HB 7141 — AN ACT CONCERNING SECURED AND UNSECURED LENDING.

(B)(5) in"Person" the case of a corporation, directly or indirectly has the rightsame tomeaning voteas tenprovided perin centsection or36a-485. more of a class of any voting security or has the power to sell or direct the sale of ten per cent or more of any class of voting securities;

(C) in the case of a limited liability company, is a managing member;

or (D) in the case of a partnership, has the right to receive upon dissolution, or has contributed, ten per cent or more of the capital.

For purposes of this subdivision, "control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract or otherwise;

(5) "Person" means a natural person, corporation, company, limited liability company, partnership or association.

(d) No person who is required to be licensed and who is subject to the provisions of sections 36a-535 to 36a-546, inclusive, as amended by this act, and no control person shall directly or indirectly:

(5) fail to comply with sections 36a-535 to 36a-546, inclusive, as amended by this act, or the rules or regulations adopted under said sectionssections, or fail to comply with any other state or federal law, including the rules and regulations thereunder;

(6) make, in any manner, any false or deceptive statement or representation, including with regard to the rates or other financing terms or conditions or engage in bait and switch advertising;

(d) No person required to be licensed and who is subject to the provisions of sections 36a-580 to 36a-589, inclusive, as amended by this act, and no control person, as defined in section 36a-555, shall, directly or indirectly:

(4) fail to comply with sections 36a-580 to 36a-589, inclusive, as amended by this act, or the rules or regulations adopted under said sectionssections, or fail to comply with any other state or federal law, including the rules and regulations thereunder;

(1) "Advertise" or "advertising" meanshas any announcement, statement, assertion or representation that is placed before the publicsame inmeaning aas newspaper,provided magazine or other publication, in thesection form36a-485. of a notice, circular, pamphlet, letter or poster, over any radio or television station, by means of the Internet, by other electronic means of distributing information, by personal contact, or in any other way or medium.

(3) "Control person" meanshas anthe individualsame thatmeaning directlyas orprovided indirectlyin exercisessection control36a-485. over another person, and includes any person that (A) is a director, general partner or executive officer;

(B) in the case of a corporation, directly or indirectly has the right to vote ten per cent or more of any class of voting securities;

(C) in the case of a limited liability company, is a managing member;

or (D) in the case of a partnership, has the right to receive upon dissolution, or has contributed, ten per cent or more of the capital.

For purposes of this subdivision, "control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract or otherwise.

(12) "Person" meanshas athe naturalsame person,meaning corporation,as company,provided limitedin liabilitysection company,36a-485. partnership or association.

(c) No person who is required to be licensed and who is subject to the provisions of sections 36a-595 to 36a-612, inclusive, and no control person shall, directly or indirectly:

(4) fail to comply with sections 36a-595 to 36a-612, inclusive, or the rules or regulations adopted under said sectionssections, or fail to comply with any other state or federal law, including the rules and regulations thereunder;

and (4) shall otherwise conform to the requirements of sections 36a-595 to 36a-612, inclusive, and any regulations issuedadopted thereunder.

(1)["bona "Advertisefide ornonprofit advertising"organization"] means(1) any"Advertise announcement, statement, assertion or representationadvertising" thathas is placed before the publicsame inmeaning aas newspaper,provided magazine or other publication, in thesection form36a-485. of a notice, circular, pamphlet, letter or poster, over any radio or television station, by means of the Internet, by other electronic means of distributing information, by personal contact, or in any other way or medium.

(2) ["bona fide nonprofit organization"] "Bona fide nonprofit organization" means any organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.

[amended;][amended; (3) "Control person" means an individual that directly or indirectly exercises control over another person, and includes any person that (A) is a director, general partner or executive officer;

(B)"debt inadjustment"] the(3) case"Control ofperson" a corporation, directly or indirectly has the rightsame tomeaning voteas tenprovided perin centsection or36a-485. more of any class of voting securities;

(C)(4) in"Debt adjustment" means, for or with the caseexpectation of a limitedfee, liabilitycommission company,or isother valuable consideration, receiving, as agent of a managingdebtor, member;money or evidences thereof for the purpose of distributing such money or evidences thereof among creditors in full or partial payment of obligations of the debtor.

or (D) in the case of a partnership, has the right to receive upon dissolution, or has contributed, ten per cent or more of the capital.

