Connecticut Introduces Bill on Ex Parte Prejudgment Remedies for MCAs

A new bill introduced in the Connecticut legislature targets Merchant Cash Advance providers specifically.

It proposes “that section 36a-868 of the general statutes be amended to specify that no merchant cash advance business shall include in a commercial financing contract with a commercial financing recipient any provision allowing such business to obtain an ex parte prejudgment remedy against such recipient on the basis of a breach of such contract.”

A public hearing on the bill is scheduled for March 4th.