Sec. 8-265s. Amount of guarantee. Record of payments to honor guarantees. Notification to State Treasurer.
Sec. 8-265s. Amount of guarantee. Record of payments to honor guarantees.
Notification to State Treasurer. (a) The maximum amount of any guarantee issued
by the authority under the provisions of sections 8-265o to 8-265v, inclusive, shall be
in an amount equal to the difference between eighty per cent of the appraised value of the
real property securing the loan and the amount of the new loan, provided the maximum
amount of any guarantee shall not exceed the difference between eighty per cent of the
appraised value of the real property securing the loan and one hundred twenty-five per
cent of the appraised value of such real property.
(b) The guarantee shall secure the mortgagee up to the amount of the guarantee for
any loss incurred by the mortgagee because of default of the mortgagor, including losses
in principal balance, interest and fees and expenses due to foreclosure.
(c) The authority shall maintain a record of payments made to honor loan guarantees
issued under the provisions of sections 8-265o to 8-265v, inclusive. The authority shall
notify the State Treasurer when the cumulative total of such payments equals or exceeds
two million dollars. Such notice shall include the total amount of payments made and
an estimate of the date that the resources available for the purpose of sections 8-265o
to 8-265v, inclusive, will be depleted. When the amounts expended to honor loan guarantees exceed four million dollars, the authority immediately shall cease to issue loan
guarantees and shall notify the State Treasurer of the total amount of payments made
and that it has ceased issuing loan guarantees. When all funds available for the purposes
of sections 8-265o to 8-265v, inclusive, are expended, the State Treasurer shall advance
such funds from the General Fund as needed to honor outstanding guarantees as they
become due and payable, provided such amount shall not exceed five million dollars.
Such funds shall be deemed appropriated for such purposes.
(P.A. 93-308, S. 7, 12; 93-435, S. 94, 95.)
History: P.A. 93-308 effective July 1, 1993; P.A. 93-435 changed effective date of P.A. 93-308 from July 1, 1993, to
June 9, 1993, effective June 28, 1993.