reglab/statecodes huggingface dataset:
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter II. Revolving Credit › § 2225. Application of other State laws.

§ 2225. Application of other State laws.
Any other law of this State limiting the rate or amount of interest, discount, points, finance charges, service charges or other charges which may be charged, taken, collected, received or reserved shall not apply to extensions of credit under a revolving credit plan operated in accordance with this subchapter.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter II. Revolving Credit › § 2226. Nonexclusivity; captions.

§ 2226. Nonexclusivity; captions.
(a) The provisions of this subchapter are not exclusive and a licensee may at its option elect to extend credit either pursuant to this subchapter or as otherwise permitted by applicable law.
(b) Section headings and captions contained in this subchapter are inserted only as a matter of convenience and for reference and do not and shall not be construed to define, limit, extend or describe the scope of this subchapter or the meaning or intent of any section hereof.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2227. Definitions.

§ 2227. Definitions.
As used in this subchapter:
(1) “Business day” means, with respect to recission under § 2235A of this title, all calendar days except Sundays and legal public holidays.
(2) “Closed end credit” means the extension of credit by a licensee to a borrower pursuant to an arrangement or agreement which is not a revolving credit plan as defined in subchapter II of this chapter.
(3) “Conspicuously displayed” means highlighted through the use of capitalization, bold print, underlining or some combination thereof.
(4) “Loan” means any single extension of closed end credit.
(5) “Right of recission” means, with respect to any short-term consumer loan, the right to return any amount borrowed, in full, on or before the close of business of the business day following the day on which such sum has been disbursed or advanced without the incursion of any fee or other charges.
(6) “Rollover” means, with respect to any short-term consumer loan, the extension of an outstanding and unpaid indebtedness beyond the stated repayment period solely on the basis of the payment of a fee without approval of a new loan application.
(7) “Short-term consumer loan” means a loan of $1,000 or less made to an individual borrower that charges interest and/or fees for which the stated repayment period is less than 60 days and is not secured by title to a motor vehicle.
(8) “Workout agreement” means an agreement between an individual borrower and a licensee for the repayment of an outstanding and unpaid indebtedness. The workout agreement must provide for payments in equal installments over a period of at least 90 days and the licensee may not assess any other fee, interest charge, or other charge on the borrower as a result of converting the loan into a workout agreement.
66 Del. Laws, c. 22, §  1;  73 Del. Laws, c. 398, §  3;  78 Del. Laws, c. 278, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2228. Extension of credit.

§ 2228. Extension of credit.
(a) Any licensee may, subject to any limitations on lending authority contained in its charter or otherwise imposed by law and subject to the other provisions of this subchapter, offer and extend closed end credit to a borrower and, in connection therewith, may charge and collect the interest and other charges permitted by this subchapter and may take such security as collateral in connection therewith as may be acceptable to the licensee. Loans to any 1 borrower may not exceed 20% of the paid-in capital stock and surplus of such lender.
(b) All licensees will maintain records or other comparable evidence of their activity taken to reach a decision on a loan. If a commitment between a licensee and an applicant is not met (regardless of whether a similar loan at a higher rate is closed or not) and the delay is the licensee's fault, or the licensee cannot demonstrate through its records or other comparable evidence that it took reasonably diligent steps to meet its deadline, such action or inaction taken by the licensee may be deemed to be an unsafe and unsound operating practice. In such a case, the Commissioner shall take appropriate action which may include, but is not limited to, an order to refund certain fees paid by the applicant to the licensee.
66 Del. Laws, c. 22, §  1;  68 Del. Laws, c. 105, §  24;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2229. Interest.

§ 2229. Interest.
A licensee may charge and collect interest in respect of a loan at such daily, weekly, monthly, annual or other periodic percentage rate or rates as the agreement governing the loan provides or as established in the manner provided in such agreement and may calculate such interest by way of simple interest or such other method as the agreement governing the loan provides. If the interest is precomputed it may be calculated on the assumption that all scheduled payments will be made when due. For purposes hereof, a year may but need not be a calendar year and may be such period of from 360 to 366 days, including or disregarding leap year, as the licensee may determine.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2230. Variable rates.

