Source: http://delcode.delaware.gov/sessionlaws/ga136/chp105.shtml
Timestamp: 2016-02-08 14:37:43
Document Index: 308182913

Matched Legal Cases: ['§1703', '§1705', '§1705', '§1705', '§1707', '§1710', '§1710', '§1711', '§1721', '§1722', '§1722', '§1723', '§1721', '§1724', '§1722', '§1724', '§1726', '§1727', '§1902', '§1902', '§1903', '§1903', '§1903', '§1904', '§1905', '§1905', '§2011', '§2201', '§2202', '§2202', '§2202', '§2203', '§2204', '§2208', '§2208', '§2208', '§2209', '§2228', '§2240', '§2202', '§131']

AN ACT TO AMEND CHAPTERS 1, 17, 19, AND 22 OF TITLE 5, DELAWARE CODE RELATING TO BANKING AND BUILDING AND LOAN ASSOCIATIONS.
Section 3. Amend §1703(a) of Chapter 17, Title 5, Delaware Code, by deleting the phrase "at least once each year and oftener if the Commissioner deems it necessary." as it appears therein and inserting in lieu thereof the phrase "as frequently as deemed necessary or expedient."
Section 4. Amend §1705 of Chapter 17, Title 5, Delaware Code, by
deleting the phrase "of any other state, territory, or the District of Columbia, shall, in addition to the information required by subsections (a) and (b) of this section, set" as they appear in existing subsection (c) and inserting in lieu thereof "or regulations of any other state or federal agency, shall furnish a statement which sets". Further amend §1705 by deleting the period at the end of existing subsection (c) and adding thereto the phrase "and submit a copy of its annual report at the end of each fiscal year." Amend subsection (b) of §1705 by deleting said subsection in its entirety and redesignating existing subsection (c) as subsection (b).
Section 5. Amend §1707 of Chapter 17, Title 5, Delaware Code, by
Section 6. Amend §1710 by deleting the second sentence thereof in its entirety and deleting the phrase "for 30 days after final judgment in any such action" as it appears in the third sentence of said section. Further amend §1710 by deleting the word "judgment" wherever it appears and substituting in lieu thereof the word "penalty" and deleting the last phrase in said section commencing with the phrase ", or until".
Section 7. Amend §1711 of Chapter 17, Title 5, Delaware Code, by
Section 8. Amend §1721 of Chapter 17, Title 5, Delaware Code, by
inserting the phrase "or the registration requirements fulfilled" between the words "obtained" and "as provided".
Section 9. Amend §1722 of Chapter 17, Title 5, Delaware Code, by
inserting the phrase ", or a business similar to that of a building and loan association," between the words "association" and "created" as they appear in the second sentence of said section and by deleting the phrase "of any other state" and inserting in lieu thereof the phrase "or regulations of any other state or federal agency". Further amend the second sentence of §1722 by deleting the word "license" and inserting in lieu thereof the word "registration".
Section 10. Amend §1723 of Chapter 17, Title 5, Delaware Code, by adding a new subsection (c) to read as follows:
"(c) No new license required under §1721 shall be issued after July 15, 1991."
Section 11. Amend §1724 of Chapter 17, Title 5, Delaware Code, by
deleting the word "and" as it appears after the phrase "solvent condition" in the first sentence thereof and inserting after the phrase "compliance with the law" the phrase "and payment of the annual renewal license or registration fee
as prescribed in §1722 of this Title has been made". Further amend §1724 by deleting the last sentence of said section.
Section 12. Amend §1726 of Chapter 17, Title 5, Delaware Code, by
inserting the phrase per violation" after "$25" as it appears therein.
Section 13. Amend §1727 of Chapter 17, Title 5, Delaware Code, by adding the word "registered" before the word "office" and after the word "or" as they appear in said section.
Section 14. Amend §1902, Chapter 19, Title 5, Delaware Code by deleting the phrase "at a rate of interest not exceeding the legal rate or any higher contract rate as permitted by law, and for such premium as is authorized under this chapter." as it appears in the first paragraph of said section. Further amend §1902 by deleting the phrase ", but such loans shall be limited to the legal rate of interest" and insert a new paragraph to read as follows:
"Building and loan associations may charge and collect periodic interest in respect to such loans at such daily, weekly, monthly, annual or other periodic percentage rate or rates as the agreement governing, or the bond, note or other evidence of, the loan provides or as established in the manner provided in such agreement, bond, note or other evidence of the loan, and may calculate such periodic interest by way of simple interest or such the method as the agreement governing, or the bond, note or other evidence of, the loan provides. If the interest is pre-computed, it may be calculated on the assumption that all scheduled payments will be made when due. For purposes thereof, a year may but need not be a calendar year and may be such period of from 360 days to 366 days, including or disregarding leap year, as the association may determine.
Building and loan associations may engage in revolving credit and closed end credit. Such activities shall be subject to the provisions of Subchapters II and III of Chapter 9, Title 5, of the Delaware Code."
