CHAPTER 137 - BUILDING AND LOAN ASSOCIATIONS

AN ACT TO AMEND CHAPTER 66 OF THE REVISED CODE OF DELAWARE, 1935, RELATING TO THE POWER OF BUILDING AND LOAN ASSOCIATIONS TO MAKE DIRECT-REDUCTION LOANS ON REAL ESTATE.

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

SECTION 1. That 2340. Section 83, Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby amended by adding at the end of 2340. Section 83, a new and additional paragraph as follows:

Building and loan associations heretofore or hereafter incorporated under the Laws of this State may make direct-reduction loans upon bonds and mortgages against real estate located in this State. A direct-reduction loan shall mean a loan repayable in consecutive monthly installments, equal or unequal, beginning not later than sixty days after the date of the advance of the loan, sufficient to retire the debt, interest and principal within twenty years; PROVIDED, HOWEVER, that in the case of construction loans, the first payment shall not be later than six months after the date of the first advance.

Approved April 16, 1941.