CHAPTER 13

FORMERLY

SENATE BILL NO. 139

AS AMENDED BY SENATE AMENDMENT NO. 1 AND HOUSE AMENDMENT NO. 2

AN ACT TO AMEND CHAPTER 17 OF TITLE 5 OF THE DELAWARE CODE RELATING TO BUILDING AND LOAN ASSOCIATIONS.

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

Section I. Amend Chapter 17, Title 5, Delaware Code by the addition thereto of a new Section 1727 to read as follows:

"Section 1727. Insurance Required.

No building and loan association whose total assets exceed three million dollars or office of an association created under the laws of any other state may engage in business within this State unless its shares, savings accounts, savings certificates and other types of share or deposit accounts offered are insured pursuant to Title IV of the National Housing Act (12 U.S.C. Section 1724 et. seq.) and the regulations issued pursuant thereto."

Section 2. Amend Section 1707, Chapter 17. Title 5 of the Delaware Code by the designation of the current text thereof as paragraph "(a)" and the addition thereto of the following new paragraph:

"(b) Except as provided in this section no building and loan association created by or under the laws of any other state or territory or the District of Columbia may operate any branch office or place of business in this State except through a wholly owned subsidiary created under the laws of this State, that operates exclusively within this State, is duly licensed under this chapter, and conforms to all of the provisions of this chapter.

(c) At the request of any building and loan association created by or under the laws of another state or territory or the District of Columbia and holding a license to do business in this State, the Bank Commissioner shall waive for a period of twelve months following the effective date of this Act, or the issuance of a license granted under this Chapter, whichever is later, the requirements of subsection (b) hereof with respect to such institution upon his determination that it will promptly make such applications as the Bank Commissioner deems necessary for all approvals of governmental departments or agencies necessary to implement the independent subsidiary structure contemplated by subsection (b) hereof.

(d) The Bank Commissioner shall waive for an indefinite period the requirement of subsection (b) hereof upon his finding that a building and loan association created by or under the laws of another state or territory or the District of Columbia and holding a license to do business in this State:

(1) has in good faith taken all steps which the Bank Commissioner deems necessary for it to obtain all approvals of governmental departments or agencies necessary for it to conduct its Delaware operations through a federally insured subsidiary complying with the provisions of subsection (b) hereof and any such necessary approval has been denied or, following a reasonable period not to exceed the 12 month period set forth in subsection (c) hereof, has not been granted; and

(2) has entered into and is in compliance with an enforceable regulatory agreement with the State Bank Commissioner containing such terms and conditions relating to the operation of such institution's Delaware branch or branches as the Commissioner deems appropriate to assure the safety and soundness of the deposits of such institution including, in the discretion of the Bank Commissioner, a provision requiring a deposit of U. S. Treasury or other securities acceptable to the Commissioner to be held under such terms as are agreed upon to secure such institution's obligations to depositors of such branch or branches."

Section 3. Amend §1723, Chapter 17, Title S, Delaware Code, by the deletion of the first and fourth sentences thereof and the substitution therefor of the following first and fourth sentences, respectively:

"Every person, desiring to obtain a license under the provisions of this Chapter. shall file with the Commissioner, an application in writing in such form as may be prescribed by the Commissioner which application must demonstrate public convenience and advantage which will be satisfied by the approval of such application projections of the proposed licensee for the first three years of operation and the plan, as a minimum, shall conform with the requirements of 12 CFR Section 571.6(b) as existing on the effective date hereof."

Section 4. Effective Date. This Act shall take effect upon the signing by the Governor, except that any building and loan association having an operating office within this State on the effective date of this Act shall have an automatic extension of six months from such date to comply with the provisions of Section 1 hereto and, provided further that in his discretion the Dank Commissioner may grant an additional extension of three months to any such association within which it must comply with the provisions of such section.

Approved May 23, 1985.