reglab/statecodes huggingface dataset:
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter I. General Provisions › § 929. Tying arrangements prohibited.

§ 929. Tying arrangements prohibited.
(a) No bank or trust company shall, either directly or indirectly through any subsidiary, division or 3rd person, in any manner extend credit, sell any product or furnish any service to any person, or fix or vary the consideration for any of the foregoing, on the condition or requirement that:
(1) The person shall obtain some additional credit, product or service from such bank or trust company or its affiliate other than a loan, discount, deposit or trust service; or
(2) The person provide some additional credit, product or service to such bank or trust company or its affiliate other than those related to and usually provided in connection with a loan, discount, deposit or trust services; or
(3) The person shall not obtain some other credit, product or service from a competitor of such bank or trust company or its affiliate, other than a condition or requirement that such bank or trust company shall reasonably impose in a credit transaction to assure the soundness of the credit.
(b) No bank or trust company which is first authorized to engage in any activity by § 761(a)(14) or § 1661(a)(14) of this title shall, while an application for a loan, credit or other services previously submitted to such bank or trust company by any person is pending, accept from such person, either directly or through any division or subsidiary, an application for a policy of insurance directly related to the applied-for loan, credit or other services, or thereafter accept such an insurance application until such person has received from such bank or trust company a commitment with respect to the applied-for loan, credit or other services.
(c) The Commissioner shall by regulation promulgated after consultation with the Insurance Commissioner provide for the adequate disclosure of the prohibitions set forth in subsections (a) and (b) of this section.
(d) For purposes of this section, the term “affiliates” shall mean a person that directly or indirectly through 1 or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. “Control” means beneficial ownership, directly or indirectly through 1 or more intermediaries, of 25% or more of the voting securities or partnership interests in any person other than an individual.
(e) The prohibitions contained in this section shall be in addition to, and not in derogation of, those provided for under the laws of the United States, including 12 U.S.C. § 1971 et seq., the laws of this State, including § 2305 of Title 18, and all other applicable statutes, rules and regulations.
(f) The prohibitions of subsection (a) of this section shall not apply to conduct authorized by the Commissioner by regulation, if such conduct is permissible under 12 U.S.C. § 1972 or regulations or orders promulgated thereunder by the Board of Governors of the Federal Reserve System.
67 Del. Laws, c. 223, §  11;  71 Del. Laws, c. 25, §  34;  75 Del. Laws, c. 60, §  4;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter I. General Provisions › § 930A. Mandatory disclosure in bank insurance policies.

§ 930A. Mandatory disclosure in bank insurance policies.
(a) Any bank or trust company issuing policies of insurance either directly or through a division or subsidiary, shall disclose or cause to be disclosed to all applicants for such policies and to all policyholders that such policies, if and when issued, are not direct liabilities of such bank or trust company, and that only the assets of the insurance division or subsidiary issuing such policy are applicable to the payment and satisfaction of such policies or claims made thereunder.
(b) The Commissioner shall by regulation provide for the adequate disclosure of the information set forth in subsection (a) of this section.
67 Del. Laws, c. 223, §  13;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter I. General Provisions › § 931. Employee retirement pensions for savings banks and savings societies.

