Connecticut HB 5212: AN ACT REQUIRING ACCEPTANCE OF PERIODIC AND PARTIAL PAYMENTS ON CERTAIN MORTGAGE LOANS ISSUED BY CONNECTICUT BANKS AND CONNECTICUT CREDIT UNIONS.

Bill Text

LCO No. 1608 1 of 2

General Assembly Raised Bill No. 5212
February Session, 2026 LCO No. 1608

Referred to Committee on BANKING

Introduced by:
(BA)

AN ACT REQUIRING ACCEPTANCE OF PERIODIC AND PARTIAL
PAYMENTS ON CERTAIN MORTGAGE LOANS ISSUED BY
CONNECTICUT BANKS AND CONNECTICUT CREDIT UNIONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective October 1, 2026) (a) As used in this section: 1
(1) "Periodic payment" means a payment made in an amount 2
sufficient to cover principal, interest and, if applicable, escrow for a 3
given billing cycle; 4
(2) "Partial payment" means a payment made in an amount less than 5
a periodic payment; and 6
(3) "Residential mortgage loan" means any loan that is (A) issued on 7
or after October 1, 2026, by a Connecticut bank or a Connecticut credit 8
union, as such terms are defined in section 36a-2 of the general statutes, 9
(B) primarily for personal, family or household use, and (C) secured by 10
a mortgage, deed of trust or other equivalent consensual security 11
interest on a dwelling or residential real estate upon which is 12
constructed or intended to be constructed a dwelling. 13

Raised Bill No. 5212

LCO No. 1608 2 of 2

(b) A periodic payment or a partial payment on a residential 14
mortgage loan shall be accepted and credited, or treated as credited, in 15
accordance with the terms of the residential mortgage loan, on the 16
business day on which the payment is received, provided (1) the 17
payment is made where the borrower has been instructed in writing to 18
make payments on such loan, and (2) the borrower has provided 19
sufficient information in order for the recipient of such payment to 20
identify and credit the relevant mortgage account. 21
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 New section

Statement of Purpose:
To require certain payments on mortgage loans issued by Connecticut
banks and Connecticut credit unions on and after October 1, 2026, to be
accepted and credited or treated as credited.

[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.]