SENATE BILL NO. 519
AN ACT TO AMEND AN ACT ENTITLED AN ACT TO AMEND TITLE 5 AND TITLE 6, DELAWARE CODE, RELATING TO LOANS, INTEREST AND OTHER CHARGES AND TERMS, DEFERMENTS, PREPAYMENTS AND REFINANCING, FINANCE CHARGE LIMITATIONS, CREDIT UPON ANTICIPATION OF PAYMENTS, FORMULA TO DETERMINE MAXIMUM LOAN, LEGAL RATE, SERVICE CHARGE AUTHORIZED AND SERVICE CHARGE RATES, FORMERLY KNOWN AS HOUSE BILL NO. 845 OF THE 130TH GENERAL ASSEMBLY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend House 13111 845 of the 130th General Assembly as enacted into law by striking Section 7 of said bill in its entirety and substituting in lieu thereof the following:
"Section 7. Amend subsection (a), 52301, Chapter 23, Title 6, Delaware Code, by striking such subsection in its entirety and substituting in lieu thereof the following:
(a) Any lender may charge and collect from a borrower interest at any rate agreed upon in writing not in excess of 5% over the Federal Reserve discount rate including any surcharge thereon, and judgments entered after the effective date of this Act shall bear interest at the rate in the contract sued upon. Where there is no expressed contract rate, the legal rate of interest shall be 5% over the Federal Reserve discount rate including any surcharge as of the time from which interest is due; provided that where the time from which interest is due predates April 18, 1980, the legal rate shall remain as it was at such time."
Section 2. Amend House Bill 845 of the 130th General Assembly as enacted into law by adding a new Section 15 to read as follows:
"Section 15. Amend subsection (c), §2111, Chapter 21, Title 5, Delaware Code, by striking such subsection in its entirety and substituting in lieu thereof the following:
(c) In any action for the recovery or repayment of the money loaned under this Chapter, the lender shall be entitled to recover only the principal sum loaned and the earned interest charges to the date of judgment, less the total payments made on said loan by the borrower, together with post-judgment interest at the legal rate as of the date of judgment; provided that post-judgment interest shall remain at 5% per annum on judgments entered prior to April 18, 1980."