Connecticut 2011 Regular Session

Connecticut Senate Bill SB01077 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	General Assembly Raised Bill No. 1077
2	2	January Session, 2011 LCO No. 3712
3	3	03712_______BA_
4	4	Referred to Committee on Banks
5	5	Introduced by:
6	6	(BA)
7	7
8	8	General Assembly
9	9
10	10	Raised Bill No. 1077
11	11
12	12	January Session, 2011
13	13
14	14	LCO No. 3712
15	15
16	16	03712_______BA_
17	17
18	18	Referred to Committee on Banks
19	19
20	20	Introduced by:
21	21
22	22	(BA)
23	23
24	24	AN ACT CONCERNING MARKET INTEREST RATES ON CERTAIN DEPOSIT ACCOUNTS.
25	25
26	26	Be it enacted by the Senate and House of Representatives in General Assembly convened:
27	27
28	28	Section 1. Subdivision (1) of subsection (i) of section 47a-21 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
29	29
30	30	(i) (1) On and after July 1, 1993, each landlord other than a landlord of a residential unit in any building owned or controlled by any educational institution and used by such institution for the purpose of housing students of such institution and their families, and each landlord or owner of a mobile manufactured home or of a mobile manufactured home space or lot or park, as such terms are defined in subdivisions (1), (2) and (3) of section 21-64, shall pay interest on each security deposit received by him at a rate of not less than the average rate paid, as of December 30, 1992, on savings deposits by insured commercial banks as published in the Federal Reserve Board Bulletin rounded to the nearest one-tenth of one percentage point. [, except in no event shall the rate be less than one and one-half per cent.] On and after January 1, 1994, the rate for each calendar year shall be not less than the deposit index, as defined in subdivision (2) of this subsection, for that year. [, except in no event shall the rate be less than one and one-half per cent.] On the anniversary date of the tenancy and annually thereafter, such interest shall be paid to the tenant or resident or credited toward the next rental payment due from the tenant or resident, as the landlord or owner shall determine. If the tenancy is terminated before the anniversary date of such tenancy, or if the landlord or owner returns all or part of a security deposit prior to termination of the tenancy, the landlord or owner shall pay the accrued interest to the tenant or resident within thirty days of such termination or return. In any case where a tenant or resident has been delinquent for more than ten days in the payment of any monthly rent, he shall forfeit any interest which would otherwise be payable to him for that month, except that there shall be no such forfeiture if, pursuant to a provision of the rental agreement, a late charge is imposed for failure to pay such rent within the time period provided by section 47a-15a. No landlord or owner shall increase the rent due on any quarters or property subject to the provisions of this section because of the requirement that interest be paid on any security deposit made with respect to such quarters or property.
31	31
32	32	Sec. 2. Subsection (a) of section 49-2a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
33	33
34	34	(a) On and after July 1, 1993, each state bank and trust company, national banking association, state or federally chartered savings and loan association, savings bank, insurance company and other mortgagee or mortgage servicing company holding funds of a mortgagor in escrow for the payment of taxes and insurance premiums with respect to mortgaged property located in this state shall pay interest on such funds, except as provided in section 49-2c, at a rate of not less than the average rate paid, as of December 30, 1992, on savings deposits by insured commercial banks as published in the Federal Reserve Board Bulletin and rounded to the nearest one-tenth of one percentage point. [, except in no event shall the rate be less than one and one-half per cent.] On and after January 1, 1994, the rate for each calendar year shall be not less than the deposit index as defined in subsection (c) of this section for that year and rounded to the nearest one-tenth of one percentage point. [, except in no event shall the rate be less than one and one-half per cent.] Interest payments shall be credited on the thirty-first day of December annually toward the payment of taxes or insurance premiums as the case may be, on such mortgaged property in the ensuing year. If the mortgage debt is paid prior to December thirty-first in any year, the interest to the date of payment shall be paid to the mortgagor. The provisions of this section shall apply only with respect to mortgages on owner-occupied residential property consisting of not more than four living units and housing cooperatives occupied solely by the shareholders thereof. Any mortgagee or mortgage servicing company violating the provisions of this section shall be fined not more than one hundred dollars for each offense.
35	35
36	36
37	37
38	38
39	39	This act shall take effect as follows and shall amend the following sections:
40	40	Section 1 October 1, 2011 47a-21(i)(1)
41	41	Sec. 2 October 1, 2011 49-2a(a)
42	42
43	43	This act shall take effect as follows and shall amend the following sections:
44	44
45	45	Section 1
46	46
47	47	October 1, 2011
48	48
49	49	47a-21(i)(1)
50	50
51	51	Sec. 2
52	52
53	53	October 1, 2011
54	54
55	55	49-2a(a)
56	56
57	57	Statement of Purpose:
58	58
59	59	To restore market interest rates on tenant security deposit accounts and tax and insurance escrow accounts by removing state mandated price controls.
60	60
61	61	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]