§ 931. Employee retirement pensions for savings banks and savings societies.
(a) Savings banks and savings societies, subject to the laws of this State, may, in the discretion of a majority of all the managers or governing board, retire any officer, clerk or other employee, who has served the savings bank or savings society for a period of 30 years or more, or who has served the savings bank or savings society for a period of 10 years or more and shall have become incapacitated, or who has served the savings bank or savings society for a period of 20 years or more and has attained the age of 60 years. Any person retired from service pursuant to this section may be paid an annual pension, in equal monthly installments. The maximum pension paid shall in no case exceed 60% of the average annual salary for the 3 years preceding retirement. The discretion of the managers or governing board as to the time of payments, the amount of payments, and the duration of payments, within the maximum amounts allowed under this section, shall at all times be absolute and final.
(b) For the purpose of establishing and maintaining a pension plan or a plan for carrying life insurance or providing other after death benefits for any of its officers, clerks or employees, or their estates or beneficiaries, or a plan combining these types of benefits, any such savings bank or savings society may, in the discretion of a majority of its board of managers or governing board, segregate or allocate funds from its income or other assets and pay the same into a trust fund. Any such institution establishing such trust fund may itself act as trustee or may have an independent trustee. Even though the ultimate benefits of the plan are paid out of such trust fund, or even though premiums for the coverage are paid out of such trust fund, rather than directly out of the savings institution's operating funds, unless the terms of the said trust are approved by the State Bank Commissioner as provided in this section, the limitations of years and percentage specified in the preceding paragraph shall remain applicable, and the only benefits payable shall be such as are authorized by the said paragraph. If the State Bank Commissioner shall determine that the said plan is not injurious to the institution or the security of its deposits, then such benefits as may be provided by said plan may be paid to officers, clerks or employees, or their estates or beneficiaries, in accordance with the terms of the plan, even though these terms may not be within the limitations of the preceding paragraph. If the plan has once been approved but is thereafter amended, the amendment shall be approved before any benefits are paid out under the amended plan.
43 Del. Laws, c. 141, §  1;  5 Del. C. 1953, §  931;  49 Del. Laws, c. 250;  55 Del. Laws, c. 118.;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter I. General Provisions › § 932. Loans and securities insured by Federal Housing Administrator.

§ 932. Loans and securities insured by Federal Housing Administrator.
(a) Banks, savings banks, trust companies, building and loan associations and insurance companies, subject to this Code and any other laws of this State, may make such loans and advances of credit and purchases of obligations representing loans and advances of credit as are eligible for insurance by the Federal Housing Administrator, and may obtain such insurance; and may make such loans, secured by real property or leasehold, as the Federal Housing Administrator insures or makes a commitment to insure, and may obtain such insurance.
(b) Banks, savings banks, trust companies, building and loan associations, insurance companies, trustees, guardians and other fiduciaries, may invest their funds and the moneys in their custody or possession, eligible for investment, in notes or bonds secured by mortgage or trust deed insured by the Federal Housing Administrator, provided such notes or bonds or the notes, bonds or debentures into which the same are convertible upon foreclosure of such mortgage or deed of trust shall be guaranteed as to principal and interest by the United States government.
(c) The mortgages, debentures and other securities herein made eligible for investment may be used, wherever securities must be furnished by any depository in the State, as security for the deposit of any funds whatsoever, or wherever securities must be deposited with any official of the State pursuant to this Code and any other statute of this State.
(d) No law of this State requiring security upon which loans or investments may be made, or prescribing the nature, amount or form of such security, or prescribing or limiting interest rates upon loans or investments or limiting investments of capital or deposits, or prescribing or limiting the period for which loans or investments may be made, shall be deemed to apply to loans or investments made pursuant to this section.
40 Del. Laws, c. 150, §§  1, 2;  Code 1935, §§  2405, 2405(a), 2406, 2406(a);  41 Del. Laws, c. 133, §§  1-4;  5 Del. C. 1953, §  932;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter I. General Provisions › § 933. Prize linked savings programs.

§ 933. Prize linked savings programs.
(a) For purposes of this section “savings promotion raffle” means a raffle conducted by a bank or credit union doing business in Delaware where the sole action required for a chance of winning designated prizes is the deposit of a minimum specified amount of money in a savings account or other savings program.
(b) Any bank or credit union doing business in this State may conduct a savings promotion raffle provided that the bank or credit union:
(1) Conducts the savings promotion raffle in a manner that ensures that each entry has an equal chance of winning the designated prize;
(2) Fully discloses the terms and conditions of the savings promotion raffle to each of its account holders;
(3) Offers an interest rate that is commensurate with the interest rate the bank or credit union offers on comparable savings accounts or savings programs that are not subject to a savings promotion raffle; and
(4) Maintains records sufficient to facilitate an audit of such savings promotion raffle.
(c) A savings promotion raffle is not a lottery for purposes of Chapter 48 of Title 29.
81 Del. Laws, c. 13, § 1;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter I. General Provisions › § 936. International banking facilities.

