CHAPTER 327

FORMERLY

SENATE BILL NO. 336

AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO BANKS AND OTHER FINANCIAL INSTITUTIONS, TO AMEND TITLE 10 OF THE DELAWARE CODE RELATING TO ATTACHMENT, AND TO AMEND SECTION 1130 OF TITLE 12 OF THE DELAWARE CODE RELATING TO THE DEFINITION OF THE TERM "BANKING ORGANIZATION"

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):

Section I. Amend § 127 of Title 5 of the Delaware Code by deleting from both subsections (a) and (b) thereof the date "July I" where such date follows the words "Council on Banking by" and inserting in lieu thereof the date "July 10".

Section 2. Amend subsection (a) of § 127 of Title 5 of the Delaware Code by deleting the last two sentences thereof in their entirety.

Section 3. Amend § 701 of Title 5 of the Delaware Code by deleting the words "Chapter 10" and inserting in lieu thereof the words "Chapters 10 or 15" in the first sentence thereof, and by inserting the words and punctuation ". except as otherwise provided in subchapters VI and VII of this chapter" at the end of and before the period in each of the second and third sentences thereof.

Section 4. Delete § 750 and § 752 of Title 5 of the Delaware Code.

Section 5. Amend § 769 of Title 5 of the Delaware Code by deleting all of the existing text of that section and inserting in lieu thereof the following:

"No bank or trust company shall hold more than 10 percent of the capital stock of any other bank or trust company without the approval of the Commissioner. In determining whether to grant such approval, the Commissioner shall consider the convenience and needs of the public of this State. Any acquisition by a bank or trust company of more than 10 percent of the capital stock of any other bank or trust company that was approved by the Commissioner before January I, 1996 shall be deemed to have been approved by the Commissioner without the survival of any conditions required by former subsection (b) of this section."

Section 6. Amend subparagraph (I) of subsection (a) of § 777 of Title 5 of the Delaware Code by inserting the words "and whether it will have sufficient capital to support its business operations; provided, however, that in no event shall the capital of the limited purpose trust company be less than that required by § 745 of this title" after the words "limited purpose trust company" and before the semi-colon.

Section 7. Amend subparagraph (2) of subsection (b) of § 777 of Title 5 of the Delaware Code by inserting the words and punctuation "provided, however, that the requirements of this subparagraph (2) shall not apply to a limited purpose trust company established under this subchapter on or after January I, 1996;" after the words and punctuation "reasonable cause shown;".

Section 8. Amend subparagraph (3) of subsection (b) of § 777 of Title 5 of the Delaware Code by inserting the words and punctuation "; provided, however, that the requirements of this subparagraph (3) shall not apply to a limited purpose trust company established under this subchapter on or after January I, 1996" after the words "at least $25,000,000" and before the semicolon.

Section 9. Amend subsection (b) of § 777 of Title 5 of the Delaware Code by deleting the word ''and" from the end of subparagraph (3), redesignating existing subparagraph (4) as new subparagraph (5), and adding thereto a new subparagraph (4), as follows:

"(4) That the limited purpose trust company shall maintain its headquarters in this State; and"

Section 10. Amend subsection (c) of § 777 of Title 5 of the Delaware Code by inserting after the word "section" and before the period at the end of that subsection the words and punctuation ";provided, however, that any limited purpose trust company established under this subchapter before January I. 1996 may file an application with the Commissioner for the waiver of either or both of the conditions specified in subparagraphs (2) and (3) of subsection (b) of this section. Such application shall contain such information as the Commissioner may by regulation require, shall be accompanied by an investigation fee of $1,150 payable to the Office of the State Bank Commissioner, and shall be approved by the Commissioner upon finding that the applicable provisions of law have been complied with. In determining whether to approve an application pursuant to this subsection (c), the Commissioner shall consider the needs and convenience of the public of this State and, in the case of an application to waive the requirement of subparagraph (3) of subsection (b) of this section, whether the limited purpose trust company will have sufficient capital to support its business operations; provided, however, that in no event shall the capital of the limited purpose trust company be less than that required by § 745 of this title."

