§ 2301. Legal rate; loans insured by Federal Housing Administration.
(a) Any lender may charge and collect from a borrower interest at any rate agreed upon in writing not in excess of 5% over
the Federal Reserve discount rate including any surcharge thereon, and judgments entered after May 13, 1980, shall bear interest
at the rate in the contract sued upon. Where there is no expressed contract rate, the legal rate of interest shall be 5% over
the Federal Reserve discount rate including any surcharge as of the time from which interest is due; provided, that where
the time from which interest is due predates April 18, 1980, the legal rate shall remain as it was at such time.
(b) If the rate of interest specifically set forth in any bond, note or other evidence of indebtedness, exclusive of other
charges, fees or discounts authorized or permitted under federal law or under any rule or regulation promulgated pursuant
thereto, does not exceed the lawful rate prescribed in subsection (a) of this section, no person shall, by way of defense
or otherwise, avail himself or herself of any of the provisions of this chapter, to avoid or defeat the payment of any interest
or any such charges, fees or discounts, which any such person shall have contracted to pay in respect of any loan insured
by the Federal Housing Administration, or the Commissioner thereof, under or pursuant to the provisions of the National Housing
Act [12 U.S.C. § 1701 et seq.], approved June 27, 1934, and amendments thereto, or guaranteed by the Veterans Administration,
or the administrator thereof, under and pursuant to Title 38 of the United States Code [38 U.S.C. § 3701 et seq.], and amendments
thereto; nor shall anything contained in this chapter be construed to prevent recovery of any such interest or any such charges,
fees or discounts from any person who shall have contracted to pay the same.
(c) Notwithstanding any other provision in this chapter to the contrary, there shall be no limitation on the rate of interest
which may be legally charged for the loan or use of money, where the amount of money loaned or used exceeds $100,000, and
where repayment thereof is not secured by a mortgage against the principal residence of any borrower.
(d) In any tort action for compensatory damages in the Superior Court or the Court of Common Pleas seeking monetary relief
for bodily injuries, death or property damage, interest shall be added to any final judgment entered for damages awarded,
calculated at the rate established in subsection (a) of this section, commencing from the date of injury, provided that prior
to trial the plaintiff had extended to defendant a written settlement demand valid for a minimum of 30 days in an amount less
than the amount of damages upon which the judgment was entered.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2301; 52 Del. Laws, c. 277; 56 Del. Laws, c. 288, §§ 1-4; 57 Del. Laws, c. 78, § 1; 57 Del. Laws, c. 311; 59 Del. Laws, c. 439, § 1; 59 Del. Laws, c. 589, § 1; 62 Del. Laws, c. 228, § 7; 62 Del. Laws, c. 239, § 1; 70 Del. Laws, c. 186, § 1; 72 Del. Laws, c. 443, § 1.;
§ 2302. Secured demand loans for not less than $5,000 by banks and others.
Every contract for the loan or advance of money by banking corporations, within this State, shall be subject to § 2301 of
this title. In any case where loans or advances of money, made by banking corporations or otherwise, repayable on demand to
an amount not less than $5,000, are made upon warehouse receipts, bills of lading, certificates of stock, certificates of
deposit, bills of exchange, bonds, or other negotiable instruments, pledged as collateral security for such repayment, any
sum agreed upon, in writing, by the parties to the transaction may be received, or contracted to be received, and collected
as compensation for making the advances.
11 Del. Laws, c. 227; Code 1915, § 2622; 28 Del. Laws, c. 213; Code 1935, § 3102; 6 Del. C. 1953, § 2302; 70 Del. Laws, c. 186, § 1.;
§ 2303. Loans of less than $500.
Repealed by 71 Del. Laws, c. 254, § 34, eff. Mar. 30, 1998.
§ 2304. Usury defined; borrower's rights and remedies where interest exceeds the lawful rate.
(a) Usury is the charge to a borrower by a lender, directly or indirectly, of a higher rate of interest than that permitted
by law.
