Evening journal., 1915-02-11
EXPLAIN THE NEW
BANKING LAWS
One Act Prevents Greater
Charge Than Six Per
Cent. on Loans
FEDERAL RESERVE
PLAN FAVORED

Al the annual meeting OF the Dela-
ware state Bankers Association. in
The Hotel DUPONT yesterday, Attorney
Robert H. Richards explained the
banking bills and amendments to the
banking bills, which had been pre-
pared by him and are now in the
hands o. the Legislature
One of the bills, Mr.. Richards said'
was an amendment to the existing
banking laws relative to the penalty
for charging more than the legal rate
of interest on loans.
Another amendment, he said, was
enc which. If passed. would permit tie
local trust companies and State banks
TO come under the Federal Reserve
Bank system. These bills were unani
mously endorsed by the association.
The following are the bills dis
Cussed:
Section 1. That sections / and ,
of Chapter n of the Revised Code Of
the State of Delaware, being sections
2621 and 1922 of said Code, be. and
the same are. hereby repealed and
that the following new sections be,
and the same are, hereby substituted
in lieu thereof, in the words aud
figures following. to wit:
"2621. Sec. l. The lawful rate of
interest for the loan or use of money.
in all cases where no express con-
tract shall have been made for less
rate, shall be 6 per cent. per annum;
and when a rate of interest for the
loan or use of money exceeding that
established by law shall have been
reserved or contracted for. the bor-
rover or debtor shall not be required
TO pay the creditor the excess over
the legal rate and It shall be lawful
for such borrower or debtor. at his
option, to retain and deduct such cX-
cess from the amount Of any debt !;
and in all cases where any borrower
or debtor shall heretofore, or here
after, have voluntarily paid the whole
debt or sum loaned, together with in
tcrest exceeding the lawful rate, such
borrower or debtor. or his personal
representative, may recover in an
action against the person who shall
have taken or received such debt and
interest, or his personal representa-
tive, the amount so paid which is in
excess of said debt together with in
torest at the lawful rate. If such
oction be brought within one year
after the time of such payment: pro-
yided that nothing in this section
shall affect the holders of negotiable
paper taken bona fide in the usual
course of business; and that persons,
firms and corporations, registered
under tho provisions of Article % Of
Chapter One Hundred. on loans not
exceeding One Hundred Dollars, may
charge the rates of interest therein
/ provided; and that no corporation
shall hereafter interpose the defense
OF usury in any action. The term cor.
poration. as used in this section. shall
be construed to include all associ.
ations and joint stock companies hav.
ing any of the powers and privileges
OF corporations not possessed by in
dividuals or partnerships"
"2622. Sec. ?. Every contract for
the loan or advance OF money by
banking corporations. within thi,
state shall be subject to the provis-
ions Of Section 1 of Chapter Seventy
seven; but i'm any case hereafter. IL
which loans or advances of money
made by banking corporations oi
otherwise, repayablc on demand, to an
amount not less than five thousant
dollars. arc made upon warehouse re
ceipts, bills Of lading, certificates O
stock. certificates of deposit. bills o
exchange, bonds. or other negotiable
instruments. pledged as collateral Sc
curity for such repayment, il shall b.
lawful TO receive. or to contract 10 re
ceive, and collect, as compensation 70
making such advances, any sum to b
agreed upon. in writing. by the par
ties TO such transaction"
The present law relating to tho rat
Of interest for the use of money. vii
be repealed by the foregoing propose
new law
Sec. 1. The legal rate of interos
is 6 per centum per annum. and if an
person shall directly OF indirectl
take for the loan or use Of monel
more than six dollars for the loan. q
b use of one hundred dollars. for on
year, and in that proportion. he sha
, forfeit and pay, to anyone who wi
sue for the same sum equal TO tn
b money lent, one-half for the use of tn
person so suing, and the other ha
: for the use Of the county where su
g is brought; provided that person
firms and corporations. registere
, under the provisions OF Article % ,
Chapter One Hundred. on loans M
. exceeding one hundred dollars. ma
charge the rates Of interest therei
:, provided. and that no railroad. raj
A way or boulevard corporation nor al
corporation issuing bonds under u
provisions Of Chapter 65 shall pie,
s any statute against usury in al
i. court in any suit instituted to enfor
e the payment of said bonds or NOR
- cages securing the same.
r Sec. .. If any bank Incorporate
3 by any law in this State shall, eth