 7, 36; May Sp. Sess. P.A. 92-7, S. 19, 36; P.A. 93-382, S. 29, 69; June Sp. Sess. P.A. 93-1, S. 28, 39, 45; May Sp. Sess. P.A. 94-2, S. 197, 203; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)

      History: 1965 act increased aggregate amount of bonds from twenty-five to thirty-five million dollars and deleted provisions re requests for additional funds to meet obligations from unappropriated moneys in general fund; 1971 act divided previous provisions into Subsecs. (a) and (b), specified that twenty-five million dollars of principal amount be deposited in industrial building mortgage insurance fund, and added Subsec. (c) requiring deposit of remaining ten million dollars in industrial pollution abatement fund; 1972 acts made technical change and rephrased Subsec. (c); P.A. 74-338 deleted Subsec. (c) and removed twenty-five million dollar limit in Subsec. (b) accordingly; P.A. 75-461 increased bond limit in Subsec. (a) by the aggregate amount of outstanding capital reserve fund bonds including anticipation notes; P.A. 81-388 reduced the bond ceiling from thirty-five to twenty-five million dollars; P.A. 87-536 set bond limit at three hundred twenty-five million dollars and clarified that the uses were solely for the purposes of Sec. 32-16; P.A. 88-265 added provisions to Subsec. (b) re reimbursement of general fund for temporary borrowings; May Sp. Sess. P.A. 92-7 amended Subsec. (a) to decrease the bond authorization from three hundred twenty-five million dollars to one hundred fifteen million dollars; P.A. 93-382 decreased the bond authorization from one hundred fifteen million dollars to fifty-four million dollars, effective July 1, 1993; June Sp. Sess. P.A. 93-1 amended Subsec. (a) to decrease bond authorization from fifty-four million dollars to forty-four million dollars and amended Subsec. (b) to make technical changes re administration of the grants, effective July 1, 1993; May Sp. Sess. P.A. 94-2 in Subsec. (a) decreased bond authorization from forty-four million dollars to twenty-six million dollars, effective June 21, 1994 (Revisor's note: In 1995 the name of the fund in Subsec. (b) was changed editorially by the Revisors from "Industrial Building Mortgage Insurance Fund" to "Mortgage and Loan Insurance Fund" to conform section with Sec. 32-14 as amended by P.A. 93-360); P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development.

      See Sec. 32-23f re bonds and notes.

      Sec. 32-22a. Written procedures. Contracts. (a) The authority may establish written procedures in accordance with section 1-121 to clarify and further carry out the purposes of sections 32-14 to 32-22, inclusive.

      (b) Any insurance contract and any procedure of the authority implementing said sections of the general statutes may contain such other terms, provisions or conditions as the authority deems necessary or appropriate, including, but not limited to, the payment of insurance premiums, the giving of notice, claim procedures, the sources for payment of claims, the priority of competing claims for payment, the release or termination of loan security and borrower liability, the timing of payment, the maintenance and disposition of projects and the use of amounts received during periods of loan delinquency or upon default, default and other provisions applicable to contracts of insurance insuring only a portion of the mortgage payments required by the mortgage and the rights of insured parties or conditions of the payment of insurance claims.

      (P.A. 91-161, S. 4, 9.)

      Sec. 32-23. Industrial Building Operating Expense Fund. Section 32-23 is repealed.

      (February, 1965, P.A. 494, S. 13; 1972, P.A. 195, S. 26.)

      Sec. 32-23a. Allocation of mortgage insurance premiums. All amounts received by the authority prior to July 1, 1965, as mortgage insurance premiums shall be credited to the Industrial Building Mortgage Insurance Fund and all other funds of the authority shall be credited to the Industrial Building Operating Expense Fund.

      (February, 1965, P.A. 494, S. 15; P.A. 73-599, S. 32.)

      History: P.A. 73-599 replaced industrial building commission with Connecticut development authority.

      Sec. 32-23b. Short title. Section 32-23b is repealed.

      (1972, P.A. 195, S. 1; P.A. 74-338, S. 52, 94.)

