Title 5, Banking

§ 106. Seal. The Commissioner shall use the official seal, a full description of which, with the impress thereof, has heretofore been filed in the office of the Secretary of State. Such seal shall continue to be the official seal of the Commissioner until changed by authority of …

§ 107. Annual report. The Commissioner shall make an annual report of all the Commissioner’s official acts to the Governor.30 Del. Laws, c. 111, § 14; Code 1935, § 2287; 5 Del. C. 1953, § 107; 70 Del. Laws, c. 186, § 1;

§ 108. Prohibited relationships with supervised institutions. The Commissioner, Deputy Commissioners, examiners or compliance reviewers employed by the Commissioner, or such person’s spouse or such person’s son or daughter residing at such person’s residence shall not obtain a lo…

§ 109. Delaware Community Investment Venture Fund. (a) In this section, the following word has the meanings indicated: “Low- to moderate-income tract” means a census tract delineated by the United States Census Bureau in the most recent decennial census as published by the Federa…

§ 121. Supervision over banks and other financial institutions; administration and enforcement of title. (a) The Commissioner shall have authority to administer and enforce all the provisions of this title and shall have supervision over: (1) All state banks, savings banks, trust…

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

§ 123. False statements, entries or reports; penalty. Every director, officer, agent, clerk or employee of any institution affected by § 122 of this title, who wilfully and knowingly subscribes or makes any false statement of facts or false entries in the books of the institution…

§ 124. Commissioner’s report of examination; cooperation with other regulatory agencies. (a) The Commissioner shall make and file in the Commissioner’s office a detailed report of each examination made by the Commissioner or any of the employees who work for the Commissioner, and…

§ 125. Disclosure of information; penalty. (a) The Commissioner and each of the employees who work for the Commissioner shall be bound by their oath of office to keep secret all the facts and information obtained in the course of the examination, except insofar as public duty sha…

§ 126. Exemptions from examination. (a) Any state bank or trust company which is a member of the Federal Reserve Bank in the Federal Reserve District embracing the State, and which shall be examined by a Federal Reserve Examiner, may be exempted from examination by the Commission…

§ 127. Fees for examination; supervisory assessment [For application of this section, see 85 Del. Laws, c. 62, § 124, effective July 1, 2025]. (a) The Commissioner shall charge each institution examined by the Commissioner or by the Commissioner’s direction an examination fee bas…

§ 128. Federal Reserve System reserve requirements. The Commissioner, in determining, in the course of the Commissioner’s examination, the amount of lawful money reserve required under this Code and any other law of this State to be maintained, at all times, by state banks and tr…

§ 129. Insufficient proportion of assets in cash or readily convertible securities; Commissioner’s notice to directors, stockholders, etc. Whenever the Commissioner shall be satisfied from the Commissioner’s examination of any bank or trust company (other than savings banks and s…

§ 130. Impaired capital; procedure upon failure to make good. If the Commissioner believes that the capital of any bank or trust company under the Commissioner’s jurisdiction has been impaired, the Commissioner may require it to make good the deficiency within such time as the Co…

§ 131. Unsound condition of bank or trust company; receivership. (a) If the Commissioner deems that the affairs of any bank or trust company are in an unsound condition because of illegal or unsafe investments, or that its liabilities exceed its assets, or that it is transacting …

§ 132. Possession and operation of bank or trust company by Commissioner without receivership. If by reason of any circumstance or condition whatsoever, the Commissioner shall be satisfied that it is necessary for the protection of the depositors and the conservation of the asset…

§ 133. Employment of assistants. The Secretary of State may employ such persons outside the regular force in the State Banking Department as the Secretary deems necessary or proper to assist the Commissioner in the performance of the Commissioner’s duties, whether acting as recei…

§ 134. Commissioner’s costs and expenses as receiver; priority. The costs and expenses incurred by the Commissioner in acting as the receiver for any bank or trust company, including the compensation and expenses of all assistants, shall be paid out of the assets of the said bank…

§ 135. Moratorium on deposit withdrawals and segregation of new deposits. The Commissioner may, in addition to all other powers, whenever in the Commissioner’s judgment the circumstances warrant it, authorize any and all banks and trust companies under the Commissioner’s jurisdic…

§ 136. Cease and desist orders. (a) If, in the opinion of the Commissioner, a financial institution subject to this title or any other financial company is engaging in or has engaged in, or if the Commissioner has reasonable cause to believe that such institution or company is ab…

§ 137. Removal of officer or director. The Commissioner shall have the power to remove any officer or director of a bank, trust company, building and loan association or building and industrial development corporation subject to supervision by the Commissioner and also to prohibi…

§ 138. Hearings. A hearing conducted pursuant to § 136, § 137 or § 143 of this title shall be conducted in accordance with Chapter 101 of Title 29; provided, however, that such a hearing shall be a nonpublic hearing, notwithstanding any statute or rule to the contrary. A nonpubli…

§ 139. Judicial review. (a) Orders issued by the Commissioner pursuant to §§ 136 and 137 of this title shall be enforced by the Court of Chancery, subject to the following conditions and limitations: (1) Any person aggrieved and directly affected by an order of the Commissioner i…

