Title 5 Banking
2900 Financing the Sale of Motor Vehicles
2901 Motor Vehicle Sales Finance Companies Minimum Requirements for Content of Books and Records
5 Del.C. §122(b), §2906(e)
Formerly Regulation No.: 5.2906(e)/122(b).0001
Effective Date: November 12, 1999
1.0 Each licensed office shall establish and maintain the following books and records, on a current basis, either at the office of the licensed broker, or, at a suitable location available within a reasonable time period, upon request. Written approval may be granted for variations which accommodate individual accounting systems, including automated and electronic record processing 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 as 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.
1.1 Retail Installment Contract Applicant Register - This shall be a record showing the name of the applicant, identifying file number, date application was filed, name of lender, date of commitment, amount of lender’s fee, and date fee was paid. In the case of an applicant denied credit, the register shall contain the name of the applicant, identification number, date application was filed, date application was denied and reason for denial.
1.2 Individual Accounts with Borrowers - A record shall be kept for each borrower and shall include the following:
1.2.1 Name and address of the borrower;
1.2.2 Loan number;
1.2.3 Date of loan;
1.2.4 Total amount of loan;
1.2.5 Total sale price;
1.2.6 Rate of interest charges and the amounts of all charges;
1.2.7 Terms of repayment;
1.2.8 Description of motor vehicle;
1.2.9 Where and to whom hypothecated;
1.2.10 Names of endorsers, comakers, guarantors, or sureties;
1.2.11 The actual date of receipt of payment of principal and charges; and,
1.2.12 Name of assignee or purchaser of retail installment contract.
1.3 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 retained title or lien was released within the time period prescribed in Regulation 2902 (formerly Regulation No. 5.2906(e).0002, Item (4)).
1.4 Daily Transaction Record - All transactions involving either the receipt or disbursement of any amount whatsoever shall be entered in this record. Details of disbursements to, or for, the account of borrowers shall be itemized.
1.5 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:
1.5.1 Loan number, original amount of loan and unpaid balance;
1.5.2 Description of motor vehicle, attached, replevined, repossessed, or surrendered;
1.5.3 Date and terms of settlement of account or, if after judgement, the date and amount of judgement, prejudgement balance, current balance, unearned charges credited to borrower’s account, and legal costs;
1.5.4 Evidence of the terms of sale if the security was sold after repossession, such evidence including copies of all bids or other offers received together with the purchaser’s name and address, price, date of sale and cash or financing terms.
1.5.5 Evidence that notification of the time and place of sale was sent to the borrower;
1.5.6 Evidence of amount paid, if any, to third party repossessors; and,
1.5.7 Records of litigation accounts handled by attorneys or corporate collection centers shall be maintained in the existing (principal or branch) office and should reflect a correct current balance.
1.6 Credit Insurance Claims Register - A credit insurance claims register or file which is a record of all claims submitted by borrowers to the insurer shall disclose the following:
1.6.1 Date of claim;
1.6.2 Amount of claim;
1.6.3 Date and amount of payment by insurer or the date of rejection and the reason therefor;
1.6.4 Borrower’s name;
1.6.5 Loan number;
1.6.6 Reason for claim (i.e. death, illness, etc.);
1.6.7 Proof of death;
1.6.8 A copy of the check(s) issued by the insurance company in payment of life, accident, health, or accident and health benefits; and,
1.6.9 A copy of the check(s) issued by the insurance company, or other evidence of credit, which result from pre-payment of the loan or cancellation of the insurance.
1.7 In the event a loan is sold and no servicing performed, only those items listed in item 6 available prior to such sale shall be required.
3 DE Reg. 653 (11/01/99)