(b) When a rate of interest for the loan or use of money exceeding that established by law has been reserved or contracted
for, the borrower or debtor shall not be required to pay the creditor the excess over the lawful rate and the borrower or
debtor may, at the borrower's or debtor's option, retain and deduct the excess from the amount of any debt. In all cases where
any borrower or debtor has paid the whole debt or sum loaned, together with interest exceeding the lawful rate, the borrower
or debtor, or a personal representative, may recover in an action against the person who has taken or received the debt and
interest, or the personal representative, the sum of 3 times the amount of interest collected on any loan in excess of that
permitted by law or the sum of $500, whichever is greater, if such action is brought within 1 year after the time of such
payment.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2304; 56 Del. Laws, c. 443; 70 Del. Laws, c. 186, § 1.;
§ 2305. Negotiable paper; rights of holders.
Nothing in this chapter shall affect the holders of negotiable paper taken bona fide in the usual course of business.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2305.;
§ 2306. Defense of usury as available to certain entities and associations.
No corporation, limited partnership, statutory trust, business trust or limited liability company, and no association or joint
stock company having any of the powers and privileges of corporations not possessed by individuals or partnerships, shall
interpose the defense of usury in any action.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2306; 69 Del. Laws, c. 258, § 55; 73 Del. Laws, c. 329, § 34.;
§ 2307. International banking transactions.
This chapter and any other law of this State limiting the rate or amount of interest, discount, points, finance charges, service
charges or other charges which may be charged, taken, collected, received or reserved shall not apply to any international
banking facility extension of credit, as such terms are contained in § 101 of Title 5.
§ 2301. Legal rate; loans insured by Federal Housing Administration.
(a) Any lender may charge and collect from a borrower interest at any rate agreed upon in writing not in excess of 5% over
the Federal Reserve discount rate including any surcharge thereon, and judgments entered after May 13, 1980, shall bear interest
at the rate in the contract sued upon. Where there is no expressed contract rate, the legal rate of interest shall be 5% over
the Federal Reserve discount rate including any surcharge as of the time from which interest is due; provided, that where
the time from which interest is due predates April 18, 1980, the legal rate shall remain as it was at such time.
(b) If the rate of interest specifically set forth in any bond, note or other evidence of indebtedness, exclusive of other
charges, fees or discounts authorized or permitted under federal law or under any rule or regulation promulgated pursuant
thereto, does not exceed the lawful rate prescribed in subsection (a) of this section, no person shall, by way of defense
or otherwise, avail himself or herself of any of the provisions of this chapter, to avoid or defeat the payment of any interest
or any such charges, fees or discounts, which any such person shall have contracted to pay in respect of any loan insured
by the Federal Housing Administration, or the Commissioner thereof, under or pursuant to the provisions of the National Housing
Act [12 U.S.C. § 1701 et seq.], approved June 27, 1934, and amendments thereto, or guaranteed by the Veterans Administration,
or the administrator thereof, under and pursuant to Title 38 of the United States Code [38 U.S.C. § 3701 et seq.], and amendments
thereto; nor shall anything contained in this chapter be construed to prevent recovery of any such interest or any such charges,
fees or discounts from any person who shall have contracted to pay the same.
(c) Notwithstanding any other provision in this chapter to the contrary, there shall be no limitation on the rate of interest
which may be legally charged for the loan or use of money, where the amount of money loaned or used exceeds $100,000, and
where repayment thereof is not secured by a mortgage against the principal residence of any borrower.
(d) In any tort action for compensatory damages in the Superior Court or the Court of Common Pleas seeking monetary relief
for bodily injuries, death or property damage, interest shall be added to any final judgment entered for damages awarded,
calculated at the rate established in subsection (a) of this section, commencing from the date of injury, provided that prior
to trial the plaintiff had extended to defendant a written settlement demand valid for a minimum of 30 days in an amount less
than the amount of damages upon which the judgment was entered.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2301; 52 Del. Laws, c. 277; 56 Del. Laws, c. 288, §§ 1-4; 57 Del. Laws, c. 78, § 1; 57 Del. Laws, c. 311; 59 Del. Laws, c. 439, § 1; 59 Del. Laws, c. 589, § 1; 62 Del. Laws, c. 228, § 7; 62 Del. Laws, c. 239, § 1; 70 Del. Laws, c. 186, § 1; 72 Del. Laws, c. 443, § 1.;
§ 2302. Secured demand loans for not less than $5,000 by banks and others.