§ 2230. Variable rates.
If the agreement governing the loan so provides, the periodic percentage rate or rates of interest charged and collected in respect of the loan may, if the interest is not precomputed and taken in advance, vary in accordance with a schedule or formula. Such periodic percentage rate or rates may vary from time to time as the rate determined in accordance with such schedule or formula varies and such periodic percentage rate or rates, as so varied, may be made applicable to all or any part of outstanding unpaid amounts of such loan on and after the effective date of such variation. This section shall not be construed to limit the authority of a licensee to charge and collect interest in respect of a loan in the manner and at the rate or rates authorized in any other section of this subchapter. Without limitation, a permissible schedule or formula hereunder may include provisions in the agreement governing the loan for a change in the periodic percentage rate or rates of interest applicable to all or any part of outstanding unpaid amounts whether by variation of the then applicable periodic percentage rate or rates of interest, variation of an index or margin or otherwise, contingent upon the happening of any event or circumstance specified in the loan agreement, which event or circumstance may include the failure of the borrower to perform in accordance with the terms of the loan agreement.
66 Del. Laws, c. 22, §  1;  68 Del. Laws, c. 303, §  41;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2231. Additional charges.

§ 2231. Additional charges.
In addition to or in lieu of interest at a periodic percentage rate or rates permitted by §§ 2229 and 2230 of this title, the licensee may charge and collect, in respect of a loan:
(1) Reasonable fees for services rendered or for reimbursement of expenses incurred in good faith by the licensee or its agents in connection with such loan, including, without limitation, commitment fees, official fees and taxes, premiums or other charges for any guarantee or insurance protecting the licensee against the borrower's default or other credit loss, or costs incurred by reason of examination of title, inspection, recording and other formal acts necessary or appropriate to the security of the loan, filing fees, attorney's fees and travel expenses;
(2) If the agreement governing a loan so provides, a licensee may impose, as interest, a late or delinquency charge upon any outstanding unpaid installment payments or portions thereof under the loan agreement which are in default; provided, however, that no more than 1 such delinquency charge may be imposed in respect of any single such installment payment or portion thereof regardless of the period during which it remains in default; and provided further that no such delinquency charge may exceed 5% of the amount of any such installment or portion thereof in default. Nothing contained in this subdivision shall limit, restrict or otherwise affect the right of a licensee under and pursuant to § 2230 of this title to change the periodic percentage rate or rates of interest applicable to the loan agreement between the licensee and a borrower upon the occurrence of a delinquency or default or other failure of the borrower to perform in accordance with the terms of the loan agreement;
(3) Such other charges as the Commissioner shall include in an itemized schedule of the maximum amounts which may be charged to an applicant for a loan for costs, fees, services, points, premiums and all other reasonable expenses which may be incurred by such applicant in connection with a loan. The maximum amounts permitted by said schedule may vary with the amount of the loan and shall bear a reasonable relationship to such loan, the services required and the complexity of the transaction. No licensee shall demand, collect or receive from any applicant for a loan, directly or indirectly, any other charges, or any greater amounts for any authorized charges than those permitted by said schedule or this subchapter. Every licensee shall furnish to every applicant for a loan a copy of said schedule at the time when such application is made.
66 Del. Laws, c. 22, §  1;  68 Del. Laws, c. 303, §  42;  70 Del. Laws, c. 327, §  46;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2232. Deferred installments.

§ 2232. Deferred installments.
A licensee may at any time or from time to time permit a borrower to defer installment payments of a loan and may, in connection with such deferral, charge and collect deferral charges and may also require payment by such borrower of the additional cost to the licensee of premiums for continuing in force, until the end of such period of deferral, any insurance coverage provided in connection with the loan pursuant to § 2231 of this title.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2233. Insurance.

§ 2233. Insurance.
(a) A licensee may request but not require a borrower to be insured in respect of a loan under a life, health, accident, health and accident or other permissible insurance policy, whether group or individual, and in the event that a loan to a borrower is secured by an interest in real or personal property, the licensee may require the borrower to obtain insurance, from an insurer acceptable to the licensee, against loss of or damage to such property or against the liability arising out of the ownership or use of the property and may finance the premiums for such insurance.
(b) The offer and placement of insurance under this section shall be subject in all respects to the applicable provisions of Title 18.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2235. Refinancing.

§ 2235. Refinancing.
(a) A borrower may, with the consent of the licensee, refinance the entire outstanding and unpaid amount of a loan, and the licensee may charge and collect a refinancing charge in connection with any such refinancing.
(b) For the purposes of this section, the entire outstanding and unpaid amount of a loan shall be deemed to be:
(1) If the interest and charges in respect of the loan were not taken in advance, the total of the unpaid balance and the accrued and unpaid interest and charges on the date of refinancing; or
(2) If the interest and charges on the loan were precomputed and taken in advance, the amount which the borrower would have been required to pay upon the prepayment on the date of refinancing pursuant to § 2234 of this title governing refund upon prepayment.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2235C. Report by Commissioner.