§ 140. Notice to federal authorities. In connection with any proceeding under this chapter involving a financial institution under the concurrent supervision of a federal agency and the Commissioner, the Commissioner shall provide the appropriate federal agency with notice of any…

§ 141. Retention of financial institution records. (a) All records of financial institutions and of federally chartered financial institutions, insofar as this section does not contravene paramount federal law, shall be retained for such minimum periods as the Commissioner may pr…

§ 142. Subpoena powers. The Commissioner’s authority to subpoena witnesses and documents outside the State shall exist to the maximum extent permissible under federal constitutional law.68 Del. Laws, c. 303, § 8;

§ 143. General penalty. (a) (1) Notwithstanding any other provisions of this title, the Commissioner may, if the Commissioner finds that any financial institution or financial company has violated any provision of this title or any regulation implementing said title: a. Issue a n…

§ 144. Restrictions on use of words “savings” or “trust” in corporate name [For application of this section, see 85 Del. Laws, c. 346, § 9]. No financial institution established under this title shall have or use the word “savings” in its title or name, except for a savings bank …

§ 145. Financial institution supervisory privilege. (a) For purposes of this section, the following definitions shall apply: (1) “Confidential supervisory information” means any of the following information, or any portion of any such information, other than any ordinary business…

§ 160. Prior permission required. (a) No person, acting directly or indirectly or through or in concert with 1 or more other persons, shall acquire control of any Delaware chartered bank or trust company through a purchase, assignment, transfer, pledge or other disposition of vot…

§ 161. Publication required. Any person filing a notice shall publish in a local newspaper of general circulation an announcement of the Commissioner’s acceptance of the sufficiency of the notice.66 Del. Laws, c. 24, § 1;

§ 162. Content of notice. Except as otherwise provided by regulation of the Commissioner, a change of control notice filed under this subchapter shall contain at least the following information: (1) The identity, personal history, business background and experience of each person…

§ 163. Disapproval of an application. The Commissioner may disapprove any proposed acquisition if: (1) The proposed acquisition of control would result in a monopoly or would be in furtherance of any combination of conspiracy to monopolize or attempt to monopolize the business of…

§ 164. Notice and hearing. Having decided to disapprove any proposed acquisition the Commissioner shall promptly notify the acquiring party in writing of the disapproval. Such notice shall provide a statement for the basis of the disapproval. Within 10 days after the receipt of s…

§ 165. Civil actions and penalties. Any person who wilfully violates any provision of this subchapter, or any regulation or order issued by the Commissioner pursuant thereto, shall forfeit and pay the civil penalty of not more than $10,000 per day for each day during which such v…

§ 166. Injunction. The State Bank Commissioner is empowered to seek an injunction for violation of this subchapter and any such action shall be brought in the Court of Chancery.66 Del. Laws, c. 24, § 1;

§ 167. Definitions. For purposes of this subchapter, the following words and phrases shall have the meanings ascribed to them herein: (1) “Control” means the power, directly or indirectly, to direct the management or policies of a Delaware chartered bank or trust company or to vo…

§ 168. Exceptions; authority for emergency acquisitions. (a) This subchapter shall not apply to the formation of new banks and trust companies, the merger of existing banks or trust companies or to the formation of bank holding companies or savings and loan holding companies or t…

§ 701. Establishment of banks and trust companies; savings banks and national banks [For application of this section, see 85 Del. Laws, c. 337, § 24]. (a) Except as specifically provided by Chapter 15 or Chapter 16 of this title, banks and trust companies shall be established or …

§ 702. Applicability of other laws. Every corporation (but not including a limited liability company) created under this chapter shall be deemed to be subject to and entitled to the benefit of this Code and any other general statutes of this State making provision for the regulat…

§ 703. Taxation. Every corporation and limited liability company created by or under this chapter, and every corporation and limited liability company whose charter, certificate of incorporation or certificate of formation is amended under this chapter, shall be subject to the sa…

§ 704. Reserved power of State to amend or repeal this chapter. This chapter may be amended or repealed, at the pleasure of the General Assembly, but such amendment or repeal shall not take away or repeal any remedy against any corporation established under this chapter, or its o…

§ 705. Revocation for nonuse of charters granted prior to July 1, 1933. Every charter authorizing the establishment of a bank or trust company in this State and which was granted or passed by the General Assembly of this State prior to the 1st day of July, 1933, shall be deemed a…

§ 706. Limited liability companies as trust companies, conversions [For application of this section, see 85 Del. Laws, c. 346, § 9]. (a) Notwithstanding any other provision of law to the contrary, a trust company, including a limited purpose trust company or a family trust compan…

§ 721. Restrictions on use of words “savings” or “trust” in corporate name [Repealed]. Repealed by 70 Del. Laws, c. 6, § 2, eff. Feb. 10, 1995.

§ 722. Incorporators; number and qualifications. Three or more persons, at least 2 of whom must be citizens and residents of this State, of lawful age who associate themselves by a written agreement, hereinafter called “articles of association,” for the purpose of forming a bank …