Section I I. Amend subsection (4) of § 831 of Title 5 of the Delaware Code, by deleting the words "Savings and Loan Holding Company Amendments of 1967 (12 U.S.C. § 1730a)" and inserting in lieu thereof the words "Home Owners' Loan Act, as amended, at 12 U.S.C. § 1467a".

Section 12. Amend subparagraph a. of subsection (6) of § 831 of Title 5 of the Delaware Code, by inserting the words that is not a 'hank' as defined in subsection ( I ) of § 842 of Title 5 of the Delaware Code" after the word "State" and before the semi-colon at the end of that subparagraph.

Section 13. Amend subparagraph b. of subsection (6) of § 831 of Title 5 of the Delaware Code, by deleting the words "and loan" after the words "federal savings".

Section 14. Amend subparagraph a. of subsection (7) of § 831 of Title 5 of the Delaware Code, by deleting the words "the amounts held in any savings account, tax and loan account, checking account, United States Treasury General Account or United States Treasury Time-Deposit Open Account, all as defined in the regulations of the Federal I lome Loan Bank Board at 12 C.F.R. § 561" and inserting in lieu thereof the words "a 'deposit' as defined in Section 3(1) of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(1)".

Section 15. Amend § 831 of Title 5 or the Delaware Code, by deleting existing subsection (8) thereof and redesignating existing subsections (9) and (10) as new subsections (8) and (9), respectively.

Section 16. Further amend § 831 of Title 5 of the Delaware Code, by adding a new subsection (10) thereto, as follows:

"(10) 'Out-of-state bank holding company' shall have the meaning specified in § 801 of this title."

Section 17. Further amend § 831 of Title 5 of the Delaware Code, by deleting existing subsections ( I 1) and (14) thereof, and redesignating existing subsections (12) and (13) as new subsections ( I 1 ) and (12), respectively.

Section I8 Amend existing subsection (15) of § 831 of Title 5 of the Delaware Code, by deleting the words "Savings and Loan Holding Company Amendment of 1967 (12 U.S.C. § I 730a)" and inserting in lieu thereof the words "I lome Owners' Loan Act, as amended, at 12

§ 1467a", and by redesignating that subsection as new subsection (13).

Section 19. Amend existing subsection (16) of § 831 of Title 5 of the Delaware Code, by deleting the words and loan" from between the words "federal savings" and the word

"association", by deleting the words "the Federal Savings and Loan Insurance Corporation or", and by redesignating that subsection as new subsection (14).

Section 20. Amend existing subsection (17) of § 831 of Title 5 of the Delaware C'ode, by redesignating that subsection as new subsection ( 15).

Section 21. Amend § 832 of Title 5 of the Delaware Code, by deleting the text of that section in its entirety and inserting in lieu thereof the following:

"(a) An out-of-state savings institution, out-of-state savings and loan holding company or out-of-state bank holding company, or any subsidiary of the foregoing, may acquire or retain ownership or control of an existing Delaware savings bank, a Delaware savings and loan holding company that owns or controls an existing Delaware savings bank, or an out-of-state savings and loan holding company that owns or controls an existing Delaware savings bank; provided that the out-of-state savings institution, out-of-state savings and loan holding company or out-of-state bank holding company, or any subsidiary of the foregoing, makes application under and at all times complies with all regulations, decrees, cooperative agreements and orders duly promulgated by the Commissioner with respect to both the implementation of this subchapter generally, and the operations of such out-of-state savings institution, out-of-state savings and loan holding company or out-o1-state bank holding company and the existing Delaware savings bank that it acquires specifically.

(b) The Commissioner may approve an acquisition, in accordance with subsection (a) of this section, even though the out-of-state savings institution, out-of-state savings and loan holding company or out-of-state bank holding company, or any subsidiary of the foregoing, that acquires an existing Delaware savings bunk, a Delaware savings and loan holding company that owns or controls an existing Delaware savings bank, or an out-of-state savings and loan holding company that owns or controls an existing Delaware savings bank, would control, together with any affiliated insured depository institution (as defined in the Federal Deposit Insurance Act at 12 U.S.C. § I813(c)), 30 percent or more of the total amount of deposits of insured depository institutions in this State. In determining whether to approve an acquisition pursuant to this subsection (b), the Commissioner shall consider the convenience and needs of the public of this State.

