Bill Text: DE HB286 | 2015-2016 | 148th General Assembly | Draft
Bill Title: An Act To Amend Title 5 Of The Delaware Code Relating To Financial Institutions.
Spectrum: Slight Partisan Bill (Republican 10-4)
Status: (Passed) 2016-05-09 - Signed by Governor [HB286 Detail]
Download: Delaware-2015-HB286-Draft.html
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SPONSOR: |
Rep. Paradee & Sen. Ennis |
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Reps. Baumbach, Briggs King, Carson, Gray, Outten, D. Short, Spiegelman, Wilson; Sens. Cloutier, Hocker, Lavelle |
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HOUSE OF REPRESENTATIVES 148th GENERAL ASSEMBLY |
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HOUSE BILL NO. 286 |
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AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO FINANCIAL INSTITUTIONS. |
Section 1.Amend Title 5, §122 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 122 Examination of financial institutions.
(f) The Commissioner or the Commissioner's lawful designee may examine, to the same extent as if the services or activities were performed by a financial institution on its own premises, the performance of data processing, electronic funds transfers, or other financial institution services on behalf of a financial institution by any other person.
Section 2.Amend Title 5, §127(b) of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
(b) The Commissioner shall assess annually
each institution subject to examination by the Commissioner or by the
Commissioner's direction a supervisory assessment based on the total assets of
said institutions as of December 31 each year; provided however, that there shall
be allowed as a credit against this assessment the amount of the supervisory
assessment otherwise due from a subsidiary of such institution. Notwithstanding
the foregoing sentence, the supervisory assessment on branches in this State of
out-of-state banks (as defined in §795 of this title) shall be based on assets
calculated as the greater of §1101(i)(2)(i) or (i)(3)(i) of this title
[repealed]. The supervisory assessments are to provide for the balance of
the budget of the office of the Commissioner not covered under subsection (a)
of this section. The assessment shall not exceed 5 cents for each $1,000 of an
institution's total assets. In no event shall the assessment to any institution
be less than $500 when the examination is conducted within the State and $1,000
when the examination is conducted outside the State. The Commissioner shall
compute the rate per $1,000 of assets required for the ensuing fiscal year and
submit such data to the Council on Banking by July 10 each year. The rates
shall be invoiced to the institutions on July 15 each year, and are due and
payable on August 1 each year. If any institution shall fail to pay the
supervisory assessment due under this section on or before the August 1 due
date, a penalty of 0.05 percent shall be assessed for each day that the
supervisory assessment shall remain unpaid after such date.
Section 3.Amend Title 5, §2106 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§2106 License requirements.
A licensee shall obtain a license for each office or other place of
business from which its mortgage loan brokerage business is conducted upon
payment of the required fees for each office and compliance with all applicable
provisions of law. Each license issued under this chapter shall state the
address at which the business is to be conducted and shall state fully the name
of the licensee. Such license shall be posted in a prominent position in the
therein-designated place of business of the licensee. In the event such
the location of a licensed office is changed during the term
of the license, the Commissioner shall issue without charge an amended
license showing for the new location. If there is a change of
name but no change in corporate or other business structure, the Commissioner
shall issue without charge an amended license showing for the new
name. Such license shall not otherwise be transferrable or assignable. The
Commissioner may issue more than 1 license to the same applicant upon payment
of the required fees and compliance with all applicable provisions of law.
Section 4.Amend Title 5, §2206(a) of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§2206 License requirements; acquisition.
(a) A licensee shall obtain a license
for each office or other place of business from which its licensed business is
conducted upon payment of the required fees for each office and compliance with
all applicable provisions of law. Each license issued under this chapter
shall state the address at which the business is to be conducted and shall
state fully the name of the licensee. A copy of such license shall be
prominently posted in each place of business of the licensee. In case such
location be changed, In the event the location of a licensed office is
changed during the term of the license, the Commissioner shall issue
without charge an amended license showing for the new location.
In case there is a change of name but no change in corporate structure, the
Commissioner shall issue without charge an amended license showing for
the new name. Such license shall not be otherwise transferable or assignable. No
licensee shall maintain an office at any other location than that designated in
the license. The Commissioner may issue more than 1 license to the same
applicant upon payment of the required fees and compliance with all applicable
provisions of law.
Section 5.Amend Title 5, §2308(b) of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
(b) A licensee shall obtain a license
for each office or other place of business from which its licensed business is
conducted upon payment of the required fees for each office and compliance with
all applicable provisions of law. Each license issued under this chapter
shall state the address at which the business is to be conducted and shall
state fully the name of the licensee. A copy of such license shall be
prominently posted in each place of business of the licensee. In case such
location be changed, In the event the location of a licensed office is
changed during the term of the license, the Commissioner shall issue
without charge an amended license showing for the new location. In
case there is a change of name but no change in corporate structure, the
Commissioner shall issue without charge an amended license showing for
the new name. Such license shall not be otherwise transferable or assignable. No
licensee shall maintain an office at any other location than that designated in
the license. The Commissioner may issue more than 1 license to the same
applicant upon payment of the required fees and compliance with all applicable
provisions of law.
Section 6.Amend Title 5, §2712 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§2712 Form and contents of application for license.
Application for a license required by §2711 of this title shall be in
writing, under oath, and in the form prescribed by the State Bank
Commissioner, and shall state the name and the address (both of the residence
and place of business) of the applicant, and if the applicant is a
copartnership or association, of every member thereof, and if a corporation, of
each officer and director thereof. If the business is to be conducted at a
specific address, the application shall state the address at which the business
is to be conducted, and if the business is to be conducted from a mobile unit,
the Delaware State registration number or other identification of the mobile
unit, and the area in which the applicant proposes to operate the mobile unit.
