The proposed legislation, General Assembly Raised Bill No. 5212, mandates that Connecticut banks and credit unions accept and credit periodic and partial payments on residential mortgage loans issued on or after October 1, 2026. A "periodic payment" is defined as a payment that covers the principal, interest, and any applicable escrow for a billing cycle, while a "partial payment" is any amount less than a periodic payment. The bill specifies that these payments must be credited on the business day they are received, provided that the borrower has been instructed on where to make the payment and has supplied sufficient information for the lender to identify the mortgage account.

This act introduces new legal language to current law, specifically establishing the definitions and requirements for accepting these payments. The effective date for this new section is set for October 1, 2026. The bill aims to enhance the payment process for borrowers, ensuring that their payments are recognized promptly and accurately by their lenders.