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CHAPTER 846*
MORTGAGES
*Cited. 202 C. 566. Cited. 240 C. 35. "Mortgages" cited. Id.

Table of Contents

Sec. 49-1. When foreclosure a bar to further action on debt.


Sec. 49-2. Inclusion of taxes and other items as part of mortgage debt. Open-end mortgage. Reverse
annuity mortgage. Negative amortization.
Sec. 49-2a. Interest on funds held in escrow for payment of taxes and insurance.
Sec. 49-2b. (Formerly Sec. 37-10). Interest on escrow accounts; regulations of Banking Commissioner.
Sec. 49-2c. Exceptions.
Sec. 49-3. Mortgage securing future advancements.
Sec. 49-4. Mortgages by U.S. government and certain credit associations and banks to secure future
advancements.
Sec. 49-4a. Open-end mortgages, United States or its instrumentalities and certain banks authorized to
hold.
Sec. 49-4b. Open-end mortgage as security for guaranty of an open-end loan. Mortgage deed
requirements. Description of loan and secondary liability.
Sec. 49-4c. Mortgage as security for obligations under an electricity purchase agreement.
Sec. 49-5. Mortgages on property of public service companies.
Sec. 49-5a. Master mortgage recording.
Sec. 49-5b. Required information in a mortgage contingency clause.
Sec. 49-6. Trust mortgages.
Sec. 49-6a. Definitions. Interim financing policy disclosure required.
Sec. 49-6b. Definitions.
Sec. 49-6c. Notice of late fee required. Exception.
Sec. 49-6d. Legal representation.
Sec. 49-7. Agreements concerning expenses and attorneys' fees.
Sec. 49-7a. Lenders prohibited from requiring multiple original notes.
Secs. 49-7b to 49-7e.
Sec. 49-7f. Mortgage brokers and lenders prohibited from referring buyers of real property to a real
estate broker, salesperson or attorney for a fee or commission. Suspension or revocation of licenses.
Sec. 49-8. Release of satisfied or partially satisfied mortgage or ineffective attachment, lis pendens or
lien. Damages.
Sec. 49-8a. Release of mortgage. Affidavit. Recording of affidavit with town clerk. Penalty for
recording false information.
Sec. 49-9. Release of mortgage, mechanic's lien or power of attorney. Form of instrument. Index.
Operation of executed release.
Sec. 49-9a. Validation of release of mortgage. Affidavit.
Sec. 49-10. Assignment of mortgage debt. Form of instrument. Requirements. Sufficient notice of
assignment. Operation of executed assignment.
Sec. 49-10a. Request for payoff statement or reinstatement payment statement.
Sec. 49-10b. Residential real estate transaction involving payoff of mortgage loan. Disclosure statement
prepared and sent to mortgage holder by notification agent. Form.
Sec. 49-11. Release of mortgage by executor, administrator, spouse, next of kin, guardian, conservator
or other suitable person.
Sec. 49-12. Release of mortgage by foreign executor, administrator, trustee, conservator or guardian.
Sec. 49-13. Petition for discharge of mortgage or ineffective attachment, lis pendens or lien.

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Sec. 49-13a. Undischarged mortgage invalid as further lien. Time periods. Tolling of time period by
recording notice.
Sec. 49-14. Deficiency judgment.
Sec. 49-15. Opening of judgments of strict foreclosure.
Sec. 49-16. Foreclosure certificate. Penalty.
Sec. 49-17. Foreclosure by owner of debt without legal title.
Sec. 49-18. Foreclosure by executor, administrator or trustee.
Sec. 49-19. Title to vest in encumbrancer paying debt and costs.
Sec. 49-20. Redemption by holder of encumbrance on part of property foreclosed.
Sec. 49-21. Defendant to receive and file certificate of satisfaction or certificates of judgment of strict
foreclosure or foreclosure by sale.
Sec. 49-22. Execution of ejectment on foreclosure judgment. Disposition of property.
Sec. 49-22a. Execution of ejectment on foreclosure judgment on mortgage guaranteed by Administrator
of Veterans' Affairs.
Sec. 49-23. Ejectment by mortgagee barred by tender of debt and costs.
Sec. 49-24. Court may foreclose lien or mortgage on land by sale.
Sec. 49-25. Appraisal of property.
Sec. 49-26. Conveyance; title of purchaser.
Sec. 49-27. Disposal of proceeds of sale.
Sec. 49-28. When proceeds of sale will not pay in full.
Sec. 49-29. Expenses of sale and costs.
Sec. 49-30. Omission of parties in foreclosure actions.
Sec. 49-31. Actions against the state.
Sec. 49-31a. Subordination clauses.
Sec. 49-31b. Information in deed sufficient notice as to nature and amount of obligation. Deed for
variable rate mortgage loan.
Sec. 49-31c. When subordination not subject to statute of frauds and automatically effective.
Sec. 49-31d. Definitions.
Sec. 49-31e. Notice to homeowner of protections from foreclosure.
Sec. 49-31f. Application for protection from foreclosure action. Qualifications. Court determination of
eligibility. Stay of foreclosure action.
Sec. 49-31g. Restructuring of mortgage debt by court.
Sec. 49-31h. Partial payment by homeowner mandated by court as condition for granting of
restructuring order.
Sec. 49-31i. Determination of restructured mortgage debt. Limitations on amount of mortgage debt
following restructuring. Computation of new mortgage debt.
Sec. 49-31j. Regulations.
Sec. 49-31k. Definitions.
Sec. 49-31l. Foreclosure mediation: Notice of foreclosure mediation program. Forms. Procedure.
Sec. 49-31m. Foreclosure mediation program.
Sec. 49-31n. Mediation period. Termination of program.
Sec. 49-31o. Consent of mortgagee required for changes. Disclosure of information submitted to
mediator.

Sec. 49-1. When foreclosure a bar to further action on debt. The foreclosure of a mortgage is a
bar to any further action upon the mortgage debt, note or obligation against the person or persons who
are liable for the payment thereof who are made parties to the foreclosure and also against any person or
persons upon whom service of process to constitute an action in personam could have been made within
this state at the commencement of the foreclosure; but the foreclosure is not a bar to any further action
upon the mortgage debt, note or obligation as to any person liable for the payment thereof upon whom

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service of process to constitute an action in personam could not have been made within this state at the
commencement of the foreclosure. The judgment in each such case shall state the names of all persons
upon whom service of process has been made as herein provided.

(1949 Rev., S. 7191; 1957, P.A. 443; P.A. 79-602, S. 74.)

History: P.A. 79-602 made minor changes in wording, substituting "the" for "such", etc., but made
no substantive changes.

See Sec. 49-14 re deficiency judgments.

Before the statute, foreclosure was a bar to further action on the mortgage debt. 1 R. 203; 3 C. 63; 5
C. 535; 18 C. 136; 91 C. 586. The provisions of this section requiring persons liable for the mortgage
debt to be made parties to the foreclosure applies only to foreclosure proceedings begun after the section
was enacted. 56 C. 146. This section applies to mortgages of personalty. 58 C. 257. Consideration of
separate action against endorser after foreclosure and deficiency judgment against maker only. 100 C.
710; 102 C. 648. Parties liable in separate action even though deficiency not claimed in foreclosure suit.
109 C. 333. Cited. 112 C. 611. Guarantors named in foreclosure allowed same credit as mortgagor. 113
C. 246. Cited. 116 C. 332. Failure to name one a party defendant merely bars the remedy. 119 C. 586.
Cited. 120 C. 671. Effect of failing to name parties in foreclosure of prior mortgages 122 C. 314. Cited.
141 C. 179. Does not change requirements of section 49-14. 154 C. 216. Cited. 185 C. 579. Cited. 199
C. 368. Cited. 216 C. 443. Cited. 220 C. 152; Id., 643. Cited. 228 C. 929. Section prohibits a personal
remedy against mortgagor but does not eliminate the underlying mortgage debt and does not supersede
bank's continuing access to equitable foreclosure proceedings; judgment reversed. 244 C. 251. Statute
did not apply because original common charges debt was not extinguished by foreclosure action based
on a statutorily created lien. 247 C. 575.

Cited. 25 CA 159. Cited. 28 CA 809. Cited. 31 CA 80; Id., 476. Cited. 32 CA 309. Cited. 33 CA
388. Cited. 35 CA 81. Cited. 38 CA 198. Cited. 40 CA 434. Cited. 44 CA 588. Trustee's sale of property
in another state does not bar action here since defendant not a person on whom service of process in
Connecticut could have been made at commencement of trustee's sale in the other state. 48 CA 531.

Cited. 2 CS 98. When a mortgagee takes property on foreclosure, the taking of the property satisfies
the debt only pro tanto to value of property on date it is appropriated. 3 CS 261. Distinction between this
section and 49-14 discussed. 6 CS 123. Cited. Id., 300.

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Sec. 49-2. Inclusion of taxes and other items as part of mortgage debt. Open-end mortgage.
Reverse annuity mortgage. Negative amortization. (a) Premiums of insurance, taxes and assessments
paid by the mortgagee and payments of interest or installments of principal due on any prior mortgage or
lien by any subsequent mortgagee or lienor of any property to protect his interest therein, are a part of
the debt due the mortgagee or lienor.

(b) Advancements may be made by a mortgagee for repairs, alterations or improvements and are a
part of the debt due the mortgagee, provided (1) advancements for such repairs, alterations or
improvements shall not be made if the indebtedness at the time of the advancement exceeds the amount
of the original mortgage debt; (2) the advancements shall not exceed the difference between the

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indebtedness at the time of the advancement and the original mortgage debt, if the original mortgage
debt is greater than the then indebtedness; (3) the total amount of all of the advancements for repairs,
alterations and improvements outstanding at any time shall not exceed (A) one thousand dollars as to
mortgages executed and recorded after October 1, 1947, but before October 1, 2004, or (B) five
thousand dollars as to mortgages executed and recorded on or after October 1, 2004; and (4) the terms of
repayment of the advancements shall not increase the time of repayment of the original mortgage debt.

(c) Advancements may also be made by a mortgagee, or the assignee of any mortgagee, under an
open-end mortgage to the original mortgagor, or to the assign or assigns of the original mortgagor who
assume the existing mortgage, or any of them, and any such mortgage debt and future advances shall,
from the time such mortgage deed is recorded, without regard to whether the terms and conditions upon
which such advances will be made are contained in the mortgage deed and, in the case of an open-end
mortgage securing a commercial future advance loan, a consumer revolving loan or a letter of credit,
without regard to whether the authorized amount of indebtedness shall at that time or any time have
been fully advanced, be a part of the debt due such mortgagee and be secured by such mortgage equally
with the debts and obligations secured thereby at the time of recording the mortgage deed and have the
same priority over the rights of others who may acquire any rights in, or liens upon, the mortgaged real
estate subsequent to the recording of such mortgage deed, provided: (1) The heading of any such
mortgage deed shall be clearly entitled "Open-End Mortgage"; (2) the mortgage deed shall contain
specific provisions permitting such advancements and, if applicable, shall specify that such
advancements are made pursuant to a commercial future advance loan agreement, a consumer revolving
loan agreement or a letter of credit; (3) the mortgage deed shall state the full amount of the loan therein
authorized; (4) the terms of repayment of such advancements shall not extend the time of repayment
beyond the maturity of the original mortgage debt, provided this subdivision shall not be applicable
where such advancements are made or would be made pursuant to a commercial future advance loan
agreement, a consumer revolving loan agreement or a letter of credit, and the mortgage deed specifies
that such advancements are repayable upon demand or by a date which shall not be later than thirty
years from the date of the mortgage; (5) such advancements shall be secured or evidenced by a note or
notes signed by the original mortgagor or mortgagors or any assign or assigns of the original mortgagor
or mortgagors who assume the existing mortgage, or any of them, but no note shall be required with
respect to any advancements made pursuant to a commercial future advance loan agreement, a consumer
revolving loan agreement or a letter of credit as long as such advancements are recorded in the books
and records of the original mortgagee or its assignee; (6) the original mortgage shall be executed and
recorded after October 1, 1955; (7) the original mortgagor or mortgagors, or any assign or assigns of the
original mortgagor or mortgagors who assume the existing mortgage, or any of them, are hereby
authorized to record a written notice terminating the right to make such optional future advances secured
by such mortgage or limiting such advances to not more than the amount actually advanced at the time
of the recording of such notice, provided a copy of such written notice shall also be sent by registered or
certified mail, postage prepaid and return receipt requested, to the mortgagee, or a copy of such written
notice shall be delivered to the mortgagee by a proper officer or an indifferent person and a receipt for
the same received from the mortgagee, and such notice, unless a later date is recorded or specified in the
notice, shall be effective from the time it is received by the mortgagee; (8) except that if any such
optional future advance or advances are made by the mortgagee, or the assignee of any mortgagee, to the
original mortgagor or mortgagors, or any assign or assigns who assume the existing mortgage, or any of
them, after receipt of written notice of any subsequent mortgage, lien, attachment, lis pendens, legal
proceeding or adjudication against such real property, then the amount of any such advance, other than
an advance made pursuant to a commercial future advance loan agreement or a letter of credit, shall not
be a priority as against any such mortgage, lien, attachment, lis pendens or adjudication of which such
written notice was given; (9) any notice given to the mortgagee under the terms of subdivision (8) of this
subsection shall be deemed valid and binding upon the original mortgagee or any assignee of the
original mortgagee, in the case of a mortgagee other than a banking institution, on the next business day

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following receipt by such mortgagee of such notice sent by registered or certified mail, postage prepaid
and return receipt requested, or by hand delivery with a signed receipt, and in the case of a mortgagee
which is a banking institution, on the next business day following receipt at the main office of such
banking institution of such notice sent by registered or certified mail, postage prepaid and return receipt
requested, or by hand delivery with a signed receipt. For the purposes of this subsection: (A) "Banking
institution" means a bank and trust company, a national banking association having its main office in
this state, a savings bank, a federal savings bank having its main office in this state, a savings and loan
association, a federal savings and loan association having its main office in this state, a credit union
having assets of two million dollars or more, or a federal credit union having its main office in this state
and having assets of two million dollars or more; (B) "commercial future advance loan" means a loan to
a foreign or domestic corporation, partnership, limited liability company, sole proprietorship, association
or entity, or any combination thereof, the proceeds of which are not intended primarily for personal,
family or household purposes, which loan entails advances of all or part of the loan proceeds and
repayments of all or part of the outstanding balance of the loan from time to time, and includes (i) a
commercial revolving loan wherein all or part of the loan proceeds that have been repaid may be
readvanced, and (ii) a commercial nonrevolving loan wherein previously advanced loan proceeds, once
repaid, cannot be readvanced; and (C) "consumer revolving loan" means a loan to one or more
individuals, the proceeds of which are intended primarily for personal, family or household purposes,
which is secured by a mortgage on residential real property, and is made pursuant to an agreement
between the mortgagor and mortgagee which (i) provides for advancements of all or part of the loan
proceeds during a period of time which shall not exceed ten years from the date of such agreement and
for repayments of the loan from time to time, (ii) provides for payments to be applied at least in part to
the unpaid principal balance not later than ten years from the date of the loan, (iii) does not authorize
access to the loan proceeds by a credit card or any similar instrument or device, whether known as a
credit card, credit plate, or by any other name, issued with or without a fee by an issuer for the use of the
cardholder in obtaining money, goods, services, or anything else of value on credit, and (iv) does not
provide that such a revolving loan to more than one mortgagor will be immediately due and payable
upon the death of fewer than all the mortgagors who signed the revolving loan agreement. Nothing in
this subsection shall affect the validity or enforceability of any loan agreement which provides for future
advancements by a lender to a borrower as between such parties or their heirs, successors or assigns, or
shall affect the validity or enforceability of any mortgage securing any such loan that would be valid and
enforceable without the provisions of this subsection.

(d) (1) Any mortgage to secure advancements made by a mortgagee or its assignee to a mortgagor
pursuant to the terms of a mortgage securing a reverse annuity mortgage loan, as defined in subdivision
(4) of subsection (a) of section 36a-265, shall be sufficiently definite and certain and valid to secure all
money actually advanced pursuant to and in accordance with its terms, whether at or subsequent to
closing of the loan, up to but not exceeding the full amount of the loan therein authorized with the same
priority as if all such money had been advanced at the time such mortgage was delivered if such
mortgage sets forth: (A) That it is a "reverse annuity mortgage loan" and contains a reference to
subdivision (4) of subsection (a) of section 36a-265; (B) the full amount of the loan authorized; (C) a
statement of the dates on which such advancements are to be made and the amounts of such
advancements; and (D) the events which will give rise to the maturity of the loan.

(2) The mortgagee or its assignee and the mortgagor may subsequently modify the dates set forth in
the mortgage for advancements by a writing setting forth such modification signed by the mortgagee or
its assignee and the mortgagor and recorded upon the proper land records. Such modification shall in no
way limit or otherwise affect the priority of such mortgage.

(e) Any mortgagee of real property located in this state may contract with the mortgagor in
connection with the mortgage loan for interest to be paid currently or to accrue, and, if such interest is to

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accrue, for such accrued interest to be added to the principal mortgage debt on which interest may be
charged and collected. Such accrued interest which is added to the principal mortgage debt shall be
secured by the mortgage to the same extent as the original principal of such mortgage debt.

(1949 Rev., S. 7192; 1955, S. 2969d; P.A. 73-587; P.A. 79-158, S. 2; 79-359, S. 1; 79-602, S. 61;
P.A. 80-423, S. 1, 3; 80-483, S. 130, 186; P.A. 81-251; P.A. 82-243, S. 1, 3; P.A. 88-271, S. 1; P.A. 89-
84; P.A. 96-180, S. 160, 166; P.A. 99-36, S. 33; P.A. 04-132, S. 5; P.A. 06-156, S. 1; P.A. 09-161, S. 1.)

History: P.A. 73-587 replaced Subsec. (c)(3) which had stated that advancements "shall not exceed
the difference between the indebtedness at the time of such advancement and the original mortgage
debt" with provision prohibiting indebtedness from exceeding the stated amount of the mortgage; P.A.
79-158 added Subsec. (d); P.A. 79-359 amended Subsec. (c) to specify that mortgage debt and future
advances are part of debt due "without regard to whether the terms ... upon which such advances will be
made are contained in the mortgage deed, and, in the case of an open-end mortgage securing a
commercial revolving loan, without regard to whether the stated amount of indebtedness shall ... have
been fully advanced", to add provision re advancements made pursuant to commercial revolving loan
agreement in Subdivs. (2), (5) and (8) to rephrase Subdiv. (3) and to define "commercial revolving loan"
for purposes of the Subsec.; P.A. 79-602 made minor changes in wording of Subsecs. (a) and (b); P.A.
80-423 added references to letters of credit in Subsec. (c) and made minor changes in wording; P.A. 80-
483 made technical grammatical changes in Subsec. (a) and replaced numeric Subdiv. indicators with
alphabetic indicators in Subsec. (d)(1); P.A. 81-251 amended Subsec. (c) by adding the words
"partnership, association or entity, or any combination thereof" in the definition of a commercial
revolving loan; P.A. 82-243 amended Subsec. (c) by providing that Subdiv. (4) is not applicable to
certain advancements which are repayable upon demand, and by including a loan to a "sole
proprietorship" in the definition of a commercial revolving loan and added Subsec. (e) authorizing a
mortgagee to contract with the mortgagor for the accrual of interest and the addition of that accrued
interest to the principal mortgage debt; P.A. 88-271 amended Subsec. (c) by extending the application of
the section to consumer revolving loans; P.A. 89-84 amended Subsec. (c)(9) by adding Subpara.
designations and adding Subpara. (B) re notice to a mortgagee which is a banking institution and made
technical changes; P.A. 96-180 changed the first reference in Subsec. (d)(1) from "subdivision (5) of
subsection (a) of section 36a-265" to "subdivision (4) of subsection (a) of section 36a-265", effective
June 3, 1996 (Revisor's note: A second reference to Sec. 36a-265 (a)(5) was changed editorially by the
Revisors for consistency); P.A. 99-36 made technical changes in Subsec. (c); P.A. 04-132 amended
Subsec. (b) by increasing maximum amount of advancements for repairs, alterations and improvements
from $1,000 to $5,000 as to mortgages executed and recorded on or after October 1, 2004, and by
making technical and conforming changes; P.A. 06-156 amended Subsec. (c)(9) by making technical
changes and redefining "commercial revolving loan" in Subpara. (B); P.A. 09-161 amended Subsec. (c)
by changing "commercial revolving loan" to "commercial future advance loan" and redefining same.

See Sec. 49-4b re open-end mortgage as security for guarantor.

These payments give no right to foreclosure apart from debt. 75 C. 375; 124 C. 337. Provisions not
exclusive; payments made by second mortgagee on principal of first mortgage and for appraisal after
fire may be added to debt secured by second mortgage. 105 C. 176. Recovery for payments on prior
mortgage by mortgagor from his grantee. 112 C. 611. Cited. 115 C. 655. Cited. 116 C. 334. Cited. 120
C. 671. Cited. 139 C. 373. Cited. 146 C. 523. Cited. 185 C. 463. Cited. 219 C. 772.

