5 Del.C. §2213

Formerly Regulation No.: 5.2213.0002

Effective Date: November 12, 1999

Each licensed office shall establish and maintain the following books and records, including automated and electronic record processing systems, on a current basis, either at the office of the licensed lender, or, at a suitable location available within a reasonable time period, upon request. Written approval may be granted for variations that accommodate individual accounting systems, provided the objectives of this regulation are fulfilled. Requests for such approvals must be in writing and shall provide adequate information about the system to ensure that the minimum record requirements are satisfied and provide the required data on a current and readily available basis to examiners, when requested. The following records shall be maintained in accordance with the time periods provided in Regulation No. 101 (formerly regulation 5.141.0001.NC) Retention of Financial Institutions Records:

1.0 Loan Register - This record shall show the account number, date of loan, name of borrower, type of security, contract rate or annual percentage rate, and amount of loan. In the case of an applicant denied credit, the register shall contain the name of the applicant, identification number, date application was filed and, if known, date application was denied and reason for denial.

2.0 Individual Accounts with Borrowers - A record or ledger sheet shall be kept for each borrower and shall include the following:

2.1 Name and address of the borrower;

2.2 Loan number;

2.3 Face amount of loan;

2.4 Date of loan;

2.5 Rate of interest charges and the amounts of all charges;

2.6 Terms of repayment;

2.7 Type of security;

2.8 Where and to whom hypothecated;

2.9 Names of endorsers, co-makers, guarantors, or sureties;

2.10 The actual date of receipt of payment of principal and charges; and,

2.11 Name of assignee of mortgage note.

In addition, the record or ledger sheet shall be kept in such manner as to show at once the balance due on principal.

3.0 File of All Original Paper - (or copies thereof). All obligations and disclosure forms signed by the borrower and taken in connection with loans made shall bear the loan number, shall be maintained in one file, and shall be made available to the examiners when requested. Such file, if applicable, shall include evidence that a mortgage of record has been appropriately removed.

4.0 Daily Transaction Record - All transactions involving either the receipt or disbursement of any amount whatsoever shall be recorded. Details of disbursements to, or for the account of, borrowers shall be itemized.

5.0 Record of Loans in Litigation and Repossessions - A record of all loans in litigation, repossessions, or voluntary surrenders shall be maintained either on the borrower's account record or a litigation record. If a composite record of such loans is not kept, the loans shall be maintained in a separate litigation and repossession file. The litigation and repossession record shall disclose the following information:

5.1 Loan number, original amount of loan and unpaid balance;

5.2 Type of security foreclosed, attached, replevined, repossessed, or surrendered;

5.3 Date and terms of settlement of account or, if after judgment, prejudgment balance, current balance, unearned charges credited to borrower's account, and legal costs;

5.4 Evidence that the terms of sale were fair to the borrower, if the security was sold after repossession; and,

5.5 Records of litigation accounts handled by attorneys or corporate collection centers shall be maintained in the branch office and should reflect a correct current balance.

6.0 Credit Insurance Claims Register - A credit insurance claims register or file that is a record of all claims submitted by borrowers to the insurer shall disclose the following:

6.1 Date of claim

6.2 Amount of claim;

6.3 Date and amount of payment by insurer or the date of rejection and the reason therefor;

6.4 Borrower's name;

6.5 Loan number;

6.6 Reason for claim (i.e. death, illness, etc.);

6.7 Proof of death;

6.8 A copy of the check(s) issued by, or other record of disbursement by, the insurance company in payment of life, accident, health, or accident and health benefits; and,

6.9 A copy of the check(s) issued by, or other record of disbursement by, the insurance company to rebate unearned insurance premiums, which result from pre-payment of the loan or cancellation of the insurance.

7.0 In the event a loan is sold and no servicing performed, only those items listed in item 6.0 available prior to such sale shall be required.

See 3 DE Reg. 653 (11/01/99)