CHAPTER 247

FORMERLY

SENATE BILL NO. 316

AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO BANKS AND OTHER FINANCIAL INSTITUTIONS.

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 1. Amend § 136 of Title 5 of the Delaware Code as follows: In subsection (a), insert after the words “a financial institution subject to this title” the words “or any other financial company”. In subsection (b), insert after the words “financial institutions” and before the period, the words “or financial companies”. In subsection (d), insert after the words “financial institution”, as such words appear throughout that subsection, the words “or financial company”. Add a new subsection (g) as follows:

“(g) As used in this section, ‘financial company’ and ‘company’ mean any person transacting, conducting or engaged in any business or activity that is subject to licensing, regulation or supervision under this title.”

Section 2. Amend § 137 of Title 5 of the Delaware Code as follows: In the first sentence of the first paragraph, insert after the words and punctuation “industrial development corporation subject to supervision by the Commissioner,” the words and punctuation “and also to prohibit such person from further participation in any manner in the conduct of the affairs of any financial institution, ”. In the first sentence of subsection (1) delete the words “the financial institution” as they appear after the words “in the conduct of the affairs of”, and insert in lieu thereof the words “any financial institution”. In the last sentence of subsection (1), delete the words “the financial institution”, and insert in lieu thereof the words “any financial institution”. In subsection (3), delete the words and punctuation “the institution.” at the end of that subsection, and insert in lieu thereof the words and punctuation “any financial institution.” In subsection (5), delete from the third sentence of that subsection the words “the financial institution”, and insert in lieu thereof the words “any financial institution”. In subsection (7), delete from the third sentence the words “the financial institution”, and insert in lieu thereof the words “any financial institution”.

Section 3. Amend § 143 of Title 5 of the Delaware Code as follows: In subsection (a)(1), insert after the words “financial institution” the words “or financial company”. In subsection (b)(3), delete the word “institution’s”, and insert in lieu thereof the word “violator’s”. In subsection (c), delete the words and punctuation “for any financial institution subject to this title” and insert a period after the word “violation”. In subsection (d), insert after the words “financial institution” as such words appear throughout such subsection, the words “or financial company”. Add a new subsection (h) as follows:

"(h) As used in this section, ‘financial company’ means any person transacting, conducting or engaged in any business or activity that is subject to licensing, regulation or supervision under this title.”

Section 4. Amend § 144 of Title 5 of the Delaware Code by inserting the words and punctuation ", unless it, or an affiliate of such entity, is a regulated trust institution under the laws of this or any other state" after the word "name" and before the period at the end of that section.

Section 5. Amend §928 of Title 5 of the Delaware Code by inserting in the title thereof the words "or of a trust company" after the word "deposits" and before the period, and by inserting in the text of the first sentence of subsection (a) the words "or other person" after the word "corporation" and before the words "who in any manner represents", and by further inserting in the text of the first sentence of subsection (a) the words and punctuation "or as engaged in the business of a trust company within the boundaries of the State," after the word and punctuation "State," and before the words "not being authorized", and by inserting in the text of subsection (b) the words and punctuation "or as engaged in the business of a trust company within the boundaries of the State," after the word and punctuation "State," and before the words "it shall be prima facie evidence", and by further inserting in the text of subsection (b) the words "or other person" after the word "corporation" and before the period.

Section 6. Amend § 1404 of Title 5 of the Delaware Code by designating all of the existing text of subsection (a) thereof as subparagraph (1) of that subsection, and adding thereto a new subparagraph (2) to subsection (a), as follows:

“(2) A foreign bank holding a certificate of authority pursuant to this subchapter may establish and maintain a foreign bank branch in this State at the location stated therein and may engage in a general banking business thereat, even though the foreign bank has not elected this State as its home state as provided in subparagraph (1) of this subsection, if the foreign bank upgrades an agency established under subsection (b) of this section or a limited purpose branch established under subsection (c) of this section, provided that such agency or limited purpose branch has been in operation for at least 5 years.”

Section 7. Amend Chapter 21 of Title 5 of the Delaware Code by adding a new § 2116 to that chapter as follows:

Ҥ 2116. Penalty.

Any person who violates any provision of this chapter shall be fined not less than $50.00 nor more than $200.00 or imprisoned for not more than 3 months or both for each such offense.”

Section 8. Amend § 2902 of Title 5 of the Delaware Code as follows: In subsection (b), delete the second sentence of that subsection, and insert in lieu thereof the following: “The application shall contain the name of the applicant; the address(es) where the business is or is to be conducted; the name and resident address(es) of the owner or partners or, if a corporation or association, of the directors, trustees and principal officers, and such other pertinent information as the Commissioner may require.” In subsection (c), delete the phrase “$115 for each additional branch of the licensee maintained in this State”, and insert in lieu thereof “$287.50 for each additional office of the licensee”. In subsection (d), delete the words “or branch” from that subsection.

Section 9. If any provision of this Act or the application of any section or part thereof to any person or circumstances 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 10. The provisions of this Act shall be effective upon its enactment into law.

Approved April 29, 2002