§ 936. International banking facilities.
The Commissioner may by rule except from the terms “deposit,” “borrowing,” and “extension of credit,” as they relate to the activities of international banking facilities and as defined in § 101 of this title, any class of transactions if the Commissioner finds that its inclusion would not be in the public interest. Any class of transactions otherwise included within the aforementioned terms “deposit,” “borrowing” and “extension of credit” shall be deemed by the Commissioner to be in the public interest if it promotes an environment conducive to the conduct of international banking business in this State, and does not constitute an unsafe, unsound or anticompetitive banking practice.
64 Del. Laws, c. 43, §  5;  72 Del. Laws, c. 15, §  9;  70 Del. Laws, c. 186, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter I. General Provisions › § 937. Availability of funds.

§ 937. Availability of funds.
(a) Financial institutions that delay availability shall review their policies and consider reducing the delay periods to the extent possible, consistent with prudent business practices.
(b) Financial institutions shall disclose to depositors in an effective manner as to their delayed availability policies.
(c) Financial institutions shall refrain from imposing unnecessary delays on all checks, particularly on social security and other government checks, deposited into established accounts beyond the time required to receive credit for the checks.
64 Del. Laws, c. 478, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter I. General Provisions › § 939. Negotiable instruments.

§ 939. Negotiable instruments.
(a) For purposes of this section, “fiduciary” shall have the same meaning as in § 3301(d) of Title 12.
(b) If a negotiable instrument is drawn upon the account of a principal in a bank by a fiduciary who is empowered to draw upon the principal's account, the bank is authorized to pay such instrument without being liable to the principal for the application of the funds.
(c) If any negotiable instrument payable or endorsed to a fiduciary as such is endorsed by a fiduciary, or if any negotiable instrument payable or endorsed to a principal is endorsed by a fiduciary empowered to endorse such instrument on behalf of the principal, the endorsee is not bound to inquire whether the fiduciary is committing a breach of its obligation as fiduciary by endorsing or delivering the instrument, and is not liable for the application of the funds.
65 Del. Laws, c. 422, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 942. Extension of credit.

§ 942. Extension of credit.
Any bank may, subject to any limitations on lending authorities contained in its charter or otherwise imposed by law and subject to the other provisions of this subchapter, offer and extend credit under a revolving credit plan to a borrower and in connection therewith may charge and collect periodic interest, interest charges and other charges permitted by this subchapter and may take such security as collateral in connection therewith as may be acceptable to the bank. Without limitation of the foregoing, credit may be extended under a revolving credit plan by a bank's acquisition of obligations arising out of the honoring by a merchant, a bank or other financial institution (whether chartered or organized under the laws of this or any other state, the District of Columbia, the United States or any district, territory or possession of the United States, or any foreign country), or a government or governmental subdivision or agency of a credit device made available to a borrower under a plan, whether directly or indirectly by means of telephone, point of sale terminal, automated teller machine or other electronic or similar device or through the mails.
63 Del. Laws, c. 2, §  4;  66 Del. Laws, c. 283, §  3;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 943. Periodic interest.

§ 943. Periodic interest.
A bank may charge and collect periodic interest under a revolving credit plan on outstanding unpaid indebtedness in the borrower's account under the plan at such daily, weekly, monthly, annual or other periodic percentage rate or rates as the agreement governing the plan provides or as established in the manner provided in the agreement governing the plan. Periodic interest may be calculated using an average daily balance, 2-cycle average daily balance, adjusted balance or previous balance method or using any other balance computation method provided for in the agreement governing the plan. Periodic billing cycles may be established in such manner and shall have such duration as may be specified in the agreement governing the plan.
63 Del. Laws, c. 2, §  4;  66 Del. Laws, c. 283, §§  4, 5;  71 Del. Laws, c. 19, §  45;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 944. Variable rates.

