GENERAL PROVISIONS RESPECTING TRADE. - INTEREST.
AN ACT to amend Chapter 77 of the Revised Code of the State of Delaware, being an act relating to the rate of interest foil the use of money.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
Section 1. That sections 1 and 2 of Chapter 77 of the Revised Code of the State of Delaware, being sections 2621 and 2622 of said Code, be, and the same are, hereby repealed and that the following new sections be, and the same are, hereby substituted in lieu thereof, in the words and figures following, to wit,
"2621. Sec. 1. The lawful rate of interest for the loan or use of money, in all cases where no express contract shall have been made for a less rate, shall be six per cent per annum; and when a rate of interest for the loan or use of money exceeding that established by law shall have been reserved or contracted for, the borrower or debtor shall not be required to pay the creditor the excess over the legal rate and it shall be lawful for such borrower or debtor, at his option, to retain and deduct such excess from the amount of any debt; and in all cases where any borrower or debtor shall heretofore, or hereafter, have voluntarily paid the whole debt or sum loaned, together with interest exceeding the lawful rate, such borrower or debtor, or his personal representative, may recover in an action against the person who shall have taken or received such debt and interest, or his personal representative, the amount so paid which is in excess of said debt together with interest at the lawful rate, if such action be brought within one year after the time of such payment: provided that nothing in this section shall affect the holders of negotiable paper taken bona fide in the usual course of business; and that persons, firms and corporations, registered under the provisions of Article 29 of Chapter One Hundred, on loans not exceeding One Hundred Dollars, may charge the rates of interest therein provided; and that no corporation shall hereafter interpose the defense of usury in any action. The term corporation, as used in this section, shall be construed to include all associations and joint stock companies having any of the powers and privileges of corporations not possessed by individuals or partnerships."
"2622. Sec. 2. Every contract for the loan or advance of money by banking corporations, within this State, shall be subject to the provisions of Section 1 of Chapter Seventy-seven; but in any case hereafter, in which loans or advances of money, made by banking corporations or otherwise, repayable on demand, to an amount not less than Five Thousand Dollars, are made upon warehouse receipts, bills of lading, certificates of stock, certificates of deposit, bills of exchange, bonds, or other negotiable instruments, pledged as collateral security for such repayment, it shall be lawful to receive, or to contract to receive, and collect, as compensation for making such advances, any sum to be agreed upon, in writing, by the parties to such transaction."
Approved March 8, A. D. 1915.