Title 5, Banking

§ 3322. Business of a Bidco. (a) The business of a licensee shall be the business of providing financing assistance and management assistance to business firms. (b) A licensee may determine the structure and the terms and conditions for financing assistance provided by that licen…

§ 3323. Control of business firm prohibited; exceptions. (a) Either by itself or in concert with 1 or more of its directors, officers, principal shareholders or affiliates, 1 or more other licensees or 1 or more directors, officers, principal shareholders or affiliates of another…

§ 3324. Business of Bidco to be conducted in prudent business manner. (a) A licensee shall transact its business in a prudent business manner and shall maintain itself in a viable condition. (b) In determining whether a licensee is transacting business in a prudent business manne…

§ 3325. Avoidance of conflict of interest. (a) A licensee shall avoid any transaction or act which involves, or has the potential to involve, a conflict of interest, unless such transaction or act and the circumstances underlying the conflict or potential conflict of interest are…

§ 3331. General rules. (a) Without the prior approval of the Commissioner, a licensee shall not consummate a transaction involving a merger, acquisition of control or a sale of all or substantially all of its business assets, where the licensee is a principal party to such transa…

§ 3341. Form and maintenance of Bidco records; annual audited report. (a) A licensee shall make and keep books, accounts and other records in such form and manner as the Commissioner may require. Such records shall be kept at such place and shall be preserved for such length of t…

§ 3342. Periodic report requirements. In addition to the audited report required by § 3341(b) of this title, a licensee shall file with the Commissioner such other reports and at such times as the Commissioner may require. Any report required by the Commissioner under this sectio…

§ 3343. Examination of Bidcos. (a) The Commissioner shall visit and examine each licensee as frequently as the Commissioner deems it necessary or expedient of such licensee. On the occasion of every such visit and examination, the Commissioner shall (in company with 1 or more of …

§ 3351. Investigations. (a) The Commissioner may make such investigations within or without the State as the Commissioner may consider necessary or appropriate for determining whether to approve an application filed with the Commissioner under this chapter or for determining whet…

§ 3352. False statements, entries or reports; penalty. Every director, officer, agent, clerk or employee of any entity affected by § 3343 or § 3351 of this title, who wilfully or knowingly subscribes or exhibits any false paper, with intent to deceive any person authorized to inv…

§ 3353. Violations; remedies. (a) Subject to the State Administrative Procedures Act, the Commissioner may issue an order, setting forth an appropriate remedy, including, without limitation, a cease-and-desist order, an order removing any person from office with a licensee or pro…

§ 3354. Receivership. (a) If the Commissioner finds that a licensee is insolvent, or such licensee is transacting business without authority or in violation of this chapter or any other law or it is contrary to the purposes of this chapter for such licensee to continue business, …

§ 3355. Penalties. (a) Subject to the State Administrative Procedures Act, should the Commissioner find that any person has violated this chapter, other than that prohibited under § 3352 of this title, the Commissioner may order such person to pay to the State a civil penalty in …

§ 3401. Definitions. As used in this chapter, unless the context requires otherwise: (1) “Commissioner” means the State Bank Commissioner. (2) “Insured institution” means an insured depository institution (as defined in the Federal Deposit Insurance Act at 12 U.S.C. § 1813(c)(2))…

§ 3402. Preneed payments and increment as trust funds; disbursement of funds; exceptions. (a) All payments of money made to any person, partnership, association or corporation upon any agreement or contract, or any series or combination of agreements or contract, but not includin…

§ 3403. Revocable trust accounts; refund to persons making payments. (a) Except as provided in § 3404 of this title, upon the giving of 15 days’ written notice, any person, partnership or corporation who has paid funds for a preneed funeral service may demand a refund of the enti…

§ 3404. Irrevocable trust accounts. (a) Any person, partnership or corporation who enters into a preneed funeral contract has the option, at any time, to establish an irrevocable trust for all funds or any portion of payments made or to be made under the agreement, contract or pl…

§ 3405. Trust funds; how kept and deposited. All trust funds mentioned in this chapter shall be deposited in the name of the trustee, as trustee, within 30 days after receipt thereof, with an insured institution and shall be held together with the interest, dividends or accretion…

§ 3406. License to accept preneed contract required; fees. (a) No person, firm, partnership, association or corporation may, without first securing from the Commissioner a license, accept or hold payments made on preneed burial contracts, except insured institutions as defined in…

§ 3407. Records of licensee; requirements; inspection. The licensee shall keep accurate accounts, books and records in this State of all transactions, copies of all agreements, dates and amounts of payments made and accepted thereon, the names and addresses of the contracting par…

§ 3408. Periodic report requirements. A licensee shall file with the Commissioner such reports at such time as the Commissioner may require. Any reports required by the Commissioner under this section shall be in such form and shall contain such information as the Commissioner ma…

§ 3409. State Bank Commissioner to enforce law and establish rules and regulations. The Commissioner shall enforce this chapter and has the power to make investigations, subpoena witnesses, require audits and reports and conduct hearings as to violations of any provision, and to …

