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, VOLUME 32, LAWS OF DELAWARE, AS AMENDED.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
Section 1. That Section 7 of Chapter 107, Volume 32, Laws of Delaware, as amended, be, and the same is hereby further amended by striking out all of the said Section 7, as amended, and inserting in lieu thereof the following:
Section 7. The funds of a Building and Loan Association existing under the laws of this State shall not be invested in any corporation stocks, provided that nothing herein contained shall prevent a Building and Loan Association from purchasing and acquiring stock in the Federal Home Loan Bank under the provisions of the Act of Congress known as the Federal Home Loan Bank Act; provided, further that nothing herein contained shall prevent a Building and Loan Association from acquiring any corporation stock to secure itself against loss of money owing to it by any borrower. Such stock so acquired under the last preceding clause shall be sold within sixty days after the State Bank Commissioner shall direct. It shall be lawful for any Building and Loan Association heretofore or hereafter incorporated under the laws of this State to become a member of the Federal Home Loan Bank, organized or to be organized in the District in which such Building and Loan Association is located, under the provisions of the Act of Congress known as the Federal Home Loan Bank Act, approved July 22nd, A. D. One Thousand Nine Hundred and Thirty-two, and such Building and Loan Association may subscribe for, purchase, hold and surrender, from time to time such amounts of the capital stock of such Federal Home Loan Bank as such Building and Loan Association may deem advisable, or as may be required under said Federal Home Loan Bank Act, or any amendment thereof, in order to obtain and continue such membership, and upon the purchase of such stock to assume the liabilities and become entitled to the benefits recited in said Federal Home Loan Bank Act. Any Building and Loan Association doing business in this State may borrow from any Federal Home Loan Bank to any amount within the regulations of said Federal Home Loan Bank and may secure advances from the Federal Home Loan Bank by the assignment or pledge of any mortgage, mortgages, or other assets, held by such Building and Loan Association and such Building and Loan Association is hereby authorized in securing said advances to com- ply with such regulations, restrictions and limitations as the Board of the Federal Home Loan Bank may prescribe. Any Building and Loan Association doing business in this State may also borrow money from other sources and secure the same by the issuance of certificates of indebtedness or other corporate obligations, provided that the amount borrowed from all sources other than a Federal Home Loan Bank shall not at any time exceed, in the aggregate, thirty per cent of the dues actually paid in on the shares of the Association and shall not bear a higher rate of interest than six per centum per annum. No more than fifty per centum (50%) of the paid in dues of any Building and Loan Association doing business in this State shall be loaned on Real Estate security on other than first liens.
Approved December 18, 1933.