AN ACT TO AMEND TITLE 5, DELAWARE CODE, RELATING TO PLEDGING OR HYPOTHECATING ASSETS.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Title 5, Section 918, Delaware Code, is amended by adding a new paragraph at the end thereof to be known as paragraph (d) as follows:
(d) Any Savings Bank or Savings Society doing business in this State may borrow money, and may secure the same by the assignment or pledge of any mortgage, mortgages, bonds, or other assets held by said Savings Bank or Savings Society, provided that the amount borrowed from all sources shall not at any time exceed in the aggregate 25% of the amount set aside for surplus and reserves. The amounts borrowed from all sources shall at all times, irrespective of whether or not the same are secured, constitute a preferred claim superior to all other claims on the assets of said Savings Bank or Savings Society. Provided, however, that any Savings Bank or Savings Society may borrow in excess of the 25% limitation set out above on written approval by the State Bank Commissioner.
Approved June 28, 1963.