§ 944. Variable rates.
If the agreement governing the revolving credit plan so provides, the periodic percentage rate or rates of interest under such plan may 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 indebtedness under the plan on or after the first day of the billing cycle that contains the effective date of such variation including any such indebtedness arising out of purchases made or loans obtained prior to such variation in the periodic percentage rate or rates. Without limitation, a permissible schedule or formula hereunder may include provision in the agreement governing the plan for a change in the periodic percentage rate or rates of interest applicable to all or any part of outstanding unpaid indebtedness, 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 plan, which event or circumstance may include the failure of the borrower to perform in accordance with the terms of the plan. Nothing herein precludes a bank from charging or reserving a right to charge, by discretion or otherwise, a rate lower than any maximum rate provided for in any schedule or formula.
63 Del. Laws, c. 2, §  4;  68 Del. Laws, c. 303, §  21;  71 Del. Laws, c. 19, §  46;  77 Del. Laws, c. 279, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 946. Terms for indebtedness.

§ 946. Terms for indebtedness.
A bank may, if the agreement governing a revolving credit plan so provides, impose different terms (including, without limitation, the terms governing the periodic percentage rate or rates used to calculate interest, the method of computing the outstanding unpaid indebtedness to which such rate or rates are applied, the amounts of other charges and the applicable installment repayment schedule) in respect to indebtedness arising out of purchases and indebtedness arising out of loans made under the plan.
63 Del. Laws, c. 2, §  4;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 947. Overdraft accounts.

§ 947. Overdraft accounts.
If credit under a revolving credit plan is offered and extended in connection with a demand deposit account or other transaction account maintained by the borrower with the bank pursuant to an agreement or arrangement whereby the bank agrees to honor checks, drafts or other debits to such account, which if paid would create or increase a negative balance in such account, by making extensions of credit to such borrower under such revolving credit plan, any charges customarily imposed by the bank under the terms governing such demand deposit or other transaction account in the absence of any associated revolving credit plan (including, without limitation, check charges, monthly maintenance charges, checkbook charges, charges for checks drawn on funds in excess of an available line of credit and other similar charges) may continue to be imposed on such account without specific reference thereto or incorporation thereof by reference in the agreement governing the revolving credit plan and the amount of any such charge, to the extent the balance in such demand deposit or other transaction account is insufficient to pay such a charge, may be charged to the borrower's account under the plan as a loan thereunder and may be included in outstanding unpaid indebtedness in accordance with the terms of the agreement governing such revolving credit plan.
63 Del. Laws, c. 2, §  4;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 948. Omitted installments.

§ 948. Omitted installments.
A bank may at any time and from time to time unilaterally extend to a borrower under a revolving credit plan the option of omitting monthly installments.
63 Del. Laws, c. 2, §  4;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 949. Insurance.

§ 949. Insurance.
(a) A bank may request but not require an individual borrower to be insured in respect of a revolving credit plan under a life, health, accident, health and accident or other credit or other permissible insurance policy, whether group or individual, and in the event that an individual borrower's outstanding unpaid indebtedness under the plan is secured by an interest in real or personal property, a bank may require the borrower to obtain insurance, from an insurer acceptable to the bank, 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) In the case of a borrower borrowing under a revolving credit plan for other than personal, household or family purposes, a bank may require the borrower to obtain insurance, from an insurer acceptable to the bank, under a life, health, accident, health and accident or other credit or other permissible insurance policy, whether group or individual, and in the event that the borrower's outstanding unpaid indebtedness under the plan is secured by an interest in real or personal property, the bank may require the borrower to obtain insurance, from an insurer acceptable to the bank, 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.
(c) The offer and placement of insurance under this section shall be subject in all respects to the applicable provisions of Title 18.
63 Del. Laws, c. 2, §  4;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 950. Delinquent installments.

