CHAPTER 288

AN ACT TO AMEND TITLE 6, DELAWARE CODE, ENTITLED "COMMERCE AND TRADE" BY PROVIDING FOR A RATE OF INTEREST NOT IN EXCESS OF 8 PER CENT PER ANNUM.

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

Section 1. § 2301 (a), title 6, Delaware Code, is amended to read :

(a) The legal rate of interest for the loan or use of money, in all cases where no express contract has been made for a less rate, shall be 6 per cent per annum, except that any borrower may agree to pay, and any lender may charge and collect from such borrower, interest at any rate agreed upon in writing in excess of 6 per cent per annum but not in excess of 8 per cent per annum on the unpaid principal balance where such loan is secured by a mortgage deed of trust, or other lien upon real property.

Section 2. § 2301 (b) , title 6, Delaware Code, is amended by striking out the figure and words "6% legal" as they appear in lines 4 and 5 thereof and inserting in lieu thereof the word "lawful".

Section 3. Sections 1 and 2 of this Act shall become effective immediately upon passage of this Act and shall terminate on October 1, 1969, whereupon the provisions of § 2301, title 6, Delaware Code, in effect prior to passage of this Act shall become reinstated. Provided, however, such reinstatement shall not affect the validity or collectability of interest at rates contained in contracts entered into prior thereto.

Section 4. Nothing contained in this Act shall be construed as authorizing or permitting any lender without the express written agreement of the Borrower, to increase the rate of interest contracted for in notes, bonds or other evidence of indebtedness secured by a mortgage deed of trust on real property existing and unliquidated at the effective date of this Act; it being the intent of this Act that the lawful rate of interest provided for herein shall apply on or after the effective date of this Act.