(c) Except as otherwise provided in this title or by applicable law of the United States, no out-of-state savings institution, out-of-state savings and loan holding company or out-of-state bank holding company, or any subsidiary of the foregoing, may acquire or retain ownership or control of a Delaware savings bank, a Delaware savings and loan holding company that owns or controls a Delaware savings bank, or an out-of-state savings and loan holding company that owns or controls a Delaware savings bank."

Section 22. Amend § 834 of Title 5 of the Delaware Code, by deleting existing subsection (3) thereof in its entirety and redesignating existing subsections (4) and (5) as new subsections (3) and (4), respectively.

Section 23. Amend § 835 of Title 5 of the Delaware Code, by deleting the words "(i) not located in a state which is an eligible state, (ii)", and by deleting the number "(iii)" where it appears therein.

Section 24. Amend § 836 of Title 5 of the Delaware Code, by deleting subsection (b) thereof in its entirety, and by deleting the designation "(a)" from the remaining provisions of that section.

Section 25. Amend subsection (5) of § 945 of Title 5 of the Delaware Code by inserting the words "or charges imposed for the return of a draft drawn on a revolving credit plan evidencing an extension of credit under such plan" after the word "charges" and before the semi-colon.

Section 26. Amend § 945 of Title 5 of the Delaware Code by designating all of the existing text of that section as subsection "(a)" thereof and by adding thereto a new subsection "(b)", as follows:

"(b) No charges assessed by a bank in accordance with this Section shall be deemed void as a penalty or otherwise unenforceable under any statute or the common law."

Section 27. Amend § 950 of Title 5 of the Delaware Code by designating all of the existing text of that section as subsection "(a)" thereof and by adding thereto a new subsection "(b)", as follows:

"(b) No charges assessed by a bank in accordance with this Section shall be deemed void as a penalty or otherwise unenforceable under any statute or the common law."

Section 28. Amend the first sentence of the first paragraph of subsection (a) of § 1101 of Title 5 of the Delaware Code by inserting the words and trust companies" after the words "banking organizations" and before the open parenthesis, and by inserting the words "or trust company" after the words "banking organization" at both places at which such words appear in the parenthetical within that sentence.

Section 29. Amend subparagraph (1)b. of subsection (a) of § 1101 of Title 5 of the Delaware Code by inserting the words "or other branch established within the United States but outside of this State pursuant to federal law or other applicable law of this State" after the words "pursuant to § 771 of this title" and before the word "which".

Section 30. Amend subsection (e) of § 1101 of Title 5 of the Delaware Code by inserting the words or trust company" after the words "banking organization" at both places at which such words appear in that subsection.

Section 31. Amend subsection (f) of § 1101 of Title 5 of the Delaware Code by inserting the words "or trust company" after the words "banking organization" at both places at which such words appear in that subsection.

Section 32. Amend § 1102 of Title 5 of the Delaware Code by inserting the words and punctuation ". trust company. or federal savings bank not headquartered in this State but maintaining branches in this State" after the words "banking organization" at each place at which such words appear in that section.

Section 33. Amend § 1103 of Title 5 of the Delaware Code by amending the title of that -section to read "Review of tax", by deleting existing subsections (a) and (b) thereof in their entirety, by inserting in existing subsection (c) thereof the words "of tax under this chapter" after the words "The assessment" and before the words "shall be reviewed". and by deleting the subsection designation "(c)" from the text of that section.

Section 34. Amend subsection (a) of § 1104 of Title 5 or the Delaware Code by inserting the words and punctuation ", trust company," after the words "banking organization".