§ 950. Delinquent installments.
(a) If the agreement governing a revolving credit plan so provides, a bank may impose, as interest, a late or delinquency charge upon any outstanding unpaid installment payments or portions thereof under the plan which are in default; provided however, that no more than 1 such late or 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, however, that for the purpose only of the preceding proviso all payments by the borrower shall be deemed to be applied to satisfaction of installment payments in the order in which they become due. Nothing contained in this section shall limit, restrict or otherwise affect the right of a bank under and pursuant to §§ 943 and 944 of this title to change the periodic percentage rate or rates of interest applicable to the revolving credit plan between the bank 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 plan.
(b) No charges assessed by a bank in accordance with this section shall be deemed void as a penalty or otherwise unenforceable under any statute or the common law.
63 Del. Laws, c. 2, §  4;  66 Del. Laws, c. 283, §  9;  68 Del. Laws, c. 303, §  22;  70 Del. Laws, c. 327, §  27;  71 Del. Laws, c. 19, §  49;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 951. Attorney's fees; costs.

§ 951. Attorney's fees; costs.
In the event a borrower defaults under the terms of a plan, the bank may, if the borrower's account is referred to an attorney (not a regularly salaried employee of the bank) or to a third party for collection and if the agreement governing the revolving credit plan so provides, charge and collect from the borrower a reasonable attorney's fee. In addition, following a borrower's default, the bank may, if the agreement governing the plan 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 bank.
63 Del. Laws, c. 2, §  4;  66 Del. Laws, c. 283, §  10;  72 Del. Laws, c. 15, §  11;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 953. Application of other state laws.

§ 953. 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.
63 Del. Laws, c. 2, §  4;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 954. Nonexclusivity; captions.

§ 954. Nonexclusivity; captions.
(a) The provisions of this subchapter are not exclusive and a bank 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.
63 Del. Laws, c. 2, §  4;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 955. Materiality of terms.

§ 955. Materiality of terms.
All terms, conditions and other provisions of and relating to a plan as contained in this subchapter or in the agreement governing the plan (other than those which are interest under this subchapter), including, without limitation, provisions relating to the method of determining the outstanding unpaid indebtedness on which interest is applied, time periods within which interest charges may be avoided, reasons for default and the right to cure any default, rights to accelerate, account cancellation, choice of law, change in terms requirements, rights to charge and collect attorney's fees, court and collection costs and the compounding of periodic interest or interest charges, shall be and hereby are deemed to be material to the determination of interest applicable to a plan under Delaware law, under the most favored lender doctrine, and under § 85 of the National Bank Act (12 U.S.C. § 85) or § 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (12 U.S.C. § 1831d).
66 Del. Laws, c. 283, §  21;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter II. Bank Revolving Credit › § 956. Governing law.

§ 956. Governing law.
A revolving credit plan between a bank and an individual borrower shall be governed by the laws of this State.
66 Del. Laws, c. 283, §  22;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 961. Definitions.

§ 961. Definitions.
As used in this subchapter:
(1) “Bank,” “borrower” and “individual borrower” have the meanings given in subchapter II of this chapter.
(2) “Business day” means, with respect to recission under § 976 of this title, all calendar days except Sundays and legal public holidays.
(3) “Closed end credit” means the extension of credit by a bank to a borrower pursuant to an arrangement or agreement which is not a revolving credit plan as defined in subchapter II of this chapter.
(4) “Conspicuously displayed” means highlighted through the use of capitalization, bold print, underlining or some combination thereof.
(5) “Loan” means any single extension of closed end credit.
(6) “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.
(7) “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.
(8) “Short-term consumer loan” means a loan of $500 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.
(9) “Workout agreement” means an agreement between an individual borrower and a bank, trust company or savings bank for the repayment of an outstanding and unpaid indebtedness which requires a net reduction of not less than 10% of such indebtedness per payment period.
63 Del. Laws, c. 2, §  5;  73 Del. Laws, c. 398, §  1;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 962. Extension of credit.

§ 962. Extension of credit.
Any bank 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 any periodic interest, interest charges and other charges permitted by this subchapter and may take such security as collateral in connection therewith as may be acceptable to the bank.
63 Del. Laws, c. 2, §  5;  66 Del. Laws, c. 283, §  12;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 963. Periodic interest.

§ 963. Periodic interest.
A bank may charge and collect periodic interest in respect of a loan 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 other method as the agreement governing, or the bond, note or other evidence of, 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 bank may determine.
63 Del. Laws, c. 2, §  5;  66 Del. Laws, c. 283, §§  13, 14;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 964. Variable rates.

