TITLE 5


Banking


State Banking Agencies


CHAPTER 1. STATE BANK COMMISSIONER


Subchapter I. General Provisions


§ 101. Definitions.


For the purpose of this Code and any other laws of this State relating to banks or banking, unless otherwise specifically
defined, or unless another intention clearly appears, or unless the context requires a different meaning:


(1) "Affiliate" means a person that directly or indirectly through 1 or more intermediaries, controls or is controlled by
or is under common control with, the person specified.


(2) "Automated service branch" means an automated teller machine, cash dispensing machine or other electronic facility located
in this State installed or operated by any bank, remote from its main office or any branch office, by which funds may be deposited
into or withdrawn from established accounts, advances may be obtained against previously authorized lines of credit, transfers
of funds between accounts may be made, loan and other payments may be made or cash may be received or dispensed.


(3) "Bank" means every bank and every corporation conducting a banking business of any kind or plan whose principal place
of business is in this State, except a national bank.


(4) "Banking organization" means:


a. A bank or bank and trust company organized and existing under the laws of this State;


b. A national bank, including a federal savings bank, with its principal office in this State;


c. An Edge Act corporation organized pursuant to § 25(a) of the Federal Reserve Act, 12 U.S.C. § 611 et seq., or a state chartered
corporation exercising the powers granted thereunder pursuant to an agreement with the Board of Governors of the Federal Reserve
System, and maintaining an office in this State;


d. A federal branch or agency licensed pursuant to § 4 and § 5 of the International Banking Act of 1978, 12 U.S.C. § 3101
et seq., to maintain an office in this State;


e. A foreign bank branch, foreign bank limited purpose branch or foreign bank agency organized pursuant to Chapter 14 of this
title, or a resulting branch in this State of a foreign bank authorized pursuant to Chapter 14 of this title; or


f. A resulting branch in this State of an out-of-state bank (as defined in § 795 of this title, and also including branch
offices in this State of an out-of-state bank, as defined in § 795 of this title).


(5) The terms "borrowing," "deposit" and "extension of credit" as they relate to the activities of international banking facilities
shall have the meanings ascribed to them in pertinent regulations adopted by the Board of Governors of the Federal Reserve
System, as such regulations may be amended from time to time.


(6) "Capital stock" means both common stock and preferred stock.


(7) "Commissioner" means the State Bank Commissioner.


(8) "Control" means, directly or indirectly or acting through one or more other persons, to own, control or have the power
to vote 25 percent or more of any class of voting securities, to control in any manner the election of a majority of the directors
or trustees, or to exercise a controlling influence over the management or policies of a bank, trust company, other financial
institution or any other company.


(9) "Financial institution" means any bank, trust company or other institution or person either licensed under this title
or subject to the supervision and regulation of the State Bank Commissioner.


(10) "Foreign bank" means any company organized under the laws of a foreign country, a territory of the United States, Puerto
Rico, Guam, American Samoa or the Virgin Islands, which engages in the business of banking, or any subsidiary or affiliate,
organized under such laws, of any such company. The term "foreign bank" includes, without limitation, foreign commercial banks,
foreign merchant banks and other foreign institutions that engage in banking activities usual in connection with the business
of banking in the countries where such foreign companies are organized or operating.


(11) "Foreign bank agency" means an office in this State of a foreign bank that is exercising the powers authorized by § 1404(b)
of this title.


(12) "Foreign bank branch" means an office in this State of a foreign bank that is exercising the powers authorized by § 1404(a)
of this title.


(13) "Foreign bank limited purpose branch" means an office in this State of a foreign bank that is exercising the powers authorized
by § 1404(c) of this title.


(14) "Foreign country" means any country other than the United States, and includes any colony, dependency or possession of
any such country.


(15) "International banking facility" means a set of asset and liability accounts, segregated on the books and records of
a banking organization, that includes only international banking facility deposits, borrowings and extensions of credit.


