Sec. 3-13e. Investment of trust funds in loans to mortgage lenders.
Sec. 3-13e. Investment of trust funds in loans to mortgage lenders. (a) The
following terms, when used in this section shall have the following meanings, unless
the context otherwise requires: "Trust fund" means any of the funds listed in section 3-13c; "mortgage lender" means any bank and trust company, savings bank or savings
and loan association chartered under the laws of the state, national banking association,
federal savings and loan association, insurance company authorized to transact business
in the state or other firm or corporation subject to the banking laws of Connecticut and
approved by the Treasurer; and "pension and retirement fund contributor" means any
person who at the time of receiving a mortgage-secured loan from a mortgage lender
as provided in subsection (b) of this section is, and has been during the three years
immediately preceding such loan, a contributor to any pension or retirement fund included among the trust funds listed in this subsection.
(b) Notwithstanding any provision of the general statutes to the contrary, the Treasurer may invest as much of the funds of any trust fund as are not required for current
disbursements, in loans to mortgage lenders, subject to the following conditions: (1)
Any such investment shall be secured as to payment of both principal and interest by a
pledge of and lien upon collateral security of such nature, in such amounts and under
such terms as the Treasurer shall determine; (2) any such mortgage lender shall within
a reasonable period of time, as determined by the Treasurer, following receipt by such
mortgage lender of the loan proceeds, enter into written commitments to make and shall
thereafter proceed as promptly as practicable to make and disburse loans from such
loan proceeds, in an aggregate principal amount not less than the amount of such loan
proceeds, and each such loan shall be secured by a mortgage of residential real property
containing not more than four dwelling units and situated within the state, provided no
more than twenty million dollars in such loans to mortgage lenders shall be outstanding
at any one time and no more than ten million dollars in such loans shall be made in any
one fiscal year, and further provided, the aggregate of such loans outstanding to any
single mortgage lender shall not exceed the greater of one million dollars or one per
cent of the deposits of such mortgage lender. Pension and retirement fund contributors
shall be afforded a preference with respect to receipt of loans made under the provisions
of this section, subject to such procedures as the Treasurer may prescribe.
(P.A. 75-347, S. 1, 2; P.A. 78-121, S. 1, 113; 78-236, S. 18, 20.)
History: P.A. 78-121 deleted words "building or" in phrase "building or savings and loan association", effective January
1, 1979; P.A. 78-236 redefined "trust fund".