§ 8-265uu — Supplemental collapsing foundation loan program. Claims. Financial institutions. Forms. Standards. Notices.

(a) The authority shall administer a supplemental collapsing foundation loan program to guarantee the repayment of loans made by an eligible financial institution to an eligible borrower pursuant to sections 8-265tt to 8-265xx, inclusive. Subject to the cessation of new claim approvals under subsection (d) of section 8-265ww, the authority shall submit all processed claims to the Comptroller, who shall pay from the General Fund any and all claims submitted by the authority. (b) (1) Except as provided in subsection (d) of this section, any eligible financial institution may participate in the loan guarantee program after providing the department and the authority with advance written notice of the eligible financial institution's intention to participate in the program. Such notice shall be in the form and manner prescribed by the department and the authority, and shall include contact information for the eligible financial institution. Nothing in this section shall be construed to preclude an eligible financial institution that has elected to participate in the program from issuing loans to eligible borrowers outside of the loan guarantee program. (2) An eligible financial institution may suspend its participation in, or withdraw from, the loan guarantee program five business days after providing advance written notice to the department and the authority specifying the date on which such suspension or withdrawal becomes effective. Such withdrawal or suspension shall not affect the eligible financial institution's ability to submit a guarantee claim on any loan for which the eligible financial institution provided notice to the authority pursuant to subsection (d) of this section prior to the effective date of the withdrawal or suspension. (3) Not later than September 1, 2019, the department and the authority shall each publish on their Internet web sites a summary of the program and a list of the eligible financial institutions that have elected to participate in the program. The list shall be updated from time to time and shall include the contact information of each participating eligible financial institution. The department shall also provide information concerning the loan guarantee program to mortgage servicers licensed pursuant to section 36a-718 . (c) (1) The authority may develop, in consultation with representatives from the banking industry, one or more standard promissory note and mortgage deed forms that may be used by eligible financial institutions making loans under the program pursuant to section 8-265vv . (2) Not later than September 1, 2019, the authority shall develop, in consultation with representatives from the banking industry, (A) reasonable standards an eligible financial institution may rely upon to demonstrate good faith collection efforts described in subsection (a) of section 8-265ww , and (B) a readily accessible communication portal by which participating eligible financial institutions may verify in real time the total dollar amount of loans that have been reported to the authority pursuant to subsection (d) of this section and the total dollar amount of claims submitted to the Comptroller pursuant to subsection (a) of section 8-265ww . The forms and standards developed pursuant to this section shall, to the maximum extent feasible, be closely aligned with existing forms, policies and procedures used by eligible financial institutions participating in the program, but shall not require post-delinquency collection efforts extending beyond ninety days. (d) Each eligible financial institution that makes a loan pursuant to section 8-265vv , shall notify the authority in writing not later than one business day after making the loan, specifying the amount of the loan and any other information about the borrower and the loan the authority may request. When the total amount of loans reported to the authority reaches twenty million dollars, the authority shall immediately close participation in the program under subsection (a) of this section and notify each eligible financial institution participating in the program. A participating eligible financial institution may condition the availability of any loan commitment on the availability of the loan guarantee program.

Legislative History

(P.A. 19-192, S. 8.) History: P.A. 19-192 effective July 8, 2019.