CT SB01077

Removes minimum interest rate floor of 1.5% on security deposits held by landlords, allowing rates to be set at the deposit index rate without a guaranteed minimum effective October 1, 2011.

Removes minimum interest rate floor of 1.5% on escrow accounts held by mortgage lenders for taxes and insurance, allowing rates to be set at the deposit index rate without a guaranteed minimum effective October 1, 2011.

Maintains requirement that landlords pay interest on security deposits at no less than the average rate paid on savings deposits by insured commercial banks, rounded to the nearest one-tenth percentage point.

Maintains requirement that mortgage lenders pay interest on escrow funds at no less than the deposit index rate, rounded to the nearest one-tenth percentage point.

Applies changes to tenant security deposits (except those held by educational institutions) and mortgage escrow accounts for owner-occupied residential property of no more than four living units.