§ 964. Variable rates.
If the agreement governing, or the bond, note or other evidence of, 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 bank 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 provision 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.
63 Del. Laws, c. 2, §  5;  68 Del. Laws, c. 303, §  23;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 965. Interest charges.

§ 965. Interest charges.
In addition to or in lieu of periodic interest at a periodic percentage rate or rates permitted by §§ 963 and 964 of this title, a bank may charge and collect, as interest, in respect of a loan:
(1) Loan fees, points, finders fees and other front-end and periodic charges; provided, however, that in the case of a loan to an individual borrower, no such front-end or periodic charge may be charged and collected unless the agreement governing, or the bond, note or other evidence of, the loan so provides;
(2) Reasonable fees for services rendered or for reimbursement of expenses incurred in good faith by the bank 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 bank against the borrower's default or other credit loss, or costs incurred by reason by 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; provided, however, that in the case of a loan to an individual borrower, no such fee may be charged and collected unless the agreement governing, or the bond, note or other evidence of, the loan so provides;
(3) Returned payment charges;
(4) Documentary evidence charges; and
(5) Subject to any limitations contained in this subchapter, such other fees and charges as are set forth in the agreement governing, or the bond, note or other evidence of, the loan.
63 Del. Laws, c. 2, §  5;  66 Del. Laws, c. 283, §§  15, 16;  71 Del. Laws, c. 19, §  51;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 966. Deferred installments.

§ 966. Deferred installments.
A bank 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, as interest, deferral charges and may also require payment by such borrower, as interest, of the additional cost to the bank 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 § 967 of this title.
63 Del. Laws, c. 2, §  5;  66 Del. Laws, c. 283, §  17;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 967. Insurance.

§ 967. Insurance.
(a) A bank may request but not require an individual 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 an individual borrower is secured by an interest in real or personal property, the bank may require the borrower to obtain insurance, from an insurer acceptable to the bank, 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) In the case of a borrower borrowing for other than personal, household or family purposes, a bank may require the borrower to obtain insurance, from an insurer acceptable to the bank, under a life, health, accident, health and accident or other credit or other permissible insurance policy, whether group or individual, and in the event that the borrower's loan is secured by an interest in real or personal property, the bank may require the borrower to obtain insurance, from an insurer acceptable to the bank, 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.
(c) The offer and placement of insurance under this section shall be subject in all respects to the applicable provisions of Title 18.
63 Del. Laws, c. 2, §  5;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 968. Delinquent installments.

§ 968. Delinquent installments.
If the agreement governing a loan so provides, a bank 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 in the case of a loan to an individual borrower, no such late or delinquency charge may be charged or imposed unless the agreement governing, or the bond, note or other evidence of, the loan so provides and that no more than 1 such late or 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, however, that for the purpose only of the preceding proviso all payments by the borrower shall be deemed to be applied to satisfaction of installment payments in the order in which they become due. Nothing contained in this section shall limit, restrict or otherwise affect the right of a bank under and pursuant to §§ 963 and 964 of this title to change the periodic percentage rate or rates of interest applicable to the loan agreement between the bank 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.
63 Del. Laws, c. 2, §  5;  66 Del. Laws, c. 283, §  18;  68 Del. Laws, c. 303, §  24;  71 Del. Laws, c. 19, §  52;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 970. Refinancing.

§ 970. Refinancing.
(a) An individual borrower may, with the consent of the bank, refinance the entire outstanding and unpaid amount of a loan, and the bank may charge and collect, as interest, 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 prepayment on the date of refinancing pursuant to § 969 of this title governing refund upon prepayment.
63 Del. Laws, c. 2, §  5;  66 Del. Laws, c. 283, §  19;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 971. Attorney's fees; costs.

