The proposed bill, General Assembly Proposed Bill No. 1093, aims to amend section 36a-868 of the general statutes by prohibiting merchant cash advance businesses from including provisions in their commercial financing contracts that allow them to obtain ex parte prejudgment remedies against recipients in the event of a contract breach. This change is intended to protect commercial financing recipients from potentially unfair legal practices that could arise from such provisions.

The bill specifically inserts language that clarifies the prohibition on these ex parte prejudgment remedies, thereby limiting the legal recourse available to merchant cash advance businesses in cases of contract disputes. By doing so, the legislation seeks to create a more equitable environment for commercial financing transactions, ensuring that recipients are not subjected to unilateral legal actions without prior notice or the opportunity to respond.