Sec. 36a-573. (Formerly Sec. 36-243). Charge of greater than legal interest.
Sec. 36a-573. (Formerly Sec. 36-243). Charge of greater than legal interest. No
person, except as authorized by the provisions of sections 36a-555 to 36a-573, inclusive,
shall, directly or indirectly, charge, contract for or receive any interest, charge or consideration greater than twelve per cent per annum upon the loan, use or forbearance of
money or credit of the amount or value of (1) five thousand dollars or less for any such
transaction entered into before October 1, 1997, and (2) fifteen thousand dollars or less
for any such transaction entered into on and after October 1, 1997. The provisions of this
section shall apply to any person who, as security for any such loan, use or forbearance of
money or credit, makes a pretended purchase of property from any person and permits
the owner or pledgor to retain the possession thereof, or who, by any device or pretense
of charging for the person's services or otherwise, seeks to obtain a greater compensation
than twelve per cent per annum. No loan for which a greater rate of interest or charge
than is allowed by the provisions of sections 36a-555 to 36a-573, inclusive, has been
contracted for or received, wherever made, shall be enforced in this state, and any person
in any way participating therein in this state shall be subject to the provisions of said
sections, provided, a loan lawfully made after June 5, 1986, in compliance with a validly
enacted licensed loan law of another state to a borrower who was not, at the time of
the making of such loan, a resident of Connecticut but who has become a resident of
Connecticut, may be acquired by a licensee and its interest provision shall be enforced
in accordance with its terms.
(1949 Rev., S. 5952; 1949, S. 2765d; 1957, P.A. 439, S. 4; 1963, P.A. 175, S. 7; 1969, P.A. 242, S. 7; P.A. 77-129, S.
7; P.A. 86-216, S. 1, 3; P.A. 94-122, S. 268, 340; P.A. 97-13, S. 3.)
History: 1963 act included "charge" in provision re 12% interest and raised applicable loan limit from $600 to $1,000;
1969 act raised limit to $1,800 and deleted reference to loan, etc. of "goods or things in action"; P.A. 77-129 raised limit
to $5,000 and added proviso re loans exceeding allowed interest rate or charge; P.A. 86-216 amended section to permit a
licensed small loan company to enforce an interest provision against an out of state borrower who becomes a Connecticut
resident, even if the interest rate exceeds the maximum rate permitted under Connecticut law; P.A. 94-122 made technical
changes, effective January 1, 1995; Sec. 36-243 transferred to Sec. 36a-573 in 1995; P.A. 97-13 increased limit from
$5,000 to $15,000 for loan transactions entered into on and after October 1, 1997.
Annotations to former section 36-243:
Under former statute note is void and unenforceable if maker owes licensee more than $300. 109 C. 116. Cited. 115
C. 106. Cited. 149 C. 159. Cited. 201 C. 89.