{"data":{"id":"us-ct/conn.-gen.-stat.-42-409","jurisdiction":"us-ct","citation":"Conn. Gen. Stat. § 42-409","heading":"Security interest restricted. Security deposit.","body":"(a) Except as otherwise provided in subsection (b) of this section, a consumer lease or other record signed by the lessee in connection with the lease may not provide for the creation of a security interest in personal or real property of the lessee to secure the payment of obligations arising from the lease. A security interest created in violation of this section is unenforceable, but does not otherwise affect the validity of the lease.\n(b) A consumer lease may provide for:\n(1) A security deposit, advance lease payment or other prepayment;\n(2) A security interest in unearned insurance premiums or rebates of charges for a contract for services, or a service contract, extended warranty or maintenance agreement regarding the leased goods;\n(3) A security interest in the proceeds or benefits of insurance, or of a contract for services, service contract, extended warranty or maintenance agreement on the leased goods, except to the extent the proceeds or benefits represent reimbursement to the lessee for expenses incurred; and\n(4) A security interest in an accession to the leased goods.\n(c) This section does not preclude a holder from making a permissive filing of a financing statement under article 9 of the Uniform Commercial Code.\n(d) A holder is not required to pay interest on a security deposit, advance lease payment or other prepayment, but is required, within two weeks after the application of a security deposit, to account to the lessee in a record for the application of the security deposit.","path":["TITLE 42. BUSINESS, SELLING, TRADING AND COLLECTION PRACTICES","CHAPTER 743aa*. CONSUMER LEASES","PART III. LIMITATIONS OF TERMS AND PRACTICES"],"source_url":"https://www.cga.ct.gov/current/pub/chap_743aa.htm#sec_42-409","current_through":"Revised to January 1, 2026 (2026 Supplement to the General Statutes of Connecticut, applied over the base revision of January 1, 2025)","vintage":"","retrieved_at":"2026-09-06T19:07:14Z","sha256":"ea6df47d98cdf711c4a59d519c7ae5cfb26832cb8556b808de39ef2b2ba1976c","source_id":"us-ct","stale":false,"prev":"us-ct/conn.-gen.-stat.-42-408","next":"us-ct/conn.-gen.-stat.-42-410"},"notice":"GroundRules: Original legal text. Not legal advice."}