CHAPTER 166

AN ACT TO AMEND TITLE 5, DELAWARE CODE, RELATING TO SMALL LOANS BY PROVIDING FOR THE MAKING OF LOANS FOR EDUCATIONAL PURPOSES.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. § 2108, Title 5, Delaware Code, is amended by adding "; loans for educational purposes" to the present title thereof and by denoting the present Section 2108 as Section 2108 (a).

Section 2. § 2108, Title 5, Delaware Code, is amended by enacting a new Section 2108 (b) to read as follows:

Any lender authorized to make loans under the provisions of Subsection (a) of this Section may make loans to be used exclusively for the payment and assurance of payment of tuition and other expenses of formal education in accredited institutions of learning under agreements by which the lender is obligated to make such loans in periodic advances. Any such lender may charge interest upon the outstanding principal balance of such loans at a rate that shall not exceed the legal rate of 6% charged in advance for one year, and may make such loans repayable in monthly or other periodic installments over a period not to extend more than three full years beyond the last required advance, 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 2% of the entire amount to be loaned, which 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 in Section 2109 of this Title.

Approved August 11, 1961.