Delaware Code Title 5 Sec. 945 – Interest charges
(a) In addition to or in lieu of interest at a periodic percentage rate or rates as provided in §§ 943 and 944 of this title, a bank may, if the agreement governing the revolving credit plan so provides, charge and collect, as interest, in such manner or form as the plan may provide, 1 or more of the following:
(1) A daily, weekly, monthly, annual or other periodic charge in such amount or amounts as the agreement may provide for the privileges made available to the borrower under the plan;
(2) A transaction charge or charges in such amount or amounts as the agreement may provide for each separate purchase or loan under the plan;
(3) A minimum charge for each daily, weekly, monthly, annual or other scheduled billing period under the plan during any portion of which there is an outstanding unpaid indebtedness under the plan;
(4) Reasonable fees for services rendered or for reimbursement of expenses incurred in good faith by the bank or its agents in connection with the plan, or other reasonable fees incident to the application for and the opening, administration and termination of a plan including, without limitation, commitment, application and processing fees, official fees and taxes, costs incurred by reason of examination of title, inspection, appraisal, recording, mortgage satisfaction or other formal acts necessary or appropriate to the security for the plan, and filing fees;
(5) Returned payment charges or charges imposed for the return of a draft drawn on a revolving credit plan evidencing an extension of credit under such plan;
(6) Documentary evidence charges;
(7) Stop payment fees;
(8) Overlimit charges;
(9) Automated teller machine charges or similar electronic or interchange fees or charges;
(10) Prepayment charges authorized under subsection (b) of this section; and
(11) Subject to any limitations contained in this subchapter, such other fees and charges as are set forth in the agreement governing the plan.
Terms Used In Delaware Code Title 5 Sec. 945
- Appraisal: A determination of property value.
- Bank: means any bank or bank and trust company organized under this title or any other law or laws of this State, any depository institution organized under the authority of the United States and having its principal place of business in this State and any foreign bank agency. See Delaware Code Title 5 Sec. 941
- Borrower: means any corporation, partnership, association, government or governmental subdivision or agency, trust, individual or other entity. See Delaware Code Title 5 Sec. 941
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Individual borrower: means a borrower who is a natural person borrowing for personal, household or family purposes. See Delaware Code Title 5 Sec. 941
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Outstanding unpaid indebtedness: means on any day an amount not in excess of the total amount of purchases and loans charged to the borrower's account under the plan which is outstanding and unpaid at the end of the day, after adding the aggregate amount of any new purchases and loans charged to the account as of that day and deducting the aggregate amount of any payments and credits applied to that indebtedness as of that day and, if the agreement providing the plan so provides, may include the amount of any periodic interest, interest charges and other charges permitted by this subchapter, including late or delinquency charges, which have accrued in the account and which are unpaid at the end of the day. See Delaware Code Title 5 Sec. 941
- plan: means a plan contemplating the extension of credit under an account governed by an agreement between a bank and a borrower pursuant to which:
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC
- Statute: A law passed by a legislature.
(b) An individual borrower may pay the outstanding unpaid indebtedness charged to the borrower’s account under a plan in full at any time. Except for a charge imposed to terminate a plan if the agreement governing the plan so provides, a bank may not impose any prepayment charge in connection with the payment of outstanding unpaid indebtedness in full by an individual borrower. A bank may charge and collect any prepayment penalty or charge specified in the agreement governing the plan in connection with the payoff and termination of a plan that is secured by a real estate mortgage. The terms of prepayment of the outstanding unpaid indebtedness relating to a revolving credit plan involving a borrower other than an individual borrower shall be as the bank and the borrower may agree.
(c) No charges assessed by a bank in accordance with this section shall be deemed void as a penalty or otherwise unenforceable under any statute or the common law.
63 Del. Laws, c. 2, § ?4; 66 Del. Laws, c. 283, §§ ?6-8; 70 Del. Laws, c. 327, §§ ?25, 26; 71 Del. Laws, c. 19, §§ ?47, 48;