Cited. 2 CS 142. Cited. 3 CS 105. Inclusion of taxes and assessments in the mortgage debt allowed
only if paid by mortgagee. 11 CS 454.

Subsec. (c):

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Cited. 202 C. 566.

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Sec. 49-2a. Interest on funds held in escrow for payment of taxes and insurance. (a) On and
after July 1, 1993, each state bank and trust company, national banking association, state or federally
chartered savings and loan association, savings bank, insurance company and other mortgagee or
mortgage servicing company holding funds of a mortgagor in escrow for the payment of taxes and
insurance premiums with respect to mortgaged property located in this state shall pay interest on such
funds, except as provided in section 49-2c, at a rate of not less than the average rate paid, as of
December 30, 1992, on savings deposits by insured commercial banks as published in the Federal
Reserve Board Bulletin and rounded to the nearest one-tenth of one percentage point, except in no event
shall the rate be less than one and one-half per cent. On and after January 1, 1994, the rate for each
calendar year shall be not less than the deposit index as defined in subsection (c) of this section for that
year and rounded to the nearest one-tenth of one percentage point, except in no event shall the rate be
less than one and one-half per cent. Interest payments shall be credited on the thirty-first day of
December annually toward the payment of taxes or insurance premiums as the case may be, on such
mortgaged property in the ensuing year. If the mortgage debt is paid prior to December thirty-first in any
year, the interest to the date of payment shall be paid to the mortgagor. The provisions of this section
shall apply only with respect to mortgages on owner-occupied residential property consisting of not
more than four living units and housing cooperatives occupied solely by the shareholders thereof. Any
mortgagee or mortgage servicing company violating the provisions of this section shall be fined not
more than one hundred dollars for each offense.

(b) Each mortgagee or mortgage servicing company subject to the provisions of this section may
contact the Department of Banking to ascertain the published deposit index to determine the minimum
rate paid on funds of a mortgagor held in escrow for the payment of taxes and insurance premiums.

(c) The deposit index for each calendar year shall be equal to the average rate paid on savings
deposits by insured commercial banks as last published in the Federal Reserve Board Bulletin in
November of the prior year. The commissioner shall determine the deposit index for each calendar year
and publish such deposit index in the Department of Banking news bulletin no later than December
fifteenth of the prior year. For purposes of this section, "Federal Reserve Board Bulletin" means the
monthly survey of selected deposits published as a special supplement to the Federal Reserve Statistical
Release Publication H.6 published by the Board of Governors of the Federal Reserve System or, if such
bulletin is superseded or becomes unavailable, a substantially similar index or publication.

(P.A. 73-607, S. 1; P.A. 75-385, S. 1; P.A. 77-355, S. 1; P.A. 85-368, S. 4; P.A. 92-4, S. 2; P.A. 93-
198, S. 1, 2.)

History: P.A. 75-385 applied provisions to mortgage serving companies, changed date for initial
credit of interest payment from September 30, 1974, to December 31, 1975, and correspondingly
changed following date reference; P.A. 77-355 increased interest rate to 4% on and after January 1,
1978, and rephrased provisions to delete obsolete reference to December 31, 1975, and to specify
applicability of provisions to housing cooperatives occupied solely by their shareholders; P.A. 85-368
increased the rate of interest paid on funds held in escrow from 4% to 5.25% as of October 1, 1985; P.A.
92-4 required interest paid on funds held in escrow at the rate of 4% on and after October 1, 1992, and at

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the rate of 5.25% on and after October 1, 1994; P.A. 93-198 required that the interest rate paid on funds
held in escrow be based on the rate paid on savings deposits by insured commercial banks as published
in the Federal Reserve Board Bulletin and rounded to the nearest 0.1%, added Subsec. (b) re mortgagee
or mortgage servicing companies' contacting the department of banking to ascertain the published
deposit index to determine the minimum rate paid on funds of a mortgagor held in escrow for the
payment of taxes and insurance premiums and added Subsec. (c) re calculation and application of the
deposit index, effective July 1, 1993.

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Sec. 49-2b. (Formerly Sec. 37-10). Interest on escrow accounts; regulations of Banking
Commissioner. The Banking Commissioner shall adopt such regulations, in accordance with chapter
54, as are necessary to carry out the provisions of section 49-2a and shall specify the form mortgagees
may use to report to mortgagors the interest due under the provisions of section 49-2a.

(P.A. 73-607, S. 4; P.A. 77-604, S. 30, 84; 77-614, S. 161, 610; P.A. 80-482, S. 337, 348; P.A. 86-
403, S. 82, 132; P.A. 87-9, S. 2, 3; P.A. 03-84, S. 37; P.A. 05-46, S. 17.)

History: Sec. 37-10 transferred to Sec. 49-2b in 1977 and reference to Sec. 47-23a revised to reflect
its transfer; P.A. 77-604 reiterated substitution of Sec. 47a-22 for Sec. 47-23a; P.A. 77-614 replaced
bank commissioner with banking commissioner within the department of business regulation and made
banking department a division within that department, effective January 1, 1979; P.A. 80-482 restored
banking commissioner and division to prior independent status and abolished the department of business
regulation; P.A. 86-403 deleted reference to regulations necessary to carry out provisions of Sec. 47a-22
(a); (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the
Revisors to "commissioner of banking"); P.A. 03-84 changed "Commissioner of Banking" to "Banking
Commissioner", effective June 3, 2003; P.A. 05-46 specified that regulations be adopted in accordance
with chapter 54 and required that regulations specify the form mortgagees may use to report interest due
under Sec. 49-2a in lieu of requirement that commissioner furnish forms to mortgagees for the purpose
of reporting interest due.

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Sec. 49-2c. Exceptions. (a) In no event shall interest be required to be paid on escrow accounts
where (1) there is a contract between the mortgagor and the mortgagee, entered into before October 1,
1975, which contains an express disclaimer of an obligation on the part of the mortgagee to pay interest
on the accounts, (2) the payment of such interest would violate any federal law or regulation, (3) the
accounts are maintained with a mortgage servicing company, neither affiliated with nor owned in whole
or in part by the mortgagee, under a written contract or any mortgage agreements underlying the
contracts, entered into before October 1, 1975, which contract does not permit the mortgage servicing
company to earn or receive a return from the investment of the accounts or (4) the accounts are
maintained in connection with mortgage loans entered into (A) on and after October 1, 1977, and before
January 1, 1989, and which are serviced and held for sale for not more than one year by a mortgage
servicing company, neither affiliated with nor owned in whole or in part by the purchaser of the
mortgage loan, and (B) on and after January 1, 1989, and which are serviced and held for sale for not
more than six months by any such mortgage servicing company, provided such mortgage servicing

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company shall pay interest on an escrow account maintained in connection with such mortgage loan if
the loan is sold within such specified periods and the mortgage servicing company continues to service
the loan.

(b) In no event shall interest be required to be paid at a rate in excess of two per cent per annum
where (1) there is a contract between the mortgagor and the mortgagee entered into before October 1,
1977, which contains an express agreement to pay interest at the rate of two per cent per annum, or (2)
such accounts are maintained in connection with mortgage loans entered into prior to October 1, 1977,
and which are serviced and held for sale for not more than one year by a mortgage servicing company,
neither affiliated with nor owned in whole or in part by the purchaser of the mortgage loan.

(P.A. 75-385, S. 2; P.A. 77-355, S. 2; P.A. 78-23; P.A. 79-602, S. 85; P.A. 88-271, S. 2, 3.)

History: P.A. 77-355 added Subdiv. (4) re accounts maintained in connection with mortgage loans
entered into on and after October 1, 1977, and added Subsec. (b) re exceptions to 2% interest rate; P.A.
78-23 referred to accounts serviced "and" held for sale rather than accounts serviced "or" held for sale in
Subsecs. (a)(4) and (b)(2); P.A. 79-602 substituted "the" for "such" throughout section; P.A. 88-271
amended Subdiv. (4) by adding the words "and before January 1, 1989" in Subpara. (A) and adding a
new Subpara. (B) re payment of interest on escrow accounts by mortgage servicing company when the
loan is sold within certain specified periods and the company continues to service the loan.

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Sec. 49-3. Mortgage securing future advancements. (a) Any mortgage to secure future
advancements of money for construction or repair of buildings or improvements on land in this state,
including site improvements of every kind with or without the construction or repair of any buildings, is
sufficiently definite and certain and valid to secure all money actually advanced under and in accordance
with its provisions, up to but not exceeding the amount of the full loan therein authorized, with the same
priority as if it had been advanced at the time the mortgage was delivered, (1) if the mortgage contains a
description of the loan in substantially the following form: "Whereas buildings or improvements on said
premises are in process of construction or repair, or to be erected or repaired; and whereas the said
grantee has agreed to make the loan herein described to be paid over to said grantor in installments as
the work progresses, the time and amount of each advancement to be at the sole discretion and upon the
estimate of said grantee, so that when all of the work on said premises shall have been completed to the
satisfaction of said grantee, said grantee shall then pay over to said grantor any balance necessary to
complete the full loan of $....; and whereas the grantor agrees to complete the erection or repair of said
buildings to the satisfaction of said grantee within a reasonable time from the date hereof or at the latest
on or before .... months from this date", or (2) whenever one or more advances are to be made when a
certain event or condition occurs, if the mortgage contains the pertinent portions of the above clause, and
such additional clauses as shall set forth with reasonable certainty and accuracy the particular sums
which are to be advanced and the event or condition which determines when such sums are to be
advanced to the grantor. A mortgage that otherwise complies with subdivision (1) of this subsection
shall be valid notwithstanding any provision in any other agreement between the mortgagee and
mortgagor that sets forth either particular sums which are to be advanced or the event or condition which
determines when such sums are to be advanced, or both, whether or not such other agreement is
recorded on the land records. Nothing herein invalidates any mortgage which would be valid without
this subsection.

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(b) The parties may subsequently modify the time set forth in the mortgage for the grantor to
complete the erection or repair of said buildings or improvements as well as the payment dates for
interest and principal necessitated by the change in the completion date by a writing to that effect, signed
by the parties and recorded upon the proper land records. The modification shall in no way affect or
limit the priority of the mortgage.

(c) If the mortgagor under a mortgage to secure future advances containing a description of the loan
as specified in subsection (a) hereof is in default under the mortgage or note, the mortgagee may
complete the erection or repair and the cost thereof shall be a part of the debt due the mortgagee and
secured by the mortgage, provided in no such case may the total debt due exceed the face amount of the
note.

(1949 Rev., S. 7194; 1949, S. 2970d; 1971, P.A. 809; P.A. 73-545; P.A. 79-178; 79-602, S. 62.)

History: 1971 act specifically included site improvements in previous provisions and added Subsecs.
(b) to (d); P.A. 73-545 incorporated former Subsec. (b) in Subsec. (a) as Subdiv. (2), relettering as
necessary; P.A. 79-178 added provision in Subsec. (a) validating mortgages which comply with Subdiv.
(1) notwithstanding other agreements re particular sums to be advanced or conditions determining
advances, etc.; P.A. 79-602 made minor changes in wording but made no substantive changes.

Statute does not annul Matz v. Arick, which still provides the test for future advances not framed in
the form suggested by the statute. 143 C. 582. Cited. 146 C. 523. Cited. 185 C. 463. Cited. 202 C. 566.
Cited. 219 C. 772. Cited. 232 C. 294.

Cited. 10 CA 251.

Cited. 17 CS 52.

Subsec. (a):

Cited. 33 CA 563.

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Sec. 49-4. Mortgages by U.S. government and certain credit associations and banks to secure
future advancements. Any mortgage upon real property to secure future advancements of money to the
mortgagor to be made within one year of the date of the mortgage by the United States or any
department, agency or instrumentality thereof, a production credit association, a bank for cooperatives
organized under the Farm Credit Act of 1933, a federal intermediate credit bank or a federal land bank is
sufficiently definite and certain and valid to secure all money actually advanced under and in accordance
with its provisions up to but not exceeding the amount of the full loan therein stated with the same
priority as if it had been advanced at the time the mortgage was delivered, if the mortgage contains a
description of the loan in substantially the following form:

"Whereas a loan to the mortgagor has been authorized by the mortgagee in the amount of $.... to be
paid over to the mortgagor in installments from time to time at the discretion of the mortgagee, and
whereas, the mortgagee herein agrees to complete disbursement of the proceeds of this loan on or
before ...., or on said date to apply any balance of said loan not then disbursed to the principal of said

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loan in inverse order of maturity."

(November, 1955, S. N221; 1959, P.A. 553; P.A. 79-602, S. 63.)

History: 1959 act applied provisions of section to mortgages by product credit associations, banks
for cooperatives, federal intermediate credit banks and federal land banks; P.A. 79-602 substituted "is"
for "shall be" and "the" for "such" where appearing.

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Sec. 49-4a. Open-end mortgages, United States or its instrumentalities and certain banks
authorized to hold. (a) As used in this section, the term "mortgagee", means the United States or any
department, agency or instrumentality thereof, a production credit association, a bank for cooperatives
organized under the Farm Credit Act of 1933, a federal intermediate credit bank or a federal land bank.

(b) Advancements may be made by a mortgagee, or the assignee of any mortgagee under an open-
end mortgage to the original mortgagor, or to the assign or assigns of the original mortgagor who
assumes the existing mortgage, or any of them, and the mortgage debt and future advances shall, from
the time the mortgage deed is recorded, be a part of the debt due the mortgagee, and be secured by the
mortgage equally with the debts and obligations secured thereby at the time of recording the mortgage
deed for record and have the same priority over the rights of others who may acquire any rights in, or
liens upon, the mortgaged real estate subsequent to the recording of the mortgage deed, provided: (1)
The heading of the mortgage deed shall be clearly entitled "Open-End Mortgage"; (2) the mortgage deed
shall state the full amount of the loan therein authorized; (3) the mortgage deed shall contain specific
provisions permitting the advancements; (4) the advancements shall not exceed the difference between
the indebtedness at the time of the advancement and the full amount of the loan authorized in the
mortgage deed; (5) the advancements shall be secured or evidenced by the original note or notes signed
by the original mortgagor, or original mortgagors, or any assign or assigns of the original mortgagor
who assume the existing mortgage, or any of them; (6) the mortgage shall not secure any advances made
after twenty years from the date of the original mortgage; (7) the original mortgagor or original
mortgagors or any assign or assigns of the original mortgagor who assume the existing mortgage, or any
of them, are hereby authorized to record a written notice terminating such optional future advances
secured by the mortgage, or limiting the advances to not more than the amount actually advanced at the
time of the recording of the notice, provided a copy of the written notice shall also be sent by registered
or certified mail, postage prepaid and return receipt requested, to the mortgagee or a copy of the written
notice shall be delivered to the mortgagee by a proper officer or an indifferent person and a receipt for
the same received from the mortgagee, and the notice, unless otherwise specified in the notice, shall be
effective from the time it is received by the mortgagee; (8) except that, if the optional future advance or
advances are made by the mortgagee or the assignee of any mortgagee, to the original mortgagor,
original mortgagors or any assign or assigns who assume the existing mortgage or any of them, after
receipt of written notice of any subsequent mortgage, lien, attachment, lis pendens, legal proceeding or
adjudication against the real property, then the amount of the advance shall not be a priority as against
the mortgage, lien, attachment, lis pendens or adjudication of which the written notice was given; (9)
any notice given to the mortgagee under the terms of this subsection shall be deemed valid and binding
upon the original mortgagee or any assignee of the original mortgagee from the time of the receipt of the
notice by the mortgagee or assignee.

(P.A. 74-320, S. 1, 2; P.A. 77-265; P.A. 79-602, S. 64.)

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History: P.A. 77-265 specified in Subsec. (b)(5) that advancements to be secured by "the original"
note or notes; P.A. 79-602 changed wording slightly but made no substantive changes.

Subsec. (b):

Cited. 202 C. 566.

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Sec. 49-4b. Open-end mortgage as security for guaranty of an open-end loan. Mortgage deed
requirements. Description of loan and secondary liability. (a) If an open-end mortgage meets the
requirements of this section, such mortgage shall be deemed to give sufficient notice of the nature of the
obligation to secure the obligation of any person who is secondarily liable for an open-end loan,
including (1) a commercial future advance loan, as defined in subsection (c) of section 49-2, without
regard to whether the authorized amount of indebtedness of such loan constituting the underlying
obligation shall at that time or at any time have been fully advanced, (2) future advances under such
open-end loan, to the extent that such mortgagor is secondarily liable for such future advances, and (3) a
letter of credit. Such mortgagor's secondary liability for such future advances shall be secured by such
open-end mortgage equally with the obligation secured by such mortgage at the time of recording such
mortgage deed and shall have the same priority over the rights of others who may acquire any rights in,
or liens upon, the mortgaged real estate subsequent to the recording of such mortgage deed.

(b) The heading of such mortgage deed shall be clearly entitled "Open-End Mortgage".

(c) The loan constituting the underlying obligation for which the mortgagor is secondarily liable,
which secondary liability is secured by such open-end mortgage, shall be described in such open-end
mortgage deed. A description of such loan meets the requirements of this subsection if such open-end
mortgage deed states: (1) The name and address of the person who is primarily liable for such loan; (2)
that such underlying obligation specifically permits such advancements and, if applicable, that such
advancements are made pursuant to a revolving loan agreement; (3) the full amount of the loan
authorized; and (4) the maximum term of the loan.

(d) The secondary liability of the mortgagor shall be described in such open-end mortgage deed. A
description of such secondary liability meets the requirements of this subsection if such open-end
mortgage deed states: (1) The full amount of the obligation of the mortgagor if such amount is different
from the full amount of the loan authorized for the underlying obligation; and (2) the date, if any, on
which the secondary liability of the mortgagor will terminate.

(e) As used in this section, "mortgagee" includes any assignee of the mortgagee, and "mortgagor"
includes any assignee of the mortgagor, and "any person who is secondarily liable" includes any person
who has guaranteed or endorsed an open-end loan.

(f) Nothing in this section, as in effect both before and after July 10, 1997, invalidates any mortgage
that would be valid without this section.

(P.A. 79-359, S. 2; P.A. 80-423, S. 2, 3; P.A. 82-243, S. 2; P.A. 97-320, S. 2, 11; P.A. 09-161, S. 2.)

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History: P.A. 80-423 included letters of credit in Subsec. (a) and made minor changes in wording;
P.A. 82-243 amended Subsec. (e) by adding a definition of "any person who is secondarily liable"; P.A.
97-320 amended Subsec. (a) by adding "be deemed to give sufficient notice of the nature of the
obligation", deleted Subsec. (d)(3) and (4) and added Subsec. (f) providing nothing in effect before and
after July 10, 1995, invalidates any mortgage, effective July 10, 1997; P.A. 09-161 amended Subsec. (a)
(1) by changing "commercial revolving loan" to "commercial future advance loan".

Cited. 202 C. 566. Legislature authorized a type of secured guaranty not enforced under common
law of state; mortgage subject to this section enforceable only if deed satisfies the section's
requirements. 232 C. 294.

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Sec. 49-4c. Mortgage as security for obligations under an electricity purchase agreement. Any
mortgage entered into subsequent to July 1, 1986, between a private power producer, as defined in
section 16-243b, or the owner or operator of a qualifying facility, as defined in Part 292 of Title 18 of
the Code of Federal Regulations, or a guarantor of any of their respective obligations, as mortgagor, and
an electric company, as defined in section 16-1, as mortgagee, shall be valid to secure all obligations
then existing or thereafter arising of the mortgagor to the mortgagee under an electricity purchase
agreement, including without limitation recovery of amounts paid to the private power producer or the
owner or operator of a qualifying facility by the mortgagee in excess of the mortgagee's avoided costs as
defined in section 16-243a and all other damages for failure to deliver electric energy or capacity or
other breach of an electricity purchase agreement, including, without limitation, the net replacement cost
of the capacity being secured by such mortgage, together with accrued interest, if any, as computed in
accordance with the terms of the electricity purchase agreement or the mortgage, and under a guarantee
of such obligations or obligations created by the mortgage, and shall have priority over the rights of
others who shall acquire any rights in the property covered by such mortgage subsequent to the
recording of the mortgage in the land records of the town in which the mortgaged property is situated
provided: (1) The electricity purchase agreement is substantially in the form approved by the
Department of Public Utility Control pursuant to section 16-243a and shall have been entered into by the
mortgagor and mortgagee prior to or simultaneously with or subsequent to the execution and delivery of
the mortgage, (2) the caption to the mortgage shall contain the words "Open-End Mortgage" and
"Electricity Purchase Agreement", (3) the mortgage shall state that it is entered into to secure the
mortgagor's obligations to the mortgagee under an electricity purchase agreement or under a guarantee
of any electricity purchase agreement obligations and shall recite either the address of an office of the
mortgagee or its assignee in the state at which a copy of the electricity purchase agreement is on file and
may be inspected by the public during normal business hours or that the electricity purchase agreement
has been recorded, as an exhibit to the mortgage or otherwise, on or before the date the mortgage is
recorded, in the land records of the town in which the mortgaged property is situated, provided the
electricity purchase agreement shall be so recorded, (4) the amount of the obligation from time to time
secured by the mortgage may be determined or reasonably approximated on the basis of records
maintained by the mortgagee or its assignee in the state, which records and an estimate of the amount
claimed by the mortgagee to be secured are made available to the public with reasonable promptness
upon written request, and (5) the mortgage states the maximum amount which it shall secure. Nothing in
this section shall invalidate any mortgage which would be valid without this section. For purposes of
this section, "electricity purchase agreement" means a contract or agreement to purchase and sell electric
energy or capacity by and between a private power producer, as defined in section 16-243b, or the
owner or operator of a qualifying facility as defined in Part 292 of Title 18 of the Code of Federal

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Regulations and an electric company, as defined in section 16-1.