§ 2235C. Report by Commissioner.
(a) The Commissioner shall collect and submit the following information to the Banking Committee of the Senate and the Economic Development/Banking/Insurance/Commerce Committee of the House of Representatives on or before March 15 of each year:
(1) The total number and dollar amount of short-term consumer loan transactions;
(2) The total number of individual borrowers who entered into short-term consumer loan transactions along with their gross monthly income;
(3) The minimum, maximum, and average amount of short-term consumer loan transactions;
(4) The minimum, maximum, and average annual percentage rate of short-term consumer loans;
(5) The average number of days a short-term consumer loan is outstanding;
(6) The number of borrowers entering into each permissible number of short-term consumer loans, 1 transaction to 5 transactions;
(7) The default rate on short-term consumer loans;
(8) Any other information that the commissioner believes is relevant or useful; and
(9) Any other information requested by the banking committees at least 60 days before the Commissioner's report is due.
(b) The Commissioner shall require the database operator and licensees to submit any and all information necessary for the Commissioner to prepare the report referenced in subsection (a) of this section.
78 Del. Laws, c. 278, §  4;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2236. Attorneys' fees; costs.

§ 2236. Attorneys' fees; costs.
In the event a borrower defaults under the terms of a loan, the licensee may, if the borrower's account is referred to an attorney (not a regularly salaried employee of the licensee) or to a third party for collection and if the agreement governing, or the bond, note or other evidence of, the loan so provides, charge and collect from the borrower a reasonable attorneys' fee. In addition, following a borrower's default, the licensee may, if the agreement governing, or the bond, note or other evidence of, the loan so provides, recover from the borrower all court, alternative dispute resolution or other collection costs (including, without limitation, fees and charges of collection agencies) actually incurred by the licensee.
66 Del. Laws, c. 22, §  1;  72 Del. Laws, c. 15, §  36;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2237. Application of other State laws.

§ 2237. Application of other State laws.
Any other law of this State limiting the rate or amount of interest, discount, points, finance charges, service charges or other charges which may be charged, taken, collected, received or reserved shall not apply to extensions of credit made in accordance with this subchapter.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter III. Closed End Credit › § 2238. Nonexclusivity; captions.

§ 2238. Nonexclusivity; captions.
(a) The provisions of this subchapter are not exclusive and a licensee may at its option elect to extend credit either pursuant to this subchapter or as otherwise permitted by applicable law.
(b) Section headings and captions contained in this subchapter are inserted only as a matter of convenience and for reference and do not and shall not be construed to define, limit, extend or describe the scope of this subchapter or the meaning or intent of any section hereof.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter IV. Prohibitions and Penalties › § 2239. Penalty for failure to give copy of obligation to borrower.

§ 2239. Penalty for failure to give copy of obligation to borrower.
Every lender shall give to the borrower, on request, a correct copy of the obligation evidencing the loan, and on failure or refusal on such request to furnish the borrower with such copy shall be fined, for each offense, not less than $20 nor more than $100, or imprisoned for not more than 1 month, or both.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter IV. Prohibitions and Penalties › § 2240. Penalty for making loans without license; exception.

§ 2240. Penalty for making loans without license; exception.
(a) Loans as authorized by this chapter shall not be made unless a license of registration has first been obtained from the State Bank Commissioner. Whoever violates this subsection shall be fined not less than $50 nor more than $200 for each offense, or imprisoned not more than 3 months, or both.
(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 title.
66 Del. Laws, c. 22, §  1;  68 Del. Laws, c. 105, §  25;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter IV. Prohibitions and Penalties › § 2241. Responsibility of agents.

§ 2241. Responsibility of agents.
For every violation of this chapter by any association, firm, partnership, trustee system or combination of persons not incorporated, or by any corporation, any member of the association, firm, partnership, trustee system or combination of persons not incorporated, and the president, secretary or treasurer, or any person acting as agent of the association, firm, partnership, trustee system or combination of persons not incorporated, or corporation, may be proceeded against as a principal, and if found guilty of violating this chapter, shall be punished as provided in this chapter.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter IV. Prohibitions and Penalties › § 2242. Salary orders, warrants or assignments as security for loans, confessions of judgment, acceleration; penalties for violations.

