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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsOctober 2016

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(5 Del.C. §§121(b), 2112, 2210(e), 2741, and 2906(e))
5 DE Admin. Code 2101, 2201, 2701 and 2901
IT IS HEREBY ORDERED, this 7th day of September, 2016, that amended Regulations 2101, 2201, 2701 and 2901 are adopted as Regulations of the State Bank Commissioner. The effective date of each of these Regulations is October 13, 2016. These Regulations are adopted by the State Bank Commissioner in accordance with Title 5 of the Delaware Code and pursuant to the requirements of Chapters 11 and 101 of Title 29 of the Delaware Code, as follows:
Robert A. Glen, State Bank Commissioner
1.1 5 Del.C. Ch. 22 applies only to consumer credit transactions, including but not limited to, extensions of credit secured by one to four family residential, owner-occupied property located in this State intended for personal, family, or household purposes.
1.2 5 Del.C. Ch. 22 does not apply to:
1.2.3 lending that requires a license under 5 Del.C. Ch. 29, Financing the Sale of a Motor Vehicle.
2.1 All licensees shall comply with 5 Del.C. Ch. 22, all regulations issued thereunder, and all other applicable State and federal statutes and regulations.
3.0 Display of License and Payday Loan Notice
3.1 Each licensed office open to the public shall prominently display its license issued under 5 Del.C. Ch. 22 in clear view of all customers.
3.2 Each licensed office open to the public that provides short-term consumer loans as defined in 5 Del.C. §2227 shall also prominently post the following statement in plain view in an area easily accessible to its customers at the entrance to the office: “A payday loan is not intended to meet long-term financial needs.”
4.2 A licensee shall take all necessary action to discharge, satisfy or release any other security interest for a loan under 5 Del.C. Ch. 22 within 30 days from the date that the loan is satisfied or fully performed.
6.1 A licensee shall not sell, assign, or in any way transfer loan contracts to any person who is not licensed under 5 Del.C. Ch. 22 or licensed under a similar statute of another state, without the express written permission of the Commissioner.
Solely for the purposes of the loan limitation provisions contained in the last sentence of 5 Del.C. §2228(a), the term “loans” shall not be deemed to include loans secured by mortgages on real property located in this State (or secured by certificates of stock or other evidence of ownership interest in, or proprietary leases from corporations or partnerships formed for the purpose of cooperative ownership of real estate in this State) if such loans are originated by a licensee for resale and the licensee in fact sells, assigns or otherwise transfers the entire interest in the loan (except servicing, if servicing is retained) within 120 days following the date the loan is made. Upon written request, additional time may be granted at the discretion of the Commissioner.
8.1 Each licensee shall insure that every person who it employs, or is affiliated with it, as a mortgage loan originator, as defined by 5 Del.C. Ch. 24, to provide mortgage loan origination services has complied with all requirements of that Chapter and the regulations issued thereunder.
9.4 When a licensee advertises with respect to its services under 5 Del.C. Ch. 22, the advertisement may state that the licensee is licensed by the Delaware State Bank Commissioner to engage in business in this State under and may specify the license number and expiration date of the license.
10.1 If the licensee provides short-term consumer loans as defined in 5 Del.C. §2227, the home page shall prominently display the following statement: “A payday loan is not intended to meet long-term financial needs.”
Each licensee shall comply in all respects with 6 Del.C. Article 9, Secured Transactions, Part 6, Default.
14.1 The Nationwide Mortgage Licensing System and Registry, as the multistate automated licensing system in which the Commissioner is participating pursuant to 5 Del.C. §2213A, is authorized to act on behalf of the Commissioner to facilitate the application and licensing processes of 5 Del.C. Ch. 22 as to persons that employ, or have affiliated, a mortgage loan originator as defined by 5 Del.C. Ch. 24, and in that capacity, the System may, with respect to those persons:
14.2 Any person seeking an initial or renewal license to engage in a business that requires a license under 5 Del.C. Ch 22 shall submit the appropriate application and fees to the Commissioner through the Nationwide Mortgage Licensing System and Registry when that person employs, or has affiliated, a mortgage loan originator as defined by 5 Del.C. Ch 24. All other persons shall submit applications for licenses under 5 Del.C. Ch 22 directly to the Commissioner.
15.1 The Commissioner may examine licensees pursuant to 5 Del.C. §§122 and 2210. The cost of such examinations are assessed in accordance with 5 Del.C. §127(a). A licensee shall remit payment not later than 30 days after the date of the examination invoice.
Last Updated: December 31 1969 19:00:00.
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