(P.A. 88-235.)

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Sec. 49-5. Mortgages on property of public service companies. (a) Any corporation doing a light,
heat, gas, power, water, telephone or natural gas transmission business in, or owning property in, more
than one town may secure its issue of bonds or other evidences of indebtedness by mortgage or deed of
trust of all or any part of its plant and property, real, personal or mixed, wherever the same is situated,
including, without limitation, its goods, documents, instruments, general intangibles, chattel paper,
accounts, contract rights and franchises, whether owned by it at the time of the mortgage or deed of trust
or thereafter to be acquired by it, or both, and the mortgage or deed of trust shall secure equally all such
bonds as may be issued from time to time, under and in pursuance of the terms and provisions specified
in the mortgage or deed of trust. In the mortgage or deed of trust it is sufficient to describe the plant,
equipment, apparatus, transmission or pipe lines, distribution systems and the personal property of such
company by general terms.

(b) The mortgage or deed of trust or, if the mortgage or deed of trust has been previously recorded,
whether within or without this state, a copy of the record of the mortgage or deed of trust certified by the
recording authority, may be recorded in the office of the Secretary of the State and when so recorded
need not be recorded or filed in the records of the towns within which the property, plant or transmission
or pipe lines or distribution systems included in the mortgage or deed of trust are situated, and shall be
valid and effectual as respects all property therein included as aforesaid, provided a certificate shall be
recorded in the office of the town clerk of each of such towns setting forth the names of the mortgagor
and the mortgagee, the date of the mortgage or deed of trust and the fact that the mortgage or deed of
trust is recorded in the office of the Secretary of the State.

(c) The provisions of sections 16-218 to 16-227, inclusive, concerning the foreclosure of mortgages
of railroad companies, apply to all mortgages or bonds issued by companies doing a light, heat, gas,
power, water, telephone or natural gas transmission business.

(1949 Rev., S. 7097; 1951, 1953, S. 2952d; 1963, P.A. 446; P.A. 73-367; P.A. 79-602, S. 65.)

History: 1963 act specified that corporation's goods, documents, instruments, general intangibles,
chattel paper, accounts and contract rights may be mortgaged as security for bonds or other
indebtedness; P.A. 73-367 specified that copy of record of previously recorded mortgage or deed of trust
may be recorded in office of secretary of the state; P.A. 79-602 divided section into Subsecs. and made
minor changes in wording, substituting "the" for "such", etc.

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Sec. 49-5a. Master mortgage recording. (a) Any instrument containing a form or forms of
covenants, conditions, obligations, powers and other clauses of a mortgage may be recorded in the land
records of any town. The town clerk shall index such instrument under the name of the person, lending
institution or corporation causing it to be recorded. Every such instrument shall be entitled on its face

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"Master form recorded by (name of person or lending institution in whose name the instrument is to be
recorded)."

(b) After the recordation any of the provisions of such master form instrument may be incorporated
by reference in any mortgage of real estate situated within such town, if such reference in the mortgage
refers to the master form instrument and states the date when and the volume and page where such
master form instrument was recorded. The recording of any mortgage which has so incorporated by
reference in it any or all of the provisions of a master form instrument recorded as provided in this
section shall have like effect as if such provisions of the master form had been set forth fully in the
mortgage.

(c) Whenever a mortgage is presented for recording on which is set forth matter purporting to be a
copy or reproduction of a master form instrument or part of it, identified by its title and recording
information as provided in subsection (a) hereof, preceded by the words "do not record" or "not to be
recorded" or words of similar import and plainly separated from the matter to be recorded as a part of
the mortgage in such manner that it will not appear on a photographic or other reproduction of any page
containing any part of the mortgage, such matter shall not be recorded by the town clerk to whom the
instrument is presented for recording. The clerk shall record only the mortgage apart from that matter
and shall not be liable for so doing, any other provisions of law to the contrary notwithstanding.

(d) The fee for recording any mortgage which has incorporated by reference any of the provisions of
a master form instrument recorded as provided by this section shall be as provided in section 7-34a but
not less than ten dollars.

(1971, P.A. 578, S. 1-4; P.A. 79-602, S. 36.)

History: P.A. 79-602 made minor changes in wording but did not make substantive changes.

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Sec. 49-5b. Required information in a mortgage contingency clause. Any mortgage contingency
clause included in a bond for deed or a written agreement for sale of real estate which conditions the
purchaser's performance on his obtaining a mortgage from a third party shall satisfy the provisions of
section 52-550 if such mortgage contingency clause contains at least the following: (1) The principal
amount in dollars of the loan the purchaser must obtain to fulfill such contingency; (2) the limit of the
time period within which a commitment for such loan must be obtained, and (3) the term of the
mortgage expressed in years.

(P.A. 76-69, S. 1, 2.)

Cited. 177 C. 569. Cited. 202 C. 566. Cited. 220 C. 553. Cited. 232 C. 294.

Cited. 23 CA 579.

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Sec. 49-6. Trust mortgages. Section 49-6 is repealed.

(1949 Rev., S. 7104; P.A. 77-614, S. 161, 610; P.A. 79-602, S. 132.)

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Sec. 49-6a. Definitions. Interim financing policy disclosure required. (a) For the purposes of this
section:

(1) "Creditor" means any state bank and trust company or national banking association, state or
federal savings bank, state or federal savings and loan association, state or federal credit union, licensed
mortgage lender, mortgage correspondent lender or other financial institution.

(2) "Mortgage loan" means a loan which is secured by a first mortgage on one to four family
residential real property located in this state;

(3) "Applicant" means any person who applies for a mortgage loan; and

(4) "Interim financing" means a short term loan, the proceeds of which are to be used by an applicant
to purchase one to four family residential real property, which is due and payable upon the sale of the
applicant's current residence.

(b) Each creditor who has a policy of not offering interim financing shall disclose such policy to the
applicant in writing in plain language at the time the mortgage loan application is filed. The applicant
shall sign the disclosure statement to acknowledge its receipt.

(P.A. 86-160; P.A. 08-176, S. 76.)

History: P.A. 08-176 redefined "creditor" in Subdiv. (1) to include "mortgage correspondent lender"
and make a conforming change, effective July 1, 2008.

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Sec. 49-6b. Definitions. For the purposes of this section and sections 49-6c and 49-6d:

(1) "Person" includes individuals, partnerships, associations, limited liability companies and
corporations;

(2) "Creditor" means any person or the assignee of any person who in the ordinary course of
business extends credit to a consumer debtor residing in this state;

(3) "Consumer debtor" means any natural person to whom credit for personal, family or household
purposes has been extended;

(4) The adjective "consumer" characterizes the transaction as one in which the party to whom credit
is offered or extended is a natural person, and the money, property or services which are the subject of

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the transaction are primarily for personal, family, or household use.

(P.A. 86-268, S. 4; P.A. 95-79, S. 172, 189.)

History: P.A. 95-79 redefined "person" to include limited liability companies, effective May 31,
1995.

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Sec. 49-6c. Notice of late fee required. Exception. A creditor shall mail to a consumer debtor a
written notice of the imposition of any delinquency charge, late fee or similar assessment as a result of a
late payment on a note, mortgage or installment sales contract unless the creditor issues a periodic
statement which may include any delinquency charge, late fee, or similar assessment. Such notice shall
be mailed within sixty days of the imposition of such charge.

(P.A. 86-268, S. 5.)

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Sec. 49-6d. Legal representation. (a) Each creditor shall notify a consumer debtor in writing when
a mortgage loan application is filed that such debtor:

(1) May have legal interests that differ from the creditor's;

(2) May not be required by the creditor to be represented by the creditor's attorney;

(3) May waive the right to be represented by an attorney;

(4) May direct any complaints concerning violations of this section to the Department of Banking.

(b) The notice shall be written in plain language and shall be signed by the consumer debtor to
acknowledge its receipt.

(P.A. 86-268, S. 6; P.A. 87-9, S. 2, 3.)

History: (Revisor's note: Pursuant to P.A. 87-9 "banking department" was changed editorially by the
Revisors to "department of banking").

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Sec. 49-7. Agreements concerning expenses and attorneys' fees. Any agreement contained in a
bill, note, trade acceptance or other evidence of indebtedness, whether negotiable or not, or in any
mortgage, to pay costs, expenses or attorneys' fees, or any of them, incurred by the holder of that

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evidence of indebtedness or mortgage, in any proceeding for collection of the debt, or in any foreclosure
of the mortgage, or in protecting or sustaining the lien of the mortgage, is valid, but shall be construed as
an agreement for fair compensation rather than as a penalty, and the court may determine the amounts to
be allowed for those expenses and attorneys' fees, even though the agreement may specify a larger sum.

(1949 Rev., S. 7193; P.A. 79-602, S. 67.)

History: P.A. 79-602 substituted "is" for "shall be" and "those", "that" or "the" for "such" where
appearing.

Cited. 120 C. 671. Imposition of attorneys fee does not render note usurious as such fee is not
interest within meaning of section 37-4. 141 C. 301. Attorneys' fees properly awarded for defense of
antitrust suit and in bankruptcy proceedings as well as for the foreclosure proceedings. 178 C. 640.

Cited. 1 CA 30.

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Sec. 49-7a. Lenders prohibited from requiring multiple original notes. No lender shall require a
borrower, as a condition of obtaining a loan, to sign multiple original notes to evidence such loan.

(P.A. 95-200.)

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Secs. 49-7b to 49-7e. Reserved for future use.

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Sec. 49-7f. Mortgage brokers and lenders prohibited from referring buyers of real property to
a real estate broker, salesperson or attorney for a fee or commission. Suspension or revocation of
licenses. (a) No mortgage broker or lender, as defined in subdivision (5) of section 49-31d, or any
person affiliated with such mortgage broker or lender shall receive a fee, commission or other form of
referral fee for the referral of any person to (1) a real estate broker, real estate salesperson, as defined in
section 20-311, or any person affiliated with such broker or salesperson or any person engaged in the
real estate business, as defined in said section 20-311, or (2) an attorney-at-law admitted to practice
within this state or any person affiliated with such attorney.

(b) Any person who violates the provisions of subsection (a) of this section shall upon a verified
complaint in writing of any person, provided such complaint, or such complaint together with evidence,
documentary or otherwise, presented in connection therewith, shall make out a prima facie case, to the
Banking Commissioner, who shall investigate the actions of any mortgage broker or lender, or any
person who assumes to act in any of such capacities within this state. The Banking Commissioner shall

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have the power temporarily to suspend or permanently to revoke any license issued under the provisions
of subpart (A) of part I of chapter 668 and, in addition to or in lieu of such suspension or revocation,
may, in the commissioner's discretion, impose a fine of not more than one thousand dollars for each
offense for any violation of the provisions of subsection (a) of this section.

(P.A. 94-240, S. 13; P.A. 96-200, S. 26; P.A. 03-84, S. 38.)

History: P.A. 96-200 amended Subsec. (a) to substitute "salesperson" for "salesman"; (Revisor's
note: In 1997 a reference in Subsec. (b) to "chapter 660a" was changed editorially by the Revisors to
"subdivision (A) of part I of chapter 668". In 2003 the reference to "subdivision (A)" was changed
editorially by the Revisors to "subpart (A)" for clarity of reference); P.A. 03-84 changed "Commissioner
of Banking" to "Banking Commissioner" and made a technical change in Subsec. (b), effective June 3,
2003.

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Sec. 49-8. Release of satisfied or partially satisfied mortgage or ineffective attachment, lis
pendens or lien. Damages. (a) The mortgagee or a person authorized by law to release the mortgage
shall execute and deliver a release to the extent of the satisfaction tendered before or against receipt of
the release: (1) Upon the satisfaction of the mortgage; (2) upon a bona fide offer to satisfy the mortgage
in accordance with the terms of the mortgage deed upon the execution of a release; (3) when the parties
in interest have agreed in writing to a partial release of the mortgage where that part of the property
securing the partially satisfied mortgage is sufficiently definite and certain; or (4) when the mortgagor
has made a bona fide offer in accordance with the terms of the mortgage deed for such partial
satisfaction on the execution of such partial release.

(b) The plaintiff or the plaintiff's attorney shall execute and deliver a release when an attachment has
become of no effect pursuant to section 52-322 or section 52-324 or when a lis pendens or other lien has
become of no effect pursuant to section 52-326.

(c) The mortgagee or plaintiff or the plaintiff's attorney, as the case may be, shall execute and deliver
a release within sixty days from the date a written request for a release of such encumbrance (1) was
sent to such mortgagee, plaintiff or plaintiff's attorney at the person's last-known address by registered or
certified mail, postage prepaid, return receipt requested, or (2) was received by such mortgagee, plaintiff
or plaintiff's attorney from a private messenger or courier service or through any means of
communication, including electronic communication, reasonably calculated to give the person the
written request or a copy of it. The mortgagee or plaintiff shall be liable for damages to any person
aggrieved at the rate of two hundred dollars for each week after the expiration of such sixty days up to a
maximum of five thousand dollars or in an amount equal to the loss sustained by such aggrieved person
as a result of the failure of the mortgagee or plaintiff or the plaintiff's attorney to execute and deliver a
release, whichever is greater, plus costs and reasonable attorney's fees.

(1949 Rev., S. 7112; 1963, P.A. 590, S. 1; 1969, P.A. 595, S. 1; P.A. 79-10; 79-602, S. 68; P.A. 89-
347, S. 18; P.A. 93-147; P.A. 95-102, S. 1; P.A. 03-19, S. 111.)

History: 1963 act applied provisions with respect to bona fide offers to satisfy mortgage wholly or
partially upon execution of release or partial release and with respect to agreements for partial release;
1969 act applied provisions when an attachment has become of no effect pursuant to Sec. 52-322 or 52-

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324 and when lis pendens or other lien has become of no effect, required that request be sent to last-
known address by registered or certified mail, postage prepaid and return receipt requested, and raised
fine from $5 to $50 per week, imposing ceiling of $1,000; P.A. 79-10 raised fine to $100 per week,
raised dollar amount of ceiling to $5,000 and provided for maximum payment of amount equal to loss
sustained because of failure to execute and deliver release, if that amount is greater; P.A. 79-602 divided
section into Subsecs. and restated provisions but made no substantive changes; P.A. 89-347 amended
Subsec. (c) by increasing liability from $100 to $200 per week for failure to provide a release and
removed the $5,000 ceiling; P.A. 93-147 amended Subsec. (c) to allow written request for release to be
conveyed, carried or delivered by a private messenger or courier; P.A. 95-102 revised wording of
Subsec. (c), changed time for release from 30 to 60 days and imposed maximum fine of $5,000 plus
costs and reasonable attorney's fees; P.A. 03-19 made technical changes in Subsecs. (a) and (c), effective
May 12, 2003.

Tender of expense held excused. 76 C. 705. No tender or offer of release need be made until debt is
paid. 93 C. 495. When mortgagor pays he is entitled to a release but not to an assignment. 95 C. 586.
Cited. 122 C. 27. Cited. 162 C. 31. Section provided new, affirmative remedy and contains no express or
implied intention to abrogate or supersede common-law remedy. Section provides additional, but not
exclusive, remedy. 172 C. 152. Cited. 196 C. 172. Cited. 223 C. 419. A breach of section's provisions is
tortious in nature and not contractual and therefore the three-year statute of limitations set forth in Sec.
52-577 is applicable. 284 C. 193.

Cited. 18 CA 313. Action founded on section sounds in tort. 94 CA 593.

This section must be construed as expressly limiting the mortgagor to total damages of one thousand
dollars in suit for damages for refusal to give a partial release of mortgage. 33 CS 41. Cited. 41 CS 130.

Subsec. (c):

Damages provision set forth in Subsec. is not akin to a liquidated damages clause but instead more
analogous to a penalty provision. 284 C. 193.

Maximum amount under statute cannot be multiplied where more than one aggrieved party. 49 CS
43.

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Sec. 49-8a. Release of mortgage. Affidavit. Recording of affidavit with town clerk. Penalty for
recording false information. (a) For the purposes of this section and section 49-10a:

(1) "Mortgage loan" means a loan secured by a mortgage on one, two, three or four family
residential real property located in this state, including, but not limited to, a residential unit in any
common interest community, as defined in section 47-202.

(2) "Person" means an individual, corporation, limited liability company, business trust, estate, trust,
partnership, association, joint venture, government, governmental subdivision or agency, or other legal
or commercial entity.

(3) "Mortgagor" means the grantor of a mortgage.

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(4) "Mortgagee" means the grantee of a mortgage; provided, if the mortgage has been assigned of
record, "mortgagee" means the last person to whom the mortgage has been assigned of record; and
provided further, if the mortgage has been serviced by a mortgage servicer, "mortgagee" means the
mortgage servicer.

(5) "Mortgage servicer" means the last person to whom the mortgagor has been instructed by the
mortgagee to send payments of the mortgage loan. The person who has transmitted a payoff statement
shall be deemed to be the mortgage servicer with respect to the mortgage loan described in that payoff
statement.

(6) "Attorney-at-law" means any person admitted to practice law in this state and in good standing.

(7) "Title insurance company" means any corporation or other business entity authorized and
licensed to transact the business of insuring titles to interests in real property in this state.

(8) "Institutional payor" means any bank or lending institution that, as part of making a new
mortgage loan, pays off the previous mortgage loan.

(9) "Payoff statement" means a statement of the amount of the unpaid balance on a mortgage loan,
including principal, interest and other charges properly assessed pursuant to the loan documentation of
such mortgage and a statement of the interest on a per diem basis with respect to the unpaid principal
balance of the mortgage loan.

(b) If a mortgagee fails to execute and deliver a release of mortgage to the mortgagor or to the
mortgagor's designated agent within sixty days from receipt by the mortgagee of payment of the
mortgage loan (1) in accordance with the payoff statement furnished by the mortgagee, or (2) if no
payoff statement was provided pursuant to a request made under section 49-10a, in accordance with a
good faith estimate by the mortgagor of the amount of the unpaid balance on the mortgage loan using
(A) a statement from the mortgagee indicating the outstanding balance due as of a date certain, and (B) a
reasonable estimate of the per diem interest and other charges due, any attorney-at-law or duly
authorized officer of either a title insurance company or an institutional payor may, on behalf of the
mortgagor or any successor in interest to the mortgagor who has acquired title to the premises described
in the mortgage or any portion thereof, execute and cause to be recorded in the land records of each
town where the mortgage was recorded, an affidavit which complies with the requirements of this
section.

(c) An affidavit pursuant to this section shall state that:

(1) The affiant is an attorney-at-law or the authorized officer of a title insurance company, and that
the affidavit is made on behalf of and at the request of the mortgagor or the current owner of the interest
encumbered by the mortgage;

(2) The mortgagee has provided a payoff statement with respect to the mortgage loan or the
mortgagee has failed to provide a payoff statement requested pursuant to section 49-10a;

(3) The affiant has ascertained that the mortgagee has received payment of the mortgage loan (A) in
accordance with the payoff statement, or (B) in the absence of a payoff statement requested pursuant to
section 49-10a, in accordance with a good faith estimate by the mortgagor of the amount of the unpaid
balance on the mortgage loan calculated in accordance with subdivision (2) of subsection (b) of this
section, as evidenced by a bank check, certified check, attorney's clients' funds account check or title

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insurance company check, which has been negotiated by the mortgagee or by other documentary
evidence of such receipt of payment by the mortgagee, including a confirmation of a wire transfer;

(4) More than sixty days have elapsed since payment was received by the mortgagee; and

(5) At least fifteen days prior to the date of the affidavit, the affiant has given the mortgagee written
notice by registered or certified mail, postage prepaid, return receipt requested, of intention to execute
and cause to be recorded an affidavit in accordance with this section, with a copy of the proposed
affidavit attached to such written notice; and that the mortgagee has not responded in writing to such
notification, or that any request for additional payment made by the mortgagee has been complied with
at least fifteen days prior to the date of the affidavit.

(d) Such affidavit shall state the names of the mortgagor and the mortgagee, the date of the
mortgage, and the volume and page of the land records where the mortgage is recorded. The affidavit
shall provide similar information with respect to every recorded assignment of the mortgage.

(e) The affiant shall attach to the affidavit (1) photostatic copies of the documentary evidence that
payment has been received by the mortgagee, including the mortgagee's endorsement of any bank check,
certified check, attorney's clients' funds account check, title insurance company check, or confirmation
of a wire transfer, and (2) (A) a photostatic copy of the payoff statement, or (B) in the absence of a
payoff statement requested pursuant to section 49-10a, a copy of a statement from the mortgagee that is
in the possession of the mortgagor indicating the outstanding balance due on the mortgage loan as of a
date certain and a statement setting out the mortgagor's basis for the estimate of the amount due, and
shall certify on each that it is a true copy of the original document.

