CHAPTER 237 - GENERAL PROVISIONS RESPECTING THE POLICE - REGULATION OF SMALL LOANS

AN ACT TO AMEND CHAPTER 100 OF THE REVISED CODE OF DELAWARE, 1935, CONCERNING THE REGULATION OF SMALL LOANS; PROVIDING FOR LOANS PAYABLE IN INSTALLMENTS; LIMITING THE INTEREST RATE THEREON AND THE AMOUNT OF THE INVESTIGATION FEE THEREFOR.

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, 1935, be and the same is hereby amended by striking out and repealing all of 4047 Sec. 152 of Article 32 of said chapter and by inserting in lieu thereof the following new section to be known as 4047 Sec. 152.

4047. Sec. 152. Loans Payable in Installments; Amounts; Interest Rate; Investigation Fee or Service Charge; No Additional Interest or Commission:--The holder of any Certificate of Registration from the State Bank Commissioner, granted pursuant to Section 150 of this Chapter, and any State bank or trust company organized under the laws of this State, or any national bank (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, such discounted loans to be limited to three years, 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. The investigation fee or service charge shall be only on the face amount of the loan and not on a per annum basis. No additional interest or commission shall be charged, nor shall any additional charge of any kind be made except as provided for in Section 153 hereof.

Approved April 24, 1945.