CT SB00403

Establishes statutory power of sale provisions allowing non-judicial foreclosure of mortgages for commercial properties (corporations, partnerships, and limited liability companies) with original mortgage amounts of $5 million or more, effective January 1, 2017.

Prohibits statutory power of sale for mortgages on religious corporations, residential units, or mortgages under $5 million; requires mortgagee to provide written notice of default with at least 60-day cure period before initiating foreclosure.

Requires public sale conducted by a Superior Court commissioner with at least 60 days' notice to mortgagor and other interested parties; sale must be advertised weekly for three weeks in local newspaper and posted at the property.

Allows mortgagor to cure default and reinstate mortgage, or redeem property anytime before sale by paying all debt, obligations, and foreclosure costs including reasonable attorney's fees.

Establishes court procedures allowing mortgagor or other interested parties to seek protective orders or set aside sales within 30 days if mortgagee fails to comply with statutory requirements; requires commissioner to distribute sale proceeds in order of priority to expenses, debt, subordinate interests, and excess to former owner.