CHAPTER 86

AN ACT TO AMEND TITLE 5, DELAWARE CODE, BY PROVIDING AUTHORITY FOR BUILDING AND LOAN ASSOCIATIONS TO OPEN AND MAINTAIN BRANCH OFFICES.

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

Section 1. Title 5, Delaware Code, is amended by adding a new section after Section 2010, to be known as Section 2011, as follows:

§ 2011. Branch Offices

(a) Any Building and Loan Association incorporated under the laws of this State may open and maintain a branch office or place of business, or branch offices or places of business in this State, upon application submitted to and approved by the State Bank Commissioner, and upon the issuance of a certificate of authority by said Commissioner. The application shall state the exact location of the intended branch office and the necessity for its opening. The Commissioner shall inquire into the matter and if he deems that the public convenience will be served thereby and that there is good and sufficient reason that the Association shall have the branch office, he shall issue the certificate of authority. Any certificate of authority issued by the Commissioner shall be void and of no effect at the expiration of six months after date of issue, unless the branch is actually opened for business. Unavoidable delay in opening the branch, due to construction problems or controls, or other matters beyond the control of the parent company, may be taken into consideration, and the Commissioner may extend the certificate for periods of 30 days in the event of such circumstances.

A fee of $50 for every such certificate shall be required by the Commissioner before issuing the same.

Code, the merging or consolidating associations may in their plan of merger or consolidation, and in their articles of merger or consolidation, provide for the continuance of the office or offices of the associations to be merged or consolidated as a branch office or branch offices of the surviving or new association, and if said articles are approved as required under the provisions of Chapter 20 relating to merger and consolidation, said office or offices may be continued after merger or consolidation as branch offices of the surviving or new association, without the necessity of filing separate applications under paragraph (a) hereof.

(c) Nothing in this section shall deny any Building and Loan Association the right to continue a branch office or offices if such branch office or offices shall have been actually established prior to the effective date of this statute.

Approved June 28, 1963.