Sec. 32-67. Claims. Premiums.
Sec. 32-67. Claims. Premiums. Any contract of insurance made by the authority
under the authorization of this chapter shall provide that claims payable under such
contract shall first be paid from any amounts readily available in the insurance fund
before any amounts available from the bond authorization contained in section 32-68 are
utilized for claim payment. The faith and credit of the state is hereby pledged, pursuant to
said bond authorization and in accordance with section 3-20, to provide to the insurance
fund up to a maximum of ten million dollars as and when necessary to make timely
payments of all amounts required to be paid under the terms of any insurance contract
executed by the authority pursuant to this chapter. The aggregate outstanding principal
balance of all loans insured, to the extent insured, under this chapter shall not exceed
ten times the amount of bonds authorized in section 32-68. The obligation of the authority
to make payments under any such insurance contract shall be limited solely to such
sources and shall not constitute a debt or liability of the authority or the state. Any
insurance contract and any rule or regulation of the authority implementing the insurance
program may contain such other terms, provisions or conditions as the authority deems
necessary or appropriate, including, without limitation, those relating to the payment
of insurance premiums, the giving of notice, claim procedures, the sources of payment
for claims, the priority of competing claims for payment, the release or termination
of loan security and borrower liability, the timing of payment, the maintenance and
disposition of industrial projects and the use of amounts received during periods of loan
delinquency or upon default, and any other provision concerning the rights of insured
parties or conditions to the payment of insurance claims. Any premiums for the insurance
of loan payments under the provisions of this chapter may be determined on such basis,
be payable by such person, in such amounts and at such times as the authority shall
determine, and the amount of the premium need not be uniform among the various
insurance contracts.
(P.A. 81-388, S. 8, 12; P.A. 88-265, S. 20, 36.)
History: P.A. 88-265 deleted provisions re payment of claims from amounts available under the terms of any applicable
contract or agreement, added provisions pledging the full faith and credit of the state to provide the insurance fund up to
$10,000,000 and made other technical changes.