Conn. Gen. Stat. § 36a-856: Definitions. Registration. Disclosures. Internet web site. Suspension, revocation or refusal to renew registration. Action by commissioner. Penalty. Notice. Hearing. Order.

(a) For purposes of this section:

(1) “Commissioner” means the Banking Commissioner;

(2) “Consumer collection agency” has the same meaning as provided in section 36a-800;

(3) “Postsecondary education expense” means any expense associated with a student's enrollment in, or attendance at, a postsecondary educational institution;

(4) “Private education lender” means any person engaged in the business of making or extending private education loans. “Private education lender” does not include: (A) Any bank, out-of-state bank, Connecticut credit union, federal credit union or out-of-state credit union; (B) any wholly owned subsidiary of any such bank or credit union; (C) any operating subsidiary where each owner of such operating subsidiary is wholly owned by the same bank or credit union; or (D) the Connecticut Higher Education Supplemental Loan Authority, as described in section 10a-179a;

(5) “Private education loan” means credit that: (A) Is extended to a consumer expressly, in whole or in part, for postsecondary educational expenses, regardless of whether the credit is provided by the postsecondary educational institution that the student attends; and (B) is not made, insured or guaranteed under Title IV of the Higher Education Act of 1965, as amended from time to time. “Private education loan” does not include a loan that is secured by real property, regardless of the purpose of the loan;

(6) “Private education loan borrower” means any resident of the state, including a student loan borrower, who has received or agreed to pay a private education loan for the resident's own postsecondary education expenses;

(7) “Private education loan creditor” means any person to whom a private education loan is sold or assigned, or any person who otherwise acquires a private education loan. “Private education loan creditor” does not include: (A) A bank, as defined in 12 USC 1841(c), as amended from time to time; (B) a Connecticut credit union, a federal credit union or an out-of-state credit union, as those terms are defined in section 36a-2; (C) a consumer collection agency licensed pursuant to section 36a-801; (D) a private student loan servicer licensed pursuant to section 36a-847; or (E) any department or agency of the United States, this state, any other state or any political subdivision thereof; and

(8) “Student loan servicer” has the same meaning as provided in section 36a-846.

(b) (1) Except for a public or private nonprofit postsecondary educational institution, for which the commissioner may prescribe an alternative registration process and fee structure, a private education lender or a private education loan creditor shall, prior to making a private education loan to, or purchasing or assuming a private education loan owed by, a resident of the state, (A) register with the commissioner, and (B) renew such registration for each year that such private education lender or private education loan creditor continues to act as a private education lender or private education loan creditor.

(2) Each private education lender and private education loan creditor registration shall expire at the close of business on December thirty-first of the year in which such registration was approved, unless such registration is renewed or, if such registration is approved on or after November first, such registration shall expire at the close of business on December thirty-first of the year following the year in which such registration was approved. An application for renewal of a registration shall be filed with the commissioner between November first and December thirty-first of the year in which the registration expires. Each applicant for an initial registration or renewal of a registration shall pay to the system a registration fee of nine hundred dollars and any other required fees or charges. All fees paid pursuant to this subdivision shall be nonrefundable.

(c) For each year in which a private education lender registers with, or renews such registration with, the commissioner pursuant to subsection (b) of this section, such private education lender shall, at the time of such registration or renewal, and at other times upon the commissioner's request, provide to the commissioner, in the form and manner prescribed by the commissioner, the following documents and information:

(1) A list of all schools attended by the private education loan borrowers with outstanding private education loans made by such private education lender;

(2) The number and dollar amount of all outstanding private education loans such private education lender made to private education loan borrowers;

(3) For each school listed pursuant to subdivision (1) of this subsection, the number and dollar amount of all outstanding private education loans such private education lender made to private education loan borrowers who attended such school;

(4) The number and dollar amount of all private education loans such private education lender made during the prior year to private education loan borrowers;

(5) For each school listed pursuant to subdivision (1) of this subsection, the number and dollar amount of all private education loans such private education lender made during the prior year to private education loan borrowers who attended such school;

(6) The spread of interest rates for the private education loans such private education lender made during the prior year;

(7) The percentage of private education loan borrowers who received each rate within the spread of interest rates provided pursuant to subdivision (6) of this subsection;

(8) The number of private education loans with a cosigner that such private education lender made during the prior year;

(9) The default rate for private education loan borrowers obtaining private education loans from the private education lender, and, for each school listed pursuant to subdivision (1) of this subsection, the default rate for private education loans made to private education loan borrowers who attended such school;

(10) The number of private education loan borrowers against whom such private education lender brought legal action in the prior year to collect a debt owed pursuant to a private education loan, and the amount sought in each such action;

(11) A copy of each model promissory note, agreement, contract or other instrument used by the private education lender during the prior year to substantiate that a new private education loan has been extended to a private education loan borrower or that a private education loan borrower owes a debt to such lender; and

(12) The name and address of: (A) Such private education lender; (B) each officer, director or partner of such private education lender; and (C) each owner of a controlling interest in such private education lender.