§ 2242. Salary orders, warrants or assignments as security for loans, confessions of judgment, acceleration; penalties for violations.
(a) No order, warrant or claim of any kind, from any employee upon his or her employer, for any salary or part thereof due or to become due to such employee from such employer, shall be taken, accepted or agreed to be taken or accepted, as security for money loaned or to be loaned.
(b) No loan shall be declared due and payable unless the borrower shall be in default of an expressed term or condition of the instrument.
(c) Whoever violates this section shall be fined not less than $100 nor more than $500, or imprisoned not more than 6 months, or both.
66 Del. Laws, c. 22, §  1;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter IV. Prohibitions and Penalties › § 2243. False or misleading advertising prohibited.

§ 2243. False or misleading advertising prohibited.
It shall be unlawful for any person to cause to be placed before the public in this State, directly or indirectly, any false or misleading advertising matter pertaining to loans under this chapter or the availability thereof; provided, however, that this section shall not apply to the owner, publisher, operator or employees of any publication or radio or television station which disseminates such advertising matter without knowledge of the false or misleading character thereof.
66 Del. Laws, c. 22, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter IV. Prohibitions and Penalties › § 2244. Reverse mortgages.

§ 2244. Reverse mortgages.
(a) For purposes of this section, unless the context requires otherwise:
(1) “Independent housing counselor” means a housing counseling agency approved by the United States Department of Housing and Urban Development, or any government agency or nonprofit organization that is not affiliated with either the reverse mortgage lender or any other person receiving a fee from the transaction and provides mortgage loan counseling to the public of this State regarding the advisability of entering into a reverse mortgage transaction.
(2) “Reverse mortgage loan” means a mortgage loan, as defined by § 2101(4) of this title, the proceeds of which are disbursed to the mortgagor in 1 or more lump sums, or in equal or unequal installments, either directly by the lender or the lender's agent, and which requires no repayment until a future time, upon the earliest occurrence of 1 or more events specified in the reverse mortgage loan contract.
(b) A licensee shall not finalize a reverse mortgage loan until it has received a written certification from an independent housing counselor attesting that the prospective borrower has received counseling on reverse mortgage loans that includes the information specified in 12 U.S.C. § 1715z-20(f) and such other information as the Commissioner may designate by regulation.
76 Del. Laws, c. 335, §  2;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter IV. Prohibitions and Penalties › § 2245. Mortgage loan modification services; compensation.

§ 2245. Mortgage loan modification services; compensation.
(a) As used in this section, unless the context requires otherwise, “mortgage loan” has the meaning set forth in § 2101 of this title.
(b) As used in this section, unless the context requires otherwise, “mortgage loan modification services” means services as an intermediary between an individual and 1 or more mortgage loan creditors for the purpose of obtaining:
(1) Assent to the repayment of a mortgage loan on terms more favorable to the individual than the terms of the original mortgage loan; or
(2) An arrangement to delay, prevent, remedy, eliminate or discharge any default on the terms of a mortgage loan, or the sale of any property incident to a foreclosure or other judicial proceeding based on a mortgage loan.
(c) A licensee may not receive any compensation for mortgage loan modification services prior to the execution of a written contract that describes in detail all such services that the licensee will perform and all compensation that the licensee will receive for those services. Any compensation received by a licensee in advance of the completion of all such services may not exceed $250.
(d) The total compensation that a licensee receives for mortgage loan modification services must be limited to an amount that is customary and reasonable for those services in this State.
77 Del. Laws, c. 138, §  2;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2250. Definitions.

§ 2250. Definitions.
As used in this subchapter:
(1) “Business day” means all calendar days except Saturdays, Sundays and legal holidays (as that term is defined in Chapter 5 of Title 1).
(2) “Conspicuous” has the meaning set forth in § 1-201 of Title 6.
(3) “Rollover” means the extension of an outstanding and unpaid indebtedness beyond the originally stated repayment period.
(4) “Title loan” means a loan made to one or more natural persons by a licensee and secured by the title to a motor vehicle, which loan is not used for the purpose of purchasing the vehicle that is used as security and which loan has an originally stated repayment period of 180 days or less.
(5) “Workout agreement” means an agreement for repayment of the outstanding and unpaid indebtedness on a title loan.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2251. Deceptive advertising prohibited.

§ 2251. Deceptive advertising prohibited.
No licensee shall advertise, market the availability of, or otherwise seek to induce any natural person to apply for, or enter into an obligation concerning, a title loan in any manner that violates either subchapter II (Consumer Fraud) or subchapter III (Deceptive Trade Practices) of Chapter 25 of Title 6. Further, no licensee shall advertise a title loan interest rate that is lower for an initial period, if that interest rate increases during any rollover.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2252. Disclosures.