Every contract for the loan or advance of money by banking corporations, within this State, shall be subject to § 2301 of
this title. In any case where loans or advances of money, made by banking corporations or otherwise, repayable on demand to
an amount not less than $5,000, are made upon warehouse receipts, bills of lading, certificates of stock, certificates of
deposit, bills of exchange, bonds, or other negotiable instruments, pledged as collateral security for such repayment, any
sum agreed upon, in writing, by the parties to the transaction may be received, or contracted to be received, and collected
as compensation for making the advances.
11 Del. Laws, c. 227; Code 1915, § 2622; 28 Del. Laws, c. 213; Code 1935, § 3102; 6 Del. C. 1953, § 2302; 70 Del. Laws, c. 186, § 1.;
§ 2303. Loans of less than $500.
Repealed by 71 Del. Laws, c. 254, § 34, eff. Mar. 30, 1998.
§ 2304. Usury defined; borrower's rights and remedies where interest exceeds the lawful rate.
(a) Usury is the charge to a borrower by a lender, directly or indirectly, of a higher rate of interest than that permitted
by law.
(b) When a rate of interest for the loan or use of money exceeding that established by law has been reserved or contracted
for, the borrower or debtor shall not be required to pay the creditor the excess over the lawful rate and the borrower or
debtor may, at the borrower's or debtor's option, retain and deduct the excess from the amount of any debt. In all cases where
any borrower or debtor has paid the whole debt or sum loaned, together with interest exceeding the lawful rate, the borrower
or debtor, or a personal representative, may recover in an action against the person who has taken or received the debt and
interest, or the personal representative, the sum of 3 times the amount of interest collected on any loan in excess of that
permitted by law or the sum of $500, whichever is greater, if such action is brought within 1 year after the time of such
payment.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2304; 56 Del. Laws, c. 443; 70 Del. Laws, c. 186, § 1.;
§ 2305. Negotiable paper; rights of holders.
Nothing in this chapter shall affect the holders of negotiable paper taken bona fide in the usual course of business.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2305.;
§ 2306. Defense of usury as available to certain entities and associations.
No corporation, limited partnership, statutory trust, business trust or limited liability company, and no association or joint
stock company having any of the powers and privileges of corporations not possessed by individuals or partnerships, shall
interpose the defense of usury in any action.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2306; 69 Del. Laws, c. 258, § 55; 73 Del. Laws, c. 329, § 34.;
§ 2307. International banking transactions.
This chapter and any other law of this State limiting the rate or amount of interest, discount, points, finance charges, service
charges or other charges which may be charged, taken, collected, received or reserved shall not apply to any international
banking facility extension of credit, as such terms are contained in § 101 of Title 5.
§ 2301. Legal rate; loans insured by Federal Housing Administration.
(a) Any lender may charge and collect from a borrower interest at any rate agreed upon in writing not in excess of 5% over
the Federal Reserve discount rate including any surcharge thereon, and judgments entered after May 13, 1980, shall bear interest
at the rate in the contract sued upon. Where there is no expressed contract rate, the legal rate of interest shall be 5% over
the Federal Reserve discount rate including any surcharge as of the time from which interest is due; provided, that where
the time from which interest is due predates April 18, 1980, the legal rate shall remain as it was at such time.
(b) If the rate of interest specifically set forth in any bond, note or other evidence of indebtedness, exclusive of other
charges, fees or discounts authorized or permitted under federal law or under any rule or regulation promulgated pursuant
thereto, does not exceed the lawful rate prescribed in subsection (a) of this section, no person shall, by way of defense
or otherwise, avail himself or herself of any of the provisions of this chapter, to avoid or defeat the payment of any interest
or any such charges, fees or discounts, which any such person shall have contracted to pay in respect of any loan insured
by the Federal Housing Administration, or the Commissioner thereof, under or pursuant to the provisions of the National Housing
Act [12 U.S.C. § 1701 et seq.], approved June 27, 1934, and amendments thereto, or guaranteed by the Veterans Administration,
or the administrator thereof, under and pursuant to Title 38 of the United States Code [38 U.S.C. § 3701 et seq.], and amendments
thereto; nor shall anything contained in this chapter be construed to prevent recovery of any such interest or any such charges,
fees or discounts from any person who shall have contracted to pay the same.