(f) Such affidavit, when recorded, shall constitute a release of the lien of such mortgage or the
property described therein.

(g) The town clerk shall index the affidavit in the name of the original mortgagee and the last
assignee of the mortgage appearing of record as the grantors, and in the name of the mortgagors and the
current record owner of the property as grantees.

(h) Any person who causes an affidavit to be recorded in the land records of any town in accordance
with this section having actual knowledge that the information and statements therein contained are false
shall be fined not more than five thousand dollars or imprisoned not less than one year or more than five
years, or both fined and imprisoned.

(P.A. 86-341, S. 1; P.A. 95-79, S. 173, 189; 95-102, S. 2; P.A. 03-19, S. 112; 03-196, S. 21; P.A. 10-
32, S. 144.)

History: P.A. 95-79 amended Subsec. (a) to redefine "person" to include a limited liability company,
effective May 31, 1995; P.A. 95-102 amended Subsec. (a) to replace definition of "mortgage" with
"mortgage loan", amended Subsec. (b) by changing time for release from 30 to 60 days and adding
Subdiv. (2) re remedy if no payoff statement was provided pursuant to request made under Sec. 49-10a,
amended Subsec. (c) to include current owner of interest encumbered by mortgage as person who may
request affidavit, to include provision re failure to provide payoff statement requested pursuant to Sec.
49-10a, to change time for release from 30 to 60 days and require that written notice by affiant be sent to
mortgagee by registered or certified mail, postage prepaid, return receipt requested, amended Subsec. (e)
re requirements re affidavit and amended Subsec. (h) changing "knowing" to "having actual knowledge
that" and increasing penalty for false statements from $500 to $5,000 or imprisonment of not less than
one nor more than five years or both fine and imprisonment; P.A. 03-19 made technical changes in

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Subsecs. (a), (b), (c), (e) and (h), effective May 12, 2003; P.A. 03-196 amended Subsec. (a) by defining
"institutional payor" in new Subdiv. (8) and redesignating existing Subdiv. (8) as Subdiv. (9), and
amended Subsec. (b) by adding provisions re institutional payors and making technical changes,
effective July 1, 2003; P.A. 10-32 made a technical change in Subsec. (c)(1), effective May 10, 2010.

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Sec. 49-9. Release of mortgage, mechanic's lien or power of attorney. Form of instrument.
Index. Operation of executed release. (a) A mortgage of real or personal property, a mechanic's lien or
a power of attorney for the conveyance of land may be released by an instrument in writing executed,
attested and acknowledged in the same manner as deeds of land, setting forth that the mortgage,
mechanic's lien or power of attorney for the conveyance of land is discharged or that the indebtedness or
other obligation secured thereby has been satisfied. That instrument vests in the person or persons
entitled thereto such legal title as is held by virtue of the mortgage, or mechanic's lien. An instrument in
substantially the form following is sufficient for the release:

Know all Men by these Presents, That .... of .... in the county of .... and state of .... do hereby release
and discharge a certain (mortgage, mechanic's lien or power of attorney for the conveyance of land)
from .... to .... dated .... and recorded in the records of the town of .... in the county of .... and state of
Connecticut, in book .... at page ....

In Witness Whereof .... have hereunto set .... hand and seal, this .... day of ...., A.D. ....

Signed, sealed and delivered


in the presence of

(Seal)

(Acknowledgment)

(b) In the case of partial releases of mortgages as provided for in section 49-8, the instrument shall
state the extent to which the mortgage is partially released and a sufficiently definite and certain
description of that part of the property securing the mortgage which is being released therefrom.

(c) Town clerks shall note the discharge or partial release as by law provided and shall index the
record of each such instrument under the name of the releasor and of the mortgagor.

(d) A release of mortgage executed in accordance with this section shall operate to release the
interest of the releasor in the mortgage which is the subject of the release, even if such interest is, in fact,
acquired by the releasor after executing such release or does not appear of record until after the
execution of such release. Nothing in this subsection shall be construed to limit the effect of any release
of mortgage recorded before, on or after October 1, 2006.

(1949 Rev., S. 7113; 1963, P.A. 590, S. 2; 1967, P.A. 120, S. 1; P.A. 79-602, S. 69; P.A. 06-156, S.
2.)

History: 1963 act applied provisions to power of attorney for the conveyance of land, designated
previous provisions as Subsecs. (a) and (c) and inserted new Subsec. (b) re partial release of mortgages;

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1967 act removed judgment liens from purview of section; P.A. 79-602 made minor changes in
wording; P.A. 06-156 added Subsec. (d) re operation of release executed in accordance with section.

See Sec. 7-34a re town clerks' fees.

See Sec. 52-380d re release of judgment lien on real or personal property.

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Sec. 49-9a. Validation of release of mortgage. Affidavit. (a) Notwithstanding the provisions of this
chapter, a release of mortgage executed by any person other than an individual that is invalid because it
is not issued or executed by, or fails to appear in the name of the record holder of the mortgage on one,
two, three or four-family residential real property located in this state, including, but not limited to, a
residential unit in any common interest community, as defined in section 47-202, shall be as valid as if it
had been issued or executed by, or appeared in the name of, the record holder of the mortgage unless an
action challenging the validity of the release is commenced and a notice of lis pendens is recorded in the
land records of the town where the release is recorded within five years after the release is recorded,
provided an affidavit is recorded in the land records of the town where the mortgage was recorded which
states the following:

(1) The affiant has been the record owner of the real property described in the mortgage for at least
two years prior to the date of the affidavit;

(2) The recording information for the mortgage, any assignment of the mortgage and the release;

(3) Since the date of the recording of the release, the affiant has received no demand for payment of
all or any portion of the debt secured by the mortgage and has received no notice or communication that
would indicate that all or any portion of the mortgage debt remains due and owing; and

(4) To the best of the affiant's knowledge and belief, the mortgage debt has been paid in full.

(b) The provisions of subsection (a) of this section shall not apply to any release obtained by forgery
or fraud.

(P.A. 04-67, S. 1; P.A. 10-36, S. 7.)

History: P.A. 04-67 effective July 1, 2004; P.A. 10-36 made technical changes, effective July 1,
2010.

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Sec. 49-10. Assignment of mortgage debt. Form of instrument. Requirements. Sufficient notice
of assignment. Operation of executed assignment. (a) As used in this section, "mortgage debt" means
a debt or other obligation secured by mortgage, assignment of rent or assignment of interest in a lease.

(b) Whenever any mortgage debt is assigned by an instrument in writing containing a sufficient

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description to identify the mortgage, assignment of rent or assignment of interest in a lease, given as
security for the mortgage debt, and that assignment has been executed, attested and acknowledged in the
manner prescribed by law for the execution, attestation and acknowledgment of deeds of land, the title
held by virtue of the mortgage, assignment of rent or assignment of interest in a lease, shall vest in the
assignee. An instrument substantially in the following form is sufficient for such assignment:

Know all Men by these Presents, That .... of .... in the county of .... and state of .... does hereby grant,
bargain, sell, assign, transfer and set over a certain (mortgage, assignment of rent or assignment of
interest in a lease) from .... to .... dated .... and recorded in the records of the town of .... county of .... and
state of Connecticut, in book .... at page ....

In Witness Whereof .... have hereunto set .... hand and seal, this .... day of .... A.D. ....

Signed, sealed and delivered


in the presence of

(Seal)

(Acknowledged)

(c) In addition to the requirements of subsection (b) of this section, whenever an assignment of any
residential mortgage loan (1) made by a lending institution organized under the laws of or having its
principal office in any other state, and (2) secured by mortgage on residential real estate located in this
state is made in writing, the instrument shall contain the name and business or mailing address of all
parties to such assignment.

(d) If a mortgage debt is assigned, a party obliged to pay such mortgage debt may discharge it, to the
extent of the payment, by paying the assignor until the party obliged to pay receives sufficient notice in
accordance with subsection (f) of this section that the mortgage debt has been assigned and that payment
is to be made to the assignee. In addition to such notice, if requested by the party obliged to pay, the
assignee shall furnish reasonable proof that the assignment has been made, and until the assignee does
so, the party obliged to pay may pay the assignor. For purposes of this subsection, "reasonable proof"
means (1) written notice of assignment signed by both the assignor and the assignee, (2) a copy of the
assignment instrument, or (3) other proof of the assignment as agreed to by the party obliged to pay such
mortgage debt.

(e) If a mortgage debt is assigned, a party obliged to pay such mortgage debt who, in good faith and
without sufficient notice of the assignment in accordance with subsection (f) of this section, executes
with the assignor a modification or extension of the mortgage, assignment of rent or assignment of
interest in a lease, shall have the benefit of such modification or extension, provided, the assignee shall
acquire corresponding rights under the modified or extended mortgage, assignment of rent or assignment
of interest in a lease. The assignment may provide that modification or extension of the mortgage,
assignment of rent or assignment of interest in a lease, signed by the assignor after execution of the
assignment, is a breach by the assignor of the assignor's contract with the assignee.

(f) Notice of assignment is sufficient for purposes of subsections (d) and (e) of this section if the
assignee notifies a party obliged to pay the mortgage debt (1) by mailing to the party obliged to pay, at
the party's last billing address, a notice of the assignment identifying the instrument and mortgage debt
assigned, the party obliged to pay such debt, the names of the assignor and assignee, the date of the
assignment, and the name and address of the person to whom payments should be made, (2) by giving
notice of the assignment pursuant to 12 USC Section 2605, Section 6 of the federal Real Estate

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Settlement Procedures Act of 1974 and the regulations promulgated pursuant to said section, as from
time to time amended, or (3) by giving actual notice of the assignment, reasonably identifying the rights
assigned, in any other manner. No signature on any such notice is necessary to give sufficient notice of
the assignment under this subsection and such notice may include any other information.

(g) Recordation of an assignment of mortgage debt is not sufficient notice of the assignment to the
party obliged to pay for purposes of subsection (d) or (e) of this section.

(h) An assignment executed in accordance with this section shall operate to assign the interest of the
assignor in the mortgage which is the subject of the assignment, even if such interest is, in fact, acquired
by the assignor after executing such assignment or does not appear of record until after the execution of
such assignment. Nothing in this subsection shall be construed to limit the effect of any assignment of
mortgage debt recorded before, on or after October 1, 2006.

(1949 Rev., S. 7114; P.A. 75-24; P.A. 79-602, S. 70; P.A. 83-564, S. 1; P.A. 98-147, S. 1; June Sp.
Sess. P.A. 98-1, S. 88; P.A. 06-156, S. 3.)

History: P.A. 75-24 applied provisions with respect to assignment of rent or assignment of interest in
lease and added form for instrument of assignment; P.A. 79-602 substituted "is" for "shall be" and "that"
or "the" for "such" where appearing; P.A. 83-564 added Subsec. (b) concerning the assignment of
residential mortgage loans; P.A. 98-147 added new Subsec. (a) defining "mortgage debt", redesignated
existing Subsecs. (a) and (b) as Subsecs. (b) and (c), and added new Subsecs. (d), (e), (f) and (g)
requiring sufficient notice of assignment by assignee and reasonable proof of assignment before party
obliged to pay assignee; June Sp. Sess. P.A. 98-1 made technical changes in Subsec. (c); P.A. 06-156
added Subsec. (h) re operation of assignment executed in accordance with section.

See Sec. 7-34a re town clerks' fees.

Cited. 121 C. 267. Assignment held valid even though assignee gave no consideration and did not
know of assignment until after the death of the assignor. 148 C. 466. Cited. 202 C. 566.

Cited. 2 CA 98. Section does not indicate that a flaw in the instrument or its recordation would make
it inadmissible as evidence. 51 CA 733. Assignment of note evidencing a debt automatically carries with
it assignment of the mortgage even when mortgage is in the hands of another. 52 CA 374.

Validating act of 1933 cured the assignment of a mortgage which was defective because it was not
under seal. 3 CS 321.

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Sec. 49-10a. Request for payoff statement or reinstatement payment statement. (a) A mortgagee
shall, upon written request of the mortgagor or the mortgagor's attorney or other authorized agent
provide a payoff statement or reinstatement payment statement in writing to the person requesting the
payoff statement or reinstatement payment statement on or before the date specified in such request,
provided such request date is at least seven business days after the date of receipt of the written request.
If the request is made in connection with a default, the mortgagor's attorney may make such written
request directly to the mortgagee, provided such written request contains a representation that the person
requesting the payoff statement or reinstatement payment statement is the mortgagor's attorney and that

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the mortgagor has authorized the request.

(b) If the mortgagee fails to provide the payoff statement or reinstatement payment statement on or
before such request date, the mortgagee shall not be entitled to the payment of any interest on the
mortgage loan which is secured by such mortgage which accrues after the expiration of such request
date. If the mortgagee provides the payoff statement or reinstatement payment statement to the person
requesting such statement after the expiration of such request date, interest on the mortgage loan which
accrues after the receipt of the payoff statement or the reinstatement payment statement by the person
who has requested it shall again be payable. The burden of proof shall be on the mortgagor with respect
to the receipt by the mortgagee of the mortgagor's request for a payoff statement or a reinstatement
payment statement of the mortgage loan, and thereafter shall be on the mortgagee with respect to the
receipt of the payoff statement or reinstatement payment statement by the mortgagor or the mortgagor's
attorney or other authorized agent.

(c) The mortgagee shall not impose any fee or charge for the first payoff statement or reinstatement
payment statement requested within a calendar year, unless the mortgagor or the mortgagor's attorney or
other authorized agent requests expedited delivery of such statement, agrees to pay a fee for such
expedited delivery and the statement is provided by the agreed upon date.

(d) For the purposes of this section, "reinstatement payment statement" means a statement setting
forth the total sum owed by a mortgagor to a mortgagee, which, if paid, will cause the loan to be
reinstated, provided any other contractual conditions for reinstatement are satisfied.

(e) Nothing in this section shall create an obligation on the part of the mortgagee to provide a
reinstatement payment statement if a right to cure the payment default and reinstate the mortgage loan
does not exist under the mortgage loan documents or at law.

(P.A. 83-564, S. 2; P.A. 86-341, S. 2; P.A. 95-102, S. 3; P.A. 01-34, S. 15; P.A. 07-210, S. 2; P.A.
08-58, S. 1.)

History: P.A. 86-341 deleted former provisions and added new provision re request for payoff
statement for mortgage on real estate located in this state which has been assigned; P.A. 95-102 deleted
condition limiting applicability of provisions to assignments of mortgages on real estate located within
state; P.A. 01-34 added provisions re fee or charge for the first payoff statement provided in a calendar
year; P.A. 07-210 inserted Subsec. designators (a), (b) and (c), amended Subsec. (a) to make technical
changes and add provision authorizing mortgagor's attorney to make written request directly to
mortgagee if request is made in connection with a default and contains a representation that the requester
is mortgagor's attorney and mortgagor has authorized request, and amended Subsec. (b) to make
technical changes; P.A. 08-58 added provisions re reinstatement payment statements, made conforming
changes, amended Subsec. (a) to change request date requirement from 10 to 7 business days and added
Subsec. (d) re definition of "reinstatement payment statement" and Subsec. (e) re limitation on provision
of reinstatement payment statement when right to cure payment default and reinstate mortgage loan does
not exist.

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Sec. 49-10b. Residential real estate transaction involving payoff of mortgage loan. Disclosure
statement prepared and sent to mortgage holder by notification agent. Form. (a) For the purposes

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of this section:

(1) "Date of completion of the closing" means the date that payoff funds become available for
transmittal to the mortgage holder.

(2) "Notification agent" means: (A) The buyer's attorney, where the buyer is represented by an
attorney and the seller is represented by a separate attorney who assumes the responsibility for
transmitting the mortgage payoff funds to the mortgage holder; (B) the new lender, in a refinance
situation where the attorney representing the mortgagor is also the attorney representing the new lender;
(C) the seller, where the seller is not represented by an attorney and the attorney representing the buyer
has taken the responsibility for transmitting the payoff funds to the mortgage holder; or (D) the seller's
attorney, where the buyer is represented by a separate attorney who assumes the responsibility for
disbursing the mortgage payoff funds to the mortgage holder;

(3) "Mortgage holder" or "holder of the mortgage" means the owner of the mortgage or the mortgage
servicer as set forth in the mortgage payoff letter provided to the notification agent;

(4) "Residential real estate transaction" means any real estate transaction involving a one-to-four
family dwelling.

(b) At any residential real estate transaction involving the payoff of a mortgage loan, a disclosure
statement shall be prepared by the notification agent and shall be sent by the notification agent by
certified mail, return receipt requested or by confirmed facsimile transmission or by overnight carrier, to
the holder of the mortgage which is to be paid off, within two business days from the date of completion
of the closing. The disclosure statement shall include a copy of the payoff statement or other written
authorization provided by the mortgage holder. The person or entity charged with the responsibility of
securing the mortgage payoff statement shall transmit a copy of such payoff statement in a timely
manner to the notification agent but, in any event, not later than the date of closing. To the extent not
shown on the payoff statement, the disclosure statement shall identify the mortgage, the names of the
mortgagors or borrowers, the loan number, the property address and the date of completion of the
closing. The disclosure statement shall direct that, if funds are not received by the mortgage holder
within five business days from the date of completion of the closing, notice of that fact shall be given to
the notification agent. Such statement shall include the name, address, telephone and fax number, if
available, of the notification agent. Such disclosure statement may be in substantially the following
form:

NOTIFICATION

Please be advised that a loan from ..., (lender) to .... (mortgagor) dated .... and recorded in the land
records in the town of .... in volume .... at page .... bearing loan number .... secured by a mortgage on ....
(address), or as otherwise shown on the attached payoff statement, was paid at closing on .... (date of
completion of the closing). If you do not receive the mortgage payoff funds within five business days of
the date of completion of the closing, you are directed to notify this office immediately as follows:

Notification agent's name ....


Address ....
Telephone number ....
Fax number ....

(P.A. 97-267, S. 2; P.A. 98-49.)

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History: P.A. 98-49 amended Subsec. (a) by adding definition of "date of completion of the closing"
and amended Subsec. (b) by deleting requirement that disclosure statement shall be executed by all
parties or their attorneys, permitting disclosure statement to be sent by confirmed facsimile transmission,
changing "mortgage lender" to "mortgage holder" and "pay off date" to "date of completion of the
closing" (Revisor's note: Opening and closing parentheses were inserted editorially by the Revisors
around the words "date of completion of the closing" in the notification form in Subsec. (b)).

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Sec. 49-11. Release of mortgage by executor, administrator, spouse, next of kin, guardian,
conservator or other suitable person. The executor of the will or administrator of the estate of any
deceased mortgagee, or the spouse or next of kin, or other suitable person whom the court considers to
have a sufficient interest, to whom a decree is issued under section 45a-273, and any guardian whose
ward, or conservator whose conserved person, as defined in section 45a-644, is a mortgagee, may, on
the payment, satisfaction or sale of the mortgage debt, release the legal title to the party entitled thereto.

(1949 Rev., S. 7115; P.A. 79-193, S. 2; P.A. 80-483, S. 131, 186; P.A. 81-82, S. 2; P.A. 07-116, S.
30.)

History: P.A. 79-193 authorized spouse or next of kin to release legal title; P.A. 80-483 made slight
change in wording for clarity; P.A. 81-82 permitted any suitable person deemed to have a sufficient
interest by the court to release a mortgage of a deceased mortgagee; P.A. 07-116 substituted "considers"
for "deems", added "or conservator whose conserved person, as defined in section 45a-644" and made a
conforming change.

Mortgage title does not revest by payment of mortgage money after law day. 17 C. 146. Under this
section part of the land may be released on payment of part of the debt. 50 C. 266.

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Sec. 49-12. Release of mortgage by foreign executor, administrator, trustee, conservator or


guardian. The executor of the will or the administrator or trustee of the estate of any deceased
nonresident, or the conservator or guardian of any nonresident person, may, by a release or assignment
executed in the manner required for the execution of instruments conveying title to real estate in this
state, release or assign any mortgage of real estate held by such deceased or nonresident person in this
state, provided the executor, administrator, trustee, guardian or conservator shall file for record, with the
town clerk of the town in which the real estate is situated, a certificate of his appointment and
qualification, issued by the court having jurisdiction of the settlement of the estate of the deceased or the
estate of the nonresident person.

(1949 Rev., S. 7116; 1953, S. 2953d; P.A. 79-602, S. 71.)

History: P.A. 79-602 substituted "the" for "such" where appearing.

