Connecticut’s New Law Took Aim at Prejudgment Remedies
Although Connecticut Governor Ned Lamont signed SB1032 into law this summer, covered parties have until July 1, 2024 to start complying. On its face it was a disclosure bill, but as previously mentioned there was a twist, it amends chapter 903a of the general statutes, the code governing prejudgment remedies.
Specifically it says:
No commercial financing contract entered into on or after July 1, 2024, shall contain any provision waiving a recipient’s right to notice, judicial hearing or prior court order under chapter 903a of the general statutes in connection with the provider obtaining any prejudgment remedy, including, but not limited to, attachment, execution, garnishment or replevin, upon commencing any litigation against the recipient. Any such provision in a commercial financing contract entered into on or after July 1, 2024, shall be unenforceable.
Similar to Virginia, brokers will be required to register in order to broker deals to any Connecticut merchant.Last modified: September 1, 2023