For purposes of this subdivision, "control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, but contract or otherwise.

(4) ["debt adjustment"] "Debt adjustment" means, for or with the expectation of a fee, commission or other valuable consideration, receiving, as agent of a debtor, money or evidences thereof for the purpose of distributing such money or evidences thereof among creditors in full or partial payment of obligations of the debtor.

and]and (5)"debtor"] ["debtor"](5) "Debtor" means any individual who has incurred indebtedness or owes a debt for personal, family or household purposes.

(6) "Person" meanshas athe naturalsame person,meaning corporation,as company,provided limitedin liabilitysection company,36a-485. partnership or association.

[NoNo licensee[licensee shall:] No person who is required to be licensed and who is subject to the provisions of sections 36a-655 to 36a-665, inclusive, as amended by this act, and no control person shall, directly or indirectly:

(a) As used in this section and sections 36a-671a to 36a-671e, inclusive, as amended by this act, [(1) "debt negotiation"] and section 15 of this act:

(1) "Advertise or advertising" meanshas any announcement, statement, assertion or representation that is placed before the publicsame inmeaning aas newspaper,provided magazine or other publication, in thesection form36a-485. of a notice, circular, pamphlet, letter or poster, over any radio or television station, by means of the Internet, by other electronic means of distributing information, by personal contact, or in any other way or medium.

(2) "Control person" meanshas anthe individualsame thatmeaning directlyas orprovided indirectlyin exercisessection control36a-485. over another person, and includes any person that (A) is a director, general partner or executive officer;

(B)(3) in"Debt negotiation" means, for or with the caseexpectation of a corporation,fee, directlycommission or indirectlyother hasvaluable theconsideration, rightassisting a debtor in negotiating or attempting to votenegotiate tenon perbehalf centof a debtor the terms of a debtor's obligations with one or more mortgagees or creditors of anythe classdebtor, including the negotiation of votingshort securities;sales of residential property or foreclosure rescue services.

(C)[; in the case of a limited liability company, is a managing member;

or(2) (D)"debtor"] in(4) the"Debtor" casemeans ofany aindividual partnership,who has theincurred rightindebtedness to receive upon dissolution, or hasowes contributed,a tendebt perfor centpersonal, family or morehousehold ofpurposes. the capital.

For[; purposes of this subdivision, "control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, but contract or otherwise.

[(1)(3) "debt"mortgagee"] negotiation"](5) (3)"Foreclosure "Debtrescue negotiation"services" means,means forservices related to or withpromising theassistance expectationin ofconnection awith fee,(A) commissionavoiding or otherdelaying valuableactual consideration,or assistinganticipated aforeclosure debtorproceedings inconcerning negotiatingresidential property, or attempting(B) tocuring negotiateor onotherwise behalfaddressing of a debtordefault theor termsfailure ofto timely pay with respect to a debtor'smortgage obligationsloan withsecured oneby orresidential moreproperty, mortgageesand orincludes, creditorsbut ofis thenot debtor,limited includingto, the negotiationoffer, ofarrangement shortor salesplacement of a mortgage loan secured by residential property or other extension of credit when those services are advertised, offered or promoted in the context of foreclosure rescuerelated services.

[;](6) [(2)"Mortgagee" "debtor"]means (4)the "Debtor"original meanslender anyunder individuala whomortgage hasloan incurredsecured indebtednessby orresidential owesproperty aor debtits foragents, personal,successors family or householdassigns. purposes.

[;][; (5) "Foreclosure rescue services" means services related to or promising assistance in connection with (A) avoiding or delaying actual or anticipated foreclosure proceedings concerning residential property, or (B) curing or otherwise addressing a default or failure to timely pay with respect to a mortgage loan secured by residential property, and includes, but is not limited to, the offer, arrangement or placement of a mortgage loan secured by residential property or other extension of credit when those services are advertised, offered or promoted in the context of foreclosure related services.