      Sec. 32-23c. Legislative finding. It is hereby found and declared that there is a continuing need in the state for: (1) Economic development and activity to provide and maintain employment and tax revenues, promote the export of products and services beyond state boundaries, encourage innovation in products and services, and support or broaden the economic base of the state, the control, abatement and prevention of pollution to protect the public health and safety, and the development and use of indigenous and renewable energy resources to assist industrial and commercial businesses in meeting their energy requirements; (2) the development of recreation facilities to promote tourism, to provide and maintain employment and tax revenues and to promote the public welfare; (3) the development of commercial and retail sales and services facilities in urban areas to provide and maintain construction, permanent employment and tax revenues, to improve conditions of deteriorated physical development, slow economic growth and eroded financial health of the public and private sectors in urban areas and to revitalize the economy of urban areas; (4) assistance to public service businesses providing transportation and utility services in the state; (5) development of the commercial fishing industry to provide and maintain employment and tax revenues; (6) the development of high-technology businesses and business incubators that assist high-technology businesses; (7) assistance to consortia consisting of businesses creating partnerships with higher education facilities; and (8) assistance to nonprofit and governmental entities in financing facilities providing health, educational, charitable, community, cultural, agricultural, consumer or other services benefiting the citizens of the state; that the availability of financial assistance and suitable facilities are important inducements to industrial, commercial and nonprofit enterprises to remain or locate in this state and to provide economic development projects, recreation projects, urban projects, public service projects, commercial fishing projects, health care projects and nonprofit projects; that there are significant barriers inhibiting access by the authority and eligible financial institutions to the public capital markets and expansion of the secondary loan market to assist in financing economic development and other projects in the state; that the exercise by the authority of the powers in this chapter will promote economic development by increasing access to the public capital markets for the authority and eligible financial institutions; and that therefore the necessity in the public interest and for the public benefit and good for the provisions of this chapter is hereby declared as a matter of legislative determination. It is further found and declared that there is a necessity in the state of creating a Department of Economic and Community Development to coordinate and be responsible for matters affecting the growth of business and industry in the state and the maintenance and development of industry in the state as well as the promotion of tourism in the state and for the establishment and creation of an authority to assist the department and the state to carry out the needs and policies of the state as set forth in this section. It is further found and declared that existing, pending and proposed federal legislation has limited and restricted and may further limit and restrict the power of the authority to issue obligations the interest on which is exempt from federal income taxation; that the ability of the authority to issue obligations to provide financing for projects is essential to the maintenance and expansion of employment and the tax base in the state and to the economic development and health, education and general welfare of the state; and that the issuance of obligations the interest on which may be includable in the holder's gross income for the purposes of federal income taxation serves a needed public purpose; and therefore the necessity in the public interest and for the public benefit and good for the provisions of this chapter is hereby declared as a matter of legislative determination.

      (1972, P.A. 195, S. 2; P.A. 73-599, S. 8; P.A. 75-513, S. 2, 5; P.A. 76-140, S. 1, 4; P.A. 77-155, S. 1; 77-299, S. 1; 77-614, S. 284, 610; P.A. 79-520, S. 1; P.A. 80-267, S. 6; 80-465, S. 1; P.A. 81-384, S. 3, 13; P.A. 82-434, S. 1, 6; P.A. 88-265, S. 8, 36; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 00-178, S. 2; June Sp. Sess. P.A. 00-1, S. 43, 46.)

      History: P.A. 73-599 included creation of department of commerce and authority to assist it in legislative finding; P.A. 75-513 included provisions re construction of facilities by private water companies in legislative finding; P.A. 76-140 included provisions re ferry facilities in legislative finding; P.A. 77-155 included provisions re railroad facilities in finding; P.A. 77-299 added provisions re municipal civic and cultural centers; P.A. 77-614 replaced department of commerce with department of economic development, effective January 1, 1979; P.A. 79-520 included provisions re development and use of indigenous and renewable energy resources in finding; P.A. 80-267 added provisions re dependency of state economy on defense contracts; P.A. 80-465 added provisions re depressed economic conditions in distressed municipalities; P.A. 81-384 completely rewrote legislative finding; P.A. 82-434 inserted language concerning issuance of taxable bonds; P.A. 88-265 changed industrial development to economic development, added provisions re promoting expert of products and services, encouraging innovation and broadening the state's economic base in Subdiv. (1), added Subdiv. (6) re assistance to nonprofit and governmental entities, added findings re barriers inhibiting access to capital markets and expansion of the secondary loan market and made technical changes; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 00-178 renumbered former Subdiv. (6) as Subdiv. (8) and added new Subdivs. (6) and (7) re development of high-technology businesses and business incubators and assistance to consortia of businesses and higher education facilities; June Sp. Sess. P.A. 00-1 changed effective date of P.A. 00-178 from October 1, 2000, to July 1, 2000, effective July 1, 2000.

