CT HB05319

Repeals and replaces Section 36a-260 of Connecticut general statutes regarding bank lending practices, effective October 1, 2022.

Requires Connecticut banks to adopt annual loan policies addressing loan categories, approval processes, underwriting guidelines, collateral requirements, appraiser qualifications, and appraisal standards, subject to commissioner examination.

Mandates banks adopt loan review policies to ensure material loans comply with loan policy standards, with governing boards conducting semiannual assessments and recording results in meeting minutes.

Requires any person making a loan with a prepayment penalty to provide borrowers a clear and conspicuous written disclosure showing the penalty amount for repayment during each billing cycle throughout the loan's life, signed by the borrower before loan agreement execution.