[(3)(4) "mortgagee"]"mortgagor"] (6)(7) "Mortgagee""Mortgagor" means thea originaldebtor lenderwho underis an owner of residential property, including, but not limited to, a mortgagesingle-family loanunit securedin bya residentialcommon propertyinterest orcommunity, itswho agents,is successorsalso orthe assigns.borrower under a mortgage encumbering such residential property.

[;][; [(4) "mortgagor"] (7) "Mortgagor" means a debtor who is an owner of residential property, including, but not limited to, a single-family unit in a common interest community, who is also the borrower under a mortgage encumbering such residential property.

[;](5) "short sale"] (8) "Person" means a natural person, corporation, company, limited liability company, partnership or association.

[(5) "short sale"] (10) "Short sale" means the sale of residential property by a mortgagor for an amount less than the outstanding balance owed on the loan secured by such property where, prior to the sale, the mortgagee or an assignee of the mortgagee agrees to accept less than the outstanding loan balance in full or partial satisfaction of the mortgage debt and the proceeds of the sale are paid to the mortgagee or an assignee of the mortgagee.

(NEW) (Effective October 1, 2017) No person who is required to be licensed and who is subject to the provisions of sections 36a-671 to 36a-671e, inclusive, of the general statutes, as amended by this act, and this section and no control person, shall, directly or indirectly:

(1) "Advertise" or "advertising" meanshas any announcement, statement, assertion or representation that is placed before the publicsame inmeaning aas newspaper,provided magazine or other publication, in thesection form36a-485; of a notice, circular, pamphlet, letter or poster, over any radio or television station, by means of the Internet, by other electronic means of distributing information, by personal contact, or in any other way or medium;

(2) "Control person" meanshas anthe individualsame thatmeaning directlyas orprovided indirectlyin exercisessection control36a-485; over another person, and includes any person that (A) is a director, general partner or executive officer;

(B)(3) in"Person" the case of a corporation, directly or indirectly has the rightsame tomeaning voteas tenprovided perin centsection or36a-485; more of any class of voting securities;

(C) in the case of a limited liability company, is a managing member;

or (D) in the case of a partnership, has the right to receive upon dissolution, or has contributed, ten per cent or more of the capital.

For purposes of this subdivision, "control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract or otherwise;

(3) "Person" means a natural person, corporation, company, limited liability company, partnership or association;

[NoNo student[student loan servicer licensee shall:]shall] No person who is required to be licensed and who is subject to the provisions of sections 36a-846 to 36a-854, inclusive, as amended by this act, and no control person, qualified individual, branch manager, trustee, employee or agent of such person shall, directly or indirectly:

Sec.

20.

Subsection (e) of section 36a-581 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(e) Upon the filing of the required application and the applicable license and location fees, the commissioner shall investigate the facts and may issue a license if the commissioner finds that (1) the applicant is in all respects properly qualified and of good character, (2) if the applicant is a firm or partnership, each member of the firm or partnership is in all respects properly qualified and of good character, (3) if the applicant is a corporation, each officer, director, authorized agent and each shareholder owning ten per cent or more of the outstanding stock of such corporation is in all respects properly qualified and of good character, (4) if the applicant is a limited liability company, each member and authorized agent is in all respects properly qualified and of good character, (5) granting such license would not be against the public interest, (6) the applicant has a feasible plan for conducting business, [and] (7) the applicant has available and shall continuously maintain liquid assets of at least ten thousand dollars for each general facility location and at least two thousand five hundred dollars for each limited facility location specified in the application, and (8) the name of the applicant is not likely to cause a consumer to reasonably believe that such applicant is in any way endorsed by or affiliated with this state.

The commissioner may deny an application if the commissioner finds that the applicant or any member, officer, director or authorized agent or shareholder owning ten per cent or more of the outstanding stock of the applicant has been convicted of any misdemeanor involving any aspect of the check cashing services business, or any felony.

Any denial of an application by the commissioner shall, when applicable, be subject to the provisions of section 46a-80.

19 October 1, 2017 36a-850 StatementSec. of Purpose:

To20 requireOctober licensees1, under2017 the36a-581(e) bankingBA statutesJoint toFavorable superviseSubst. the operation of their business to ensure compliance with applicable law and to prohibit such licensees from engaging in fraudulent and deceptive acts.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]