Researcher: SM Page 1 3/22/21
OLR Bill Analysis
SB 876
AN ACT CONCERNING BONDS OF BOARD MEMBERS AND
OTHER EMPLOYEES OF THE CONNECTICUT HOUSING FINANCE
AUTHORITY.
SUMMARY
Under current law, each Connecticut Housing Finance Authority
(CHFA) board member must execute an individual surety bond for at
least $50,000, and the executive director must execute one for $100,000,
unless the board’s chair executes a blanket bond covering all the
authority’s employees, board members, and the executive director.
This bill allows the chair to procure an equivalent insurance product in
lieu of a blanket bond.
Similar to the surety bonds, the insurance product must be (1)
conditioned upon the faithful performance of the duties of the offices
covered, (2) issued by a company (in this case, an insurer) authorized
to do business in Connecticut, (3) paid for by CHFA, and (4) filed with
the office of the Secretary of the State.
The bill also (1) eliminates a requirement that the attorney general
approve the bonds and (2) makes a technical change.
EFFECTIVE DATE: July 1, 2021
COMMITTEE ACTION
Housing Committee
Joint Favorable
Yea 15 Nay 0 (03/09/2021)