Section 8-287 - Loan repayment(a) Any loan contracted for pursuant to this chapter shall be secured by a subordinate mortgage on the dwelling purchased by the recipient of such loan. If the recipient of such loan assigns, transfers or otherwise conveys his interest in such dwelling or ceases to occupy such dwelling, the unpaid principal balance of said mortgage, together with interest thereon, shall become due and payable. If the recipient of any loan is unable to repay the loan, the authority or the commissioner, for loans made under this chapter prior to October 1, 1995, and the authority for loans acquired from the state or made after October 1, 1995, at the discretion of the authority or the commissioner, as the case may be, may adjust the interest rate, terms and conditions of the loan to facilitate repayment.(b) Repayment of any loan provided in accordance with this chapter shall be subject to an interest rate to be determined in accordance with subsection (t) of section 3-20 and such terms and conditions as the commissioner or the authority may establish, including, but not limited to, any interest rate, terms of repayment or conditions for forgiveness of the principal or interest of any such loan. The authority, in its discretion, (1) may approve repayment of a loan for a term to be established by the authority in its discretion or, in the case of a first mortgage that is a graduated payment mortgage, for a term of no more than thirty years or (2) may require the loan be due and payable upon assignment, transfer, sale or other conveyance of the property. Payments by homeowners who have received financial assistance under this chapter prior to October 1, 1995, shall be paid to the State Treasurer and deposited in the General Fund of the state. Payments by homeowners who have received financial assistance under this chapter after October 1, 1995, shall be paid to the authority, deposited in such funds or accounts as the authority may establish from time to time for such purpose and used by the authority to make additional loans pursuant to this chapter unless the Secretary of the Office of Policy and Management directs such payments to be paid to the State Treasurer and deposited in the General Fund.(P.A. 77-612, S. 5; P.A. 83-259, S. 1, 2; P.A. 87-416, S. 9, 24; P.A. 91-346 , S. 3 , 9 ; P.A. 92-166 , S. 22 , 31 ; P.A. 95-250 , S. 30 , 42 ; 95-309 , S. 11 , 12 .)
Amended by P.A. 23-0045,S. 7 of the Connecticut Acts of the 2023 Regular Session, eff. 10/1/2023.