      See Sec. 32-23s re interpretation of amendments to this section effective on June 29, 1981.

      Sec. 32-23d. Definitions. For the purposes of this chapter, the following terms shall have the following meanings unless the context indicates another meaning and intent:

      (a) "Department" means the Department of Economic and Community Development or its successor agency.

      (b) "State" means the state of Connecticut.

      (c) "Municipality" means any town, city or borough in the state.

      (d) "Project" means any facility, plant, works, system, building, structure, utility, fixture or other real property improvement located in the state, any machinery, equipment, furniture, fixture or other personal property to be located in the state and the land on which it is located or which is reasonably necessary in connection therewith, which is of a nature or which is to be used or occupied by any person for purposes which would constitute it as an economic development project, information technology project, public service project, urban project, recreation project, commercial fishing project, health care project, the convention center project, as defined in subdivision (3) of section 32-600, nonprofit project or remediation project, and any real property improvement reasonably related thereto. A project may be acquired (1) directly, or (2) indirectly through the purchase of all or substantially all of the stock of a corporation.

      (e) "Eligible financial institution" means any trust company, bank, savings bank, credit union, savings and loan association, insurance company, investment company, mortgage banker, trustee, executor, pension fund, retirement fund or other fiduciary or financial institution, the state or, to the extent otherwise permitted by law, any municipality, or any political subdivision, instrumentality, agency or body politic and corporate thereof, which is approved by the authority to participate in the financing of a project.

      (f) "Cost of project" as determined by the authority means the cost or fair market value of construction, lands, property rights, utility extensions, disposal facilities, access roads, easements, franchises, financing charges, interest, engineering and legal services, plans, specifications, surveys, cost estimates, studies and other expenses necessary or incident to the development, construction, financing and placing in operation of a project and, subject to the provisions of section 32-16, the cost or fair market value of machinery, equipment, furniture, fixtures or other personal property of a project.

      (g) "Insurance fund" means the Mortgage and Loan Insurance Fund created by section 32-14.

      (h) "Maturity date" means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage.

      (i) "Mortgage" means a mortgage or lien on a project together with credit instruments, if any, secured thereby, or any other agreement for the extension of credit or making of a loan related to the financing of a project or any portions thereof or interest therein, however evidenced, including financing by means of a lease or a conditional or installment sales agreement, or any pool of or interest in any of the foregoing financed from any source.

      (j) "Mortgagee" means the original lender or other provider of credit under the mortgage or participants therein, and their successors and assigns, approved by the authority and may include, but is not limited to, all eligible financial institutions and, except as used in section 32-17a, the authority as defined in subsection (w) of this section.

      (k) "Mortgagor" includes the successors and assigns of the mortgagor.

      (l) "Mortgage payments" means payments called for by a mortgage, and may include, but is not limited to, interest, installments of principal, taxes and assessments, mortgage insurance premiums and hazard insurance premiums.

      (m) "Mortgage year" means the annual period measured by the date or the anniversary of the date of the execution of the mortgage.

      (n) "Principal obligation" means the sum total of all mortgage payments due from the mortgagor.

      (o) "Municipal planning commission" means a municipal planning commission created under chapter 126.

      (p) "Regional planning agency" means a regional planning agency created under chapter 127.

      (q) "Federal agency" means the United States, the president of the United States and any department of, or corporation, agency or instrumentality designated or established by, the United States.

      (r) "Revenues" means receipts, revenues, service charges, rentals or other payments to be received on account of lease, mortgage, conditional sale, sale or loan agreements and payments and any other income derived from the lease, sale or other disposition of a project, moneys in such reserve and insurance funds or accounts or other funds and accounts and income from the investment thereof, established in connection with the issuance of bonds, notes or other obligations for a project or projects, and fees, charges or other moneys to be received by the authority in respect of projects and contracts with persons.