§ 971. Attorney's fees; costs.
In the event an individual borrower defaults under the terms of a loan, the bank may, if such borrower's account is referred to an attorney (not a regularly salaried employee of the bank) 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 attorney's fee. In addition, following an individual borrower's default, the bank may, if the agreement governing, or the bond, note or other evidence of, the loan so provides, recover from such borrower all court, alternative dispute resolution or other collection costs (including, without limitation, fees and charges of collection agencies) actually incurred by the bank.
63 Del. Laws, c. 2, §  5;  66 Del. Laws, c. 283, §  20;  72 Del. Laws, c. 15, §  14;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 972. Loans to other than individual borrowers.

§ 972. Loans to other than individual borrowers.
This subchapter shall not be deemed to prohibit a bank, in connection with a loan to other than an individual borrower, from:
(1) Extending or deferring the scheduled payment of all or any portion of any installment or installments payable under such loan;
(2) Permitting prepayment or refinancing of such loan in whole or in part;
(3) Charging and collecting any charges in connection with the matters referred to in subdivisions (1) and (2) of this section; or
(4) Charging and collecting late or delinquency charges, attorneys' fees or collection charges.
63 Del. Laws, c. 2, §  5;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 973. Application of other state laws.

§ 973. 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.
63 Del. Laws, c. 2, §  5;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 974. Nonexclusivity; captions.

§ 974. Nonexclusivity; captions.
(a) The provisions of this subchapter are not exclusive and a bank 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.
63 Del. Laws, c. 2, §  5;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 975. Materiality of terms.

§ 975. Materiality of terms.
All terms, conditions and other provisions of and relating to any extension of closed end credit as contained in this subchapter or in the agreement governing, or the bond, note or other evidence of the loan (other than those which are interest under this subchapter), including, without limitation, provisions relating to the method of calculating interest, reasons for default and the right to cure any default, rights to accelerate, choice of law, rights to charge and collect attorney's fees, court and collection costs, repayment schedule, balloon payments, loan term and the refunding of unearned interest or insurance charges, shall be and hereby are deemed to be material to the determination of interest under Delaware law, under the most favored lender doctrine, and under § 85 (12 U.S.C. § 85) of the National Bank Act or § 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (12 U.S.C. § 1831d).
66 Del. Laws, c. 283, §  23;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 976. Governing law.

§ 976. Governing law.
The agreement governing, or the bond, note or other evidence of a loan between a bank and an individual borrower shall be governed by the laws of this State.
66 Del. Laws, c. 283, §  24;
2023 Delaware Code › Title 5 - Banking › Chapter 9. REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES › Subchapter III. Bank Closed End Credit › § 978. Short-term consumer loans.

§ 978. Short-term consumer loans.
(a) In addition to such other limitations and requirements as are imposed pursuant to other provisions of this subchapter, short-term consumer loans shall be subject to the following:
(1) No bank, trust company or savings bank shall make more than 4 rollovers of an existing short-term consumer loan. A bank, trust company or savings bank may, following not more than the maximum allowable number of rollovers, enter into a workout agreement with the borrower or take such other actions as are lawful to collect any outstanding and unpaid indebtedness.
(2) No bank, trust company or savings bank shall make a short-term consumer loan unless such loan is subject to a right of recission on the part of the individual borrower.
(3) No bank, trust company or savings bank shall pursue or threaten to pursue criminal action against an individual borrower in connection with the nonpayment of any amount due, including the unpaid return of any check or automated clearinghouse transaction.
(b) In addition to such other disclosure requirements as are imposed pursuant to other provisions of this subchapter, short-term consumer loans shall be subject to the following:
No bank, trust company or savings bank shall make a short-term consumer loan unless the application for such loan, which application shall be written in both English and Spanish, contains a written disclosure, conspicuously displayed, that:
(1) The loan is designed as a short-term cash flow solution and not designed as a solution for longer term financial problems;
(2) Additional fees may accrue if the loan is rolled over; and
(3) Credit counseling services are available to consumers experiencing financial problems.
(c) Nothing in this section prohibits a lender from refinancing the principal amount of a short-term consumer loan, subject to the limitations and requirements imposed herein.
(d) The Commissioner is authorized to promulgate rules and regulations to exempt certain loans or classes of loans from the requirements of this section.
73 Del. Laws, c. 398, §  2;