(16) "International banking transaction" means any of the following transactions, whether engaged in by a banking organization,
any foreign branch thereof (established pursuant to § 771 of this title or federal law) or any subsidiary corporation directly
or indirectly owned by any banking organization:


a. The financing of the exportation from, or the importation into, the United States or between jurisdictions abroad of tangible
property or services;


b. The financing of the production, preparation, storage or transportation of tangible personal property or services which
are identifiable as being directly and solely for export from, or import into, the United States or between jurisdictions
abroad;


c. The financing of contracts, projects or activities to be performed substantially abroad, except those transactions secured
by a mortgage, deed of trust or other lien upon real property located in this State;


d. The receipt of deposits or borrowings or the extensions of credit by an international banking facility, except the loan
or deposit of funds secured by mortgage, deed of trust or other lien upon real property located in this State;


e. The underwriting, distributing and dealing in debt and equity securities outside of the United States and the conduct of
any activities permissible to a banking organization described in subsection (4)c. of this section, or any of its subsidiaries,
in connection with the transaction of banking or other financial operations; or


f. The entering into foreign exchange trading or hedging transactions in connection with the activities described in paragraphs
a. through e. of this subdivision.


(17) "National bank" means a banking association organized under the authority of the United States and having a principal
place of business in this State.


(18) "Person" means an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole
proprietorship, unincorporated association or any other form of entity not specifically listed herein.


(19) "Representative office" means an office in this State of a foreign bank that is exercising the powers authorized by §
1423 of this title.


(20) "Subsidiary" means any association, corporation, partnership, statutory trust, business trust or other similar organization,
having offices and exercising its powers within or without the State, that is controlled by a bank, trust company, other financial
institution or any other company through:


a. Direct or indirect ownership or control of 25 percent or more of the voting rights;


b. Control of the election of majority of the directors; or


c. The power, directly or indirectly, to exercise a controlling influence over the management or policies of the organization.


(21) "Trust company" means a trust company or corporation or limited liability company doing a trust company business which
has a principal place of business in this State.


32 Del. Laws, c. 103, § 1; Code 1935, §§ 2274, 2289; 5 Del. C. 1953, § 101; 60 Del. Laws, c. 349, § 1; 61 Del. Laws, c. 544, § 1; 64 Del. Laws, c. 43, § 2; 65 Del. Laws, c. 444, § 2; 66 Del. Laws, c. 27, § 2; 68 Del. Laws, c. 303, §§ 1, 2; 69 Del. Laws, c. 165, §§ 1-4; 70 Del. Laws, c. 16, §§ 1, 2; 70 Del. Laws, c. 112, §§ 1-4; 71 Del. Laws, c. 254, § 2; 72 Del. Laws, c. 15, § 2; 72 Del. Laws, c. 35, §§ 2-5; 73 Del. Laws, c. 329, § 3; 76 Del. Laws, c. 383, § 1.;


§ 102. [Reserved.]


§ 103. Deputies and other employees.


(a) The State Bank Commissioner may appoint not more than 2 deputies and may employ such personnel as shall be necessary for
making examinations of and giving adequate supervision over the corporations under the jurisdiction of the State Bank Commissioner.
The Commissioner shall lend such aid and counsel to the officers and directors of those corporations as the situation or the
circumstances may require, and in general, properly conduct the affairs of the Commissioner's office and discharge in a proper
manner the duties imposed upon the Commissioner by law.


(b) The tenure, duties and compensation of the persons appointed or employed under subsection (a) of this section shall be
determined by the State Bank Commissioner as provided by law, in a manner consistent with the Merit System of Personnel Administration,
Chapter 59 of Title 29, where applicable.


(c) Upon the removal, resignation, death or disability of any person appointed or employed under subsection (a) of this section,
the vacancy may be filled by the State Bank Commissioner.


30 Del. Laws, c. 111, § 2; 36 Del. Laws, c. 89, § 2; 38 Del. Laws, c. 92, § 1(2); Code 1935, § 2275; 43 Del. Laws, c. 135, § 1; 48 Del. Laws, c. 225, § 1; 5 Del. C. 1953, § 103; 49 Del. Laws, c. 16; 57 Del. Laws, c. 740, §§ 16B-16D; 61 Del. Laws, c. 385, § 1; 68 Del. Laws, c. 303, §§ 3, 4; 70 Del. Laws, c. 186, § 1.;


§ 104. Qualifications of Commissioner and employees.


The Commissioner and the employees who work for the Commissioner shall be selected with respect to their knowledge of and
experience in banking and accounting. The Commissioner shall be a resident of the State. The Commissioner and the employees
who work for the Commissioner shall not be stockholders in any corporation coming under this title.