      (s) "Person" means any person, including individuals, firms, partnerships, associations, cooperatives, limited liability companies or corporations, public or private, for profit or nonprofit, organized or existing under the laws of the state or any other state, and, to the extent otherwise permitted by law, any municipality, district, including any special district having taxing powers, agency, authority, instrumentality, or other governmental entity or political subdivision in the state.

      (t) "Purposes of the authority", means the purposes of the authority expressed in and pursuant to the authority legislation, including with respect to the promotion, planning and designing, developing, encouraging, assisting, acquiring, constructing, reconstructing, improving, maintaining and equipping and furnishing of a project and assisting directly or indirectly in the financing of the cost thereof.

      (u) "Economic development project" means any project which is to be used or occupied by any person for (1) manufacturing, industrial, research, office or product warehousing or distribution purposes or hydroponic or aquaponic food production purposes and which the authority determines will tend to maintain or provide gainful employment, maintain or increase the tax base of the economy, or maintain, expand or diversify industry in the state, or (2) controlling, abating, preventing or disposing land, water, air or other environmental pollution, including without limitation thermal, radiation, sewage, wastewater, solid waste, toxic waste, noise or particulate pollution, except resources recovery facilities, as defined in section 22a-219a, used for the principal purpose of processing municipal solid waste and which are not expansions or additions to resources recovery facilities operating on July 1, 1990, or (3) the conservation of energy or the utilization of cogeneration technology or solar, wind, hydro, biomass or other renewable sources to produce energy for any industrial or commercial application, or (4) any other purpose which the authority determines will materially contribute to the economic base of the state by creating or retaining jobs, promoting the export of products or services beyond state boundaries, encouraging innovation in products or services, or otherwise contributing to, supporting or enhancing existing activities that are important to the economic base of the state.

      (v) "Commissioner" means the Commissioner of Economic and Community Development.

      (w) "Authority" means the Connecticut Development Authority or its successor as established and created under section 32-11a.

      (x) "Capital reserve fund bond" means any bond of the authority secured by a special capital reserve fund established pursuant to this chapter.

      (y) "Recreation project" means any project which is to be primarily available for the use of the general public including without limitation stadiums, sports complexes, amusement parks, museums, theaters, civic, concert, cultural and exhibition centers, centers for the visual and performing arts, hotels, motels, resorts, inns and other public lodging accommodations and which the authority determines will tend to (1) promote tourism, (2) provide a special enhancement of recreation facilities in the state or (3) contribute to the business or industrial development of the state.

      (z) "Public service project" means any project which is to be used or occupied by a common carrier or public utility to provide bus, truck, rail, limousine, water or air transportation services or water, sewer, gas, electricity, or telephone utility services, and which the authority determines will tend to assist the common carrier or public utility in providing service to the general public in the state. A public service project may include ferry boats or railroad rolling stock, but may not include any other vehicle, aircraft or watercraft.

      (aa) "Urban project" means any project which is to be used or occupied by any person for commercial or retail sales or service purposes located wholly or partly within an urban municipality in the state and which the authority determines will tend (1) to maintain or provide gainful construction or permanent employment, maintain or expand the tax base of the economy or maintain, expand or diversify industry in the state, or (2) to otherwise revitalize the economy of the urban municipality. An "urban municipality", for the purposes of this definition, means any municipality which is a "distressed municipality" as defined in subsection (b) of section 32-9p.

      (bb) "Commercial fishing project" means any project which is to be used or occupied by any person for commercial fishing purposes or for support, maintenance, storage, production, or manufacturing purposes reasonably related to commercial fishing activity, including without limitation commercial fishing vessels, docks, wharves, piers, land or floating processing facilities, transportation terminals, facilities for the maintenance, storage, and construction of vessels and equipment, and fish storage and handling facilities.

      (cc) "Health care project" means any project which is to be used or occupied by any person for the providing of services in any residential care home, nursing home or rest home, as defined in subsection (c) of section 19a-490, or for the providing of living space for physically handicapped persons or persons sixty years of age or older.

      (dd) "Nonprofit project" means any project which (1) is to be used or occupied by any person organized and operated not for profit but exclusively for health, educational, charitable, community, cultural, agricultural, consumer or other purposes benefiting the citizens of the state, or as an agricultural or hospital cooperative or service organization or as a chamber of commerce or trade or professional association and (2) which the authority determines satisfies a public need not adequately met by businesses operating for profit.

