Connecticut General Statutes 8-265kk – Establishment of component program. Notification to participating homeowners of unavailability of funds
(a) If the authority determines that additional funding sources are necessary to provide emergency mortgage or lien assistance payments to homeowners in accordance with sections 8-265cc to 8-265kk, inclusive, the authority may, in consultation with the State Treasurer, the Comptroller, representatives from Connecticut-based banks and a state banking industry association, establish as part of the emergency mortgage and lien assistance program a component program that shall be administered by the authority in collaboration with Connecticut-based banks and that may include, but need not be limited to, loan guarantees. Any loan issued under such component program shall be used for the purposes described in sections 8-265cc to 8-265kk, inclusive. The authority shall notify the State Treasurer of the authority’s intention to establish a component program prior to establishing such program and the State Treasurer shall (1) advise the authority as to the state’s ability to provide loan guarantees under such program, and (2) recommend guidelines for such guarantees. For purposes of this subsection, “Connecticut-based banks” means banks and out-of-state banks, each as defined in § 36a-2, having deposit-taking branches in the state.
Terms Used In Connecticut General Statutes 8-265kk
- banks: shall include all incorporated banks. See Connecticut General Statutes 1-1
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(b) If funds are not available to provide emergency mortgage or lien assistance payments to homeowners in accordance with sections 8-265cc to 8-265kk, inclusive, the authority shall notify all mortgagees and lienholders and shall not accept applications for emergency mortgage or lien assistance payment. Upon receipt of such notice from the authority and until mortgagees and lienholders receive a further notice from the authority that such funds are again available and applications for such assistance payments are again being accepted by the authority: (1) Mortgagees may commence foreclosure actions without first providing the notice set forth in subsection (a) of § 8-265ee; and (2) the foreclosure of mortgages and liens by mortgagees or lienholders may continue without any further restriction or requirement under the provisions of sections 8-265cc to 8-265kk, inclusive.