CHAPTER 219 - SMALL LOANS

AN ACT TO AMEND CHAPTER 100 OF THE REVISED CODE OF DELAWARE, AS AMENDED, AND RELATING TO THE REGULATION OF SMALL LOANS.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 100 of the Revised Code of Delaware, as amended by Chapter 246 of Volume 37 of the Laws of Delaware, be and the same hereby is amended by striking out and repealing 3556. Sec. 121, 3557, Sec. 122, 3558, Sec. 123, and 3560, Sec. 125 of said Chapter 100 of the Revised Code, as amended by said Chapter 246 of Volume 37 of the Laws of Delaware, and substituting in lieu thereof the following:

3556. Sec. 121. The holder of any Certificate of Registration from the State Bank Commissioner, granted pursuant to 3554, Sec. 119, as amended by Chapter 260, Volume 36, of the Laws of Delaware, and also any national bank or State bank or trust company organized under the Laws of this State (without obtaining such Certificate of Registration), shall have the power to lend money to any person, firm or corporation in any sum not exceeding Five Hundred Dollars, to be repaid in periodical installments, taking the obligation of the borrower therefor, with any security that may be acceptable to the lender; provided, however, that any such association, firm, partnership or corporation having a paid in capital which is not subject to withdrawal and which shall exceed Ten Thousand Dollars may make such loans in amounts to any one borrower in excess of Five Hundred Dollars but not exceeding ten per centum of the paid in capital stock and surplus of such lender. Any such lender may charge in advance the legal rate of interest of six per cent. upon the entire amount of the loan and may make such loan repayable in weekly, monthly or other periodical installments, with the right to the lender to declare the entire unpaid balance due and payable in the event of default in the payment of any installment for a period of thirty days, and the lender may also charge an investigation fee or make a service charge of not exceeding two per centum of the amount of the loan. No additional interest or commission shall be charged nor shall any additional charge of any kind be made except as provided for in Sec. 1'22 hereof.

3557. Sec. 122. Any association, firm, partnership or corporation holding a certificate from the State Bank Commissioner, as aforesaid, and any national bank or State bank or trust company organized under the laws of this State, may adopt by-laws for the government and management of its business not inconsistent with the laws of this State and may provide in its by-laws for such fines as it will charge for the non-payment of any installment of a loan, and may charge such fines accordingly. No such fine shall be for more than five per centum of the amount of the payment in which default is made and in respect to which such fine is charged, and such fine shall not be cumulative.

3558. Sec. 123. Any lender, as aforesaid, shall give to the borrower, on request, a correct copy of the obligation evidencing said loan, and on failure or refusal, on such request, to furnish the borrower with such 'copy, -shall be guilty of a misdemeanor, and on conviction thereof shall be fined, for each offense, a sum not less than Twenty Dollars nor more than One Hundred Dollars, or imprisoned for a term not exceeding one month, or both, in the discretion of the Court.

3560. Sec. 125. No person, association, firm, partnership, corporation, trustee or trustee system, or combination of persons whatsoever, excepting national banks or State banks or trust companies organized under the laws of this State, shall have power to make loans as provided for in 3556, Sec. 121, hereof without first obtaining a Certificate of Registration from the State Bank Commissioner, and any person, association, firm, partnership, corporation, trustee or trustee system, or combination of persons except as aforesaid, making any such loan without first obtaining a Certificate of Registration shall be guilty of a misdemeanor, and on conviction thereof shall be fined a sum of not less than Fifty Dollars or more than Two Hundred Dollars for each offense, or imprisoned for a term not exceeding three months, or both, in the discretion of the Court. National banks and State banks and trust companies organized under the laws of this State, in addition to the powers conferred upon them by their respective charters and by the laws of this State, shall have the right to make loans in accordance with and at the rates and upon the terms, and under the limitations in respect to corporations, provided for in 3556, Sec. 121, and 3557, Sec. 122, hereof without first obtaining a Certificate of Registration from the State Bank Commissioner. Nothing in Sections 119 to 125A, inclusive, of this Chapter shall be construed to modify or repeal any part of 3562, Sec. 127, of this Chapter as amended by Chapter 208, of Volume 35, of the Laws of Delaware, but said section shall remain in full force and effect and the penalties provided for the violations of said last mentioned statute shall be in addition to the penalties provided by Sections 119 to 125A, inclusive, of this Chapter.

Section 2. All Acts or parts of Acts inconsistent with the foregoing are hereby repealed:

Approved April 15, 1935.