      (ee) "Information technology project" means any project (1) providing information technology intensive office or laboratory space, including, but not limited to, smart buildings, incubator facilities, or any project that is to be used or occupied by any person specializing in e-commerce technologies or other technologies using high-speed communications infrastructure, and (2) which the authority deems will materially contribute to the economic base of the state by creating or retaining jobs, promoting the export of products or services beyond state borders, encouraging innovation in products or services, or otherwise contributing to, supporting or enhancing existing activities that are important to the economic base of the state.

      (ff) "Incubator facilities" has the same meaning as incubator facilities in subdivision (5) of section 32-34.

      (gg) "Smart building" means a building that houses, for use by its tenants, an information or communications infrastructure capable of transmitting digital video, voice and data content over a high-speed wired, wireless or other communications intranet and provides the capability of delivering and receiving high-speed digital video, voice and data transmissions over the Internet.

      (hh) "Authority legislation" means this chapter, chapters 578, 584, 588l, 588n, 588r and 588u, sections 8-134, 8-134a, 8-192, 8-192a, 25-33a, 32-23zz and 32-68a, and any other provisions of the general statutes or any public or special act setting forth or governing the powers and duties of the authority.

      (ii) "Remediation project" means any project (1) involving the development, redevelopment or productive reuse of real property within this state that (A) has been subject to a spill, as defined in section 22a-452c, (B) is an establishment, as defined in subdivision (3) of section 22a-134, (C) is a facility, as defined in 42 USC 9601(9), or (D) is eligible to be treated as polluted real property for purposes of section 22a-133m or contaminated real property for purposes of section 22a-133aa or section 22a-133bb, provided the development, redevelopment or productive reuse is undertaken pursuant to a remediation plan meeting all applicable standards and requirements of the Department of Environmental Protection, (2) that the authority determines will add or support significant new economic activity or employment in the municipality in which such project is located or will otherwise materially contribute to the economic base of the state or the municipality, and (3) for which assistance from the authority will be needed to attract necessary private investment.

      (1972, P.A. 195, S. 3; P.A. 73-599, S. 9; P.A. 74-338, S. 7, 94; P.A. 75-413; 75-461, S. 1, 6; 75-513, S. 3, 5; 75-567, S. 40, 80; P.A. 76-140, S. 2, 4; 76-430, S. 1, 3; P.A. 77-155, S. 2; 77-299, S. 2, 3; 77-614, S. 284, 587, 610; P.A. 78-303, S. 85, 108, 136; P.A. 79-404, S. 43, 45; 79-520, S. 2; P.A. 80-171, S. 1; 80-267, S. 7; 80-345; 80-465, S. 2, 3; P.A. 81-384, S. 4, 13; P.A. 84-512, S. 19, 30; P.A. 85-595, S. 2, 3; P.A. 86-212, S. 2, 3; P.A. 87-536, S. 5, 7; P.A. 88-265, S. 9, 36; P.A. 90-270, S. 26, 38; P.A. 95-79, S. 120, 189; 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 97-112, S. 2; P.A. 98-179, S. 16, 30; P.A. 00-178, S. 3, 4; June Sp. Sess. P.A. 00-1, S. 43, 46; P.A. 01-96; S. 3; 01-179, S. 7-9; P.A. 04-106, S. 2; 04-193, S. 1.)