(c) Notwithstanding any other provision in this chapter to the contrary, there shall be no limitation on the rate of interest
which may be legally charged for the loan or use of money, where the amount of money loaned or used exceeds $100,000, and
where repayment thereof is not secured by a mortgage against the principal residence of any borrower.
(d) In any tort action for compensatory damages in the Superior Court or the Court of Common Pleas seeking monetary relief
for bodily injuries, death or property damage, interest shall be added to any final judgment entered for damages awarded,
calculated at the rate established in subsection (a) of this section, commencing from the date of injury, provided that prior
to trial the plaintiff had extended to defendant a written settlement demand valid for a minimum of 30 days in an amount less
than the amount of damages upon which the judgment was entered.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2301; 52 Del. Laws, c. 277; 56 Del. Laws, c. 288, §§ 1-4; 57 Del. Laws, c. 78, § 1; 57 Del. Laws, c. 311; 59 Del. Laws, c. 439, § 1; 59 Del. Laws, c. 589, § 1; 62 Del. Laws, c. 228, § 7; 62 Del. Laws, c. 239, § 1; 70 Del. Laws, c. 186, § 1; 72 Del. Laws, c. 443, § 1.;
§ 2302. Secured demand loans for not less than $5,000 by banks and others.
Every contract for the loan or advance of money by banking corporations, within this State, shall be subject to § 2301 of
this title. In any case where loans or advances of money, made by banking corporations or otherwise, repayable on demand to
an amount not less than $5,000, are made upon warehouse receipts, bills of lading, certificates of stock, certificates of
deposit, bills of exchange, bonds, or other negotiable instruments, pledged as collateral security for such repayment, any
sum agreed upon, in writing, by the parties to the transaction may be received, or contracted to be received, and collected
as compensation for making the advances.
11 Del. Laws, c. 227; Code 1915, § 2622; 28 Del. Laws, c. 213; Code 1935, § 3102; 6 Del. C. 1953, § 2302; 70 Del. Laws, c. 186, § 1.;
§ 2303. Loans of less than $500.
Repealed by 71 Del. Laws, c. 254, § 34, eff. Mar. 30, 1998.
§ 2304. Usury defined; borrower's rights and remedies where interest exceeds the lawful rate.
(a) Usury is the charge to a borrower by a lender, directly or indirectly, of a higher rate of interest than that permitted
by law.
(b) When a rate of interest for the loan or use of money exceeding that established by law has been reserved or contracted
for, the borrower or debtor shall not be required to pay the creditor the excess over the lawful rate and the borrower or
debtor may, at the borrower's or debtor's option, retain and deduct the excess from the amount of any debt. In all cases where
any borrower or debtor has paid the whole debt or sum loaned, together with interest exceeding the lawful rate, the borrower
or debtor, or a personal representative, may recover in an action against the person who has taken or received the debt and
interest, or the personal representative, the sum of 3 times the amount of interest collected on any loan in excess of that
permitted by law or the sum of $500, whichever is greater, if such action is brought within 1 year after the time of such
payment.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2304; 56 Del. Laws, c. 443; 70 Del. Laws, c. 186, § 1.;
§ 2305. Negotiable paper; rights of holders.
Nothing in this chapter shall affect the holders of negotiable paper taken bona fide in the usual course of business.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2305.;
§ 2306. Defense of usury as available to certain entities and associations.
No corporation, limited partnership, statutory trust, business trust or limited liability company, and no association or joint
stock company having any of the powers and privileges of corporations not possessed by individuals or partnerships, shall
interpose the defense of usury in any action.
Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 1953, § 2306; 69 Del. Laws, c. 258, § 55; 73 Del. Laws, c. 329, § 34.;
§ 2307. International banking transactions.
This chapter and any other law of this State limiting the rate or amount of interest, discount, points, finance charges, service
charges or other charges which may be charged, taken, collected, received or reserved shall not apply to any international
banking facility extension of credit, as such terms are contained in § 101 of Title 5.