Section 36a-570-14 - Restrictions on affiliated entities(a) Commissions, gratuities, or broker's fees shall not be paid by a licensee or an affiliated entity to dealers, salesmen or any other parties for the referral of loans to be made under part III of chapter 668 of the Connecticut General Statutes. No licensee shall make a loan under said chapter if the licensee knows that the borrower has paid or has contracted to pay such commissions, gratuities or broker's fees.(b) An affiliated entity granting mortgage loans in excess of five thousand dollars under section 36a-570-17 of these regulations may pay commissions, gratuities, or broker's fees for the referral of such loans. Any such commissions, gratuities, or broker's fees may be charged to or paid by the borrower, provided: (1) if a nonrefundable prepaid finance charge is assessed against the borrower, such commissions, gratuities, or broker's fees shall be subject to the limitation set forth in subparagraph (A) of subdivision (2) of subsection (a) of section 36a-570-17 of these regulations; and (2) if a nonrefundable prepaid finance charge is not assessed against the borrower, such commissions, gratuities, or broker's fees shall not exceed eight per cent of the loan amount in the case of a closed-end loan or eight per cent of the initial cash advance in the case of an open-end loan.(c) An affiliated entity engaging in the sales finance business may pay a portion of the finance charge permitted under section 36a-772 of the Connecticut General Statutes to the seller originating a retail instalment contract under an arrangement commonly known as "dealer participation."Conn. Agencies Regs. § 36a-570-14
Effective July 22, 1994; Transferred April 24, 1995