Could Connecticut’s banking commissioner waive a mortgage trustee’s annual report?

Plain-English summary

In May 1992, Connecticut’s AG concluded that the banking commissioner could not waive the annual report required of a trustee under mortgage. The statute directed the commissioner to examine trustee accounts and “shall require” each trustee to submit a report. It specified the reporting date and filing deadline, and it let the commissioner prescribe the form. The AG read that command as mandatory rather than optional.

The opinion resolved a narrow question of statutory authority. It did not decide whether a different report could be waived or whether the legislature might change the requirement. Under the law quoted in the opinion, however, the commissioner had no discretion to excuse the annual filing.

Trustees under mortgage at the time

The opinion treated the annual report as a required filing for each covered trustee, even if a trustee sought a waiver from the commissioner.

Banking officials at the time

The AG said the statutory command to require the report could not be set aside by administrative choice. The commissioner still prescribed the report’s form under the quoted statute.

Currency note

This opinion was issued in 1992. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Q: Could a mortgage trustee ask the banking commissioner to skip one annual report?
A: The AG said the commissioner lacked authority to waive the statutory annual filing.

Q: Why did the AG treat the filing as mandatory?
A: The law said the commissioner “shall require” each trustee to file, and the AG read that wording as a command.

Q: When did the statute described in the opinion require filing?
A: The quoted 1992 statute used a December 31 reporting date and a January 30 filing deadline. Those dates are historical and should be checked against current law.

Background and statutory framework

Conn.Gen.Stat. § 36-250(2) required yearly examination of trustee accounts and an annual report in a form set by the banking commissioner. The AG applied the ordinary meaning of “shall” and found no waiver discretion in that text.

Citations and references

Statute: Conn.Gen.Stat. § 36-250(2).

Source

• Landing page: https://portal.ct.gov/AG/Opinions
• Opinion page: https://portal.ct.gov/ag/opinions/1992-formal-opinions/the-honorable-m-adela-eads-senate-republican-leader-1992012-formal-opinion-attorney-general-of-conne

Original opinion text

The Honorable M. Adela Eads, Senate Republican Leader, 1992-012 Formal Opinion, Attorney General of Connecticut

Attorney General's Opinion

Attorney General, Richard Blumenthal

May 28, 1992

The Honorable M. Adela Eads

Senate Republican Leader

State Capitol

Hartford, CT 06106

Dear Senator Eads:

In your letter of February 27, 1992, you posed the question whether the filing of an annual report by a trustee under mortgage may be waived by the Banking Commissioner.

For the reasons stated below, it is our opinion that the filing of an annual report, required of each trustee under mortgage by Conn.Gen.Stat. § 36-250(2), may not be waived by the Banking Commissioner.

Our conclusion is based on the plain language of Conn.Gen.Stat. § 36-250(2). The statute provides:

The commissioner or an authorized representative of the department of banking shall, annually or more often, make an examination of all such trustee accounts and shall require that each such trustee file an annual report of such accounts held in trust in such form as the commissioner may prescribe and such other reports relating to the administration of any such trust as he may require. Such annual report shall be as of the close of business on the thirty-first day of December and shall be filed with the commissioner on or before the thirtieth day of January in each year.

Conn.Gen.Stat. § 36-250(2) (emphasis added).

When the language of a statute is plain and unambiguous, "it is unnecessary to resort to principles of statutory construction." Harris Data Communications, Inc. v. Heffernan, 183 Conn. 194, 198, 438 A.2d 1178 (1981). In such instances, the words used in the statute " 'shall be construed according to the commonly approved usage of the language.' " State v. Rogue, 190 Conn. 143, 151, 460 A.2d 26 (1983) (quoting Conn.Gen.Stat. § 1-1(a)).

Generally speaking, the use of the verb "shall" in a statute "connotes that the requirement is mandatory rather than permissive." Monroe v. Horwitch, 215 Conn. 469, 474, 576 A.2d 1280 (1990) (citing Caulkius v. Petrillo, 200 Conn. 713, 717, 513 A.2d 43 (1986)); accord Hossan v. Hudiakoff, 178 Conn. 381, 383, 423 A.2d 108 (1979). Consequently, it is our opinion that the requirement in Conn.Gen.Stat. § 36-250(2) that the Banking Commissioner "shall require" each trustee under mortgage to file an annual report is mandatory and is not within the discretion of the Banking Commissioner to waive.

Very truly yours,

Richard Blumenthal

Attorney General

John A. Brunjes

Assistant Attorney General