Connecticut § 8-265kk - Establishment of component program. Notification to participating homeowners of unavailability of funds.

§ 8-265kk. Establishment of component program. Notification to participating homeowners of unavailability of funds.

Sec. 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 section 36a-2, having deposit-taking branches in the state.

(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 post on the authority's Internet web site a notice for the benefit of all mortgagees and lienholders and shall thereafter discontinue accepting applications for emergency mortgage or lien assistance payment. Upon posting such notice, and until a subsequent notice is posted by the authority on the authority's Internet web site disclosing 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 section 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.

(P.A. 94-185, S. 9, 10; P.A. 21-44, S. 14; P.A. 24-66, S. 6.)

History: P.A. 94-185 effective June 2, 1994; P.A. 21-44 added new Subsec. (a) re establishment of component program, designated existing provisions re notification by the authority of the unavailability of funds as Subsec. (b) and amended same by adding references to “lien” and “lienholders” throughout, replacing “mortgagors” with “homeowners” and making a technical change; P.A. 24-66 amended Subsec. (b) to replace “notify” with “post on the authority's Internet web site a notice for the benefit of”, replace “not accept” with “thereafter discontinue accepting”, change “receipt of such notice from the authority and until mortgagees and lienholders receive a further notice from the authority” to “posting such notice, and until a subsequent notice is posted by the authority on the authority's Internet web site disclosing” and make technical changes.