CHAPTER 149

FORMERLY SENATE SUBSTITUTE NO. 1

FOR SENATE BILL NO. 334

AN ACT TO AMEND PART IV, CHAPTER 21, TITLE 5, OF THE DELAWARE CODE, RELATING TO SMALL LOANS, AND PROVIDING FOR AN INCREASE IN THE MAXIMUM RATE OF INTEREST CHARGEABLE UPON SUCH LOANS.

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

Section I. Amend paragraph (a), Section 2108, Chapter 21, Title 5, of the Delaware Code, by striking the third sentence in its entirety, and substituting in lieu thereof the following sentence:

Any such lender may charge in advance the maximum rate of interest of nine per cent (9%) upon the entire amount of the loan, such discounted loans to be limited to three years and thereafter bear interest at six per cent (6%) charged in advance for any remainder of the term of the contract; such discounted loans to be limited to three years if less than $1,500, five years if $1,500 or over but less than $5,000, and seven years if over $5,000, and may make such loan repayable in weekly, monthly or other periodic installments, with the right of 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 amount of any loan made pursuant to this section.

Approved June 25, 1971