HB 5218 Summary

• Amends Connecticut General Statutes section 49-2(c) to modify requirements for open-end mortgages, effective October 1, 2022

• Permits mortgagees to make future advances under open-end mortgages to original mortgagors and assignees who assume the mortgage, with future advances secured equally with original debt

• Requires open-end mortgages to include specific provisions, disclose the full authorized loan amount, and prohibit repayment terms extending beyond the original mortgage maturity (except for commercial future advance loans, consumer revolving loans, or letters of credit, which may extend up to 30 years)

• Defines "consumer revolving loan" as a loan to individuals for personal, family or household purposes that explicitly prohibits access via credit card or similar instruments and limits the advancement period to 10 years

• Allows mortgagors to terminate or limit future advances by recording written notice sent via certified mail to the mortgagee, with notice becoming effective the next business day after receipt