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SB 1093 Connecticut Senate · 2025 Regular Session

AN ACT ALLOWING CERTAIN COMMERCIAL FINANCING CONTRACTS TO CONTAIN PROVISIONS WAIVING THE RIGHT TO NOTICE, JUDICIAL HEARING OR PRIOR COURT ORDER IN CONNECTION WITH A PREJUDGMENT REMEDY.

SB 1093 allows certain commercial lenders to include clauses in financing contracts (for sales-based loans over $100,000) that waive a borrower's right to notice, a court hearing, or a judge's order before the lender can seize assets like money or property. This applies only to contracts signed on or after October 1, 2025, and requires lenders to clearly disclose this waiver to borrowers. Borrowers still retain the right to later request a court hearing to challenge the asset seizure. The bill directly affects businesses securing large commercial loans and lenders offering such financing.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 22, 2025 Last action Feb 28, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Proposed Bill → Committee Bill · 4 edits
MODERATE
The bill was amended to shift from prohibiting merchant cash advance businesses from using ex parte prejudgment remedies to allowing certain large commercial financing contracts to include provisions that waive recipients' rights to notice, judicial hearings, or prior court orders before prejudgment remedies are enforced. This change permits such waivers only in contracts exceeding $100,000 entered into on or after October 1, 2025, while maintaining protections for smaller contracts and earlier agreements.
Scope change
The bill's scope expanded from a blanket prohibition on ex parte prejudgment remedies to a conditional allowance for larger commercial financing contracts, introducing a monetary threshold and effective date for the exception.
SCOPE

Changed from prohibiting all merchant cash advance businesses from using ex parte prejudgment remedies to allowing certain commercial financing contracts to include waivers of notice, hearing, or court order requirements.

ELIGIBILITY

Added eligibility criteria requiring contracts to be entered into on or after October 1, 2025, and provide for sales-based financing exceeding $100,000 to qualify for the waiver provision.

REQUIREMENT

Added new disclosure requirements mandating that qualifying contracts clearly and conspicuously inform recipients about the potential for prejudgment remedies without notice and their right to request a hearing afterward.

TIMELINE

Changed effective date from immediate prohibition to October 1, 2025, for the new exception, while maintaining July 1, 2024 as the cutoff for contracts subject to the prohibition.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
5
Key actions
1
Committee
3
Feb 27, 2025
Committee
REF. TO JOINT COMM. ON Banking
upper
Feb 26, 2025
Upper · Passed
DRAFTED BY COMMITTEE
upper
Jan 22, 2025
Committee
REF. TO JOINT COMM. ON Banking
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.