§ 2252. Disclosures.
No licensee shall make a title loan without providing to the borrower, before the borrower signs the loan agreement, all of the following written disclosures in a conspicuous format:
(1) “The loan you are considering entering into is strictly for short-term cash, and is not a solution for long-term financial problems.”
(2) “You, as borrower, are not compelled to complete the loan agreement merely because you have received any disclosures.”
(3) “If you sign the title loan agreement, the title loan lender will obtain a security interest in your motor vehicle, and if you fail to meet the obligations of the title loan agreement, the lender can take possession of your motor vehicle and sell it.”
(4) “If the lender takes possession of your motor vehicle, you may lose equity in that vehicle.”
(5) “You have a right to rescind the title loan agreement for any reason, at no cost to you, at any time up to the end of the business day following the day in which the loan proceeds of the title loan were disbursed to you by returning the full amount of the loan proceeds to the title lender.”
(6) “You have the right to receive information about credit counseling services from the Office of the State Bank Commissioner.”
(7) “You may file a complaint with the Office of the State Bank Commissioner if you believe your lender has violated any law regarding your title loan.”
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2253. Right of rescission.

§ 2253. Right of rescission.
(a) A title loan borrower may rescind a title loan for any reason up to the end of the business day following the day on which proceeds of the loan were disbursed to the borrower.
(b) If a licensee fails to make any disclosure required by § 2252 of this title, a title loan borrower may elect, in lieu of any other available remedy, to rescind the loan at any time up to 1 year from the date scheduled for the final payment on the loan as specified in the original loan agreement, any rollover of the loan, or any workout agreement on the loan, whatever occurs last.
(c) A title loan borrower shall not incur any fee, interest, or other charge by exercising a right of rescission, except any fee or charge incurred by the licensee in the normal course of business in connection with the making of the title loan.
(d) A title loan borrower may rescind a title loan by delivering within the appropriate time specified in this section a notice of rescission to the licensee that issued the loan.
(1) If the rescission is pursuant to subsection (a) of this section, the borrower shall at the same time also return to the licensee all loan proceeds that the borrower received.
(2) If the rescission is pursuant to subsection (b) of this section, the borrower shall at the same time also return to the licensee any unpaid balance of the loan proceeds that the borrower received less any fees, interest or other charges that the borrower paid the licensee on the loan. If such fees, interest, or other charges exceed the unpaid loan proceeds, the licensee shall promptly refund that excess to the borrower.
(e) Upon rescission of a title loan, the licensee that issued the loan shall promptly take all actions necessary or appropriate to terminate any security interest in the motor vehicle that is used as security for that loan if the borrower still owns that vehicle.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2254. Rollover limit.

§ 2254. Rollover limit.
No licensee shall make a title loan rollover that would extend the repayment period for the loan beyond 180 days from the date on which the loan proceeds were disbursed to the borrower.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2255. Workout agreement.

§ 2255. Workout agreement.
(a) If a title loan borrower fails to repay the loan in accordance with the original provisions of the loan or any rollover of the loan, a licensee shall not take possession of the motor vehicle that is used as security for that loan or file suit on the loan until the licensee offers the borrower a workout agreement. Every workout agreement shall require a net reduction of at least 10% of the outstanding and unpaid indebtedness on the loan every month. A borrower shall have at least 10 business days to accept a workout agreement before the licensee takes possession of the motor vehicle.
(b) A title loan borrower who enters into a workout agreement with a licensee shall not be considered in default of the loan, and a licensee shall not take possession of a motor vehicle that is used as security for that loan or file suit against the borrower, unless the borrower defaults under the workout agreement.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2256. Federal Fair Debt Collection Practices Act.

§ 2256. Federal Fair Debt Collection Practices Act.
No licensee who employs a debt collector, as defined in the Federal Fair Debt Collection Practices Act, as amended (Pub. L. 95-109, 91 Stat. 874) [15 U.S.C. § 1692 et seq.], to collect any outstanding and unpaid indebtedness under a title loan shall knowingly cause or permit such debt collector to act in a manner which violates that act.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2257. Threat of criminal prosecution prohibited.

§ 2257. Threat of criminal prosecution prohibited.
No licensee shall seek or threaten to seek the criminal prosecution of a title loan borrower in connection with the nonpayment of any amount due under the loan, including the unpaid return of any check or automated clearing house transaction.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2258. Interest after default or repossession.

