CHAPTER 217
FORMERLY
HOUSE BILL NO. 319
AN ACT TO AMEND CHAPTERS 9 AND 22, TITLE S OF THE DELAWARE CODE RELATING TO BANK AND LICENSED LENDERS' REVOLVING CREDIT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Section 952(b)(3), Chapter 9, Title 5, Delaware Code, by deleting such subsection (b)(3) in its entirety and by inserting in lieu thereof the following:
"(b)(3) Notwithstanding paragraph (2) of this subsection, the bank may also amend the agreement governing the plan by requiring that any amendment shall become effective only if the borrower uses the plan after a date specified in the notice of the proposed amendment which is at least 30 days after the giving of the notice (but which need not be the date the amendment becomes effective) by making a purchase or obtaining a loan or if the borrower indicates to the bank such borrower's express agreement to the amendment. Any such amendment may become effective as to a particular borrower as of the first day of the billing period during which such borrower so used such borrower's account or so indicated agreement to the amendment. Any borrower who fails to use such borrower's account or so to indicate agreement to an amendment shall be permitted to pay the outstanding unpaid indebtedness in such borrower's account under the plan in accordance with the terms of the agreement governing the plan without giving effect to the amendment subject to the right of the bank to convert the borrower's account to a closed end credit account as provided in paragraph (2) of this subsection."
Section 2. Amend Section 2224(b)(3), Title 5, Chapter 22, Delaware Code, by deleting such subsection (b)(3) in its entirety and inserting in lieu thereof the following:
"(3) Notwithstanding paragraph (2) of this subsection, the licensee may also amend the agreement governing the plan by requiring that any such amendment shall become effective only if the borrower uses the plan after a date specified in the notice of the proposed amendment which is at least 30 days after the giving of the notice (but which need not be the date the amendment becomes effective) by making a purchase or obtaining a loan or if the borrower indicates to the licensee such borrower's express agreement to the amendment. Any such amendment may become effective as to a particular borrower as of the first day of the billing period during which such borrower so used such borrower's account or so indicated agreement to the amendment. Any borrower who fails to use such borrower's account or so to indicate agreement to an amendment shall be permitted to pay the outstanding unpaid indebtedness in such borrower's account under the plan in accordance with the terms of the agreement governing the plan without giving effect to the amendment subject to the right of the licensee to convert the borrower's account to a closed end credit account as provided in paragraph (2) of this subsection."
Approved July 12, 1995.