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Contents) Chapters) Titles)

Sec. 49-13. Petition for discharge of mortgage or ineffective attachment, lis pendens or lien. (a)
When the record title to real property is encumbered (1) by any undischarged mortgage, and (A) the
mortgagor or those owning the mortgagor's interest therein have been in undisturbed possession of the
property for at least six years after the expiration of the time limited in the mortgage for the full
performance of the conditions thereof, and for six years next preceding the commencement of any action
under this section, or (B) the promissory note or other written evidence of the indebtedness secured by
the mortgage is payable on demand and seventeen years have passed without any payment on account of
such note or other written evidence of indebtedness, or (C) the mortgage does not disclose the time when
the note or indebtedness is payable or disclose the time for full performance of the conditions of the
mortgage and ten years have passed without any payment on account of the promissory note or other
written evidence of indebtedness, or (D) the note or evidence of indebtedness has been paid or a bona
fide offer and tender of the payment has been made pursuant to section 49-8, or (E) the mortgage has
become invalid, and in any of such cases no release of the encumbrance to secure such note or evidence
of indebtedness has been given, or (2) by a foreclosed mortgage and the mortgagor has made a bona fide
offer and tender of payment of the foreclosure judgment on or before the mortgagor's law day and the
mortgagee has refused to accept payment, or (3) by an attachment, lis pendens or other lien which has
become of no effect, the person owning the property, or the equity in the property, may bring a petition
to the superior court for the judicial district in which the property is situated, setting forth the facts and
claiming a judgment as provided in this section. The plaintiff may also claim in the petition damages as
set forth in section 49-8 if the plaintiff is aggrieved by the failure of the defendant to execute the release
prescribed in said section.

(b) The petition shall be served upon all persons interested in the mortgage, attachment, lis pendens
or other lien in the manner provided by law for process in civil actions and, in any action where the
parties who may have an interest in the property and should be made parties thereto cannot be located by
and are unknown to the petitioner in the action, the petitioner or the petitioner's attorney shall annex to
the petition in the action an affidavit stating that the petitioner does not know who the interested parties
are or where they reside, or, if the party interested in the property is a corporation whose corporate
existence has been legally terminated, or the corporation is no longer in existence or doing business, and
the petitioner or the petitioner's attorney states that fact in an affidavit, the court to which the action is
brought or the clerk, assistant clerk or any judge thereof may make such order relative to the notice
which shall be given in the cause as the court, clerk, assistant clerk or judge deems reasonable.

(c) Such notice having been given according to the order and duly proven, the court may proceed to
a hearing of the cause at such time as it deems proper, and, if no evidence is offered of any payment on
account of the debt secured by the mortgage within a period set out in subsection (a) of this section, or
of any other act within such a period as provided in said subsection (a) in recognition of its existence as
a valid mortgage, or if the court finds the mortgage has been satisfied but no release given as evidence of
such satisfaction, or if the court finds that a bona fide offer and tender of payment of the foreclosure
judgment or mortgage has been made and refused, or if the court finds the attachment, lis pendens or
other lien has become of no effect, the court may render a judgment reciting the facts and its findings in
relation thereto and declaring the mortgage, foreclosure judgment, attachment, lis pendens or other lien
invalid as a lien against the real estate, and may order payment of any balance of indebtedness due on
the mortgage or foreclosure judgment to the clerk of the court to be held for the benefit of the mortgagee
or the persons interested and to be paid to the mortgagee by the clerk of the court upon application of the
mortgagee or persons interested following the execution of a release of mortgage.

(d) Upon deposit of the balance of indebtedness with the clerk, such judgment shall issue, which

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judgment shall, within thirty days thereafter, be recorded in the land records of the town in which the
property is situated, and the encumbrance created by the mortgage, foreclosure judgment, attachment, lis
pendens or other lien shall be null and void and totally discharged. The town clerk of the town in which
the real estate is situated shall, upon the request of any person interested, record a discharge of such
encumbrance in the land records.

(1949 Rev., S. 7123; 1959, P.A. 425; 1969, P.A. 595, S. 2; 1971, P.A. 536; P.A. 78-280, S. 2, 127;
P.A. 79-602, S. 72; P.A. 95-102, S. 4; P.A. 03-74, S. 1; P.A. 09-213, S. 5.)

History: 1959 act added provision re invalidity of mortgage as lien against real estate when title
remains encumbered by undischarged mortgage and mortgagor or those owning his interest have been in
possession of property for 60 years after time limited in mortgage for performance of its conditions;
1969 act clarified provisions re passage of 17 years, re failure to give release and re attachments, lis
pendens or other liens of no effect and deleted provision added by 1959 act; 1971 act added provisions
re foreclosure and clarified provisions re court action; P.A. 78-280 replaced "county" with "judicial
district"; P.A. 79-602 divided section into Subsecs. and restated provisions but made no substantive
changes; P.A. 95-102 changed requirement of undisturbed possession from 17 to 6 years and made
technical changes; P.A. 03-74 amended Subsec. (a)(1)(C) by changing time period from 17 years to 10
years and made technical changes; P.A. 09-213 amended Subsec. (d) to replace requirement that town
clerk "endorse on the record of the encumbrance or lien the words `discharged by judgment of the
Superior Court', and list the volume and page number in the land records where the judgment is
recorded" with requirement that town clerk "record a discharge of such encumbrance in the land
records".

See Sec. 7-34a re town clerks' fees.

Does not declare mortgage invalid; merely gives court right to declare it invalid under proper
circumstances. 131 C. 38. This is not a statute of limitations. Id. Plaintiff held entitled to have mortgage
declared invalid. 134 C. 420. Cited. 140 C. 474. Statute does not apply to those who recognize existence
and validity of encumbering mortgage. 156 C. 49. Inequitable release of lis pendens, when. 162 C. 26.
The procedure used by defendant in seeking to have his lis pendens discharged and the granting by the
court of defendant's motion does not meet the essential conditions prescribed. 165 C. 675. Cited. 188 C.
477. Cited. 223 C. 419.

It is six years of undisturbed possession that is crucial to obtaining relief under section, not six years
of possession by one owner; therefore tacking prior owner's period of possession to party's period of
possession is permitted to fulfill the six-year requirement. 81 CA 808.

Cited. 16 CS 257.

Subsec. (c):

Because plaintiffs' properties were not encumbered by the notices of lis pendens, they could not
properly invoke court's authority under Subsec. to discharge the lis pendens as liens against the
properties. 77 CA 276.

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Sec. 49-13a. Undischarged mortgage invalid as further lien. Time periods. Tolling of time
period by recording notice. (a) When record title to real property remains encumbered by any
undischarged mortgage, and the mortgagor or those owning the mortgagor's interest therein have been in
undisturbed possession of the property for at least twenty years after the expiration of the time limited in
the mortgage for the full performance of the conditions thereof, or for at least forty years from the
recording of the mortgage if the mortgage does not disclose the time when the note or indebtedness is
payable or the time for full performance of the conditions of the mortgage, unless a notice is recorded
pursuant to subsection (b) of this section, the mortgage shall be invalid as a further lien against the real
property, provided an affidavit, subscribed and sworn to by the party in possession, stating the fact of
such possession, is recorded on the land records of the town in which the property is situated.

(b) The record holder of an undischarged mortgage on real property may, prior to the expiration of
the applicable time period specified in subsection (a) of this section, record a notice, on the land records
of the town in which the property is situated, that contains: (1) The name or names of the mortgagors;
(2) the recording information for the mortgage and any assignment of the mortgage; and (3) a statement
of the reasons why the mortgage is valid and effective. Upon the recording of such notice in accordance
with this subsection, the applicable time period after which the mortgage shall be invalid as a further lien
against the real property as provided in subsection (a) of this section shall be tolled for a period of ten
years from the recording of such notice. Any such notice shall be indexed in the grantor's index under
the name or names of the mortgagors and in the grantee's index under the name of the record holder of
the mortgage.

(1969, P.A. 595, S. 3; P.A. 79-602, S. 73; P.A. 95-102, S. 5; P.A. 06-156, S. 4.)

History: P.A. 79-602 substituted "the" for "such" where appearing; P.A. 95-102 required 40 rather
than 60 years of undisturbed possession and deleted reference to "presumed" invalidity of mortgage;
P.A. 06-156 designated existing provisions as Subsec. (a) and amended same by replacing 40 years with
20 years re expiration of time limited in mortgage for full performance, adding provision re 40-year time
period if mortgage does not disclose time payable or for full performance, inserting provision re notice
recorded pursuant to Subsec. (b) and making technical changes, and added Subsec. (b) re tolling of
applicable time period by recording notice.

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Sec. 49-14. Deficiency judgment. (a) At any time within thirty days after the time limited for
redemption has expired, any party to a mortgage foreclosure may file a motion seeking a deficiency
judgment. Such motion shall be placed on the short calendar for an evidentiary hearing. Such hearing
shall be held not less than fifteen days following the filing of the motion, except as the court may
otherwise order. At such hearing the court shall hear the evidence, establish a valuation for the
mortgaged property and shall render judgment for the plaintiff for the difference, if any, between such
valuation and the plaintiff's claim. The plaintiff in any further action upon the debt, note or obligation,
shall recover only the amount of such judgment.

(b) Upon the motion of any party and for good cause shown, the court may refer such motion to a
state referee, who shall have and exercise the powers of the court with respect to trial, judgment and
appeal in such case.

(c) Any party to a mortgage foreclosure who has moved for an appraisal of property for the purpose

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of obtaining a deficiency judgment, but has not been granted a deficiency judgment, or has not received
full satisfaction of any deficiency judgment obtained subsequent to the filing of such motion, may make
a motion to the court for a deficiency judgment as set forth in subsection (a) of this section. If such
motion is made on or before November 1, 1979, such moving party shall be deemed to have complied
with all of the requirements of subsection (a) of this section and shall be entitled to the benefit of any
deficiency judgment rendered pursuant to said subsection (a).

(d) Any appeal pending in the Supreme Court with regard to any deficiency judgment or proceedings
relating thereto shall be stayed until a hearing is held pursuant to subsection (a) of this section. Any
appellant in such an appeal shall have the right for a period of thirty days after the rendering of judgment
pursuant to subsection (a) of this section to amend his appeal. There shall be no stay of such an appeal if
no motion has been filed pursuant to this section on or before November 1, 1979.

(1949 Rev., S. 7195; P.A. 79-110, S. 1, 2.)

History: P.A. 79-110 entirely replaced previous provisions re appraisal of property and use of
appraised value in determining awards to mortgage creditor and plaintiff in foreclosure proceedings.

A mortgage may be foreclosed for interest overdue on the mortgage note, where the principal is not
yet due. 45 C. 159. Appraisers should report whole value of mortgaged property without reference to
prior mortgages. 50 C. 292. Where creditor had a mortgage and a judgment lien on different lands for
the same debt, debtor could not have appraisal of mortgaged property, and collection of balance of debt
only from lien property; this section is not applicable. 54 C. 106. This remedy for collection of
deficiency not exclusive. 55 C. 443; 91 C. 587; 102 C. 648; 109 C. 329; 128 C. 695. Effect of
requirement as to crediting one-half the difference between the appraisal and the debt upon rights of
subsequent mortgages. 89 C. 103. Deficiency judgment not proper if appraisal exceeds debt; reduction
in value by prior encumbrances must be pleaded. 90 C. 618. If all three appraisers consider appraisal,
and two concur in written report, statute is satisfied. 107 C. 275. However, all appraisers must have
opportunity to participate in consideration of appraisal. 111 C. 492. Applies to purchase money
mortgage. 116 C. 332. Appraisers act in quasi-judicial capacity and their report is final. 107 C. 272; 116
C. 333; However, a remonstrance will lie against their report for irregularity. 117 C. 239; 122 C. 455.
Appraisal may not be made before the law day. 118 C. 570. Cited. 120 C. 671. Principles governing
appraisal and limited function of court on review of same. 122 C. 455. Mistake of single appraiser
insufficient to invalidate appraisal reached by all three. Id., 458. Date title vests in plaintiff controlling.
Id., 459. Under former statute, judgment rendered after ninety days erroneous unless objection waived.
123 C. 583. Amount of deficiency against purchaser giving second mortgage as affected by his failure to
assume first mortgage. 124 C. 604. Cited. 128 C. 693. Cited. 133 C. 154. Cited. 153 C. 274. Fact that
statute does not require appraisers to hold hearings and receive evidence not violative of due process.
Id., 292, 293. Trial court not in error in refusing to deduct from appraised value a contingent sewer
assessment in such amount as should ultimately be determined to be due upon completion of the
constructions. Id., 457. Appointment of appraisers pursuant to this statute necessary to obtain a
deficiency judgment. Section 49-1 does not affect this section. 154 C. 216. Cited. 168 C. 554. To
determine property value, statute does not bar court-appointed appraiser from consulting outside
sources, including text books, public records and realtors or professional appraisers. 174 C. 77. Cited.
Id., 268. Section held unconstitutional since it provides no statutory hearing and defendant deprived of
right to be heard at a meaningful time and in a meaningful manner; violative of due process clauses of
both state and federal constitutions. 176 C. 563. Cited. Id., 578. Cited. 180 C. 71. Cited. 183 C. 85.
Cited. 184 C. 569. Cited. 190 C. 60. By its terms statute applicable only to claims by foreclosing
plaintiffs. 199 C. 368. Cited. 216 C. 443. Cited. 222 C. 784. Cited. 227 C. 270. Cited. 228 C. 766; Id.,
929. Cited. 233 C. 153. Cited. 241 C. 269. Statute applies only where title has vested in a foreclosing
plaintiff. Because plaintiff did not acquire possession of units in foreclosure action, trial court in that

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action could not have made required determination that value of units was insufficient to satisfy
plaintiff's debt. 247 C. 575. Deficiency judgment provisions of section do not apply to tax lien
foreclosure actions brought pursuant to Sec. 12-181. 255 C. 379. Deficiency judgment rendered pursuant
to this section may be obtained in judgment lien foreclosure actions pursuant to Sec. 52-380a(c). Id.
Deficiency judgment rendered pursuant to this section may be obtained in condominium lien foreclosure
actions pursuant to Sec. 47-258(j). Id.

The fact that this statute makes no provision for attorneys' fees is not controlling. The mandate of
Sec. 49-7 is crystal clear so that such provision in this statute would be unnecessary and repetitive. Legal
fees for services not yet performed discussed. 1 CA 30. Cited. 4 CA 426. Cited. 6 CA 691. Cited. 19 CA
291. Cited. 20 CA 638. Cited. 23 CA 266; Id., 159. Cited. 28 CA 809. Cited. 31 CA 1; Id., 80; Id., 260;
Id., 266; Id., 476; Id., 621. Cited. 32 CA 309. Cited. 33 CA 388; Id., 401. Cited. 34 CA 204. Cited. 35
CA 81. Cited. 38 CA 198. Cited. 39 CA 684; Id., 829. Cited. 40 CA 115. Cited. 41 CA 324. Cited. 44
CA 439; Id., 588. In determining value, trier must consider everything that might legitimately affect
value; failure requires a new deficiency hearing. 49 CA 452. Statute does not preclude recovery where a
foreclosing mortgagee complies with the statutory provisions and seeks a deficiency judgment against
guarantor who is obligated pursuant to a limited guarantee. 70 CA 341.

Rule of People's Holding Co. v. Bray, 118 C. 568, upheld. 1 CS 45. A remonstrance to such a report
alleging an irregularity as a matter of law should be joined by demurrer or answer. 3 CS 232. Cited. Id.,
261. In the third sentence, the word "may" is permissive and not mandatory except as to the period of
time in which the appraisal is to be made. Purpose of appraisal. Id., 395. No particular form for
appraiser's oath is provided. 4 CS 427. The action of two of the three appraisers acting without notice to
the third could not make a legal determination of the value unless the third appraiser had knowledge of
the meeting and an opportunity to be present. 5 CS 358. The fact that both causes, one seeking
foreclosure and one on the mortgage debt, can be brought in one proceeding takes nothing away from
the fundamental distinction between them. The complaint must allege facts descriptive of the essential
elements of an action in equity in rem and one in personam at law. 6 CS 121. Appraisal made before
time limited for redemption is invalid. Id., 398. On motion for deficiency judgment following
foreclosure, it was not a valid objection that the report of the appraisers failed to give any indication that
its compilation followed a public hearing, the reception of testimony or notice to the defendant. 12 CS
402. Section, to extent that it permits deficiency judgment, is in derogation of common law. It becomes
increasingly more suspect as violative of due process clause. Since its appraisal provisions are for
benefit of mortgagor, it must therefore be strictly construed. 34 CS 147. Cited. 41 CS 587.

Subsec. (a):

Application of procedures of this section effectively and constitutionally empowered by Sec. 49-14
(d). 184 C. 569. Pursuant to Sec. 52-380a(c) provisions of this section concerning deficiency judgments
apply to strict foreclosures on judgment liens. 220 C. 643. Thirty-day time limitation is inapplicable to
motion for deficiency judgment following a judgment of foreclosure by sale. 222 C. 784. Cited. 234 C.
905. Cited. 237 C. 378.

Cited. 25 CA 159. Cited. 37 CA 423.

Cited erroneously as Sec. 49-14a. 42 CS 302.

Subsec. (d):

This section effectively and constitutionally empowered the trial court to apply the procedures of
Sec. 49-14(a). 184 C. 569.

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Sec. 49-15. Opening of judgments of strict foreclosure. (a)(1) Any judgment foreclosing the title
to real estate by strict foreclosure may, at the discretion of the court rendering the judgment, upon the
written motion of any person having an interest in the judgment and for cause shown, be opened and
modified, notwithstanding the limitation imposed by section 52-212a, upon such terms as to costs as the
court deems reasonable, provided no such judgment shall be opened after the title has become absolute
in any encumbrancer except as provided in subdivision (2) of this subsection.

(2) Any judgment foreclosing the title to real estate by strict foreclosure may be opened after title
has become absolute in any encumbrancer upon agreement of each party to the foreclosure action who
filed an appearance in the action and any person who acquired an interest in the real estate after title
became absolute in any encumbrancer, provided (A) such judgment may not be opened more than four
months after the date such judgment was entered or more than thirty days after title became absolute in
any encumbrancer, whichever is later, and (B) the rights and interests of each party, regardless of
whether the party filed an appearance in the action, and any person who acquired an interest in the real
estate after title became absolute in any encumbrancer, are restored to the status that existed on the date
the judgment was entered.

(3) If a judgment is opened pursuant to this subsection, the person who filed the written motion
pursuant to subdivision (1) of this subsection shall record a certified copy of the court's order to open
such judgment on the land records in the town in which the real estate is situated.

(b) Upon the filing of a bankruptcy petition by a mortgagor under Title 11 of the United States Code,
any judgment against the mortgagor foreclosing the title to real estate by strict foreclosure shall be
opened automatically without action by any party or the court, provided, the provisions of such
judgment, other than the establishment of law days, shall not be set aside under this subsection, provided
no such judgment shall be opened after the title has become absolute in any encumbrancer or the
mortgagee, or any person claiming under such encumbrancer or mortgagee. The mortgagor shall file a
copy of the bankruptcy petition, or an affidavit setting forth the date the bankruptcy petition was filed,
with the clerk of the court in which the foreclosure matter is pending. Upon the termination of the
automatic stay authorized pursuant to 11 USC 362, the mortgagor shall file with such clerk an affidavit
setting forth the date the stay was terminated.

(1949 Rev., S. 7196; 1967, P.A. 286; P.A. 75-11; P.A. 79-602, S. 75; P.A. 02-93, S. 2; P.A. 03-202,
S. 9; P.A. 04-127, S. 6; 04-257, S. 76; P.A. 09-209, S. 37.)

History: 1967 act deleted provision which specified that modification of foreclosure judgment is to
be made "at the same term or the term next following that at which it was rendered"; P.A. 75-11
specified that modification of judgment may be made "notwithstanding that the term of court may have
expired"; P.A. 79-602 replaced reference to expiration of term of court with reference to limitation
imposed by Sec. 52-212a; P.A. 02-93 designated existing provisions as Subsec. (a) and added Subsec.
(b) re automatic opening of judgment of strict foreclosure upon the filing of a bankruptcy petition by the
mortgagor, effective June 3, 2002; P.A. 03-202 amended Subsec. (b) by adding provisions re the filing
of a copy of the bankruptcy petition and affidavits by the mortgagor; P.A. 04-127 amended Subsec. (b)
by deleting reference to Chapter 13 and making a technical change; P.A. 04-257 made a technical
change in Subsec. (b), effective June 14, 2004; P.A. 09-209 designated existing provisions of Subsec. (a)

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as Subsec. (a)(1), added Subsec. (a)(2) and (3) re opening judgments of strict foreclosure, and made
technical changes.

Error in opening judgment after law day may be waived. 115 C. 623. Petition for new trial by way of
equitable relief after law day has passed. 118 C. 226; 128 C. 700. Plaintiff may move to open judgment
if appropriation on day prejudicial or undesirable. 120 C. 26. Reopening as affected by bankruptcy
proceedings. 123 C. 9. Whether or not "term" is construed to mean "session" immaterial. Id. Denial of
motion to reopen correct when title had become absolute in plaintiff. 124 C. 610. In absence of waiver
reopening after law day erroneous. 128 C. 700. Cited. 130 C. 77. Title held not absolute in any
encumbrancer so as to nullify court's right to open judgment. 137 C. 277. Cited. 179 C. 246. Cited. 181
C. 141; Id., 367. Cited. 187 C. 333. Cited. 193 C. 128. Cited. 216 C. 341. Cited. 219 C. 314. Appellate
court should have found abuse of discretion in trial court's refusal to implement purpose of statute;
judgment of appellate court in Society for Savings v. Stramaglia, 25 CA 688, reversed. 225 C. 105.
Section did not deprive trial court of jurisdiction to exercise its equitable discretion to open the judgment
of strict foreclosure to correct an inadvertent omission in mortgage foreclosure complaint; judgment
reversed. 244 C. 251.