Section 35. Amend subparagraph (3) of subsection (c) of § 1104 of Title 5 of the Delaware Code by inserting the words the earlier of the date when such estimated tax or installment is paid or" after the words "required to be paid to" and before the words "the date of the final payment".

Section 36. Amend subparagraph_ (4) of subsection (c) of § 1104 of Title 5 of the Delaware Code by inserting the words and punctuation", trust company," after the words "banking organization".

Section 37. Amend subsections (d) and (e) of § 1104 of Title 5 of the Delaware Code by inserting the words and punctuation ", trust company," after the words "banking organization" at each place at which such words appear in those subsections.

Section 38. Amend subsection (a) of § 1105 of Title 5 of the Delaware Code by inserting the words and punctuation ", trust companies, and federal savings bunks nut headquartered in this State but maintaining branches in this State" after the words "banking organizations".

Section 39. Amend subsection (h) of § 1105 of the Delaware Code by deleting the word "banks" from the first sentence thereof where such word precedes the words "subject to tax under this section" and inserting in lieu thereof the word "entities".

Section 40. Amend the first sentence of § 1109 of Title 5 of the Delaware Code by inserting the words and punctuation ", trust companies. and federal savings banks not headquartered in this State but maintaining branches in this State" after the words "banking organizations" at each place at which such words appear in that sentence. and by inserting the words and punctuation ". trust company. or federal savings bank not headquartered in this State but maintaining branches in this State" after the words "banking organization". and by deleting the word "bank" and inserting in lieu thereof the words and punctuation "banking organization. trust company, or federal savings bank not headquartered in this State but maintaining branches in this State".

Section 41. Amend the second sentence of § 1109 of Title 5 of the Delaware Code by inserting the words "or trust company" after the words "banking organization". and by inserting the words and trust companies" after the words "banking organizations".

Section 42. Amend § 2107. § 2207, § 2310, § 2720, § 2903 and § 3210 of Title 5 of the Delaware Code by deleting -the words "by January 1 of each year in each of those sections and inserting in lieu thereof the words "at least 30 days prior to the expiration of such license or renewal thereof'.

Section 43. Amend subsection (a) of § 2202 of Title 5 of the Delaware Code by deleting from the beginning of the third sentence thereof the words "The licensing requirements or and capitalizing the first letter of the word "this" that becomes the first word in that sentence, by deleting from subparagraph (I) of that subsection the words and punctuation "state or federal savings bank or savings and loan association having its principal place of business in this State.". and by deleting from subparagraph (2) of that subsection the words "financial institution or other" at both places where such words appear therein.

Section 44. Amend § 2218 of Title 5 of the Delaware Code by designating all or the existing text of that section as subsection "(a)" thereof and by adding thereto a new subsection "( b)", as follows:

"(b) No charges assessed by a licensee in accordance with this Section shall he deemed void as a penalty or otherwise unenforceable under any statute or the common law."

Section 45. Amend § 2222 of 'Fide 5 of the Delaware Code by designating all of the existing text Of that section us subsection "(a)" thereof and by adding thereto a new subsection "(b)", as follows:

"(b) No charges assessed by a licensee in accordance with this Section shall be deemed void as a penalty or otherwise unenforceable under any statute or the common law."

Section 46. Amend subsection (3) of § 2231 of Title 5 of the Delaware Code by deleting the words "or any other person" where they appear after the words "No licensee".

Section 47. Amend subparagraph (I) of subsection (a) of Section 2304 of Title 5 of the Delaware Code by inserting the words and punctuation "credit unions," after the words and punctuation "trust companies,".

Section 48. Amend §3502(b), Title 10 of the Delaware Code by adding the phrase "trust companies," following the phrase "Banks," by adding the phrase "trust company." following the phrase "bank,".

Section 49 Amend § 1130 of Title 12 of the Delaware Code by inserting the number and punctuation ". 15" after the words "Chapter 7" and befbre the words "or 17".

Section 50. If any provision of this Act or the application of any section or part thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Act that can be given effect without the invalid provision or application,

Section 51. This Act shall take effect immediately upon its adoption.

Approved May 2, 1996