§ 3410. Penalty. Any person wilfully violating this chapter shall be fined not less than $500 nor more than $1,000.24 Del. C. 1953, § 3126; 58 Del. Laws, c. 415, § 2; 63 Del. Laws, c. 145, § 1; 68 Del. Laws, c. 303, § 10; 68 Del. Laws, c. 389, § 5; 71 Del. Laws, c. 19, § 10;

§ 3411. Surety bonds and irrevocable letters of credit. (a) Surety bonds. — (1) Every person licensed under this chapter shall file with the Commissioner, in a form satisfactory to the Commissioner, an original corporate surety bond with surety provided by a corporation authorize…

§ 3501. Short title [For application of this section, see 85 Del. Laws, c. 339, § 2]. This chapter may be cited as the “Delaware Payment Stablecoins Act.”85 Del. Laws, c. 339, § 1;

§ 3502. Legislative findings and purpose [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) The General Assembly finds all of the following: (1) Payment stablecoins are digital assets designed to maintain a stable value relative to a fixed monetary amount and a…

§ 3503. Definitions [For application of this section, see 85 Del. Laws, c. 339, § 2]. As used in this chapter: (1) “Affiliate” means as defined under § 101 of this title. (2) “Bank Secrecy Act” means as defined in all of the following, with any amendments to the following provisi…

§ 3506. Scope [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) This chapter applies to any person engaged in the business of any of the following: (1) Issuing a payment stablecoin to or on behalf of a resident of this State. (2) Acting as a digital asset serv…

§ 3507. Exemptions [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) The following persons are exempt from the licensing requirements of subchapter III of this chapter: (1) The United States, any state, any political subdivision of a state, or any agency or in…

§ 3508. Restriction on payment stablecoin issuance by nonfinancial public companies [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A public company, or a wholly or majority-owned subsidiary or affiliate of a public company, that is not predominantly engaged…

§ 3511. License required [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) Unless exempt under § 3507 of this title, a person may no t issue a payment stablecoin to or on behalf of a resident. (b) The Commissioner shall issue a payment stablecoin issuer licens…

§ 3512. Application for license [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) An application for a license under this chapter must do all of the following: (1) Be made in a form and medium prescribed by the Commissioner. (2) Include the following informati…

§ 3513. Reciprocal recognition [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) An applicant licensed in another state is eligible for a license in this State without full duplicative review, if all of the following conditions are satisfied: (1) The applicant…

§ 3514. Transition of state-qualified issuers exceeding the $10 billion threshold [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) If the outstanding issuance value of a state-qualified payment stablecoin issuer exceeds $10,000,000,000 during any consecutive …

§ 3515. Voluntary election by federal qualified payment stablecoin issuer to convert to Delaware state qualification [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A federal qualified payment stablecoin issuer that is a nonbank entity under the exclusive ju…

§ 3516. Change in control of permitted payment stablecoin issuers [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A person who proposes, directly or indirectly, to acquire control of a permitted payment stablecoin issuer licensed under this chapter shall pro…

§ 3517. Voluntary digital asset service provider registration [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A person that engages in the business of acting as a digital asset service provider in this State, or on behalf of customers or users in this State,…

§ 3521. Reserve requirements [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A permitted payment stablecoin issuer shall at all times maintain identifiable reserve assets backing the issuer’s outstanding payment stablecoins on at least a 1-to-1 basis by fair…

§ 3522. Capital and net worth requirements [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A permitted payment stablecoin issuer shall maintain minimum capital sufficient to ensure its ongoing operations. The Commissioner shall promulgate regulations establi…

§ 3523. Redemption policy; disclosures [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A permitted payment stablecoin issuer shall publicly disclose its redemption policy, which must do all of the following: (1) Establish clear and conspicuous procedures for…

§ 3526. Monthly reporting and attestation [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) Not later than noon on the last day of each calendar month, a permitted payment stablecoin issuer shall publish on 1 of its publicly accessible websites a report disclo…

§ 3527. Custody requirements [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) This section applies to any permitted payment stablecoin issuer and to any person that provides custodial or safekeeping services for any of the following: (1) Payment stablecoin re…

§ 3531. AML program requirements [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A permitted payment stablecoin issuer licensed under § 3511 of this title is a financial institution for purposes of the Bank Secrecy Act and shall comply with all applicable re…

§ 3532. Sanctions compliance; compliance with lawful orders [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) A permitted payment stablecoin issuer shall maintain the technological capability to comply with any lawful order requiring the issuer to seize, freez…

§ 3535. Risk management and governance [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) The Commissioner shall promulgate regulations establishing principles-based risk management requirements for permitted payment stablecoin issuers licensed under § 3511 of …

§ 3536. Fitness and character requirements [For application of this section, see 85 Del. Laws, c. 339, § 2]. (a) An individual who has been convicted of, or has pleaded guilty or nolo contendere to, any crime involving fraud, dishonesty, breach of trust, money laundering, or fina…