      History: P.A. 73-599 replaced Connecticut development commission with department of commerce and Connecticut development authority, so replaced "commission" definition with "department" definition and added definitions of "commissioner" and "authority"; P.A. 74-338 deleted "industrial" as word qualifying pollution control facility in definition of "industrial project"; P.A. 75-413 redefined "industrial project" to include facilities used in significant servicing, overhauling or rebuilding of products and warehouse, wholesale distribution and trucking freight terminal facilities; P.A. 75-461 included the authority in definition of "mortgagee" and defined "capital reserve fund bond"; P.A. 75-513 included certain facilities for providing water in definition of "industrial project"; P.A. 75-567 substituted "authority" for "commission" in definition of "industrial project"; P.A. 76-140 included ferry facilities in definition of "industrial project"; P.A. 76-430 defined "recreational project"; P.A. 77-155 included railroad facilities in definition of "industrial project"; P.A. 77-299 included municipal civic and cultural centers in definition of "recreational project" and defined the term; P.A. 77-614 and P.A. 78-303 replaced commissioner and department of commerce with commissioner and department of economic development, effective January 1, 1979; P.A. 78-303 deleted reference to Sec. 4-60a in definition of "purposes of this chapter ..."; P.A. 79-404 substituted gaming policy board for Connecticut commission on special revenue in definition of "recreational project"; P.A. 79-520 included energy conserving facilities and facilities using renewable energy in definition of "industrial project"; P.A. 80-171 included public transportation facilities in definition of "industrial project"; P.A. 80-267 included provisions re facilities for businesses impacted by defense contract cutbacks in definition of "industrial project"; P.A. 80-345 included commercial applications of energy conserving or renewable energy facilities and equipment in definition of "industrial project"; P.A. 80-465 included retail facilities in definition of "industrial project" and defined "urban project"; P.A. 81-384 rewrote definitions of "project", "industrial project", "recreation project" and "urban project", inserted definitions of "public service project", "commercial fishing project" and "health care project" and removed definitions of "pollution control facility" and "municipal civic and cultural centers"; P.A. 84-512 deleted references to Secs. 4-5 and 4-24a in Subsec. (t); P.A. 85-595 redefined "project" to include hydroponic or aquaponic projects; P.A. 86-212 amended definition of "project" in Subsec. (d) to allow project to be acquired through purchase of stock of corporation and to exclude stock of corporation from such definition; P.A. 87-536 amended Subsec. (d) to amend definition of project to include any machinery, equipment, furniture, fixture or other personal property to be located in the state and to remove other references to personal property; P.A. 88-265 changed industrial project to economic development project, deleted hydroponic or aquaponic project and added nonprofit project to Subsec. (d), deleted definition of Connecticut Development Credit Corporation and added definition of eligible financial institution in Subsec. (e), added cost of furniture, fixtures or other personal property to definition of cost of project in Subsec. (f), deleted definition of first mortgage and added provisions re other credit or loan agreement in Subsec. (i), added other provider of credit, deleted list of eligible mortgages and substituted eligible financial institutions therefor in Subsec. (j), added provisions re cooperatives, for profit and nonprofit corporations, districts, agencies, authorities, instrumentalities, and other governmental entities in Subsec. (s), changed industrial project to economic development project, added hydroponic or aquaponic food production purposes and added Subdiv. (4) re other eligible project purposes in Subsec. (u), added Subsec. (dd) defining "nonprofit project" and made other technical changes; P.A. 90-270 amended Subsec. (u) to exclude certain resources recovery facilities from the definition of "economic development project"; (Revisor's note: In 1993 the obsolete reference in Subsec. (t) to repealed Sec. 36-322 was deleted editorially by the Revisors and the wording adjusted accordingly, and in 1995 the reference to "Industrial Building Mortgage Insurance Fund" was changed editorially by the Revisors to "Mortgage and Loan Insurance Fund" to conform to section to Sec. 32-14 as amended by P.A. 93-360); P.A. 95-79 redefined "person" to include limited liability companies, effective May 31, 1995; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 97-112 replaced "home for the aged" with "residential care home"; P.A. 98-179 redefined "project" to add the convention center project, effective June 1, 1998; P.A. 00-178 redefined "project" in Subsec. (d) to include information technology projects and added Subsecs. (ee) to (gg), inclusive, defining "information technology project", "incubator facilities" and "smart building"; June Sp. Sess. P.A. 00-1 changed effective date of P.A. 00-178 from October 1, 2000, to July 1, 2000, effective July 1, 2000; P.A. 01-96 amended Subsec. (gg) by making technical changes; P.A. 01-179 amended Subsec. (d) to make a technical change and include remediation project in definition of "project", amended Subsec. (t) to replace references to chapters 578 and 579 and Sec. 10-320b(a) 25-33a and 32-68a with references to the authority and authority legislation and added Subsec. (hh) defining "authority legislation" and Subsec. (ii)(1) defining "remediation project"; P.A. 04-106 amended Subsec. (ii)(1) to include projects involving the productive reuse of real property, effective May 21, 2004; P.A. 04-193 amended Subsec. (d) to remove reference to a project not including new materials, work in process, stock in trade or stock of a corporation, effective June 3, 2004.

      See Sec. 32-23s re interpretation of amendments to this section effective on June 29, 1981.