Title 5, Banking

§ 905. Reports by national banks, federal savings associations and out-of-state banks. National banks, out-of-state banks (as defined in § 795 of this title) having one or more branch offices in this State, and federal savings associations (as defined in the Home Owners’ Loan Act…

§ 906. Failure to make reports; penalty. Every bank or trust company failing to comply with §§ 904 and 905 of this title shall be subject to a penalty of $25 for each day that it continues in such failure; unless the Commissioner is satisfied that such failure was not wilful. Any…

§ 907. Reserve requirements. (a) “Demand deposits” as used in this section shall mean all deposits payable within 30 days; and time deposits shall comprise all deposits payable after 30 days, all savings accounts, certificates of deposit, and postal savings which are subject to n…

§ 908. Value at which assets shall be carried on books. No bank or trust company shall carry on its books any of its assets at a sum in excess of the cost value thereof except by and with the written consent of the State Bank Commissioner.32 Del. Laws, c. 103, § 11; Code 1935, § …

§ 908A. Bank distinct from bank insurance department or division. The assets of any bank or trust company shall be liable for and applicable to the payment and satisfaction of the liabilities, obligations and expenses of such bank or trust company only, and not to those liabiliti…

§ 909. Loan limitations. (a) No bank, trust company or savings bank shall make any loans, directly or indirectly, to any person, firm, association or corporation, aggregating an amount which (including any extension of credit to such person, firm, association or corporation, by m…

§ 910. Investment limitations. No bank or trust company shall invest more than 25 percent of its total capital, surplus and undivided profits in the stock, bonds or other obligations of any 1 corporation or political entity or political division except bonds or other obligations …

§ 911. Ownership of real estate used for transaction of business. Section 762 of this title shall be applicable to all banks and trust companies of this State, except with respect to the investment or expenditure of money prior to July 1, 1933.32 Del. Laws, c. 103, § 16; 38 Del. …

§ 912. Limitations upon loans on security of and purchase of own capital stock. No bank or trust company shall purchase shares of its own capital stock, nor make any loan on the faith or pledge of shares of its own capital stock; but nothing in this section shall inhibit such pur…

§ 913. Authority of national bank, out-of-state state bank and out-of-state state trust company to act as fiduciary. (a) Any national bank located in this State, when authorized by the laws of the United States, may act by any and every method of appointment, and in any capacity …

§ 914. Appointment of trust company as trustee. Any court, judge or officer, authorized by law to appoint any person or corporation to any office of trust, may appoint to such office any trust company incorporated under the laws of this State, and having its principal office or p…

§ 915. Fiduciary funds held as separate trust [Repealed]. Repealed by 59 Del. Laws, c. 271, § 1, eff. Mar. 23, 1974.

§ 916. Preference of funds held on deposit. Whenever any bank or trust company holds on deposit funds as a part of its deposit liabilities for the account of an estate for which it is acting as executor, administrator, guardian, trustee or in any other fiduciary capacity, the lia…

§ 917. Surety not required on bond of trust company or national bank; liability and lien upon real estate. (a) (1) Whenever a trust company is appointed to an office of trust or to act in a fiduciary capacity, no surety need be required, in the discretion of the appointing court,…

§ 918. Limitations on pledging or hypothecating assets [For application of this section, see 85 Del. Laws, c. 346, § 9]. (a) No bank or trust company shall pledge or hypothecate any of its assets except to undertake any of the following: (1) To secure any borrowing, guarantee, cr…

§ 919. Filing of rules and regulations on time and savings deposits [Repealed]. Repealed by 70 Del. Laws, c. 112, § 48, eff. Sept. 29, 1995.

§ 920. Deposits by minors. (a) Any bank, savings bank, savings institution or trust company may receive money on deposit from or in the name of any minor. When any deposit of money shall be made by or in the name of any minor with any bank, savings bank, savings institution or tr…

§ 921. Deposits of married women [Repealed]. Repealed by 71 Del. Laws, c. 19, § 42, eff. Apr. 23, 1997.

§ 922. Deposits of decedents. Banks, trust companies, savings banks, and savings societies may pay out deposits of decedents, without requiring letters of administration to be issued upon the estates of such decedents, when and as provided by §§ 2306 and 2307 of Title 12.Code 191…

§ 923. Deposits in names of two or more persons. When a deposit in any bank, trust company, savings bank or other banking institution in this State, is made in the name of 2 or more persons, deliverable or payable to either, or to their survivor or survivors, the deposit, or any …

§ 924. Bank deposit accounts in trust form. (a) The following terms shall have the following definitions for the purposes of this section. (1) A “beneficiary” is a natural person, or a nonprofit organization (as qualified under 26 U.S.C. § 501(c)(3)), that is described by a depos…

§ 926. Subrogation of Federal Deposit Insurance Corporation to rights of owners of insured deposits in closed institutions. Whenever a receiver has been appointed by the Court of Chancery for a bank or trust company in this State and the Federal Deposit Insurance Corporation pays…

§ 927. Penalty for false statements regarding financial condition. Whoever wilfully and maliciously makes, circulates or transmits to another or others, any false statement, rumor or suggestion, written, printed or by word of mouth, which is directly or by inference derogatory to…

