Sec. 36a-555. (Formerly Sec. 36-225). Loan business to be licensed.
Sec. 36a-555. (Formerly Sec. 36-225). Loan business to be licensed. No person
shall engage in the business of making loans of money or credit in the amount or to the
value of fifteen thousand dollars or less for loans made under section 36a-563 or section
36a-565, and charge, contract for or receive a greater rate of interest, charge or consideration than twelve per cent per annum therefor, unless licensed to do so by the commissioner pursuant to sections 36a-555 to 36a-573, inclusive. The provisions of this section
shall not apply to (1) a bank, (2) an out-of-state bank, (3) a Connecticut credit union, (4)
a federal credit union, (5) an out-of-state credit union, (6) a savings and loan association
wholly owned subsidiary service corporation, (7) a person to the extent that such person
makes loans for agricultural, commercial, industrial or governmental use or extends
credit through an open-end credit plan, as defined in subdivision (8) of subsection (a)
of section 36a-676, for the retail purchase of consumer goods or services, (8) a mortgage
lender or mortgage correspondent lender licensed pursuant to sections 36a-485 to 36a-498a, inclusive, when making first mortgage loans, as defined in section 36a-485, or
(9) a licensed pawnbroker.
(1949 Rev., S. 5937; 1949, S. 2753d; 1957, P.A. 439, S. 1; 1963, P.A. 175, S. 1; 1969, P.A. 242, S. 1; P.A. 77-129, S.
1; 77-183, S. 1, 2; P.A. 78-121, S. 71, 113; 78-303, S. 50, 136; P.A. 87-9, S. 2, 3; P.A. 88-65, S. 33; P.A. 89-338, S. 1;
P.A. 92-12, S. 65; P.A. 94-122, S. 258, 340; P.A. 97-13, S. 1; P.A. 98-264; P.A. 02-111, S. 34; P.A. 04-69, S. 19; P.A. 08-176, S. 58.)
History: 1963 act increased limit from $600 to $1,000 and added reference to charge or consideration in provision re
12% interest; 1969 act increased limit to $1,800 and deleted reference to loans of "goods or things in action"; P.A. 77-129
increased limit to $5,000; P.A. 77-183 authorized loans by building or savings and loan associations and wholly owned
subsidiary service corporations; P.A. 78-121 included federal credit unions, deleted private bankers and referred to savings
and loan associations rather than "building or" savings and loan associations in authority to make loans; P.A. 78-303
replaced banking commission with banking commissioner in keeping with requirements of P.A. 77-614 which repealed
the commission; (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors
to "commissioner of banking"); P.A. 88-65 deleted a reference to industrial banks; P.A. 89-338 increased the limit from
$5,000 to $10,000 for loans made under Sec. 36-233b, clarified that the section applies to out-of-state institutions and
added the exception for entities making loans for agricultural, commercial, industrial or governmental use or extending
credit through certain open-end credit plans; P.A. 92-12 made technical changes; P.A. 94-122 made technical changes,
effective January 1, 1995; Sec. 36-225 transferred to Sec. 36a-555 in 1995; P.A. 97-13 increased limit from $5,000 to
$15,000 for loans made under Sec. 36a-563, deleted reference to limit of $10,000 for loans made under Sec. 36a-565, and
made reference to limit of $15,000 applicable to loans made under Sec. 36a-565 to conform to existing provisions of Sec.
36a-565; P.A. 98-264 added exceptions for licensed nondepository first mortgage lenders and secondary mortgage lenders
and made technical changes; P.A. 02-111 amended Subdiv. (8) by deleting "nondepository first" and amended Subdiv.
(9) by deleting "secondary"; P.A. 04-69 made technical changes, and amended Subdiv. (8) by substituting "36a-498a" for
"36a-498" and inserting "when making first mortgage loans, as defined in section 36a-485", and amended Subdiv. (9) by
inserting "when making secondary mortgage loans, as defined in section 36a-510"; P.A. 08-176 added reference to "mortgage correspondent lender" in Subdiv. (8), deleted former Subdiv. (9), renumbered existing Subdiv. (10) as new Subdiv.
(9) and made a technical change, effective July 1, 2008.
Annotation to former section 36-225:
Cited. 149 C. 158.