Delaware General Assembly

Signed 4/29/02

The General Assembly has ended, the current status is the final status.

3/20/02

Adams

Sen. Sharp, Sokola, Sorenson
Reps. Carey, D. Ennis, Fallon, Hudson, Valihura, Houghton, Keeley

AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO BANKS AND OTHER FINANCIAL INSTITUTIONS.

Section 1. This section amends § 136 of Title 5 of the Delaware Code to clarify that the State Bank Commissioner has authority to issue cease and desist orders against unlicensed financial companies that engage in businesses or conduct activities that are regulated in Title 5. Section 2. This section amends § 137 of Title 5 of the Delaware Code so that the State Bank Commissioner may prohibit a person who has been removed from office for wrongful conduct from participating in the affairs of any financial institution that the Commissioner regulates or supervises. Section 3. This section amends § 143 of Title 5 of the Delaware Code to clarify that the State Bank Commissioner has authority to impose a civil money penalty on unlicensed financial companies that engage in businesses or conduct activities that are regulated in Title 5. Section 4. This section amends § 144 of Title 5 of the Delaware Code to clarify that the word "trust " may be used in the name of a financial institution that is an affiliate of a regulated trust institution. Section 5. This section amends § 928 of Title 5 of the Delaware Code to provide a penalty for unauthorized persons who represent themselves as being engaged in the business of a trust company, the same as the penalty for unauthorized persons who represent themselves as being engaged in the business of receiving deposits as a bank or trust company, and by otherwise clarifying the meaning of the section. Section 6. This sections amends §1404(a) of Title 5 relating to foreign bank branches, and encourages economic development by providing enhanced opportunities for foreign banks to conduct business in the State. Section 1404(a) already authorizes foreign bank "home state" branches in Delaware. New §1404 (a)(2) authorizes foreign banks that have operated agencies or limited purpose branches for at least five years to upgrade those to foreign bank branches, even though Delaware has not been elected as the "home state" for the foreign bank's U.S. operations. This takes advantage of an opportunity created under an amendment to the federal International Banking Act of 1978 that allows states to authorize foreign bank "host state" branches even though, like Delaware, those states do not permit "de novo" branching for domestic US. Banks based in other states. Section 7. This section imposes a criminal penalty on anyone who violates the provisions of Chapter 21, dealing with mortgage brokers. This penalty provision is substantially similar to the criminal penalty provisions that appear in other licensing chapters under Title 5, and clarifies the legal basis for the Attorney General to initiate enforcement actions for violations. Section 8. This section amends § 2902 of Title 5 of the Delaware Code by eliminating the license fee differential for in-state and out-of-state offices of motor vehicle sales finance companies by raising the fee for additional in-state office locations to $287.50 from $115.00. This is consistent with comparable provisions in other licensing chapters, under which the same fee for additional office locations is charged for both in-state and out-of-state offices. This amendment also clarifies § 2902 by eliminating the word "branch", which previously referred to additional in-state office locations as opposed to other types of offices. Section 9. This section provides for the severability of the provisions of the Act. Section 10. This section provides that the Act will become effective upon its enactment.

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Takes effect upon being signed into law

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