HB05212 • 2026

AN ACT REQUIRING ACCEPTANCE OF PERIODIC AND PARTIAL PAYMENTS ON CERTAIN MORTGAGE LOANS ISSUED BY CONNECTICUT BANKS AND CONNECTICUT CREDIT UNIONS.

Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Banking Committee
Last action: 2026-02-19
Official status: Public Hearing 02/24
Effective date: Not listed

Plain English Breakdown

The candidate explanation included definitions for terms that were not explicitly stated in the official bill text, such as 'periodic payment' and 'partial payment'. These definitions are supported by the context of the bill but may need to be verified against additional sources or legal interpretations.

Act Requiring Acceptance of Periodic and Partial Payments on Certain Mortgage Loans

This act requires Connecticut banks and credit unions to accept periodic and partial payments for certain mortgage loans issued after October 1, 2026.

What This Bill Does

Defines 'periodic payment' as a full payment covering principal, interest, and escrow for a given billing cycle.
Defines 'partial payment' as any amount less than the periodic payment.
Specifies that residential mortgage loans must be issued by Connecticut banks or credit unions on or after October 1, 2026.
Requires acceptance of both periodic and partial payments on these mortgages according to loan terms.

Who It Names or Affects

Connecticut banks and credit unions issuing certain mortgage loans.
Borrowers making periodic or partial payments on their mortgages.

Terms To Know

Periodic payment: A full payment covering principal, interest, and escrow for a given billing cycle.
Partial payment: Any amount less than the periodic payment.

Limits and Unknowns

The act only applies to mortgage loans issued by Connecticut banks or credit unions on or after October 1, 2026.
It is unclear how this will affect existing mortgages before the effective date.

Bill History

2026-02-19 Connecticut General Assembly
Public Hearing 02/24
2026-02-18 Connecticut General Assembly
Referred to Joint Committee on Banking

Official Summary Text

To require certain payments on mortgage loans issued by Connecticut banks and Connecticut credit unions on and after October 1, 2026, to be accepted and credited or treated as credited.

Current Bill Text

Read the full stored bill text

LCO No. 1608 1 of 2

General Assembly Raised Bill No. 5212
February Session, 2026 LCO No. 1608

Referred to Committee on BANKING

Introduced by:
(BA)

AN ACT REQUIRING ACCEPTANCE OF PERIODIC AND PARTIAL
PAYMENTS ON CERTAIN MORTGAGE LOANS ISSUED BY
CONNECTICUT BANKS AND CONNECTICUT CREDIT UNIONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective October 1, 2026) (a) As used in this section: 1
(1) "Periodic payment" means a payment made in an amount 2
sufficient to cover principal, interest and, if applicable, escrow for a 3
given billing cycle; 4
(2) "Partial payment" means a payment made in an amount less than 5
a periodic payment; and 6
(3) "Residential mortgage loan" means any loan that is (A) issued on 7
or after October 1, 2026, by a Connecticut bank or a Connecticut credit 8
union, as such terms are defined in section 36a-2 of the general statutes, 9
(B) primarily for personal, family or household use, and (C) secured by 10
a mortgage, deed of trust or other equivalent consensual security 11
interest on a dwelling or residential real estate upon which is 12
constructed or intended to be constructed a dwelling. 13

Raised Bill No. 5212

LCO No. 1608 2 of 2

(b) A periodic payment or a partial payment on a residential 14
mortgage loan shall be accepted and credited, or treated as credited, in 15
accordance with the terms of the residential mortgage loan, on the 16
business day on which the payment is received, provided (1) the 17
payment is made where the borrower has been instructed in writing to 18
make payments on such loan , and (2) the borrower has provided 19
sufficient information in order for the recipient of such payment to 20
identify and credit the relevant mortgage account. 21
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 New section

Statement of Purpose:
To require certain payments on mortgage loans issued by Connecticut
banks and Connecticut credit unions on and after October 1, 2026, to be
accepted and credited or treated as credited.

[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.]