CHAPTER 37

FORMERLY

SENATE BILL NO. 63

AN ACT TO AMEND SUBCHAPTER 1 OF CHAPTER 49 OF TITLE 10 OF THE DELAWARE CODE RELTING TO SUBJECTS OF EXECUTION; EXEMPTIONS.

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

Section 1. Amend Section 4914(b) of Title 10 of the Delaware Code by adding immediately after the word "estate" the phrase ", in addition to the exemptions made in §4915 of this title,".

Section 2. Amend Subchapter I of Chapter 49 of Title 10 of the Delaware Code by adding a new Section 4915 to read as follows:

"§4915. Exemption of retirement plans

(a) In addition to the exemptions provided in sections 4901 and 4903, there shall be exempt from execution or attachment process, assets held or amounts payable under any retirement plan.

(b) Any amount qualifying as an ‘eligible rollover distribution’ under section 402 of the Internal Revenue Code of 1986, as amended, is treated as an exempt amount under subsection (a) for sixty days after the distribution of such amount. Such amount remains exempt fro execution or attachment process if contributed to a retirement plan within sixty days of being distributed from a retirement plan.

(c) Any retirement plan described in subsection (a) shall not be exempt from any claims for relief granted pursuant to Title 13, Chapter 5 and/or Chapter 15.

(d) Any retirement plan described in subsection (a) shall not be exempt from the claims of an alternate payee under a qualified domestic relations order. However, the interest of any and all alternate payees under a qualified domestic relations order’ have the meaning ascribed to them in section 414(p) of the Internal Revenue Code of 1986, as amended

(e) A participant or beneficiary of a retirement plan is not prohibited from granting a valid and enforceable security interest in the participant’s or beneficiary’s interest under the retirement plan to secure a loan to the participant or beneficiary from the plan, and the right to assets held in or to receive payments from the plan is subject to execution and attachment for the satisfaction of the security interest or lien granted by the participant or beneficiary to secure the loan.

(f) ‘retirement plan’ means any retirement or profit sharing plan that is qualified under section 401, 403, 408, 409, 414 or 457 of the Internal Revenue Code of 1986, as amended.

(g) ‘This section shall not exempt from execution or attachment any judgment obtained under section 554 of Title 30.

(h) If this section is held invalid or preempted by federal law, in whole or in part, it shall remain in effect to the maximum extent permitted by law."

Section 3. This Act shall become effective on the date of enactment.

Approved May 22, 1997