§ 2258. Interest after default or repossession.
If a title loan borrower defaults on the loan, interest shall accrue on that loan at the rate specified in the original loan agreement for the original title loan period, any rollover period, and the period of any workout agreement. If the borrower remains in default at the expiration of the last of those periods, interest shall accrue from that point forward at no more than the legal rate specified in § 2301 of Title 6 as of that time. In all such cases, interest shall cease to accrue at the time a licensee takes possession of the motor vehicle that is used as security for that loan. Interest following a judgment that is rendered by a court of competent jurisdiction in favor of the licensee in any suit for breach of the loan agreement shall accrue at a rate determined by the court.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2259. Possession of motor vehicle after default.

§ 2259. Possession of motor vehicle after default.
A licensee may take possession of the motor vehicle that is used as security for a title loan only in accordance with procedures specified in part 6 (Default) of Article 9 (Uniform Commercial Code — Secured Transactions) of Title 6.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2260. Sale of motor vehicle.

§ 2260. Sale of motor vehicle.
Notwithstanding any other provision of law, the proceeds of a licensee's sale of a motor vehicle that is used as security for a title loan shall satisfy all outstanding and unpaid indebtedness under that loan, and the borrower on that loan shall not be liable for any deficiency resulting from that sale. The licensee shall nevertheless still be required to pay the borrower any surplus arising from the sale of that motor vehicle as required by part 6 (Default) of Article 9 (Uniform Commercial Code — Secured Transactions) of Title 6.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 22. LICENSED LENDERS › Subchapter V. Title Loans › § 2261. Notice to borrower.

§ 2261. Notice to borrower.
In addition to any other requirement of law, a licensee shall provide to the borrower, within 30 days of the date of the sale of any motor vehicle that is used as security for a title loan, a written explanation of the disposition of the proceeds of that sale. The explanation shall include all of the information required for an explanation under § 9-616 of Title 6, and shall be provided whether or not the sale resulted in a surplus or deficiency with respect to the amount owed by the borrower. The explanation shall include a notice that the sale has satisfied all outstanding and unpaid indebtedness under the title loan.
77 Del. Laws, c. 164, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2302. Definitions.

§ 2302. Definitions.
For the purposes of this chapter:
(1) “Person” means any individual, partnership, association, joint stock association or corporation, but does not include the United States government or the government of this State.
(2) “Licensee” means a person duly licensed by the State Bank Commissioner pursuant to this chapter.
(3) “Check” means any check, draft, money order, personal money order or other instrument for the transmission or payment of money.
(4) “Personal money order” means any instrument for the transmission or payment of money in relation to which the purchaser or remitter appoints or purports to appoint the seller thereof as the purchaser's or remitter's agent for the receipt, transmission or handling of money, whether such instrument be signed by the seller or by the purchaser or remitter or some other person.
(5) “Sell” means to sell, to issue, or to deliver a check.
(6) “Deliver” means to deliver a check to the first person who in payment for same makes or purports to make a remittance of or against the face amount thereof, whether or not the deliverer also charges a fee in addition to the face amount, and whether or not the deliverer signs the check.
(7) “Commissioner” means the State Bank Commissioner.
(8) “Accelerated mortgage payment provider” means any person who, in accordance with a written contract, receives funds from a mortgagor to transmit, on behalf of such mortgagor, to a lender or servicer in order to exceed regularly scheduled minimum payment obligations under the terms of the indebtedness.
5 Del. C. 1953, §  2302;  58 Del. Laws, c. 421;  71 Del. Laws, c. 19, §  71;  84 Del. Laws, c. 42, § 72;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2303. License required.

§ 2303. License required.
No person, except those specified in § 2304 or agents of a licensee as provided in § 2311 shall engage in the business of selling checks, or issuing checks or engage in the business of receiving money for transmission or transmitting the same without having first obtained a license hereunder.
5 Del. C. 1953, §  2303;  58 Del. Laws, c. 421.;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2304. Exemption from licensing.

§ 2304. Exemption from licensing.
(a) No license shall be required hereunder of banks, trust companies, credit unions, building and loan associations and savings and loan associations, organized under the laws of any state in the United States of America or the United States of America, which either are authorized to do business in this State, or which act through a contractor or agent authorized to do business in this State.
(b) Nothing contained in this section or any other section of this chapter shall be construed to enlarge or limit the rights which any of the above-named organizations have under any existing law.
(c) The Commissioner shall be authorized to exempt from any or all of the provisions of this chapter such persons or classes of persons, or checks or transmissions or classes of checks or transmissions, as the Commissioner shall find inappropriate to include within the coverage of this chapter in order to effectuate the purposes of this chapter. The Commissioner may by regulation establish procedures for application, fees and other requirements for an exemption pursuant to this subsection.
5 Del. C. 1953, §  2304;  58 Del. Laws, c. 421;  69 Del. Laws, c. 58, §  1;  70 Del. Laws, c. 327, §  47;  71 Del. Laws, c. 19, §  72;  76 Del. Laws, c. 86, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2305. Qualifications.

