The proposed bill, General Assembly Committee Bill No. 1093, seeks to amend Section 36a-868 of the general statutes to allow certain commercial financing contracts to include provisions that waive the recipient's right to notice, judicial hearing, or prior court order when a provider seeks a prejudgment remedy. Specifically, the bill stipulates that commercial financing contracts entered into on or after October 1, 2025, and involving sales-based financing exceeding $100,000, may contain such waivers. This change is significant as it alters the current prohibition against including such waivers in contracts entered into after July 1, 2024.

Additionally, the bill mandates that any contract containing this waiver must clearly disclose to the recipient that a prejudgment remedy can be issued without prior notice or a hearing. It also informs the recipient of their right to request a hearing with the Superior Court to modify or dissolve the prejudgment remedy after it has been issued. The effective date for this amendment is set for October 1, 2025, and it aims to provide more flexibility in commercial financing agreements while ensuring that recipients are aware of their rights regarding prejudgment remedies.

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