Delaware General Assembly





BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each House thereof concurring therein):

Section 1. Amend Chapter 1, Title 5, Section 124, Delaware Code by adding thereto the following new language:

The Commissioner may enter into cooperative agreements to include, but not be limited to, the sharing of examination reports with appropriate State and Federal authorities, and the Commissioner may enter into joint actions with other regulatory authorities to assure the safety and soundness of any Delaware bank and to assure compliance with applicable Delaware banking laws, consistent with the purposes of this chapter."

Section 2. Amend Chapter 7, Title 5, Delaware Code by adding thereto a new Section 793 entitled "Conversion of Consumer Credit Bank".

"(a) Any bank formed under Chapter 10 of this Title may become a bank substantially all of the voting stock of which is held by an out-of-state bank holding company, which shall be deemed as having been formed under and which shall be governed by the provisions of Chapter 7 and Subchapter 1 of Chapter 8 of this Title if, within 45 days of the receipt by the Commissioner of an application in such form as the Commissioner shall from time to time prescribe, jointly submitted and sworn to by the Directors of both the bank and its out-of-state bank holding company, the Commissioner shall find that the conditions of Section 803 of this Title are met with respect to such bank, and that no grounds for objection exist on the basis of the criteria set forth in Section 804(b) of this Title.

(b) The Commissioner shall, at least once during each of the first two weeks following the filing of an application under this Section, cause to be filed in a newspaper having state-wide circulation, at the expense of the applicants, a notice of the filing of such application, which notice shall invite public inspection and comment thereon prior to the expiration of the 45 day period.

(c) If, based upon the application and any other information filed with the Commissioner in support of or objection to such application, the Commissioner shall have cause to believe that the applicants would not satisfy one or more criteria for the issuance of a certificate of public convenience and advantage in accordance with Section 804(b) of this Title, the Commissioner shall, not later than 45 days after receipt of the application, advise applicants of such objection, together with the grounds therefor. At the request of applicants, the Commissioner shall forthwith prdceed to give notice, conduct a hearing, and make findings in connection with the criteria set forth in Section 804(b) of this Title, in the same manner as would occur under Section 804 where an applicant makes application to first acquire the stock of a de nova bank.

(d) Upon a determination in accordance with either subsection (a) or subsection (c) of this Section that the applicants have met the conditions of Section 803 and the criteria of Section 804 of this Title, the Commissioner shall issue a certificate certifying such compliance and ordering and approving the conversion of the bank, which certificate shall be duly filed with the Secretary of State. A certified copy of such filing shall constitute the certificate authorizing commencement of business pursuant to Section 733 of this Title. From and after such filing, the bank shall be governed by the provisions of Chapters 7 and 8 of this Title and any other law of this State regulating banks generally and shall not be subject to any provision of Chapter 10 of this Title or any regulation promulgated thereunder.

(e) The resulting bank shall pay to the office of the State Bank Commissioner a fee of $5,000 for use of the State upon approval of the conversion. In addition, the resulting bank shall pay an investigation fee of $1,000 which shall not be refundable and which shall be submitted with the application."

Section 3. Amend Section 1038, Chapter 10, Title 5, Delaware Code by adding thereto a new subsection (d), which subsection shall read as follows:

"(d) Notwithstanding any of the provisions of this section, a Consumer Credit Bank created under this Chapter may adopt such amendments to its certificate of incorporation or charter as are necessary to permit such bank to comply with the provisions governing the conversion of a consumer credit bank charter pursuant to Section 793 of this Title."

Approved April 5, 1990.