Cited. 3 CA 508. Cited. 10 CA 160. Cited. 20 CA 163. Cited. 22 CA 396; Id., 468. Cited. 24 CA 42;
Id., 469; Id., 688. Cited. 29 CA 508; Id., 541; Id., 628. Cited. 30 CA 541. Cited. 31 CA 1; Id., 80; Id.,
621. Cited. 33 CA 401. Cited. 40 CA 115. Cited. 44 CA 588. Trial court action will not be disturbed on
appeal unless a clear abuse of discretion. 48 CA 807. Legislature intended the phrase "after the title has
become absolute in any encumbrancer," to contemplate period commencing immediately after cessation
of last day on which another party may redeem, not a full business day later. 66 CA 606. Trial court
incorrectly determined that section prevented plaintiff from obtaining a judgment of strict foreclosure on
second property absent a motion to open the judgment of strict foreclosure, and nothing in text of section
prohibits plaintiff from proceeding on portion of complaint that remained after partial judgment of strict
foreclosure. 105 CA 806.

Rule of City Lumber v. Murphy, 120 C. 16, discussed. 2 CS 55. Action to open judgment of
foreclosure is precluded if title has vested in the defendant. 14 CS 311. While motion to open judgment
after title had become absolute in tax lienor town must be denied, foreclosed heirs may bring action in
equity for relief from operation of judgment where enforcement of it would be against conscience. 27
CS 504.

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Sec. 49-16. Foreclosure certificate. Penalty. When any mortgage of real estate has been foreclosed,
and the time limited for redemption has passed, and the title to the mortgaged premises has become
absolute in the mortgagee, or any person claiming under him, he shall, either in person or by his agent or
attorney, forthwith make and sign a certificate describing the premises foreclosed, the deed of mortgage
on which the foreclosure was had, the book and page where the same was recorded and the time when
the mortgage title became absolute. The certificate shall be recorded in the records of the town where the
premises are situated and shall be substantially in the form following:

To all whom it may concern. This certifies that a mortgage from .... of the town of ...., county of ....,
in the state of ...., to .... of the town of ...., county of ...., and state of ...., bearing date the .... day of ....,
A.D. ...., and recorded in the land records of the town of ...., book ...., page ...., was foreclosed upon the
complaint of .... against ...., the owner of the equity of redemption in said mortgaged premises, and

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against ...., having an interest therein, in the .... court .... held at .... within and for the county of .... and
the state of Connecticut on the .... day of ...., A.D. 20... The premises foreclosed are described as
follows, viz.: .... The time limited for redemption in said judgment of foreclosure has passed and the title
to said premises became absolute in the said .... on the .... day of ...., A.D. 20...

Dated at ...., this .... day of ...., 20...

If such person neglects to lodge the certificate for one month after the title becomes absolute, he shall be
fined not more than five dollars.

(1949 Rev., S. 7197; P.A. 79-602, S. 76.)

History: P.A. 79-602 made minor changes in wording but made no substantive changes; (Revisor's
note: In 2001 the references in this section to the date "19.." were changed editorially by the Revisors to
"20.." to reflect the new millennium).

Penalties for only one year before suit can be collected; filing of certificate before action no bar to
action. 57 C. 52. Filing certificate does not extinguish mortgage debt unless premises are actually
appropriated to its satisfaction; what constitutes such appropriation. 102 C. 648. Cited. 202 C. 566.

Cited. 20 CA 163.

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Sec. 49-17. Foreclosure by owner of debt without legal title. When any mortgage is foreclosed by
the person entitled to receive the money secured thereby but to whom the legal title to the mortgaged
premises has never been conveyed, the title to such premises shall, upon the expiration of the time
limited for redemption and on failure of redemption, vest in him in the same manner and to the same
extent as such title would have vested in the mortgagee if he had foreclosed, provided the person so
foreclosing shall forthwith cause the decree of foreclosure to be recorded in the land records in the town
in which the land lies.

(1949 Rev., S. 7198.)

Failure to produce mortgage, if it is admitted in the pleadings, held of no consequence. 81 C. 422.

Section provides avenue for holder of note to foreclose on property when mortgage has not been
assigned to him. 75 CA 791. Statute codifies common law principle of long standing that "the mortgage
follows the note", pursuant to which only note's rightful owner has right to enforce the mortgage. 95 CA
390.

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Sec. 49-18. Foreclosure by executor, administrator or trustee. When any executor, administrator
or trustee obtains a decree of foreclosure, the premises foreclosed, or the proceeds thereof if sold by him,
shall be held by him in the same manner and for the benefit of the same persons and to be used for the

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same purposes and subject to the same rules as the money secured by the mortgage would have been if
collected without foreclosure. If such premises are not sold by him, the same shall be distributed, or
otherwise disposed of, to the persons who would have been entitled to the money if collected.

(1949 Rev., S. 7199; P.A. 79-602, S. 77.)

History: P.A. 79-602 substituted "proceeds" for "avails" and made another minor change in wording,
creating two sentences from single previously existing sentence.

The heirs of a mortgage cannot sustain a bill for a foreclosure. 5 C. 139. Cited. 120 C. 671.

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Sec. 49-19. Title to vest in encumbrancer paying debt and costs. In actions of foreclosure, when a
judgment of strict foreclosure is rendered and there are subsequent encumbrances, the judgment may
provide that, upon the payment of the debt and costs by any encumbrancer, after all subsequent parties
in interest have been foreclosed, the title to the property shall vest absolutely in such encumbrancer
making such payment, subject to such unpaid encumbrances, if any, as precede him.

(1949 Rev., S. 7200.)

Right of junior encumbrancer, not a party to foreclosure, to redeem. 68 C. 298. Effect of foreclosure
decree in determining priorities among junior mortgagees. 78 C. 475. Right of attaching creditor to
redeem. 83 C. 514; 89 C. 59; 102 C. 434. Effect of provision in judgment vesting title in subsequent
encumbrancer who redeems; title of redeeming encumbrancer where there is no such provision. 95 C. 4.
Foreclosing mortgagee gets no better title than mortgagor had at time mortgage was given. 96 C. 539.
Statute does not require that judgment shall vest title in an encumbrancer who redeems, but it authorizes
such a judgment. A judgment of foreclosure, as regards the lien of an attaching creditor, may condition
title secured by lien. 134 C. 395. Cited. 188 C. 286. Cited. 216 C. 443.

Cited. 20 CA 163.

Cited. 25 CS 516. Cloud on title agreement effecting strict foreclosure, when. 30 CS 56.

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Sec. 49-20. Redemption by holder of encumbrance on part of property foreclosed. When a strict
foreclosure judgment contains a provision that title to the real estate being thereby foreclosed shall vest
in the encumbrancer who redeems pursuant to the judgment, or specifies that the title shall vest in any
particular person or persons who redeem as therein provided, the validity and effect of the judgment and
of the provision therein shall not be limited or otherwise affected by the fact that the encumbrance or
interest of the person so redeeming applies to or covers only a portion of the property described and
being foreclosed in the judgment. In such case, if the foreclosure judgment requires that person to pay
the entire amount thereof or be foreclosed of all equity to redeem the premises described in the
judgment, the person shall, by the judgment, acquire all the rights and title of the foreclosing party
granted by the judgment, as fully as if his interest or encumbrance covered all of the property described

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in the judgment.

(1949 Rev., S. 7201; P.A. 79-602, S. 78.)

History: P.A. 79-602 made minor changes in wording, substituting "the" for "such" where appearing,
etc.

Cited. 25 CA 688.

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Sec. 49-21. Defendant to receive and file certificate of satisfaction or certificates of judgment of
strict foreclosure or foreclosure by sale. When, in any action of foreclosure, any defendant has paid
the debt and costs and the title to the mortgaged premises has become absolute in such defendant, or any
person claiming under him, in accordance with the provisions of sections 49-19 and 49-20, the plaintiff
or person receiving such payment, either in person or by his agent or attorney, shall sign and deliver to
the defendant a certificate of satisfaction of the judgment of foreclosure stating the name and residence
of the defendant. The certificate shall be filed by him forthwith with the clerk of the court in which the
judgment was rendered. A certified copy of the certificate of satisfaction of judgment, and of the
judgment, or of a certificate of judgment of strict foreclosure or a certificate of judgment of foreclosure
by sale shall be forthwith filed by the defendant for record in the land records of the town where such
premises are situated.

(1949 Rev., S. 7202; 1949, S. 2971d; P.A. 79-602, S. 79; P.A. 92-38, S. 1.)

History: P.A. 79-602 changed wording slightly but made no substantive changes; P.A. 92-38
required that certified copies of certificates of judgment of strict foreclosure and certificates of judgment
of foreclosure by sale be filed by defendant on land records.

A certificate foreclosure merely evidential of title. 111 C. 507.

Where defendant owner redeems, title need not become absolute in defendant owner as a condition
precedent to applicability of section. 77 CA 276.

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Sec. 49-22. Execution of ejectment on foreclosure judgment. Disposition of property. (a) In any
action brought for the foreclosure of a mortgage or lien upon land, or for any equitable relief in relation
to land, the plaintiff may, in his complaint, demand possession of the land, and the court may, if it
renders judgment in his favor and finds that he is entitled to the possession of the land, issue execution
of ejectment, commanding the officer to eject the person or persons in possession of the land and to put
in possession thereof the plaintiff or the party to the foreclosure entitled to the possession by the
provisions of the decree of said court, provided no execution shall issue against any person in possession
who is not a party to the action except a transferee or lienor who is bound by the judgment by virtue of a
lis pendens. The officer shall eject the person or persons in possession and may remove such person's
possessions and personal effects and deliver such possessions and effects to the place of storage

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designated by the chief executive officer of the town for such purposes.

(b) Before any such removal, the state marshal charged with executing upon the ejectment shall give
the chief executive officer of the town twenty-four hours notice of the ejectment, stating the date, time
and location of such ejectment as well as a general description, if known, of the types and amount of
property to be removed from the land and delivered to the designated place of storage. Before giving
such notice to the chief executive officer of the town, the state marshal shall use reasonable efforts to
locate and notify the person or persons in possession of the date and time such ejectment is to take place
and of the possibility of a sale pursuant to subsection (c) of this section and shall provide clear
instructions as to how and where such person or persons may reclaim any possessions and personal
effects removed and stored pursuant to this section, including a telephone number that such person or
persons may call to arrange release of such possessions and personal effects.

(c) Whenever a mortgage or lien upon land has been foreclosed and execution of ejectment issued,
and the possessions and personal effects of the person in possession thereof are removed by a state
marshal under this section, such possessions and effects shall be delivered by such marshal to the
designated place of storage. Such removal, delivery and storage shall be at the expense of such person. If
the possessions and effects are not reclaimed by such person and the expense of the storage is not paid to
the chief executive officer within fifteen days after such ejectment, the chief executive officer shall sell
the same at public auction, after using reasonable efforts to locate and notify such person of the sale and
after posting notice of the sale for one week on the public signpost nearest to the place where the
ejectment was made, if any, or at some exterior place near the office of the town clerk. The chief
executive officer shall deliver to such person the net proceeds of the sale, if any, after deducting a
reasonable charge for storage of such possessions and effects. If such person does not demand the net
proceeds within thirty days after the sale, the chief executive officer shall turn over the net proceeds of
the sale to the town treasury.

(1949 Rev., S. 7203; 1955, S. 2972d; P.A. 79-602, S. 80; P.A. 82-234; P.A. 84-146, S. 17; 84-539;
P.A. 00-99, S. 99, 154; P.A. 10-171, S. 2.)

History: P.A. 79-602 substituted "the" for "such" where appearing; P.A. 82-234 authorized an officer
to remove the possessions and personal effects of a person ejected from the land and set them out on the
adjacent sidewalk, street or highway, and added Subsecs. (b) and (c) concerning the procedure for the
removal and disposition of such possessions and personal effects; P.A. 84-146 included a reference to
posting of notice on a place other than a signpost; P.A. 84-539 amended Subsec. (a) with respect to
persons against whom execution may issue by replacing "unless the person" with "except a transferee or
lienor who"; P.A. 00-99 replaced reference to sheriff and deputy sheriff with state marshal in Subsec.
(b), effective December 1, 2000 (Revisor's note: A second reference in Subsec. (b) to "sheriff or deputy"
was changed editorially by the Revisors to "state marshal" to conform with P.A. 00-99); P.A. 10-171
amended Subsec. (a) to authorize state marshal to deliver possessions and personal effects of persons in
possession to place of storage designated by chief executive officer and delete provision re setting such
possessions and effects out on the adjacent sidewalk, amended Subsec. (b) to add provision re delivery
to designated place of storage and require state marshal charged with executing upon ejectment to
provide instructions re how and where person in possession may reclaim removed possessions and
effects, and made conforming changes in Subsec. (c), effective July 1, 2010.

This section not unconstitutional as infringing right of trial by jury. 46 C. 513. Action of
administrator of deceased mortgagee who foreclosed in taking out execution after his death irregular. 79
C. 682. Right of mortgagee to possession of property; 75 C. 369; 83 C. 159; 87 C. 405; effect of stay of
execution; 74 C. 683; appeal stays execution; 89 C. 413; if law day has passed, supreme court may
extend time. 70 C. 92; 85 C. 383. Illegal ejectment against tenant not a party to foreclosure. 102 C. 437;

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114 C. 93. Actual possession can be secured only by this method or by supplementary proceedings. 102
C. 649. Officer holding execution of ejectment need not make demand for payment of debt. 114 C. 438.
Care which officer must exercise in handling personal property. Id. Sec. 47a-23c shields tenants who
qualify for its protections from executions of judgments of ejectment pursuant to this section. 237 C.
679.

Injunction issued against execution of ejectment determined to be in violation of constitutional due


process rights of tenants who were given no notice of the foreclosure action against owner of property
occupied by the tenants. 38 CS 70. Cited. 43 CS 467.

Subsec. (a):

Prohibits issuance of an execution of ejectment against tenant who was not named as a party to the
foreclosure action. 265 C. 741.

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Sec. 49-22a. Execution of ejectment on foreclosure judgment on mortgage guaranteed by


Administrator of Veterans' Affairs. In any action brought for the foreclosure of a mortgage upon land
where the court may, in accordance with the provisions of section 49-22, issue execution of ejectment to
the plaintiff and the mortgage loan has been guaranteed by the Administrator of Veterans' Affairs
pursuant to Title III of an Act of Congress entitled "Servicemen's Readjustment Act of 1944", the court
may issue execution of ejectment to put in possession of such land the Administrator of Veterans'
Affairs, upon the filing by the plaintiff of an affidavit that (1) the guarantee has been honored by the
Administrator of Veterans' Affairs, (2) the plaintiff's title to the property has been conveyed to the
Administrator of Veterans' Affairs who has become subrogated to all the rights of the plaintiff in the
property and (3) the foreclosure judgment has been assigned to the Administrator of Veterans' Affairs.

(1971, P.A. 251.)

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Sec. 49-23. Ejectment by mortgagee barred by tender of debt and costs. In any action brought by
a mortgagee of real estate, or any person holding title under him, against the mortgagor, or any person
holding title to the estate under him, to obtain possession of the estate by virtue of title derived by
mortgage, a tender by the defendant of the amount of the debt, with interest and the costs of the suit, is a
bar to its further prosecution.

(1949 Rev., S. 7204; P.A. 79-602, S. 81.)

History: P.A. 79-602 substituted "is" for "shall be" and "the" for "such" where appearing.

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Sec. 49-24. Court may foreclose lien or mortgage on land by sale. All liens and mortgages
affecting real property may, on the written motion of any party to any suit relating thereto, be foreclosed
by a decree of sale instead of a strict foreclosure at the discretion of the court before which the
foreclosure proceedings are pending.

(1949 Rev., S. 7205.)

Nature of sale. 98 C. 152. Procedure where one of two mortgages foreclosed is invalid in part. 103
C. 743. Whether foreclosure by sale will be ordered rests in discretion of court; refusal to order held
proper. 108 C. 30. Remedy of second mortgagee order of sale and not apportionment. 119 C. 455. Cited.
179 C. 232. Cited. 196 C. 172. Cited. 199 C. 368.

Cited. 11 CA 53. Cited. 13 CA 239. Cited. 21 CA 275. Cited. 23 CA 192. Cited. 35 CA 81. In the
absence of motion requesting foreclosure by sale, court did not err in ordering strict foreclosure; in
Connecticut, strict foreclosure is the rule, foreclosure by sale the exception. 121 CA 554.

Cited. 25 CS 516.

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Sec. 49-25. Appraisal of property. When the court in any such proceeding is of the opinion that a
foreclosure by sale should be decreed, it shall, in its decree, appoint a person to make the sale and fix a
day therefor, and shall direct whether the property shall be sold as a whole or in parcels, and how the
sale shall be made and advertised; but, in all cases in which such sale is ordered, the court shall appoint
one disinterested appraiser who shall, under oath, appraise the property to be sold and make return of the
appraisal to the clerk of the court. Upon motion of the owner of the equity of redemption, the court shall
appoint a second appraiser in its decree. If the plaintiff is the purchaser at sale, or if the property is
redeemed at any time prior to the approval of the sale, or if for any reason the sale does not take place,
the expense of the sale and appraisal or appraisals shall be paid by the plaintiff and be taxed with the
costs of the case. If, after judgment has been rendered, the amount found to be due and for which
foreclosure is decreed, together with the interest and the costs, is paid to the plaintiff before the sale, all
further proceedings in the suit shall be stayed.

(1949 Rev., S. 7206; P.A. 79-602, S. 82; P.A. 91-50.)

History: P.A. 79-602 substituted "the" for "such" where appearing; P.A. 91-50 changed requirement
of appointment of three appraisers to appointment of one appraiser and deleted language concerning
acceptance by court of amount agreed upon by majority if lack of agreement by appraisers and
substituted "Upon motion of the owner of the equity of redemption, the court shall appoint a second
appraiser in its decree. If the plaintiff is the purchaser at sale, or if the property is redeemed at any time
prior to the approval of the sale, or if for any reason the sale does not take place ...".

See note to Sec. 49-28 re 113 C. 241. Appraisal upon a foreclosure by sale not conclusive as to value
of property. 128 C. 694. Cited. 153 C. 269, 274. Cited. 157 C. 594. Cited. 189 C. 490. Cited. 220 C. 643.
Cited. 222 C. 784. Cited. 227 C. 270. Cited. 241 C. 269. Statute recognizes that foreclosed property may
be redeemed at any time prior to confirmation of the sale by the trial court; judgment of appellate court
in Washington Trust Co. v. Smith, 42 CA 330, reversed. Id., 734. Conduct of judicial sale. 252 C. 623.

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"Of such sale" not limited to ratified sales. 13 CA 239. Cited. 20 CA 638. Cited. 21 CA 275. Cited.
22 CA 396. Cited. 27 CA 549. Cited. 36 CA 313. Trial court is not bound to accept appraised value but
may use the appraisal to assist in the exercise of its discretion in accepting or rejecting proposed sale. 75
CA 355. Statute does not permit court to order defendant to pay expenses of the sale. 80 CA 399. Court
did not err in confirming foreclosure by sale without conducting evidentiary hearing because, although
court may grant an evidentiary hearing upon request, defendant did not request such a hearing properly.
95 CA 279.

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Sec. 49-26. Conveyance; title of purchaser. When a sale has been made pursuant to a judgment
therefor and ratified by the court, a conveyance of the property sold shall be executed by the person
appointed to make the sale, which conveyance shall vest in the purchaser the same estate that would
have vested in the mortgagee or lienholder if the mortgage or lien had been foreclosed by strict
foreclosure, and to this extent such conveyance shall be valid against all parties to the cause and their
privies, but against no other persons. The court, at the time of or after ratification of the sale, may order
possession of the property sold to be delivered to the purchaser and may issue an execution of ejectment
after the time for appeal of the ratification of the sale has expired.

(1949 Rev., S. 7207; P.A. 90-280; P.A. 92-38, S. 2.)

History: P.A. 90-280 amended section to permit court to issue an execution of ejectment at the time
of or after ratification of sale, effective after time for appeal of the ratification of sale has expired; P.A.
92-38 changed provision re issuance of execution of ejectment by permitting issuance after the time for
appeal of ratification of the sale has expired.

Purchaser does not get title which will prevent redemption by subsequent encumbrancer not made
party to foreclosure. 89 C. 64. Necessity and effect of ratification by court. 98 C. 153. Right of
committee to require deposit without court order. Id., 154. Procedure where purchaser defaults. Id., 155
ff. Cited. 235 C. 741.

Cited. 9 CA 446. Cited. 13 CA 239. Cited. 22 CA 396. Motion to open and set aside approval of sale
filed during an appeal period stays proceedings until court rules on the motion. 98 CA 72.

Cited. 43 CS 467.