§ 2305. Qualifications.
To qualify for a license hereunder an applicant shall meet the following requirements:
(1) The applicant shall have a net worth of at least $100,000 computed according to generally accepted accounting principles;
(2) The financial responsibility, financial condition, financial and business experience, character and general fitness of the applicant shall be such as reasonably to warrant the belief that applicant's business will be conducted honestly, carefully and efficiently. To the extent deemed advisable by the Commissioner, the Commissioner may investigate and consider the qualifications of the applicant including principals, officers and directors of an applicant in determining whether this qualification has been met.
5 Del. C. 1953, §  2305;  58 Del. Laws, c. 421.;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2306. Applications.

§ 2306. Applications.
(a) Each application for a license shall be made in writing and under oath to the Commissioner in such form and containing such information as the Commissioner may prescribe including the name and business and residence address of any of the following:
(1) Of the proprietor, if the applicant is an individual.
(2) Of every member, if the applicant is a partnership or unincorporated association.
(3) Of the corporation and each officer and director thereof, if the applicant is a corporation, stating the date and the state of incorporation.
(b) The Commissioner, at the time the application is submitted or in connection with an investigation of the application, may require the applicant, the spouse of the applicant, a principal of, individual who is a person in control of, or proposed responsible individual of the applicant, or any other individual associated with the applicant and the proposed licensed activities, to provide the Commissioner or the Commissioner's designee with a complete set of fingerprints for purposes of a criminal background investigation.
5 Del. C. 1953, §  2306;  58 Del. Laws, c. 421;  82 Del. Laws, c. 78, § 3;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2307. Accompanying fees and statements.

§ 2307. Accompanying fees and statements.
Each application for a license shall be accompanied by:
(1) An investigation fee of $172.50 which shall not be subject to refund.
(2) The annual license fee as specified in § 2310.
(3) Financial statements reasonably satisfactory to the Commissioner.
5 Del. C. 1953, §  2307;  58 Del. Laws, c. 421;  67 Del. Laws, c. 260, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2308. Action by Commissioner; conditional approval; license requirements; acquisition.

§ 2308. Action by Commissioner; conditional approval; license requirements; acquisition.
(a) Upon the filing of the application and the payment of the investigation fee and the annual license fee, the Commissioner shall, to the extent the Commissioner deems advisable, investigate the financial responsibility, financial condition, financial and business experience, character and general fitness of the applicant, and if the Commissioner finds these qualities are such as to warrant the belief that the applicant's business will be conducted honestly, fairly, equitably, carefully and efficiently within the purposes of the intent of this chapter and in the manner commanding the confidence and trust of the community, the Commissioner shall advise the applicant in writing of the Commissioner's conditional approval of the application, and thereafter, upon compliance by the applicant with § 2309 of this title, shall issue to the applicant a license to engage in the business of selling and issuing checks, subject to this chapter. If the Commissioner determines on the basis of the Commissioner's investigation that the applicant does not comply with the purposes of this chapter as set forth in the preceding sentence of this section the Commissioner shall notify the applicant of the denial of the conditional approval of the license stating the reasons therefor in writing.
(b) A licensee shall obtain a license for each office or other place of business from which its licensed business is conducted upon payment of the required fees for each office and compliance with all applicable provisions of law. In the event the location of a licensed office is changed during the term of the license, the Commissioner shall issue without charge an amended license for the new location. In case there is a change of name but no change in corporate structure, the Commissioner shall issue without charge an amended license for the new name. Such license shall not be otherwise transferable or assignable. The Commissioner may issue more than 1 license to the same applicant upon payment of the required fees and compliance with all applicable provisions of law.
(c) Upon written request, the Commissioner may in the Commissioner's discretion grant conditional approval for an acquired licensee to conduct its business under its existing license for a period not to exceed 60 days when control of the licensee changes and a new application for licensure has been filed in accordance with this chapter.
5 Del. C. 1953, §  2308;  58 Del. Laws, c. 421;  70 Del. Laws, c. 186, §  1;  72 Del. Laws, c. 15, §  37;  80 Del. Laws, c. 225, § 5;  84 Del. Laws, c. 42, § 73;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2310. Annual license fee.

