CHAPTER 165 - BUILDING AND LOAN ASSOCIATIONS RELATING TO THE BORROWING OF MONEY

AN ACT TO AMEND ARTICLE 6 OF CHAPTER 66 OF THE REVISED CODE OF DELAWARE, 1935, RELATING TO THE BORROWING OF MONEY BY BUILDING AND LOAN ASSOCIATIONS.

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

Section 1. That Article 6 of Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby amended by striking out the fifth* (* so enrolled) paragraph of 2342. Sec. 85 and inserting in lieu thereof a new paragraph as follows:

"Any Building and Loan Association doing business within the bounds of this State may also borrow money from other sources and may secure the same by the assignment or pledge of any mortgage, mortgages, or other assets held by such Building and Loan Association, provided that the amount borrowed from all sources other than from a Federal Home Loan Bank shall not at any time exceed in the aggregate thirty per cent of the money actually paid in on the shares of the Association which shall not have been retired and provided further that the amount borrowed from all sources shall at all times, irrespective of whether or not the same may be secured, constitute a preferred claim superior to all claims on account of the shares of such Building and Loan Association."

Approved March 29, 1945.