Bill Text: DE SB216 | 2009-2010 | 145th General Assembly | Draft

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Bill Title: An Act To Amend Title 5 Of The Delaware Code Relating To Variable Rates For Revolving Credit Plans.

Spectrum: Slight Partisan Bill (Democrat 11-6)

Status: (Passed) 2010-06-10 - Signed by Governor [SB216 Detail]

Download: Delaware-2009-SB216-Draft.html

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SPONSOR:	Sen. DeLuca & Rep. B. Short
	Sens. Bonini Bunting Cook Katz Sokola Cloutier	Reps. Bennett Brady Hocker Hudson	Keeley Lavelle Ramone Viola D.E. Williams

DELAWARE STATE SENATE

145th GENERAL ASSEMBLY

SENATE BILL NO. 216

AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO VARIABLE RATES FOR REVOLVING CREDIT PLANS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.Amend Section 944 of Title 5 of the Delaware Code by adding at the end of that section the sentence:"Nothing herein precludes a bank from charging or reserving a right to charge, by discretion or otherwise, a rate lower than any maximum rate provided for in any schedule or formula."

Section 2.Amend Section 2217 of Title 5 of the Delaware Code by adding at the end of that section the sentence:"Nothing herein precludes a licensee from charging or reserving a right to charge, by discretion or otherwise, a rate lower than any maximum rate provided for in any schedule or formula."

Section 3.If any provision of this Act or its application to any person or circumstance is held invalid, the remainder of the Act or the application of the provision to other persons or circumstances shall not be affected.

Section 4.This Act shall take effect upon enactment.

SYNOPSIS

This Act provides a clarifying amendment to §944 of Title 5 of the Delaware Code, and does not change the meaning of the existing statute.The Act clarifies that a schedule or formula providing for a maximum rate of interest under a revolving credit plan does not preclude a bank or licensed lender regulated by the State Bank Commissioner from charging or reserving the right to charge, by discretion or otherwise, a rate lower than any maximum rate provided for in any schedule or formula.The clarification is prompted by a conflict in recent court decisions construing this section.

Author:Senator DeLuca