Section 15. Amend §1903 of Chapter 19, Title 5, Delaware Code, by
inserting the phrase "duly licensed or registered" immediately following the first word of said paragraph and by deleting the phrase and having a state charter" which appears after the phrase this State" in the first line of §1903. Further amend §1903 by deleting the phrase "Federal Home Loan Bank Board" and insert in lieu thereof the phrase "Office of Thrift Supervision or any successor federal regulatory authority".
Section 16. Amend §1904 of Chapter 19, Title 5, Delaware Code, by
deleting the phrase "doing business in this State and holding a state charter" and substituting in lieu thereof the phrase "duly licensed or registered".
Section 17. Amend §1905 of Chapter 19, Title 5, Delaware Code, by
deleting the said section in its entirety and substituting in lieu thereof a new §1905 to read as follows:
11905. Branch offices. The establishment of a branch office by a building and loan association shall be governed by the provisions of §2011 of Chapter 20, of this Title. Branching of building and loan associations shall be limited to the extent permitted to banks chartered pursuant to Chapter 7 of this Title."
Section 18. Amend §2201 of Chapter 22, Title 5, Delaware Code, by
deleting subsections (1) through (3), inclusive, renumbering current subsections (4) and (5) as subsections (3) and (4), respectively, and by inserting new subsections (1) and (2) to read as follows:
"(1) "Person" means an individual, corporation, partnership or any other business entity or group or combination of individuals however organized.
(2) "Licensee", "licensed lender", "person licensed", or "lender" means any person duly licensed or regulated by the Commissioner pursuant to this chapter."
Section 19. Amend §2202 of Chapter 22, Title 5, Delaware Code, by
deleting such section in its entirety and inserting in lieu thereof a new §2202 to read as follows:
"§2202. License required. a) Every person desiring to transact the business of lending money in this State shall be required to obtain a license under this chapter provided, however, that a person that makes not more than five loans within any 12-month period shall be deemed not to be transacting the business of lending money. Except as otherwise provided by law, loans made by any such unlicensed lender shall fall under the provisions of Chapter 23 of Title 6. The licensing requirements of this chapter shall not apply (1) to any banking organization, state or federal savings bank or savings and loan association having its principal place of business in this State, federal credit union or insurance company; or (2) to any other financial institution or other person, if and to the extent that such financial institution or other person is lending money in accordance with and as authorized by any other applicable law of this State or the United States, including but not limited to the registration requirements in Chapter 17 of this Title.
(b) The Commissioner shall be authorized to exempt such persons or classes of persons, or loans or classes of loans, as the Commissioner shall find inappropriate to include within the coverage of this chapter in order to effectuate the purposes of this chapter.
(c) A person shall not be deemed to be transacting the business of lending money within the meaning of this section solely by reason of the circumstance that such person is a participating merchant, as such term is used in this chapter."
Section 20. Amend §2203(a) of Chapter 22, Title 5, Delaware Code, by
deleting the word "located" appearing therein and inserting in lieu thereof the words to be conducted".
Section 21. Amend §2204 of Chapter 22, Title 5, Delaware Code, by
deleting the words "filing thereof" appearing as the last two words of such section and inserting in lieu thereof the words "date the Commissioner determines that the application as filed with him is complete".
Section 22. Amend §2208 of Chapter 22, Title 5, Delaware Code, by
deleting the title of such section and inserting in lieu thereof "§2208. Surety Bond or Letter of Credit.", and by adding at the end of such §2208 two additional sentences reading as follows:
In lieu of requiring the filing of a surety bond, the Commissioner may, at his discretion, accept from a licensee a letter of credit in the amount of $50,000 running in favor of the State, with draws available by sight drafts thereunder in amounts determined by the Commissioner, up to the aggregate amount of $50,000, if the licensee shall fail to comply with this chapter. Any such letter of credit shall be issued by a financial institution, and shall be in a form satisfactory to the Commissioner."
Section 23. Amend §2209(d) of Chapter 22, Title 5, Delaware Code, by inserting the phrase such license together with following the phrase any licensee may surrender any license by delivering to the Commissioner".
Section 24. Amend §2228(a) of Chapter 22, Title 5, Delaware Code, by
deleting the word "paid" following the phrase "Loans to any 1 borrower may not exceed 20% of the and inserting in lieu thereof the word "paid-in".
Section 25. Amend §2240(b) of Chapter 22, Title 5, Delaware Code, by deleting such subsection (b) in its entirety and inserting in lieu thereof a new subsection (b) to read as follows:
"(b) Subsection (a) of this section shall not apply to any person transacting the business of lending money in accordance with the provisions of §2202 of this chapter."
Section 26. Amend §131(d), Title 5, Delaware Code by deleting the phrase beginning with ", except" and ending with "trust company" and inserting in lieu thereof the following:
"provided, however, that the foregoing shall not affect any power, if any, granted to the Court under Section 131(d) in existence prior to the enactment of Senate Bill No. 132, Delaware State Senate, 136th General Assembly, as amended by Senate Amendment No. l and House Amendment No. 1, with respect to security interests held by affiliates of a bank or trust company created in connection with borrowings in excess of the amount of capital and surplus paid in of the bank or trust company."