(d) For each year in which a private education loan creditor registers with, or renews such registration with, the commissioner pursuant to subsection (b) of this section, such private education loan creditor shall, at the time of such registration or renewal, and at other times upon the commissioner's request, provide to the commissioner, in the form and manner prescribed by the commissioner, the following documents and information:

(1) A list of all schools attended by the private education loan borrowers with outstanding private education loans assumed or acquired by such private education loan creditor;

(2) The number and dollar amount of all outstanding private education loans owed by private education loan borrowers to such private education loan creditor;

(3) For each school listed pursuant to subdivision (1) of this subsection, the number and dollar amount of all outstanding private education loans owed to such private education loan creditor by private education loan borrowers who attended such school;

(4) The number and dollar amount of all private education loans: (A) Such private education loan creditor assumed or acquired during the prior year; and (B) owed to such private education loan creditor by private education loan borrowers;

(5) For each school listed pursuant to subdivision (1) of this subsection, the number and dollar amount of all private education loans: (A) Such private education loan creditor assumed or acquired during the prior year; and (B) owed to such private education loan creditor by private education loan borrowers who attended such school;

(6) The number of private education loans with a cosigner that such private education loan creditor assumed or acquired during the prior year;

(7) The default rate for private education loan borrowers whose private education loans were assumed or acquired by such private education loan creditor, and, for each school listed pursuant to subdivision (1) of this subsection, the default rate for private education loans owed by private education loan borrowers who attended such school;

(8) The number of private education loan borrowers against whom such private education loan creditor brought legal action in the prior year to collect a debt owed pursuant to a private education loan, and the amount sought in each such action; and

(9) The name and address of: (A) Such private education loan creditor; (B) each officer, director or partner of such private education loan creditor; and (C) each owner of a controlling interest in such private education loan creditor.

(e) The commissioner shall create, and periodically update, a publicly accessible Internet web site that includes the following information about private education lenders and private education loan creditors registered in the state:

(1) The name, address, telephone number and Internet web site address for all registered private education lenders and private education loan creditors;

(2) A summary of the information and documents provided pursuant to subsections (c) and (d) of this section; and

(3) Copies of all model promissory notes, agreements, contracts and other instruments provided to the commissioner in accordance with subdivision (11) of subsection (c) of this section.

(f) The commissioner may suspend, revoke or refuse to renew any registration issued under subsection (b) of this section or take any other action in accordance with the provisions of section 36a-51, if the commissioner finds that the registrant or any control person, trustee, employee or agent of such registrant has done any of the following: (1) Made any material misstatement in the application; (2) committed any fraud or misappropriated funds; or (3) violated (A) any provision of this title or any regulation or order adopted or issued pursuant thereto pertaining to such registrant or any control person, trustee, employee or agent of such registrant, or (B) any other law or regulation applicable to the conduct of such registrant's business.

(g) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate the provisions of this section, the commissioner may take action against such person in accordance with sections 36a-50 and 36a-52.

(h) (1) The commissioner may order that any person who has been found to have violated any provision of this section and has thereby caused financial harm to a consumer be barred for a term not exceeding ten years from engaging in any activity requiring a license or registration under this title, or acting as a stockholder, officer, director, partner or other owner or employee of an entity requiring such a license or registration, by sending a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt, or by personal delivery, as defined in section 4-166, in accordance with section 36a-52a. The notice shall be deemed received by such person on the earlier of the date of actual receipt or seven days after mailing or sending, and in the case of a notice sent by electronic mail, the notice shall be deemed received by such person in accordance with section 36a-52a. Such notice shall include: (A) A statement of the time, place and nature of a hearing to be held upon the matters asserted in the notice; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes, regulations of Connecticut state agencies, rules or orders that such person is alleged to have violated; (D) a short and plain statement of the matters asserted; and (E) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice.

(2) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless such person fails to appear at the hearing. After the hearing, the commissioner shall determine whether to issue an order barring such person, for a term not to exceed ten years, from engaging in any activity requiring a license or registration under this title, or from acting as a stockholder, officer, director, partner or other owner or employee of an entity requiring such a license or registration. The commissioner may also issue such an order if such person does not request a hearing within the time specified in the notice or fails to appear at the hearing. No order shall be issued under this subsection except in accordance with the provisions of chapter 54.