30 Del. Laws, c. 111, § 3; 38 Del. Laws, c. 92, § 1(3); Code 1935, § 2276; 5 Del. C. 1953, § 104; 57 Del. Laws, c. 740, §§ 16E, 16F; 61 Del. Laws, c. 359, § 1; 68 Del. Laws, c. 303, § 5.;


§ 105. Office; expenses; account of receipts; Regulatory Revolving Fund.


(a) The principal office of the Commissioner shall be in Dover. The necessary expenses of the office, the salaries or compensation
of the Commissioner and the employees who work for the Commissioner, and the necessary expenses incurred by them in the performance
of their respective duties shall be paid by the Secretary of Finance when and as vouchers therefor are presented to him or
her by the Commissioner or the Secretary of State.


(b) There is hereby created within the State Treasury a special fund to be designated as the State Bank Commissioner Regulatory
Revolving Fund which shall be used in the operation of the Office of the State Bank Commissioner in the performance of the
various functions and duties required of the Office by law.


(c) All supervisory assessments, examination fees, payment for costs and expenses in acting as a receiver, reimbursement for
expenses incurred in the operation of the office and any investigation fees collected by the Commissioner pursuant to this
title shall be deposited in the State Treasury to the credit of said State Bank Commissioner Regulatory Revolving Fund to
be used in the operation of the Office as authorized by the General Assembly in its annual operating budget. All other fees
and/or taxes collected by the Commissioner shall not be deposited in said fund but shall be deposited in the General Fund.


(d) Money reposing in the State Bank Commissioner Regulatory Revolving Fund shall be used by the Commissioner in the performance
of the Commissioner's various functions and duties as provided by law, subject always to annual appropriations by the General
Assembly for salaries and other routine operating expenses of the Office. The Council on Banking shall submit comments on
the budget request of the Commissioner to the Secretary of State, the Governor and members of the General Assembly.


(e) The maximum unencumbered balance which shall remain in the State Bank Commissioner Regulatory Revolving Fund at the end
of any fiscal year shall be 15 percent of the total budget for the previous year and any amount in excess thereof shall be
reverted to each financial institution in an amount proportionate to the sum paid by that financial institution in the previous
calendar year pursuant to § 127(b) of this title in such a manner as prescribed by the State Bank Commissioner and submitted
to the Council on Banking.


30 Del. Laws, c. 111, § 4; 38 Del. Laws, c. 92, § 1(4); Code 1935, § 2277; 42 Del. Laws, c. 77; 43 Del. Laws, c. 135, § 2; 5 Del. C. 1953, § 105; 57 Del. Laws, c. 740, §§ 16E, 16G-16I; 61 Del. Laws, c. 435, §§ 1-3; 63 Del. Laws, c. 195, § 1B; 67 Del. Laws, c. 60, § 1; 68 Del. Laws, c. 303, § 6; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 19, §§ 1, 2.;


§ 106. Seal.


The Commissioner shall use the official seal, a full description of which, with the impress thereof, has heretofore been filed
in the office of the Secretary of State. Such seal shall continue to be the official seal of the Commissioner until changed
by authority of law.


30 Del. Laws, c. 111, § 5; Code 1935, § 2278; 5 Del. C. 1953, § 106.;


§ 107. Annual report.


The Commissioner shall make an annual report of all the Commissioner's official acts to the Governor.


30 Del. Laws, c. 111, § 14; Code 1935, § 2287; 5 Del. C. 1953, § 107; 70 Del. Laws, c. 186, § 1.;


§ 108. Prohibited relationships with supervised institutions.


The Commissioner, Deputy Commissioners, examiners or compliance reviewers employed by the Commissioner, or such person's spouse
or such person's son or daughter residing at such person's residence shall not obtain a loan or utilize credit from any financial
institution. To the extent that a licensee subject to the provisions of Chapter 22 or 29 of this title is examined solely
for purposes of determining compliance with State law and consumer protection statutes, the above shall not apply unless the
Commissioner finds that an actual conflict may arise. For the purposes of this section, an entity shall not be considered
supervised or regulated by the Office of the State Bank Commissioner solely because it is exempt under § 2202 of this title
or because it is subject to an escheat examination conducted by the Office of the State Bank Commissioner. The prohibition
contained above shall not be construed as prohibiting such persons from being a depositor or member of any such financial
institution on the same terms as available to the public generally.


61 Del. Laws, c. 359, § 2; 69 Del. Laws, c. 165, § 5; 71 Del. Laws, c. 254, § 3.;