Title 5 — Banking

§ 1101. Tax on net earnings. (a) A franchise tax is hereby imposed on the “taxable income” of banking organizations and trust companies (computed on a basis that consolidates with the income of such banking organization or trust company for the tax year involved, the income of al…

§ 1101A. Alternative annual franchise tax; rate of taxation. (a) Any banking organization or trust company required to pay a franchise tax pursuant to § 1101 of this title may annually elect, on its original return or on an amended return filed within 180 days of the due date of …

§ 1102. Statement of net income to be filed. (a) For purposes of assessment, the president, treasurer or other proper officer of every banking organization, trust company or federal savings bank not headquartered in this State but maintaining branches in this State (or out-of-sta…

§ 1103. Review of tax. The assessment of tax under this chapter shall be reviewed and corrected by the State Bank Commissioner upon application by any party interested, prior to the first day of May in the year in which the tax is levied, if, upon such application, good cause be …

§ 1104. Date of payment and collection of tax; estimated tax. (a) Taxes imposed under this chapter are due and payable on or before March 1 in the year in which they are assessed, and after that date shall be collected by the State Bank Commissioner. Except that with respect to a…

§ 1105. Rate of taxation; credits [For application of this section, see 79 Del. Laws, c. 291, §§ 2 and 3]. (a) The rate of tax upon the taxable income of banking organizations, trust companies and federal savings banks not headquartered in this State but maintaining branches in t…

§ 1106. Disposition of taxes. All moneys collected or received under this chapter shall be the moneys of the State, and the State Bank Commissioner shall pay all amounts so collected and received into the General Fund of the State Treasury.32 Del. Laws, c. 104, § 11; Code 1935, §…

§ 1107. Duties of Attorney General. The Attorney General shall act as the legal representative of the State in all actions or proceedings had under this chapter, and shall render legal assistance to the State Bank Commissioner in executing the provisions hereof.32 Del. Laws, c. 1…

§ 1108. [Reserved.]

§ 1109. State corporation income and other taxes; exemption. Notwithstanding Title 30, all banking organizations, trust companies and federal savings banks not headquartered in this State but maintaining branches in this State being taxed in accordance with this chapter, shall be…

§ 1110. Severability. If any provision of this chapter or the application of any section or part thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid …

§ 1111. Period of limitation upon assessments. (a) Except as otherwise provided in this section, the amount of tax imposed by this chapter shall be assessed within 3 years after the last day prescribed for filing the return or, if later, the date the return was filed. (b) In the …

§ 1112. Period of limitation on credit or refund. Claim for a credit or refund of an overpayment of any tax imposed by this chapter shall be filed by the taxpayer with the Commissioner not later than 3 years from the last date prescribed for filing the return (including the time …

§ 1113. Secrecy of returns and information; penalty. (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the Commissioner or any person who is an officer or employee in the Office of the Commissioner, or for any other offi…

§ 1114. Abatements. (a) The Commissioner is authorized to abate the unpaid portion of the assessment of any tax, interest, penalty, additional amount or addition to the tax, or any liability in respect thereof, which is: (1) Excessive in amount; (2) Assessed after the expiration …

§ 1115. Closing agreements. The Commissioner, or any person authorized in writing by the Commissioner, is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of another person for whom such person acts) with respect to any…

§ 1201. Participation by banks located in State in export trading companies. Notwithstanding any other provision of this chapter, banks regulated hereunder may invest or otherwise participate in the capital and financing of, management, direction and advising of export trade comp…

§ 1301. Definitions. As used in this chapter, unless the context requires otherwise: (1) “Officers” means those persons designated by the banking organization’s board of directors or trustees to act for the banking organization. (2) “Emergency” means any condition which interfere…

§ 1302. Closing on legal holidays. Any banking organization may, at its option, either close or remain open on Saturdays, Sundays and the legal holidays designated in § 501 of Title 1 and holidays observed by the Federal Reserve Bank for the district which includes Delaware. As t…

§ 1303. Proclamation of emergency. Whenever the Governor declares a disaster or emergency under Chapter 31 of Title 20, banking organizations may close 1 or more or all of their offices when in the opinion of their officers such offices are directly or indirectly affected by such…

§ 1304. Powers of officers. Whenever the officers of a banking organization are of the opinion that an emergency exists which affects 1 or more of the organization’s offices, they shall have the authority to close 1 or more or all such offices even though the Governor has not iss…

§ 1305. Prompt notice required. A banking organization closing an office or offices pursuant to this chapter shall give as prompt notice to the State Bank Commissioner of its action as conditions will permit.65 Del. Laws, c. 298, § 1;

§ 1306. Immunity from liability. No banking organization and no director, officer or employee of a bank shall be liable to any person for any direct or indirect loss suffered by such person by reason of the organization’s failure or inability to make the organization’s premises a…

§ 1307. Construction of chapter. This chapter shall be construed and applied as being in addition to and not in substitution for any other law of this State or of the United States excusing delays by banking organizations in the performance of duties or obligations, or authorizin…

§ 1308. Limited operations authorized. A bank office closed as authorized by this chapter may nonetheless conduct limited operations and perform banking transactions.65 Del. Laws, c. 298, § 1;

