AN ACT TO AMEND TITLE 5, PARAGRAPH 1906 OF THE REVISED CODE OF DELAWARE, 1953, BY PERMITTING BUILDING AND LOAN ASSOCIATIONS IN CONNECTION WITH SERIAL SHARES WHICH ARE MORE THAN SIX MONTHS IN ARREARS EITHER TO CANCEL SAME AND DEPOSIT THE AMOUNT DUE SHAREHOLDERS IN AN ACCOUNT IN THE FARMERS BANK OF THE STATE OF DELAWARE OR INVEST IN AN ACCOUNT IN THE ASSOCIATION.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. § 1906, Title 5, Delaware Code, is amended by striking out all of Subparagraph (a) thereof and substituting therefor a new Paragraph (a) to read as follows:
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 any serial shareholder for more than six consecutive months at a greater rate than five cents per month for each dollar past due, and after the expiration of six months, at a greater rate than one-half of one percent per month for each dollar past due. Any serial shareholder who is six months in arrears in the payment of his or her monthly dues may be required to withdraw any balance due the shareholder from the association. If any serial shareholder, who is delinquent six months or more in payment of monthly dues, refuses to accept settlement from the association, or if the association is unable to locate the shareholder, then the association may (a) deposit the amount due the shareholder to his or her credit in an account in The Farmers Bank of the State of Delaware or (b) invest in a Full Paid share account or an Installment Full Paid share account or a similar account of the association in the name of the shareholder.
Approved December 7, 1965.