(a) An eligible financial institution that has made a good faith effort to collect the outstanding principal from a loan issued pursuant to section 8-265vv may make a claim to the authority for recovery of an amount equal to the outstanding principal for such loan. Except as provided in subsection (d) of this section, if the eligible financial institution demonstrates to the satisfaction of the authority that the eligible financial institution has made a good faith effort to collect the outstanding principal from the eligible borrower in accordance with the financial institution's loan servicing and collection policies, the authority shall process and submit the claim to the Comptroller for payment. Upon payment of a claim by the Comptroller, and as a condition of such payment, (1) the loan shall be assigned to the state, and (2) the authority, as agent for the state, shall have the right to continue collection efforts on the loan. Any amount necessary for payment by the Comptroller to honor loan guarantees under this section shall be deemed appropriated from the General Fund, and any funds collected by the authority in accordance with this subsection shall be deposited to the General Fund.
(b) The authority shall maintain records in the regular course of administration of the loan guarantee program, including a record of loans issued and of payments made to honor loan guarantees issued under this section.
(c) The authority may terminate any loan guarantee if the financial institution misrepresents any information pertaining to the guarantee or fails to comply with any requirements of this section in connection with the guarantee of the underlying loan.
(d) The total amount of claims processed by the authority and paid by the Comptroller to honor loan guarantees under this section shall not exceed two million dollars. When the total amount of claims processed by the authority and paid by the Comptroller reaches two million dollars, the authority shall immediately cease to process claims and shall notify the Comptroller and each eligible financial institution participating in the program that the authority has ceased honoring loan guarantees.
(P.A. 19-192, S. 10.)
History: P.A. 19-192 effective July 8, 2019.
Structure Connecticut General Statutes
Title 8 - Zoning, Planning, Housing and Economic and Community Development
Chapter 134 - Connecticut Housing Finance Authority Act
Section 8-241. - Short title: Connecticut Housing Finance Authority Act.
Section 8-242. - Declaration of policy.
Section 8-242a. - Establishment of subsidiaries by authority.
Section 8-244a. - Commissioner of Economic Development to be member of authority.
Section 8-244b. - Establishment of State Housing Authority.
Section 8-244c. - State Housing Authority to be successor to Connecticut Housing Authority.
Section 8-244d. - Bonds, notes or other obligations.
Section 8-244e. - Definitions. Additional powers and duties of Commissioner of Housing.
Section 8-245. - State personnel may be board members of authority.
Section 8-246. - Executive director. Appointment and duties.
Section 8-248. - Perpetual succession of authority.
Section 8-249. - Quorum. Board action. Written procedures.
Section 8-250. - Purpose and powers of authority.
Section 8-252. - Issuance of bonds by authority.
Section 8-253. - Mortgage loans and insurance of mortgage payments.
Section 8-253a. - Additional loan conditions.
Section 8-254. - Applications for mortgage insurance.
Section 8-254a. - Tenant selection plans of mortgagors.
Section 8-255. - Mortgage insurance premiums.
Section 8-256. - Default by mortgagor and subsequent action.
Section 8-260. - Reports to Governor and General Assembly. Audit.
Section 8-261. - Pledge by state as to limitation or alteration of rights vested in authority.
Section 8-262. - Interpretation of powers.
Section 8-262a. - Penalty for false statement.
Section 8-263. - Provisions controlling over inconsistent law.
Section 8-264 and 8-265. - Purchase of or loans on mortgages insured by state agencies. Bond issue.
Section 8-265a. - Land of authority subject to local regulation.
Section 8-265b. - Tax-exempt status of authority. Payment in lieu of taxes.
Section 8-265bb. - Contract for state assistance to authority.
Section 8-265cc. - Definitions.
Section 8-265e. - Annual study of current market rent levels.
Section 8-265g. - Mortgage assistance for low or moderate income families or persons.
Section 8-265h. - Housing advisory panel.
Section 8-265hh. - Repayment agreement.
Section 8-265i. - Reverse annuity mortgage program.
Section 8-265ii. - Adoption of procedures.
Section 8-265jj. - Filing of notice of agreement to participate in program with the authority.
Section 8-265mm. - Pilot program of home purchasing assistance for police officers.
Section 8-265o. - Definitions.
Section 8-265oo. - Residential mortgage loan refinancing guarantee program.
Section 8-265p. - Residential mortgage refinancing guarantee program.
Section 8-265pp. - Mortgage assistance program for certain teachers.
Section 8-265q. - Mortgagee participation.
Section 8-265qq. - Assessment increase deferred for rehabilitated properties.
Section 8-265r. - Eligibility of loans.
Section 8-265rr. - Mortgage refinancing program for homeowners with adjustable rate mortgages.
Section 8-265ss. - Homeowner's Equity Recovery Opportunity loan program.
Section 8-265t. - Points. Annual premium.
Section 8-265tt. - Definitions.
Section 8-265u. - Termination of loan guarantee.
Section 8-265v. - Written procedures.