§ 2310. Annual license fee.
After applicant receives notice of conditional approval by the Commissioner of the application for an original license and annually thereafter at least 30 days prior to the expiration of such license, applicant shall file with the Commissioner a renewal application together with a statement listing the locations in the State of the offices of the applicant and the names and locations of the applicant's agents. The licensee shall pay to the Commissioner with such list a license fee of $4.60 for each such location in excess of 1. The fee shall cover the remainder of the calendar year in which license is granted. Thereafter each licensee shall submit a current list together with a renewal application not less than 30 days prior to the expiration of such license and pay a license fee of $230 plus $4.60 for each location on the list submitted. The requirements of this section shall not apply to any agent of a licensee who is exempt from this chapter pursuant to § 2304(a) of this title. The Commissioner may mandate that applications for renewal shall be treated as new applications if said renewal applications are not on file with the office of the State Bank Commissioner at least 30 days prior to the expiration of such license or renewal thereof. Licensees which have not complied with supervisory letters may be refused license renewal.
5 Del. C. 1953, §  2310;  58 Del. Laws, c. 421;  67 Del. Laws, c. 260, §  1;  68 Del. Laws, c. 9, §  6;  70 Del. Laws, c. 6, §§  10-12;  70 Del. Laws, c. 186, §  1;  70 Del. Laws, c. 327, §  42;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2311. Agents.

§ 2311. Agents.
A licensee may conduct the licensee's business at 1 or more locations within the State and through or by means of such agents as the licensee may from time to time designate or appoint. No license under this chapter shall be required of any agent of a licensee. In order for an agent to be authorized to act for the licensee in this State, the licensee shall have on file with the Commissioner the name and address of the agent, and the licensee shall notify the Commissioner within 30 days of the change of name or address of an agent or of the termination of any such agent. If the bond deposited by the licensee under § 2309 of this title is less than the maximum provided thereunder, the licensee shall submit and deposit a supplementary bond in the amount required by § 2309 of this title for the additional location or locations that are added. In the event that the licensee shall have filed an irrevocable letter of credit in lieu of a surety bond under § 2309(b) of this title the amount of such letter of credit shall be increased accordingly. The requirements of this section shall not apply to any agent of a person who is exempt from this chapter pursuant to § 2304 of this title.
5 Del. C. 1953, §  2311;  58 Del. Laws, c. 421;  70 Del. Laws, c. 186, §  1;  76 Del. Laws, c. 86, §  2;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2312. Liability of licensees.

§ 2312. Liability of licensees.
(a) Each licensee shall be liable for the payment of all checks which the licensee sells in this State, in whatever form and whether directly or through an agent, as the maker or drawer thereof according to the negotiable instruments law of this State; and a licensee who sells a check, whether directly or through an agent, upon which the licensee is not designated as maker or drawer shall nevertheless have the same liabilities with respect thereto as if the licensee had signed the same as the maker or drawer thereof.
(b) Each licensee engaged in the business of receiving money for transmission shall be liable for payment of all amounts received for transmission.
5 Del. C. 1953, §  2312;  58 Del. Laws, c. 421;  70 Del. Laws, c. 186, §  1;  71 Del. Laws, c. 19, §  74;
2023 Delaware Code › Title 5 - Banking › Chapter 23. SALE OF CHECKS AND TRANSMISSION OF MONEY › § 2313. Disclosure of responsibility and evidence of receipt.

§ 2313. Disclosure of responsibility and evidence of receipt.
(a) Every check sold by a licensee, directly or through an agent, shall bear the name of the licensee clearly imprinted thereon.
(b) Every licensee shall furnish a customer with a receipt or other acknowledgment upon receiving funds from such customer. Such receipt or other acknowledgment shall be numbered serially and shall bear the name and address of the licensee. Each licensee who receives money for transmission abroad shall forward such money to the person or bank designated to receive the same within 5 days after receipt thereof, and shall immediately give the person delivering the money for transmission a receipt and customer name with the name and address of the licensee printed thereon. The receipt shall state the date when such money was received, the amount thereof, its equivalent in the currency of the country to which it is to be forwarded, and the name and address of the payee.
(c) In lieu of the provisions of subsection (b) of this section, every accelerated mortgage payment provider may furnish an annual statement to a mortgagor of the transmittals. Each such statement shall identify the dates money was received for transmission and the amounts thereof, the dates transmittals were made to the lender on behalf of the mortgagor and the amounts thereof and the name and address of the lender or recipient of such transmittals.
5 Del. C. 1953, §  2313;  58 Del. Laws, c. 421;  71 Del. Laws, c. 19, §  75;  84 Del. Laws, c. 42, § 74;