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Sec. 49-27. Disposal of proceeds of sale. The proceeds of each such sale shall be brought into court,
there to be applied if the sale is ratified, in accordance with the provisions of a supplemental judgment
then to be rendered in the cause, specifying the parties who are entitled to the same and the amount to
which each is entitled. If any part of the debt or obligation secured by the mortgage or lien foreclosed or
by any subsequent mortgage or lien was not payable at the date of the judgment of foreclosure, it shall
nevertheless be paid as far as may be out of the proceeds of the sale as if due and payable, with rebate of
interest where the debt was payable without interest, provided, if the plaintiff is the purchaser at any
such sale, he shall be required to bring into court only so much of the proceeds as exceed the amount

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due upon his judgment debt, interest and costs.

(1949 Rev., S. 7208; P.A. 79-602, S. 83.)

History: P.A. 79-602 made minor changes in wording but made no substantive changes.

Procedure. 98 C. 154 ff. Rights of parties to fund realized from sale should be determined by a
supplementary judgment. 103 C. 744. Cited. 120 C. 671. The decree of foreclosure by sale should not
adjudicate the rights of the parties to the funds realized; those rights should be determined by way of
supplemental judgment. 142 C. 200. On sale of four mortgaged parcels as one tract, after satisfying first
mortgage debt, proceeds remaining were apportioned between second mortgagees according to the
respective values of their securities and not according to a rule of priority in time. 153 C. 267. Cited. 166
C. 195. Cited. 195 C. 418. Cited. 219 C. 620. Cited. 235 C. 741.

Cited. 27 CA 549. Court's order with respect to funds from foreclosure sale was not a garnishment of
funds held by court clerk and court had authority to order the clerk to hold rather than to distribute the
funds pending the outcome of appeal. 87 CA 321.

Claim of mechanic's lienor which has not expired at time of mortgage sale is transferred to proceeds
of sale. 20 CS 460.

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Sec. 49-28. When proceeds of sale will not pay in full. If the proceeds of the sale are not sufficient
to pay in full the amount secured by any mortgage or lien thereby foreclosed, the deficiency shall be
determined, and thereupon judgment may be rendered in the cause for the deficiency against any party
liable to pay the same who is a party to the cause and has been served with process or has appeared
therein, and all persons liable to pay the debt secured by the mortgage or lien may be made parties; but
all other proceedings for the collection of the debt shall be stayed during the pendency of the foreclosure
suit, and, if a deficiency judgment is finally rendered therein, the other proceedings shall forthwith
abate. If the property has sold for less than the appraisal provided for in section 49-25, no judgment shall
be rendered in the suit or in any other for the unpaid portion of the debt or debts of the party or parties
upon whose motion the sale was ordered, nor shall the same be collected by any other means than from
the proceeds of the sale until one-half of the difference between the appraised value and the selling price
has been credited upon the debt or debts as of the date of sale; and, when there are two or more debts to
which it is to be applied, it shall be apportioned between them.

(1949 Rev., S. 7209; P.A. 79-602, S. 84.)

History: P.A. 79-602 substituted "the" for "such" where appearing.

Provision for crediting one-half difference between appraisal and sale price not applicable against
subsequent encumbrancer. 89 C. 101. Liability of endorsers for balance of deficiency judgment in
separate action. 100 C. 711. Guarantor of note allowed same statutory credit as mortgagor. 113 C. 241.
Cited. 120 C. 671. See note to Sec. 49-25 re 128 C. 694. Cited. 220 C. 152; Id., 643. Cited. 222 C. 784.
Cited. 227 C. 270. Cited. 235 C. 741. Cited. 241 C. 269.

Cited. 23 CA 266. Cited. 28 CA 809. Cited. 31 CA 1; Id., 621. Cited. 36 CA 313. Cited. 38 CA 240.

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Sec. 49-29. Expenses of sale and costs. The court shall order the judgment and costs of the plaintiff
to be first paid out of the proceeds of such sale and shall allow, to such of the parties as receive the
balance of such proceeds, the costs usually allowed to successful parties, which costs shall be paid in
addition to their respective claims and in the same order.

(1949 Rev., S. 7210.)

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Sec. 49-30. Omission of parties in foreclosure actions. When a mortgage or lien on real estate has
been foreclosed and one or more parties owning any interest in or holding an encumbrance on such real
estate subsequent or subordinate to such mortgage or lien has been omitted or has not been foreclosed of
such interest or encumbrance because of improper service of process or for any other reason, all other
parties foreclosed by the foreclosure judgment shall be bound thereby as fully as if no such omission or
defect had occurred and shall not retain any equity or right to redeem such foreclosed real estate. Such
omission or failure to properly foreclose such party or parties may be completely cured and cleared by
deed or foreclosure or other proper legal proceedings to which the only necessary parties shall be the
party acquiring such foreclosure title, or his successor in title, and the party or parties thus not
foreclosed, or their respective successors in title.

(1949 Rev., S. 7211.)

Does not change common law rights of those parties who had been omitted from the first foreclosure
and thus does not create substantive rights. 278 C. 219.

Cited. 37 CA 764. Section establishes procedure for foreclosing an encumbrance that is omitted in
the original foreclosure. Term "encumbrance" refers to recorded encumbrances. Section intended to
benefit foreclosing party who, through mistake or oversight, omitted an encumbrance; it is not intended
to be used as a sword by the omitted party. 63 CA 624.

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Sec. 49-31. Actions against the state. In any action to foreclose a mortgage or lien on any land in
which the state, or any officer or agent thereof, claims to have an interest subordinate to that of the party
seeking the foreclosure, the state, or such officer or agent, as the case may be, may be made a party
defendant, and such interest may be foreclosed in the same manner and with the same effect as if such
interest were held by an individual, except that no judgment may be rendered against the state or any
officer or agent for money or costs of suit.

(1949 Rev., S. 7212.)

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Cited. 206 C. 484. Section does not waive sovereign immunity so as to permit foreclosure of state-
owned real property; term "interest" should be construed narrowly so as not to include the state's
ownership interest in real property because to conclude otherwise would lead to the unreasonable and
bizarre result of the state losing title and possession of state-owned properties critical to the
administration of state government, contrary to the fundamental public policy that underlies the principle
of sovereign immunity. 273 C. 287.

Cited. 11 CA 53.

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Sec. 49-31a. Subordination clauses. Section 49-31a is repealed.

(P.A. 76-357, S. 1, 3; P.A. 78-89, S. 2, 3.)

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Sec. 49-31b. Information in deed sufficient notice as to nature and amount of obligation. Deed
for variable rate mortgage loan. (a) A mortgage deed given to secure payment of a promissory note,
which furnishes information from which there can be determined the date, principal amount and
maximum term of the note, shall be deemed to give sufficient notice of the nature and amount of the
obligation to constitute a valid lien securing payment of all sums owed under the terms of such note.

(b) With regard to a mortgage deed given to secure payment of a promissory note which contains a
provision expressly providing that the interest rate set forth in the note may vary one or more times
during the life of the note and that such changes in rate may cause the term of the note to change, the
"maximum term" shall be adequately disclosed if the mortgage deed furnishes information from which
can be determined: (1) A statement that the interest rate is subject to variation, (2) the conditions under
which such rate may vary, (3) the manner, including changes in payment amounts, number of scheduled
periodic payments, or change in the amount due at maturity, in which any increase and decrease in the
rate may be effected, and (4) the date, if applicable, by which according to the terms of the note,
remaining amounts of principal and interest, if any, shall be due and payable in full, regardless of
changes in the interest rate. The mortgagee shall give written notice of any change in the interest rate to
a second or subsequent encumbrancer, provided such encumbrancer has given written notice by
registered mail, return receipt requested, of its encumbrance to the mortgagee. The provisions of this
section shall not invalidate any mortgage which would be valid without this section.

(P.A. 76-357, S. 2, 3; P.A. 81-391, S. 1.)

History: P.A. 81-391 added Subsec. (b) concerning the information required in a mortgage deed to
adequately disclose the maximum term of a note with a variable interest rate and requiring the
mortgagee to give notice of any change in the interest rate to a second or subsequent encumbrancer.

Cited. 202 C. 566. Cited. 232 C. 294.

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Subsec. (a):

Supplements but does not supplant relevant common law standards for validity of mortgages. 202 C.
566. Cited. 210 C. 221. Cited. 230 C. 828.

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Sec. 49-31c. When subordination not subject to statute of frauds and automatically effective. A
subordination agreement which provides that a mortgage, lease or other interest in real property shall be
subordinated to one or more future mortgages is not subject to the provisions of section 52-550 and is
valid and binding notwithstanding that the subordination agreement does not contain any of the terms or
provisions of the future mortgage or mortgages. If the subordination agreement so provides, the
subordination is automatically effective at such time or times as the future mortgage or mortgages come
into existence without the necessity for the subordinating party to execute any further instruments,
provided the mortgage does not violate the terms of the original subordination agreement.

(P.A. 78-89, S. 1, 3; P.A. 79-602, S. 66.)

History: P.A. 79-602 rephrased provisions but made no substantive changes.

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Sec. 49-31d. Definitions. For the purposes of sections 49-31d to 49-31i, inclusive:

(1) "Unemployed person" means a person who is unemployed for purposes of chapter 567.

(2) "Homeowner" means a person who has an ownership interest in residential real property secured
by a mortgage which is the subject of a foreclosure action, and who has owned and occupied such
property as his principal residence for a continuous period of not less than two years immediately
preceding the commencement of such foreclosure action.

(3) "Restructured mortgage debt" means the adjustment by a court of a mortgage debt to give
protection from a foreclosure action.

(4) "Protection from foreclosure" means a court-ordered restructuring of a mortgage debt designed to
eliminate an arrearage in payments on such debt and to provide a period not to exceed six months during
which foreclosure is stayed.

(5) "Lender" means any person who makes or holds mortgage loans in the ordinary course of
business and who is the holder of any first mortgage on residential real estate which is the subject of a
foreclosure action.

(6) "Underemployed person" means a person whose earned income during the twelve-month period
immediately preceding the commencement of the foreclosure action is (A) less than fifty thousand
dollars and (B) less than seventy-five per cent of his average annual earned income during the two years
immediately preceding such twelve-month period.

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(P.A. 83-547, S. 6; June Sp. Sess. P.A. 83-29, S. 71; P.A. 84-373, S. 1; 84-546, S. 107, 173.)

History: June Sp. Sess. P.A. 83-29 revised section, changed definition of "homeowner", deleted
definition of "financial institution", added definitions of "lender" and "underemployed person" and made
technical changes; P.A. 84-373 amended Subsec. (6) to require an "underemployed person" to have an
earned income which is less than $50,000; P.A. 84-546 made technical change; (Revisor's note: In 1995
the indicators (1) and (2) in Subdiv. (6) were changed editorially by the Revisors to (A) and (B)
respectively for consistency with statutory usage).

Only persons who have been employed previously may be considered "unemployed" as defined in
this section. 245 C. 744.

Cited. 29 CA 541. Cited. 31 CA 260. Cited. 34 CA 138.

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Sec. 49-31e. Notice to homeowner of protections from foreclosure. (a) In an action by a lender for
the foreclosure of a mortgage of residential real property, such lender shall give notice to the
homeowner of the availability of the provisions of sections 49-31d to 49-31i, inclusive, at the time the
action is commenced.

(b) A homeowner who is given notice of the availability of the provisions of sections 49-31d to 49-
31i, inclusive, must make application for protection from foreclosure within twenty-five days of the
return day.

(c) No judgment foreclosing the title to real property by strict foreclosure or by a decree of sale shall
be entered unless the court is satisfied from pleadings or affidavits on file with the court that notice has
been given to the homeowner against whom the foreclosure action is commenced of the availability of
the provisions of sections 49-31d to 49-31i, inclusive.

(d) If a homeowner against whom the foreclosure action is commenced was not given notice of the
availability of the provisions of sections 49-31d to 49-31i, inclusive, at the time the action was
commenced, and such homeowner was eligible to apply for protection from foreclosure at such time, the
court, upon its own motion or upon the written motion of such homeowner, may issue an order staying
the foreclosure action for fifteen days during which period the homeowner may apply to the court for
protection from foreclosure by submitting an application together with a financial affidavit as required
by subsection (a) of section 49-31f.

(P.A. 83-547, S. 7; June Sp. Sess. P.A. 83-29, S. 72; P.A. 84-373, S. 2, 5; 84-546, S. 108, 173; P.A.
97-320, S. 1.)

History: June Sp. Sess. P.A. 83-29 deleted references to "financial institution" and substituted
"lender" in lieu thereof; P.A. 84-373, S. 2, made technical clarifications (Revisor's note: The Revisors
editorially designated said section 2 as Subsec. (a) and added section 5 of the act as Subsecs. (b), (c) and
(d) concerning a homeowner's deadline for making application, assurances that notice of availability of
protection have been given and failure to give notice); P.A. 84-546 made technical clarifications; P.A.
97-320 amended Subsec. (b) by increasing time for application from 15 to 25 days of the return day.

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Cited. 29 CA 541. Cited. 31 CA 260. Cited. 34 CA 138.

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Sec. 49-31f. Application for protection from foreclosure action. Qualifications. Court
determination of eligibility. Stay of foreclosure action. (a) Subject to the provisions of subsection (b)
of this section, a homeowner who is underemployed or unemployed against whom a foreclosure action
is brought may make application, together with a financial affidavit, to the court having jurisdiction over
the foreclosure action for protection from foreclosure if: (1) The mortgage being foreclosed encumbers
the residential real property, which property has served as such homeowner's principal residence, for a
period of not less than two years, (2) such homeowner has not had a foreclosure action commenced
against such homeowner in the preceding seven-year period, and (3) such homeowner has not received
an emergency mortgage assistance loan and has not applied for emergency mortgage assistance for two
years before the application under the provisions of sections 8-265cc to 8-265ii, inclusive.

(b) If the residential real property which is the subject of a foreclosure action is owned by more than
one person, (1) no homeowner shall be deemed an unemployed person or an underemployed person, for
the purposes of sections 49-31d to 49-31i, inclusive, unless the aggregate earned income of all the
homeowners of the residential real property which is the subject of such foreclosure action during the
twelve-month period immediately preceding the commencement of the foreclosure action is less than
fifty thousand dollars and less than seventy-five per cent of the average aggregate annual earned income
during the two years immediately preceding such twelve-month period for all such homeowners, and (2)
all homeowners of such property other than the homeowner making application in accordance with
subsection (a) of this section shall file a financial affidavit in connection with such application.

(c) The court shall determine the eligibility of such homeowner for protection from foreclosure
pursuant to the provisions of sections 49-31d to 49-31i, inclusive.

(d) In determining the eligibility of a homeowner for protection from foreclosure under the
provisions of sections 49-31d to 49-31i, inclusive, the court may consider any relevant facts and shall
consider:

(1) The likelihood that the homeowner will be able to make timely payments on the restructured
mortgage commencing at the end of the restructuring period; and

(2) The presence of any substantial prejudice to the lender or any subordinate lienor or
encumbrancer which would result from a restructuring of the mortgage debt.

(e) If the court determines the equity the homeowner has in the property and hears testimony from an
appraiser produced by the lender in connection with such determination, (1) the reasonable cost of the
appraisal and the appraiser's appearance as a witness shall be part of the court costs to be added to the
principal balance pursuant to subdivision (4) of subsection (a) of section 49-31i if a restructuring order is
granted, and (2) the reasonable cost of such appraiser's appearance as a witness shall be part of the
taxable costs of the action, in addition to the taxable costs for such appraisal and the appraiser's
appearance as a witness at a subsequent hearing for a judgment of foreclosure if such order is not
granted.

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(f) If the court approves the application for protection from foreclosure and restructures the mortgage
debt, the foreclosure action shall be stayed for the restructuring period. If, for a period of three months
following the end of the restructuring period, there are no further proceedings to continue the foreclosure
proceedings based upon a default on the mortgage as restructured, the foreclosure action shall be
dismissed. The restructured mortgage debt shall have the same priority as if it had been advanced at the
time the mortgage was delivered.

(g) No homeowner who files a defense to any action for foreclosure shall be eligible to make
application for protection from such foreclosure pursuant to the provisions of this section.

(P.A. 83-547, S. 8; June Sp. Sess. P.A. 83-29, S. 73; P.A. 84-373, S. 3; 84-546, S. 109, 173; P.A. 93-
414, S. 8, 10; P.A. 07-217, S. 182.)

History: June Sp. Sess. P.A. 83-29 revised section, making various technical changes, inserting
"homeowner who is underemployed or unemployed" for "person" in Subsec. (a) and "lender or any
subordinate lienor or encumbrancer" for "financial institution" in Subsec. (c)(5), and adding provisions
in Subsec. (d) re dismissal of foreclosure action and priority of restructured mortgage debt; P.A. 84-373
inserted new Subsec. (b) to establish eligibility requirements for real property owned by more than one
homeowner, relettered former Subsecs. (b) and (c) accordingly and deleted duration of unemployment,
record of payment and amount of equity as criteria to determine eligibility, inserted new Subsec. (e) to
provide for payment of appraisal costs, relettered former Subsec. (d) as (f) and added Subsec. (g) to deny
availability of protection for persons who file any defense to the foreclosure action; P.A. 84-546 made
technical changes; P.A. 93-414 added Subsec. (a)(3) making mortgagors who received emergency
mortgage assistance loans and applied for such assistance within two years ineligible for protection,
effective July 1, 1993; P.A. 07-217 made technical changes, effective July 12, 2007.

Cited. 29 CA 541. Cited. 31 CA 260. Cited erroneously as Sec. 49-31(f). Id., 939. Cited. 34 CA 138.
Cited. 43 CA 467. Trial court properly denied defendants' application for protection from foreclosure
where defendants' future earnings were speculative, they had no equity in the property, it was unlikely
they would be able to make timely payments on restructured mortgage and plaintiff would be prejudiced
by restructuring the mortgage. 54 CA 529. Granting of defendant's application for protection is not an
appealable final judgment. 85 CA 120.

Subsec. (a):

Clear language of subsec. denies foreclosure protection to anyone who has had a foreclosure action
filed against him or her within prior 7-year period regardless of reason for its commencement and even
if it was subsequently withdrawn. 103 CA 264.

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Sec. 49-31g. Restructuring of mortgage debt by court. (a) If it determines that a homeowner who
is an underemployed person is eligible for protection from foreclosure pursuant to subsections (a) and
(c) of section 49-31f, the court in its discretion may order the restructuring of the mortgage debt of such
homeowner so as to eliminate any arrearage in payments on the mortgage debt and may allow a
restructuring period not to exceed six months.

(b) If it determines that a homeowner who is an unemployed person is eligible for protection from

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foreclosure pursuant to subsection (a) of section 49-31f, the court shall order the restructuring of the
mortgage debt to eliminate any arrearage in payments on the mortgage debt and shall order a
restructuring period not to exceed six months.

(P.A. 83-547, S. 9; June Sp. Sess. P.A. 83-29, S. 74.)

History: June Sp. Sess. P.A. 83-29 revised section and added provisions requiring determination of
court that homeowner who is underemployed or unemployed is eligible for foreclosure protection
pursuant to Sec. 49-31f prior to ordering restructuring of mortgage debt.

Cited. 29 CA 541. Cited. 31 CA 260. Cited. 34 CA 138. Cited. 43 CA 467.

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Sec. 49-31h. Partial payment by homeowner mandated by court as condition for granting of
restructuring order. (a) As a condition to the granting of a restructuring order, the court may order the
homeowner to pay to the lender during the restructuring period an amount not to exceed twenty-five per
cent of his net income per month as a means of demonstrating the homeowner's good faith effort to
reduce his mortgage indebtedness.

(b) For purposes of this section, "net income" shall include any unemployment benefit received by
the homeowner in accordance with chapter 567.

(P.A. 83-547, S. 10; June Sp. Sess. P.A. 83-29, S. 75.)

History: June Sp. Sess. P.A. 83-29 deleted reference to "financial institution" and substituted "lender
during the restructuring period" in lieu thereof.

Cited. 29 CA 541. Cited. 31 CA 260. Cited. 34 CA 138.

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Sec. 49-31i. Determination of restructured mortgage debt. Limitations on amount of mortgage


debt following restructuring. Computation of new mortgage debt. (a) In determining the restructured
mortgage debt, the court shall add the following to the existing principal balance of the mortgage debt:
(1) All interest then due the lender and any interest that will be earned to the end of any restructuring
period, including interest on any payments advanced by the lender during the restructuring period, such
interest to be computed at the rate provided in the mortgage note, (2) real property taxes, (3) premiums
for Federal Housing Administration, Veterans' Administration and private mortgage insurance, and (4)
court costs, legal fees and any other sums the court determines to be due under the terms of the mortgage
indebtedness by the court. The court shall then apply the composite interest rate as provided in
subsection (c) of this section to such total restructured debt over the remaining term of the loan.

(b) The amount of the mortgage debt at the end of any period of restructuring shall in no event
exceed either the amount of the original mortgage debt or ninety per cent of the fair market value of the
property as determined by an accredited real estate appraiser at the time of restructuring, whichever is

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greater. The provisions for restructuring the mortgage debt and staying the foreclosure shall apply only
if the debt as restructured would not exceed such amount. Any sums added to the existing mortgage debt
as a result of a restructuring order shall accrue interest at prevailing market rates after the conclusion of
the restructuring period, which rate shall be either fixed or variable depending upon the underlying
mortgage note.

