Sec. 36a-568. (Formerly Sec. 36-236). Form of security restricted. Loan contract.
Sec. 36a-568. (Formerly Sec. 36-236). Form of security restricted. Loan contract. No licensee shall take any confession of judgment or any power of attorney, nor
shall he take any note or promise to pay that does not state the actual amount of the
loan, the time for which it is made and the charges, or any instrument in which blanks
are left to be filled after the loan is made. No licensee shall take a mortgage, lien, security
interest in or assignment or pledge of household goods or an assignment of wages as
security for any loan made under sections 36a-555 to 36a-573, inclusive. A licensee
may take a security interest in chattels or personal property other than household goods,
except a security interest in an automobile may not be taken as security for any loan
where the cash advance is one thousand eight hundred dollars or less. A licensee may
take a security interest in real estate on loans made under said sections where the cash
advance is in excess of one thousand eight hundred dollars, but may not take such a
security interest in real estate where the cash advance is one thousand eight hundred
dollars or less. A contract for a loan under said sections shall not originally schedule
any repayment of the cash advance over a period in excess of twenty-four months and
fifteen days if the amount of the original cash advance was one thousand dollars or less
or thirty-six months and fifteen days if the amount of the original cash advance was
more than one thousand dollars but not in excess of one thousand eight hundred dollars
or seventy-two months and fifteen days if the amount of the original cash advance was
in excess of one thousand eight hundred dollars, and shall be repayable in installments
of cash advance and charges combined which are substantially equal in amount or so
arranged that no installment is substantially greater in amount than any preceding installment and which are payable at approximately equal intervals not exceeding one month,
except that the first installment may be payable not more than one month and fifteen
days after the date of such contract. The requirements of section 36a-785 shall apply to
any repossession under sections 36a-555 to 36a-573, inclusive, of property other than
real estate.
(1949 Rev., S. 5951; 1949, S. 2764d; 1963, P.A. 175, S. 5; 1969, P.A. 242, S. 5; 454, S. 36; P.A. 75-99, S. 5, 6; P.A.
77-129, S. 6.)
History: 1963 act rephrased provisions and increased maximum repayment period from 20 months to 24 months and
15 days and time for payment of first installment from 45 days to 1 month and 15 days; 1969 acts prohibited taking mortgage
or lien except as authorized in Sec. 36-234, made previous repayment period applicable to loans not exceeding $1,000 and
allowed 36 months and 15 days for larger loans and deleted provision prohibiting licensee from taking any note or promise
to pay which "does not state the actual amount of the loan, the time for which it is made and the charges" and from taking
"any instrument in which blanks are left to be filled after the loan is made"; P.A. 75-99 specified conditions for taking
security interest in real estate and stated that time for repayment of loan secured by real estate may not be restricted; P.A.
77-129 clarified use of chattels and personal property as loan security and deleted reference to security authorized in Sec.
36-234, allowed repayment period of 72 months and 15 days in cases where cash advance exceeded $1,800, deleted
statement that time for loan repayment where loan secured by real estate is not to be limited and added provision re
applicability of Sec. 42-98 to repossession of property other than real estate; Sec. 36-236 transferred to Sec. 36a-568 in 1995.
See Sec. 36a-564 re definition of "cash advance".
See Sec. 36a-565(j) re inapplicability of section to certain open-end loans.
Annotation to former section 36-236:
Cited. 115 C. 105.