The application shall also contain such further information as the Commissioner
requires.
Section 7.Amend Title 5, §2716 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§2716 Issuance of license; conditions precedent.
If the State Bank Commissioner finds that the
financial responsibility, experience, character and general fitness of the
applicant, and of the members thereof if the applicant is a copartnership or
association, and of the officers and directors thereof if the applicant is a
corporation, are such as to command the confidence of the community and to
warrant belief that the business will be operated honestly, fairly and
efficiently within the purposes of this chapter, and if the Commissioner finds
that the granting of the application will promote the convenience and advantage
of the area in which such business is to be conducted, and if the Commissioner
finds that the applicant has available for the operation of the business for
each location and for each mobile unit specified in the application liquid
assets of at least $5,000, the Commissioner shall thereupon execute issue
a license in duplicate to permit the cashing of checks, drafts and money
orders in accordance with this chapter at the location or in the area specified
in the application. The Commissioner shall transmit 1 copy of the license to
the applicant and file another in the office of the State Banking Department.
Section 8.Amend Title 5, §2718 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§2718 Form of license.[Repealed.]
The license to cash checks, drafts or money
orders shall state: The name of the licensee; if the licensee is a
copartnership or association, the names of the members thereof; if the business
is to be conducted at a specific address, the address at which the business is
to be conducted; and if the business is to be conducted through the use of a
mobile unit, the Delaware State registration number or other identification of
the mobile unit and the area in which the mobile unit is authorized to do
business.
Section 9.Amend Title 5, §2724 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§2724 Change of place of business or area; change of name.
(a) A licensee may make a written
application to the State Bank Commissioner for leave to change the licensee's
place of business, or in the case of a mobile unit, the area in which the unit
is authorized to be operated, stating the reasons for the proposed change. If
the Commissioner approves the application the Commissioner shall issue a new
license in duplicate in accordance with §§ 2716-2720 of
this title, stating for the new location of the licensee or, in
the case of a mobile unit, the new area in which the mobile unit may be
operated.
(b) In case there is a change in name but
no change in corporate structure of a licensee, the Commissioner shall issue
without charge an amended license showing for the new name.
Section 10.Amend Title 5, §2719 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:
§2719 Display of license. [Repealed.]
The license issued pursuant to this chapter
shall be kept conspicuously displayed in the place of business of the licensee
or, in the case of a mobile unit, upon the mobile unit.
Section 11.Amend Title 5, §2744 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§2744 Limitations on business. [Repealed.]
No licensee shall at any time cash or advance
any moneys on a post-dated check or draft or engage in the business of
transmitting money or receiving money for transmission.
Section 12.Amend Title 5, §2902 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§2902 Licensing of sales finance companies required.
(a) No person shall engage in the business of a sales finance company in this State without a license therefor as provided in this chapter; provided, however, that the licensing requirements of this chapter shall not apply to any banking organization, federal credit union or insurance company, or any other person, if and to the extent that such person is engaging in the business of a sales finance company in this State in accordance with and as authorized by any other applicable law of this State or the United States.
(b) The
application for such license shall be in writing, under oath, and in the
form prescribed by the Commissioner. The application shall contain the name of
the applicant; the address, or addresses, where the business is or is to be
conducted; the name and resident address, or addresses, of the owner or
partners or, if a corporation or association, of the directors, trustees and
principal officers; and such other pertinent information as the Commissioner
may require.
(c) The license fee for each calendar year or part thereof shall be the sum of $287.50 for the principal place of business of the licensee and the sum of $287.50 for each additional office of the licensee.
In addition, the original application for the initial license shall be accompanied by an investigation fee in the amount of $287.50 which shall not be refundable.
(d) A
licensee shall obtain a license for each office or other place of business from
which its licensed business is conducted upon payment of the required fees for
each office and compliance with all applicable provisions of law. Each
license shall specify the location of the office and must be conspicuously
displayed there. In case such location be changed, In the event the
location of a licensed office is changed during the term of the license, the
Commissioner shall issue without charge an amended license showing for
the new location. The Commissioner may issue more than 1 license to the same
applicant upon payment of the required fees and compliance with all applicable
provisions of law.
(e) Upon
the filing of such application, and the payment of said fee, the Commissioner
shall issue a license to the applicant to engage in the business of sales
finance company under and in accordance with the provisions of this chapter for
a period which shall expire the last day of December next following the date of
its issuance. In case there is a change of name but no change in corporate
structure, the Commissioner shall issue without charge an amended license showing
for the new name. Such license shall not be otherwise transferable or
assignable. No licensee shall transact any business provided for by this
chapter under any other name.
Section 13.This Act shall take effect upon its enactment into law.
SYNOPSIS
This Act facilitates the modernization of practices and procedures at the Office of the State Bank Commissioner.In particular, this Act authorizes the State Bank Commissioner to examine data processing, electronic funds transfers, or other financial institution services that are provided to a regulated financial institution by a third party.This will enable the State Bank Commissioner to participate in multi-state examinations of such third party service providers.This Act also deletes an obsolete provision relating to the calculation of supervisory assessments on branches of out-of-state banks.This Act enables the Office of the State Bank Commissioner to reduce the volume of paper generated by the office, by eliminating outdated requirements relating to the issuance of paper licenses and the display and posting of paper licenses.This Act removes an unnecessary restriction on check cashers licensed under Chapter 27 engaging in other licensed activities under other licensing chapters in Title 5.In addition, this Act removes outdated requirements that license applications under Chapters 27 and 29 be made under oath.