§ 928. Penalty for representing or holding oneself out as engaged in business of receiving deposits or of a trust company. (a) Any person, firm, or association of individuals or any agent or official of any corporation or other person who in any manner represents or holds out one…

§ 929. Tying arrangements prohibited. (a) No bank or trust company shall, either directly or indirectly through any subsidiary, division or 3rd person, in any manner extend credit, sell any product or furnish any service to any person, or fix or vary the consideration for any of …

§ 930. Right of cancellation of certain insurance. (a) Except as otherwise provided in this section, in the case of any extension of credit by the bank or trust company engaged directly or indirectly in activities first authorized under § 761(a)(14) or § 1661(a)(14) of this title…

§ 930A. Mandatory disclosure in bank insurance policies. (a) Any bank or trust company issuing policies of insurance either directly or through a division or subsidiary, shall disclose or cause to be disclosed to all applicants for such policies and to all policyholders that such…

§ 931. Employee retirement pensions for savings banks and savings societies. (a) Savings banks and savings societies, subject to the laws of this State, may, in the discretion of a majority of all the managers or governing board, retire any officer, clerk or other employee, who h…

§ 932. Loans and securities insured by Federal Housing Administrator. (a) Banks, savings banks, trust companies, building and loan associations and insurance companies, subject to this Code and any other laws of this State, may make such loans and advances of credit and purchases…

§ 933. Prize linked savings programs. (a) For purposes of this section “savings promotion raffle” means a raffle conducted by a bank or credit union doing business in Delaware where the sole action required for a chance of winning designated prizes is the deposit of a minimum spe…

§ 936. International banking facilities. The Commissioner may by rule except from the terms “deposit,” “borrowing,” and “extension of credit,” as they relate to the activities of international banking facilities and as defined in § 101 of this title, any class of transactions if …

§ 937. Availability of funds. (a) Financial institutions that delay availability shall review their policies and consider reducing the delay periods to the extent possible, consistent with prudent business practices. (b) Financial institutions shall disclose to depositors in an e…

§ 938. Transfer of fiduciary accounts. (a) For purposes of this section, “fiduciary” shall mean a banking organization or trust company of a type referred to in this section acting as a trustee, personal representative, guardian or custodian under a Uniform Gifts to Minors Act or…

§ 939. Negotiable instruments. (a) For purposes of this section, “fiduciary” shall have the same meaning as in § 3301(d) of Title 12. (b) If a negotiable instrument is drawn upon the account of a principal in a bank by a fiduciary who is empowered to draw upon the principal’s acc…

§ 940. Self-analysis privilege for depository institutions and affiliates. (a) Definitions. — For purposes of this section, the following words and phrases shall have the meanings ascribed to them herein: (1) “Depository institution” means a state-chartered or federally-chartered…

§ 941. Definitions. As used in this subchapter: (1) “Bank” means any bank or bank and trust company organized under this title or any other law or laws of this State, any depository institution organized under the authority of the United States and having its principal place of b…

§ 942. Extension of credit. Any bank may, subject to any limitations on lending authorities contained in its charter or otherwise imposed by law and subject to the other provisions of this subchapter, offer and extend credit under a revolving credit plan to a borrower and in conn…

§ 943. Periodic interest. A bank may charge and collect periodic interest under a revolving credit plan on outstanding unpaid indebtedness in the borrower’s account under the plan at such daily, weekly, monthly, annual or other periodic percentage rate or rates as the agreement g…

§ 944. Variable rates. If the agreement governing the revolving credit plan so provides, the periodic percentage rate or rates of interest under such plan may vary in accordance with a schedule or formula. Such periodic percentage rate or rates may vary from time to time as the r…

§ 945. Interest charges. (a) In addition to or in lieu of interest at a periodic percentage rate or rates as provided in §§ 943 and 944 of this title, a bank may, if the agreement governing the revolving credit plan so provides, charge and collect, as interest, in such manner or …

§ 946. Terms for indebtedness. A bank may, if the agreement governing a revolving credit plan so provides, impose different terms (including, without limitation, the terms governing the periodic percentage rate or rates used to calculate interest, the method of computing the outs…

§ 947. Overdraft accounts. If credit under a revolving credit plan is offered and extended in connection with a demand deposit account or other transaction account maintained by the borrower with the bank pursuant to an agreement or arrangement whereby the bank agrees to honor ch…

§ 948. Omitted installments. A bank may at any time and from time to time unilaterally extend to a borrower under a revolving credit plan the option of omitting monthly installments.63 Del. Laws, c. 2, § 4;

§ 949. Insurance. (a) A bank may request but not require an individual borrower to be insured in respect of a revolving credit plan under a life, health, accident, health and accident or other credit or other permissible insurance policy, whether group or individual, and in the e…

§ 950. Delinquent installments. (a) If the agreement governing a revolving credit plan so provides, a bank may impose, as interest, a late or delinquency charge upon any outstanding unpaid installment payments or portions thereof under the plan which are in default; provided howe…

§ 951. Attorney’s fees; costs. In the event a borrower defaults under the terms of a plan, the bank may, if the borrower’s account is referred to an attorney (not a regularly salaried employee of the bank) or to a third party for collection and if the agreement governing the revo…