CHAPTER 360

FORMERLY

SENATE BILL NO. 478

AN ACT TO AMEND CHAPTER 1, TITLE 5, DELAWARE CODE, RELATING TO FINANCIAL INSTITUTION RECORDS RETENTION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 1, Title 5, Delaware Code, to add a new §140 to read as follows:

§140. Retention of Financial Institution Records

(a) All records of financial institutions and of federally-chartered financial institutions, insofar as this section does not contravene paramount federal law, shall be retained for such minimum periods as the Commissioner may prescribe.

(b) The Commissioner shall from time to time issue regulations classifying all records kept by these institutions and prescribing the minimum period for which these records shall be retained. The periods may be permanent or for a lesser term. Such regulations may be amended or repealed from time to time. The regulations shall be promulgated as provided for in Chapter 64, Title 29, Delaware Code.

(c) In issuing the regulations required by subsection (b), the Commissioner shall consider:

(1) Court and administrative proceedings in which the production of these records might be necessary or desirable;

(2) State and Federal statutes of limitation applicable to such proceedings;

(3) Availability of information from other sources; and

(4) Such other matters as the Commissioner shall deem pertinent in order that the regulations will require retention of records for such reasonable period as is commensurate with the interests of customers, depositors, stockholders and the peoples of the State in having such records available.

(d) The Commisioner shall additionally prescribe the substitution of reproductions for the originals to cover the period for which such records shall be retained.

(e) Institutions may at their option dispose of any record which has been retained for the minimum period prescribed by the Commissioner."

Section 2. The initial regulations required by Section 1 of this Act shall be promulgated within 180 days of the effective date of this Act.

Section 3. The effective date of this Act is July 1, 1978.

Approved June 27, 1978.