Connecticut General Statutes/Title 8/Chapter 136/Section 8-287

CGS § 8-287. Loan repayment.

(a) Any loan contracted for pursuant to this chapter shall be secured by a subordinate mortgage on the dwelling purchased by the recipient of such loan. If the recipient of such loan assigns, transfers or otherwise conveys his interest in such dwelling or ceases to occupy such dwelling, the unpaid principal balance of said mortgage, together with interest thereon, shall become due and payable. If the recipient of any loan is unable to repay the loan, the authority or the commissioner, for loans made under this chapter prior to October 1, 1995, and the authority for loans acquired from the state or made after October 1, 1995, at the discretion of the authority or the commissioner, as the case may be, may adjust the interest rate, terms and conditions of the loan to facilitate repayment.

(b) Repayment of any loan provided in accordance with this chapter shall be subject to an interest rate to be determined in accordance with subsection (t) of section 3-20 and such terms and conditions as the commissioner or the authority may establish, including, but not limited to, any interest rate, terms of repayment or conditions for forgiveness of the principal or interest of any such loan. The authority, in its discretion, (1) may approve repayment of a loan for a term to be established by the authority in its discretion or, in the case of a first mortgage that is a graduated payment mortgage, for a term of no more than thirty years or (2) may require the loan be due and payable upon assignment, transfer, sale or other conveyance of the property. Payments by homeowners who have received financial assistance under this chapter prior to October 1, 1995, shall be paid to the State Treasurer and deposited in the General Fund of the state. Payments by homeowners who have received financial assistance under this chapter after October 1, 1995, shall be paid to the authority, deposited in such funds or accounts as the authority may establish from time to time for such purpose and used by the authority to make additional loans pursuant to this chapter unless the Secretary of the Office of Policy and Management directs such payments to be paid to the State Treasurer and deposited in the General Fund.

Short History

(P.A. 77-612, S. 5; P.A. 83-259, S. 1, 2; P.A. 87-416, S. 9, 24; P.A. 91-346, S. 3, 9; P.A. 92-166, S. 22, 31; P.A. 95-250, S. 30, 42; 95-309, S. 11, 12; P.A. 23-45, S. 7.)

Long History

History: P.A. 83-259 allowed for longer term for second mortgage in the case of graduated payment mortgage loans; P.A. 87-416 provided that the interest rates on loans would be determined in accordance with Sec. 3-20(t); P.A. 91-346 amended Subsec. (b) by deleting provisions re the term of the loan and in lieu thereof gave the commissioner discretion in setting repayment term; P.A. 92-166 made technical change adding provisions re deferred loans, consistent with 1992 public acts; P.A. 95-250 amended Subsecs. (a) and (b) to add provisions re loans made by the authority after October 1, 1995; P.A. 95-309 changed effective date of P.A. 95-250 but did not affect this section; P.A. 23-45 amended Subsec. (a) by deleting references to “or deferred loan” and “or deferred loans”, replacing reference to “second mortgage” with “subordinate mortgage”, inserting “acquired from the state or”, and making technical and conforming changes, and amended Subsec. (b) by deleting “or deferred loan”, adding provision re terms and conditions of repayment may include interest rate, terms of repayment or conditions for forgiveness, replaced “that is concurrent with the first mortgage” with “to be established by the authority in its discretion”, and replacing requirement that certain payments be deposited in General Fund except that with approval payments may be used to make additional loans with requirement that certain payments be used to make additional loans unless Secretary of the Office of Policy and Management directs such payments to be deposited in General Fund.

PreviousCGS § 8-286f. Small multifamily lending program. Lending guidelines.NextCGS § 8-288. Issuance of bonds.