CHAPTER 666

AN ACT TO AMEND CHAPTER 31, TITLE 5, DELAWARE CODE, RELATING TO SECONDARY MORTGAGE LOANS BY PROVIDING FOR CERTAIN QUALIFICATIONS WITH RESPECT TO APPLICANTS FOR A LICENSE, THE CONDITIONS UPON WHICH A LICENSE SHALL BE ISSUED OR REFUSED, THE AUTHORITY OF THE COMMISSIONER TO CONDUCT EXAMINATIONS AND FOR AN INCREASE IN THE LICENSE FEE.

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

Section 1. Title 5, Delaware Code, Chapter 31, Section 3102, is hereby amended by designating the existing text thereof as paragraph (a) and adding a new paragraph to be designated as paragraph (h) which shall read as follows:

(b) Every applicant for a license of this chapter and of the members thereof (if the applicant is a partnership for an association) and the officers and directors thereof (if the applicant is a corporation) shall be financially responsible, shall be of such experience, character, and general fitness as to command the confidence of the public and to warrant belief that the business will be operated lawfully and fairly within the purposes of this Act, and the applicant shall have available for the operation of such business net assets of at least $25,000.

Section 2. Title 5, Delaware Code, Section 3105, is hereby amended by deleting the section in its entirety and inserting in lieu thereof a new section to read as follows:

§ 3105. Issuance or refusal of license

Within 60 days after the filing of the application and the payment of the fees set forth in this Chapter, the Commissioner shall either:

(a) Issue and deliver to the applicant a license to engage in the business of making or negotiating secondary mortgage loans in accordance with the provisions of this chapter at the location specified in the said application if he deems that the public need and convenience would be served thereby; or

(b) Refuse to issue the license on the grounds of qualification of the applicant or any of its members or officers or directors, or on a negative of public need and convenience or for any reason for which the Commissioner may suspend, revoke, or refuse to renew any license under Section 3111 of this Title.

Section 3. Title 5, Delaware Code, Section 3103, is hereby amended by designating the existing text thereof as paragraph (a) and by adding thereto two new paragraphs to be designated as paragraphs (b) and (c) to read as follows:

(b) Applicants shall not engage in any other business than that of secondary mortgage financing.

(c) It is required that all loan closings, transactions, and servicing shall be performed at the designated place of business.

Section 4. Title 5, Delaware Code, Section 3114, is hereby amended by striking in the catch line thereof the words "of violations", designating the existing text thereof as paragraph (a) and by adding two new paragraphs to be designated as paragraphs (b) and (c) which shall read as follows:

(b) The Commissioner or his authorized representative at anytime may conduct examinations. On the occasion of every examination, the Commissioner or his authorized representative shall be given access to every part of the office or place of business and to the assets, securities, books, papers, and other records of the business.

(c) The examination made by the Commissioner shall be a thorough examination into the affairs of the secondary mortgage loan business visited, the resources and liabilities, the investment of the funds, the mode of conducting the business and the compliance or noncompliance of the secondary mortgage loan business with this code and any other statutes of the State of Delaware.

Section 5. Title 5, Delaware Code, Section 3108, is hereby amended by striking therefrom the figure "25" and inserting in lieu thereof the figure "100".

Approved July 3, 1970.