§ 1801. Annual franchise tax; rate of taxation. (a) A franchise tax is hereby imposed on the “taxable income” of building and loan associations (computed on a basis that consolidates with the income of such building and loan association for the tax year involved, the income of al…

§ 1802. Report of net earnings and payment of tax; penalties. (a) Within 75 days after the end of its fiscal year the building and loan association, acting through its president, treasurer, or other proper officer, shall report under oath to the State Bank Commissioner, the net e…

§ 1803. Tax lien. If any building and loan association shall fail to pay any tax due under this chapter, on or before the due date, the full amount of all such tax due the State shall be a lien in favor of the State upon all property and all rights to property, real or personal, …

§ 1804. State corporation income tax; exemption. All building and loan associations being taxed in accordance with this chapter shall be exempt from the state corporation income tax beginning with the fiscal year for each such building and loan association in which this chapter s…

§ 1805. Rules and regulations. The State Bank Commissioner may, from time to time, adopt and promulgate rules and regulations for the reporting and collection of the franchise taxes imposed in accordance with this chapter and not inconsistent with this title.59 Del. Laws, c. 434,…

§ 1806. Exemption from other taxes. The taxation of the income of the building and loan associations under this chapter shall be in lieu of all taxes upon the capital, surplus, property and assets of such organization, except that no real estate owned by any such organization con…

§ 1807. Secrecy of returns and information; penalty. (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the Commissioner or any person who is an officer or employee in the Office of the Commissioner, or for any other offi…

§ 1808. Abatements. (a) The Commissioner is authorized to abate the unpaid portion of the assessment of any tax, interest, penalty, additional amount or addition to the tax, or any liability in respect thereof, which is: (1) Excessive in amount; (2) Assessed after the expiration …

§ 1809. Closing agreements. The Commissioner, or any person authorized in writing by the Commissioner, is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of another person for whom such person acts) with respect to any…

§ 1901. Members of association. All shareholders of record and all borrowers from a building and loan association shall be members thereof. A borrowing member obligated upon a real estate loan shall remain a member of the association, even though the member has transferred the re…

§ 1902. Special powers of domestic association. Building and loan associations organized under Title 8 may, in addition to the other powers granted in such title and this chapter, make loans to and among their stockholders and also to and among nonstockholders. Building and loan …

§ 1903. Authorized plans of operation. Any duly licensed or registered building and loan association doing business in this State, provided its charter permits, may issue serial shares, full paid shares, installment full paid shares, and may also make available to members savings…

§ 1904. Dividends. Every building and loan association duly licensed or registered, provided its charter shall permit, may provide either in its bylaws or by a resolution or resolutions of its board of directors a schedule of varying rates of dividends for different classes of sh…

§ 1905. Branch offices. The establishment of a branch office by a building and loan association shall be governed by § 2011 of this title. Branching of building and loan associations shall be limited to the extent permitted to banks chartered pursuant to Chapter 7 of this title.6…

§ 1906. Premiums, fines and fees. (a) The power to collect premiums, fines and membership fees within the limits of this chapter, or as permitted by any other law of this State, is granted to building and loan associations. Fines shall not be imposed against and collected from an…

§ 1907. Withdrawal value of shares. The withdrawal value paid in any 1 fiscal year to any shareholder of a building and loan association, after having paid all dues, interest, premiums, fines and membership fees due by the shareholder for a period of 1 year or more, shall be comp…

§ 1908. Investment of association’s funds in corporate stock. The funds of a building and loan association, existing under this Code or any other law of this State, shall not be invested in any corporation stocks. Nothing herein contained shall prevent a building and loan associa…

§ 1909. Membership in Federal Home Loan Bank. Any building and loan association incorporated under this Code or any other law of this State may become a member of the Federal Home Loan Bank, organized or to be organized in the district in which such building and loan association …

§ 1910. Borrowing from Federal Home Loan Bank. 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 the Federal Home Loan Bank and may secure advances from the Federal Home Loan Bank by t…

§ 1911. Power to borrow generally. Any building and loan association doing business in this State may borrow money from sources other than a Federal Home Loan Bank, and may secure the same by the assignment or pledge of any mortgage, mortgages, or other assets held by the buildin…

§ 1912. Limitation on loans not secured by first mortgage on real estate. Not more than 50 percent of the shareholders’ invested capital in any building and loan association doing business in this State shall be loaned on real estate security on other than first liens.32 Del. Law…

§ 1913. Matured stock. When, from the distribution of the profits of any building and loan association, the profits accruing to any series of stock show that the series has matured according to the provisions of the bylaws of the association, the association shall not make any fu…

§ 1914. Contingent fund. A building and loan association may set aside in its treasury, out of its earnings, a contingent fund which shall be used only for the purpose of paying losses and necessary expenses incurred in the maturing of any of its series of stock, and for the purp…

§ 1915. Undivided profits. Any building and loan association may, at the discretion of its board of directors set aside any surplus net income or other available earnings which remain after reserve and dividend requirements have been met and retain such funds in an undivided prof…

§ 1916. Fiscal agent. If and when an association is a member of a Federal Home Loan Bank, it shall have power to act as fiscal agent of the United States, and, when so designated by the Secretary of the Treasury, it shall perform, under such regulations as the Secretary may presc…