BUILDING AND LOAN ASSOCIATIONS
AN ACT to Amend an Act entitled "An Act in relation to building and loan associations and regulating the business of such associations," being Chapter 107, Vol. 32, Laws of Delaware. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
Section 1. That Chapter 107, Vol. 32, Laws of Delaware, entitled, "An Act in relation to Building and Loan Associations and regulating the business of such associations," be and the same is hereby amended by adding at the end of Section 3, the following:
"Wherever used in this Act, the term Building and Loan Association defined Association shall be construed to mean any corporation, person, firm, partnership, association, trustee, or combination of persons whatsoever, within the purview of this Act."
Section 2. That Section 18 of said Chapter 107 of Vol. 32, be and the same is hereby amended by striking out all of said Section 18 and inserting in lieu thereof the following:
"Section 18. Every corporation, association, or person, desiring to obtain a license under the provisions of this Act, shall file with the State Bank Commissioner, an application in writing in such form as may be prescribed by the State Bank Commissioner. Before a license shall be issued by the Commissioner to investigate State Bank Commissioner, he shall make, or cause to be made, an investigation of the condition and affairs of the applicant and its general plan of operation. He shall investigate the moral character and general fitness of the applicant, if an individual, and of the members of a partnership or association, and of the directors, managers, trustees, and other officers of every applicant, to discharge the duties reposed in them, and may examine any or all of them under oath. He shall require the applicant to submit to him a mathematical chart or calculation, showing in detail the operation of the 'flitted plan of investment carried on or proposed to be carried on, for the purpose of determining whether the terms and conditions of same are of such nature as to insure the repayment of the principal amount or amounts actually received, together with a reasonable profit or accumulation of interest, within a reasonable time after demand and notice by the subscriber or purchaser shall have been given, and whether the same is equitable, and non-oppressive, is financially and mathematically sound, and that the contracts or obligations issued or to be issued are practicable and possible of fulfillment. Unless the State Bank Commissioner shall be satisfied as to the character and general fitness of the managing officers of the applicant to honestly and efficiently carry on its business, and that the plan of operation is financially and mathematically sound, and that the contracts or obligations issued or to be issued are practicable and possible of fulfillment, and of such nature as to insure the repayment of the principal amount or amounts actually paid in by the subscriber or purchaser, together with a reasonable profit or accumulation of interest within a reasonable time after notice and demand by the subscriber or purchaser, and is equitable and non-oppressive, he shall refuse the license, and forthwith notify the applicant of such refusal, and specify in the notice the cause or causes thereof."
Approved March 17, A. D. 1923.