Sec. 36a-567. (Formerly Sec. 36-235). Prepayment of loan; receipts to borrower.
Sec. 36a-567. (Formerly Sec. 36-235). Prepayment of loan; receipts to borrower. Every licensee shall (1) permit payment of the loan in whole or in part prior to
its maturity, and (2) upon repayment of the loan in full, mark indelibly each paper signed
by the borrower with the word "paid" or "cancelled", and cancel and return any note
or, in lieu thereof, transmit or deliver to the borrower a duplicate of the original document
clearly identifying the loan, showing such loan has been paid in full and the note cancelled.
(1949 Rev., S. 5950; 1949, S. 2763d; 1963, P.A. 175, S. 4; 1969, P.A. 454, S. 35; P.A. 92-12, S. 69; P.A. 94-84.)
History: 1963 act specified in Subdiv. (a) that only certain Subsecs. of Sec. 36-233 need be stated, and amended Subdiv.
(b) to require receipt for cash payments only where previously receipt required for all forms of payments; 1969 act deleted
former Subdivs. (a) and (b) which required delivery to borrower of statement containing amount owed, scheduled payments,
etc. and receipts for cash payments, relettering accordingly; P.A. 92-12 made technical changes; P.A. 94-84 authorized
returning to the borrower a duplicate of the original document clearly identifying the loan, showing such loan has been
paid in full and the note cancelled; Sec. 36-235 transferred to Sec. 36a-567 in 1995.
See Sec. 36a-565 (j) re inapplicability of section to certain open-end loans.
Annotations to former section 36-235:
Actual amount of loan must be stated; "for value received" and amount of note are not sufficient. 115 C. 102. Rate of
interest must be clearly stated. Id. Under former requirement of statement re maturity, failure to state all contingencies
which would accelerate payment of principal rendered note unenforceable. 120 C. 152; 124 C. 349. Not necessary that
receipt state period for which interest was due or state balance due. Id., 351. Statement held insufficient because it stated
different day of week for installment payments from day designated in note. 127 C. 523.