JOINT FAVORABLE REPORT
AN ACT CONCERNING THE BANKING LAWS, THE UNIFORM COMMERCIAL CODE, THE ELECTRONIC FUND TRANSFER ACT AND MORTGAGORS IN GOOD STANDING.
Joint Favorable Substitute
SPONSORS OF BILL:
REASONS FOR BILL:
To make minor, technical and conforming changes to the banking laws.
Adds language to the bill that:
● Allows for constructive service of the Banking Commissioner by certified mail, return receipt requested. Currently this may only be done via certified mail which is more costly. (Originally SB 284)
● Prohibits a serving officer from serving the same financial execution on a financial institution if a direct deposit from a readily identifiable source (veteran's benefits, Social Security benefits, disability benefits, etc.) was made to judgment debtor's account during the look-back period (Originally SB 129)
● Expands savings promotional raffles to all Connecticut banks (Originally SB 372)
● Requires mortgagees to provide a mortgagor with a certificate of good standing (letter stating they've been current with mortgage payments for at least three years) upon request (Originally SB 396)
RESPONSE FROM ADMINISTRATION/AGENCY:
Commissioner Howard Pitkin, Department of Banking testified that the bill will eliminate unnecessary or erroneous statutory cross references, and allow the department to use less expensive but equally reliable method of delivering notice of services to defendants.
NATURE AND SOURCES OF SUPPORT:
Connecticut Bankers Association testified in favor of expanding savings promotion raffles. Currently, statute only allows for credit unions and community banks to operate promotional raffles. However, there are not banks operating under the community bank charter as most banks operate under the Bank &Trust or Savings Bank charter, which mean no banks can currently offer these promotions. This legislation would allow Connecticut chartered banks to allow these raffles
Matthew Lesser, State Representative testified that prize linked savings account programs are proven method of encouraging savings and the response by the financial industry since the passage of the legislation last year is encouraging. He urged federal regulators to provide clarify to the industry with regards to these programs and applauded Connecticut's banking industry for supporting this effort.
NATURE AND SOURCES OF OPPOSITION:
Connecticut Bankers Association opposed requiring mortgagees to provide a certificate of good standing. He testified that the requirement is unnecessary due to regular monthly reporting of borrowers existing mortgage loan.
Reported by: Adam Skowera
Date: April 8, 2014