(c) At the conclusion of the restructuring period, the new mortgage debt shall be computed based
upon a composite rate of interest. The composite rate of interest shall be a weighted average of the
original mortgage interest rate as to the principal balance and the prevailing interest rate as to all sums
added to the principal balance to establish the total restructured mortgage debt, except that in the case of
a flexible rate, variable rate or similar adjustable rate mortgage note, the provisions of the underlying
mortgage note for the redetermination of the interest rate on the mortgage shall continue to apply and
remain in full force and effect during the remainder of the term of the mortgage.

(P.A. 83-547, S. 11; June Sp. Sess. P.A. 83-29, S. 76; P.A. 84-373, S. 4; P.A. 85-591.)

History: June Sp. Sess. P.A. 83-29 revised section, adding new provisions in Subsec. (a) re method
of determination of restructured mortgage debt, adding provisions re applicability of provisions for
restructuring mortgage debt and staying foreclosure and rate of interest on sums adding to existing
mortgage note in Subsec. (b), and adding provisions in Subsec. (c) re composite rate of interest; P.A. 84-
373 amended Subsec. (a) to include interest on advancements made during the restructuring period in
the restructured debt; P.A. 85-591 amended Subsec. (b) to permit the restructured mortgage debt to
exceed the greater of the original mortgage debt or 90% of the fair market value of the property.

Cited. 29 CA 541. Cited. 31 CA 260. Cited. 34 CA 138.

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Sec. 49-31j. Regulations. The Banking Commissioner shall adopt such regulations, in accordance
with chapter 54, as the commissioner deems necessary specifying (1) the manner in which a composite
interest rate shall be computed for the new mortgage debt pursuant to subsection (c) of section 49-31i,
(2) the method or standard by which prevailing market rates of interest are to be determined, and (3) a
form a lender may use to give notice pursuant to section 49-31e to a homeowner of the availability of
the provisions of sections 49-31d to 49-31i, inclusive.

(June Sp. Sess. P.A. 83-29, S. 77; P.A. 87-9, S. 2, 3; P.A. 03-84, S. 39; P.A. 04-8, S. 12; P.A. 05-46,
S. 18.)

History: (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by
the Revisors to "commissioner of banking"); P.A. 03-84 changed "Commissioner of Banking" to
"Banking Commissioner" and made a technical change, effective June 3, 2003; P.A. 04-8 made
technical changes, effective April 16, 2004; P.A. 05-46 added Subdiv. (3) requiring commissioner to
adopt regulations specifying a form that lender may use to give notice pursuant to Sec. 49-31e to
homeowner of the availability of the provisions of Secs. 49-31d to 49-31i, inclusive.

Cited. 34 CA 138.

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Sec. 49-31k. Definitions. As used in this section and sections 49-31l to 49-31o, inclusive:

(1) "Mortgagor" means the owner-occupant of one-to-four family residential real property located in
this state who is also the borrower under a mortgage encumbering such residential real property, which
is the primary residence of such owner-occupant;

(2) "Residential real property" means a one-to-four family dwelling occupied as a residence by a
mortgagor;

(3) "Mortgagee" means the original lender or servicer under a mortgage, or its successors or assigns,
who is the holder of any mortgage on residential real property securing a loan made primarily for
personal, family or household purposes that is the subject of a foreclosure action;

(4) "Authority" means the Connecticut Housing Finance Authority created under section 8-244; and

(5) "Mortgage assistance programs" means the mortgage assistance programs developed and
implemented by the authority in accordance with sections 8-265cc to 8-265kk, inclusive, 8-265rr and 8-
265ss.

(P.A. 08-176, S. 15.)

History: P.A. 08-176 effective July 1, 2008.

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Sec. 49-31l. Foreclosure mediation: Notice of foreclosure mediation program. Forms.


Procedure. (a) Prior to July 1, 2012: (1) Any action for the foreclosure of a mortgage on residential real
property with a return date during the period from July 1, 2008, to June 30, 2009, inclusive, shall be
subject to the provisions of subsection (b) of this section, and (2) any action for the foreclosure of a
mortgage on residential real property with a return date during the period from July 1, 2009, to June 30,
2012, inclusive, shall be subject to the provisions of subsection (c) of this section.

(b) (1) Prior to July 1, 2012, when a mortgagee commences an action for the foreclosure of a
mortgage on residential real property with a return date during the period from July 1, 2008, to June 30,
2009, inclusive, the mortgagee shall give notice to the mortgagor of the foreclosure mediation program
established in section 49-31m by attaching to the front of the foreclosure complaint that is served on the
mortgagor: (A) A copy of the notice of the availability of foreclosure mediation, in such form as the
Chief Court Administrator prescribes, and (B) a foreclosure mediation request form, in such form as the
Chief Court Administrator prescribes.

(2) Except as provided in subdivision (3) of this subsection, a mortgagor may request foreclosure
mediation by submitting the foreclosure mediation request form to the court and filing an appearance not
more than fifteen days after the return day for the foreclosure action. Upon receipt of the foreclosure
mediation request form, the court shall notify each appearing party that a foreclosure mediation request
form has been submitted by the mortgagor.

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(3) The court may grant a mortgagor permission to submit a foreclosure mediation request form and
file an appearance after the fifteen-day period established in subdivision (2) of this subsection, for good
cause shown, except that no foreclosure mediation request form may be submitted and no appearance
may be filed more than twenty-five days after the return date.

(4) No foreclosure mediation request form may be submitted to the court on or after July 1, 2012.

(5) If at any time on or after July 1, 2008, but prior to July 1, 2012, the court determines that the
notice requirement of subdivision (1) of this subsection has not been met, the court may, upon its own
motion or upon the written motion of the mortgagor, issue an order that no judgment may enter for
fifteen days during which period the mortgagor may submit a foreclosure mediation request form to the
court.

(6) Notwithstanding any provision of the general statutes or any rule of law to the contrary, prior to
July 1, 2012, no judgment of strict foreclosure nor any judgment ordering a foreclosure sale shall be
entered in any action subject to the provisions of this subsection and instituted by the mortgagee to
foreclose a mortgage on residential real property unless: (A) Notice to the mortgagor has been given by
the mortgagee in accordance with subdivision (1) of this subsection and the time for submitting a
foreclosure mediation request form has expired and no foreclosure mediation request form has been
submitted, or if such notice has not been given, the time for submitting a foreclosure mediation request
form pursuant to subdivision (2) or (3) of this subsection has expired and no foreclosure mediation
request form has been submitted, or (B) the mediation period set forth in subdivision (b) of section 49-
31n has expired or has otherwise terminated, whichever is earlier.

(7) None of the mortgagor's or mortgagee's rights in the foreclosure action shall be waived by the
mortgagor's submission of a foreclosure mediation request form to the court.

(c) (1) Prior to July 1, 2012, when a mortgagee commences an action for the foreclosure of a
mortgage on residential real property with a return date on or after July 1, 2009, the mortgagee shall give
notice to the mortgagor of the foreclosure mediation program established in section 49-31m by attaching
to the front of the writ, summons and complaint that is served on the mortgagor: (A) A copy of the
notice of foreclosure mediation, in such form as the Chief Court Administrator prescribes, (B) a copy of
the foreclosure mediation certificate form described in subdivision (3) of this subsection, in such form as
the Chief Court Administrator prescribes, and (C) a blank appearance form, in such form as the Chief
Court Administrator prescribes.

(2) The court shall issue a notice of foreclosure mediation described in subdivision (3) of this
subsection to the mortgagor not later than the date three business days after the date the mortgagee
returns the writ to the court.

(3) The notice of foreclosure mediation shall instruct the mortgagor to file the appearance and
foreclosure mediation certificate forms with the court no later than the date fifteen days from the return
date for the foreclosure action. The foreclosure mediation certificate form shall require the mortgagor to
provide sufficient information to permit the court to confirm that the defendant in the foreclosure action
is a mortgagor, and to certify that said mortgagor has sent a copy of the mediation certificate form to the
plaintiff in the action.

(4) Upon receipt of the mortgagor's appearance and foreclosure mediation certificate forms, and
provided the court confirms the defendant in the foreclosure action is a mortgagor and that said
mortgagor has sent a copy of the mediation certificate form to the plaintiff, the court shall schedule a

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date for foreclosure mediation in accordance with subsection (c) of section 49-31n. The court shall issue
notice of such mediation date to all appearing parties not earlier than the date five business days after the
return date or by the date three business days after the date on which the court receives the mortgagor's
appearance and foreclosure mediation forms, whichever is later, except that if the court does not receive
the appearance and foreclosure mediation certificate forms from the mortgagor by the date fifteen days
after the return date for the foreclosure action, the court shall not schedule such mediation.

(5) Notwithstanding the provisions of this subsection, the court may refer a foreclosure action
brought by a mortgagee to the foreclosure mediation program at any time, provided the mortgagor has
filed an appearance in said action and further provided the court shall, not later than the date three
business days after the date on which it makes such referral, send a notice to each appearing party
scheduling the first foreclosure mediation session for a date not later than the date fifteen business days
from the date of such referral.

(6) Notwithstanding any provision of the general statutes or any rule of law, prior to July 1, 2012, no
judgment of strict foreclosure nor any judgment ordering a foreclosure sale shall be entered in any action
subject to the provisions of this subsection and instituted by the mortgagee to foreclose a mortgage on
residential real property unless: (A) The mediation period set forth in subsection (c) of section 49-31n
has expired or has otherwise terminated, whichever is earlier, or (B) the mediation program is not
otherwise required or available.

(7) None of the mortgagor's or mortgagee's rights in the foreclosure action shall be waived by
participation in the foreclosure mediation program.

(P.A. 08-176, S. 16; P.A. 09-209, S. 34; Sept. Sp. Sess. P.A. 09-7, S. 95; P.A. 10-181, S. 1.)

History: P.A. 08-176 effective July 1, 2008; P.A. 09-209 added new Subsec. (a) which divided
foreclosure mediation program into provisions applicable to foreclosures of certain mortgages with a
return date from July 1, 2008, to June 30, 2009, and provisions applicable to foreclosures of certain
mortgages with a return date from July 1, 2009, to June 30, 2010, redesignated existing Subsecs. (a) to
(e) as Subsecs. (b)(1) to (b)(7), added new Subsec. (c) and made conforming changes, effective July 1,
2009; Sept. Sp. Sess. P.A. 09-7 amended Subsec. (c)(2) by changing "not later than three days after the
mortgagee" to "not later than the date three business days after the date the mortgagee", amended
Subsec. (c)(4) by adding "or by the date three business days after the date on which the court receives
the mortgagor's appearance and foreclosure mediation certificate forms, whichever is later, except that
if", and amended Subsec. (c)(5) by adding scheduling and notice requirements for first foreclosure
mediation session when court makes referral, effective October 5, 2009; P.A. 10-181 extended
termination date of foreclosure mediation program to July 1, 2012, and made a technical change in
Subsec. (c)(6), effective June 9, 2010.

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Sec. 49-31m. Foreclosure mediation program. Not later than July 1, 2008, the Chief Court
Administrator shall establish in each judicial district a foreclosure mediation program in actions to
foreclose mortgages on residential real property. Such foreclosure mediation shall (1) address all issues
of foreclosure, including, but not limited to, reinstatement of the mortgage, assignment of law days,
assignment of sale date, restructuring of the mortgage debt and foreclosure by decree of sale, and (2) be
conducted by foreclosure mediators who (A) are employed by the Judicial Branch, (B) are trained in

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mediation and all relevant aspects of the law, as determined by the Chief Court Administrator, (C) have
knowledge of the community-based resources that are available in the judicial district in which they
serve, and (D) have knowledge of the mortgage assistance programs. Such mediators may refer
mortgagors who participate in the foreclosure mediation program to community-based resources when
appropriate and to the mortgage assistance programs.

(P.A. 08-176, S. 17.)

History: P.A. 08-176 effective June 12, 2008.

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Sec. 49-31n. Mediation period. Termination of program. (a) Prior to July 1, 2012: (1) Any action
for the foreclosure of a mortgage on residential real property with a return date during the period from
July 1, 2008, to June 30, 2009, inclusive, shall be subject to the provisions of subsection (b) of this
section, and (2) any action for the foreclosure of a mortgage on residential real property with a return
date during the period from July 1, 2009, to June 30, 2012, inclusive, shall be subject to the provisions
of subsection (c) of this section.

(b) (1) For any action for the foreclosure of a mortgage on residential real property with a return date
during the period from July 1, 2008, to June 30, 2009, inclusive, the mediation period under the
foreclosure mediation program established in section 49-31m shall commence when the court sends
notice to each appearing party that a foreclosure mediation request form has been submitted by a
mortgagor to the court, which notice shall be sent not later than three business days after the court
receives a completed foreclosure mediation request form. The mediation period shall conclude not more
than sixty days after the return day for the foreclosure action, except that the court may, in its discretion,
for good cause shown, (A) extend, by not more than thirty days, or shorten the mediation period on its
own motion or upon motion of any party, or (B) extend by not more than thirty days the mediation
period upon written request of the mediator.

(2) The first mediation session shall be held not later than fifteen business days after the court sends
notice to all parties that a foreclosure mediation request form has been submitted to the court. The
mortgagor and mortgagee shall appear in person at each mediation session and shall have authority to
agree to a proposed settlement, except that if the mortgagee is represented by counsel, the mortgagee's
counsel may appear in lieu of the mortgagee to represent the mortgagee's interests at the mediation,
provided such counsel has the authority to agree to a proposed settlement and the mortgagee is available
during the mediation session by telephone. The court shall not award attorney's fees to any mortgagee
for time spent in any mediation session if the court finds that such mortgagee has failed to comply with
this subdivision, unless the court finds reasonable cause for such failure.

(3) Not later than two days after the conclusion of the first mediation session, the mediator shall
determine whether the parties will benefit from further mediation. The mediator shall file with the court
a report setting forth such determination and mail a copy of such report to each appearing party. If the
mediator reports to the court that the parties will not benefit from further mediation, the mediation
period shall terminate automatically. If the mediator reports to the court after the first mediation session
that the parties may benefit from further mediation, the mediation period shall continue.

(4) If the mediator has submitted a report to the court that the parties may benefit from further

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mediation pursuant to subdivision (3) of this subsection, not more than two days after the conclusion of
the mediation, but no later than the termination of the mediation period set forth in subdivision (1) of
this subsection, the mediator shall file a report with the court describing the proceedings and specifying
the issues resolved, if any, and any issues not resolved pursuant to the mediation. The filing of the report
shall terminate the mediation period automatically. If certain issues have not been resolved pursuant to
the mediation, the mediator may refer the mortgagor to any appropriate community-based services that
are available in the judicial district, but any such referral shall not cause a delay in the mediation
process.

(5) The Chief Court Administrator shall establish policies and procedures to implement this
subsection. Such policies and procedures shall, at a minimum, provide that the mediator shall advise the
mortgagor at the first mediation session required by subdivision (2) of this subsection that: (A) Such
mediation does not suspend the mortgagor's obligation to respond to the foreclosure action; and (B) a
judgment of strict foreclosure or foreclosure by sale may cause the mortgagor to lose the residential real
property to foreclosure.

(6) In no event shall any determination issued by a mediator under this program form the basis of an
appeal of any foreclosure judgment.

(7) Foreclosure mediation request forms shall not be accepted by the court on or after July 1, 2012,
and the foreclosure mediation program shall terminate when all mediation has concluded with respect to
any applications submitted to the court prior to July 1, 2012.

(8) At any time during the mediation period, the mediator may refer the mortgagor to the mortgage
assistance programs, except that any such referral shall not prevent a mortgagee from proceeding to
judgment when the conditions specified in subdivision (6) of subsection (b) of section 49-31l have been
satisfied.

(c) (1) For any action for the foreclosure of a mortgage on residential real property with a return date
during the period from July 1, 2009, to June 30, 2012, inclusive, the mediation period under the
foreclosure mediation program established in section 49-31m shall commence when the court sends
notice to each appearing party scheduling the first foreclosure mediation session. The mediation period
shall conclude not later than the date sixty days after the return date for the foreclosure action, except
that the court may, in its discretion, for good cause shown, (A) extend, by not more than thirty days, or
shorten the mediation period on its own motion or upon motion of any party, or (B) extend by not more
than thirty days the mediation period upon written request of the mediator.

(2) The first mediation session shall be held not later than fifteen business days after the court sends
notice to each appearing party in accordance with subdivision (4) of subsection (c) of section 49-31l.
The mortgagor and mortgagee shall appear in person at each mediation session and shall have authority
to agree to a proposed settlement, except that if the mortgagee is represented by counsel, the mortgagee's
counsel may appear in lieu of the mortgagee to represent the mortgagee's interests at the mediation,
provided such counsel has the authority to agree to a proposed settlement and the mortgagee is available
during the mediation session by telephone. The court shall not award attorney's fees to any mortgagee
for time spent in any mediation session if the court finds that such mortgagee has failed to comply with
this subdivision, unless the court finds reasonable cause for such failure.

(3) Not later than two days after the conclusion of the first mediation session, the mediator shall
determine whether the parties will benefit from further mediation. The mediator shall file with the court
a report setting forth such determination and mail a copy of such report to each appearing party. If the
mediator reports to the court that the parties will not benefit from further mediation, the mediation

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period shall terminate automatically. If the mediator reports to the court after the first mediation session
that the parties may benefit from further mediation, the mediation period shall continue.

(4) If the mediator has submitted a report to the court that the parties may benefit from further
mediation pursuant to subdivision (3) of this subsection, not more than two days after the conclusion of
the mediation, but no later than the termination of the mediation period set forth in subdivision (1) of
this subsection, the mediator shall file a report with the court describing the proceedings and specifying
the issues resolved, if any, and any issues not resolved pursuant to the mediation. The filing of the report
shall terminate the mediation period automatically. If certain issues have not been resolved pursuant to
the mediation, the mediator may refer the mortgagor to any appropriate community-based services that
are available in the judicial district, but any such referral shall not cause a delay in the mediation
process.

(5) The Chief Court Administrator shall establish policies and procedures to implement this
subsection. Such policies and procedures shall, at a minimum, provide that the mediator shall advise the
mortgagor at the first mediation session required by subdivision (2) of this subsection that: (A) Such
mediation does not suspend the mortgagor's obligation to respond to the foreclosure action; and (B) a
judgment of strict foreclosure or foreclosure by sale may cause the mortgagor to lose the residential real
property to foreclosure.

(6) In no event shall any determination issued by a mediator under this program form the basis of an
appeal of any foreclosure judgment.

(7) The foreclosure mediation program shall terminate when all mediation has concluded with
respect to any foreclosure action with a return date during the period from July 1, 2009, to June 30,
2012, inclusive.

(8) At any time during the mediation period, the mediator may refer the mortgagor to the mortgage
assistance programs, except that any such referral shall not prevent a mortgagee from proceeding to
judgment when the conditions specified in subdivision (6) of subsection (c) of section 49-31l have been
satisfied.

(P.A. 08-176, S. 18; Nov. 24 Sp. Sess. P.A. 08-2, S. 8; P.A. 09-209, S. 35; P.A. 10-181, S. 2.)

History: P.A. 08-176 effective July 1, 2008; Nov. 24 Sp. Sess. P.A. 08-2 amended Subsec. (a) to
designate existing provision re extension of mediation period as Subdiv. (1), increase extension period
therein from ten to thirty days, add Subdiv. (2) re extension of mediation period by not more than thirty
days upon written request of the mediator and make technical changes, and amended Subsec. (b) to
extend deadline for first mediation session from ten to fifteen business days after court notice, effective
November 25, 2008; P.A. 09-209 added new Subsec. (a) re applicable foreclosure mediation period for
foreclosures of certain mortgages with a return date from July 1, 2008, to June 30, 2009, and from July
1, 2009, to June 30, 2010, redesignated existing Subsecs. (a) to (h) as Subsecs. (b)(1) to (b)(8), added
provision re award of attorney's fees in redesignated Subsec. (b)(2), deleted provision re rules of court in
redesignated Subsec. (b)(5), added new Subsec. (c) and made conforming changes, effective July 1,
2009; P.A. 10-181 extended termination date of foreclosure mediation program to July 1, 2012, and
amended Subsecs. (b)(2) and (c)(2) by eliminating option of mortgagee being available during mediation
session by electronic means and making a technical change, effective June 9, 2010.

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Sec. 49-31o. Consent of mortgagee required for changes. Disclosure of information submitted
to mediator. (a) Nothing in sections 49-31k to 49-31n, inclusive, shall require a mortgagee to modify a
mortgage or change the terms of payment of a mortgage without its consent.

(b) Information submitted by the mortgagor to a mediator, either orally or in writing, including
financial documents, shall not be subject to disclosure by the Judicial Branch.

(P.A. 08-176, S. 19; P.A. 09-209, S. 36.)

History: P.A. 08-176 effective July 1, 2008; P.A. 09-209 designated existing provisions as Subsec.
(a) and added Subsec. (b) re information submitted by mortgagor to a mediator, effective July 1, 2009.

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