CHAPTER 133 - BANKS, SAVINGS SOCIETIES AND TRUST COMPANIES

AN ACT TO AMEND CHAPTER 66 OF THE REVISED CODE OF DELAWARE, 1935, AUTHORIZING LOANS AND INVESTMENTS BY BANKS, SAVINGS BANKS, TRUST COMPANIES, BUILDING AND LOAN ASSOCIATIONS AND INSURANCE COMPANIES IN LOANS, MORTGAGES, DEBENTURES AND SECURITIES SECURED BY REAL PROPERTY OR LEASEHOLD INSURED BY THE FEDERAL HOUSING ADMINISTRATOR; MAKING THE SAME SECURITY FOR BONDS AND OBLIGATIONS; AND EXEMPTING THE SAME FROM THE LAWS OF THE STATE OF DELAWARE RELATING TO INTEREST RATES AND LIMITATIONS UPON INVESTMENTS AND PERIODS OF INVESTMENTS.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly me (two-thirds of all members elected to each Branch thereof concurring therein):

Section 1. That Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby amended by striking out 2405 Section 148 and inserting in lieu thereof the following:

2405. Section 148. Banks, Savings Banks, Trust Companies, Building and Loan Associations, and Insurance Companies, subject to the laws of this State, are hereby authorized and empowered to 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 to obtain such insurance; and to make such loans, secured by real property or leasehold, as the Federal Housing Administrator insures or makes a commitment to insure, and to obtain such insurance.

Section 2. That Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby further amended by adding at the end of 2405. Section 148, a new and additional Section as follows, to be known as 2405. (a) Section 148 (a):

2405. (a) Section 148 (a). It shall be lawful for Banks, Savings Banks, Trust Companies, Building and Loan Associations, Insurance Companies, Trustees, Guardians and other fiduciaries, to 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.

Section 3. That Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby further amended by striking out 2406. Section 149 and inserting in lieu thereof the following:

2406. Section 149. 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 of Delaware, as security for the deposit of any funds whatsoever, or wherever securities must be deposited with any official of the State of Delaware pursuant to any statute of this State.

Section 4. That Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby further amended by adding at the end of 2406. Section 149, a new and additional Section as. follows, to be known as 2406. (a) Section 149 (a)

2406 (a) Section 149 (a). 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 the provisions of this Act.

Approved April 12, 1937.