Delaware Code Title 5 Sec. 950 – Delinquent installments
(a) If the agreement governing a revolving credit plan so provides, a bank may impose, as interest, a late or delinquency charge upon any outstanding unpaid installment payments or portions thereof under the plan which are in default; provided however, that no more than 1 such late or delinquency charge may be imposed in respect of any single such installment payment or portion thereof, regardless of the period during which it remains in default; and provided further, however, that for the purpose only of the preceding proviso all payments by the borrower shall be deemed to be applied to satisfaction of installment payments in the order in which they become due. Nothing contained in this section shall limit, restrict or otherwise affect the right of a bank under and pursuant to §§ 943 and 944 of this title to change the periodic percentage rate or rates of interest applicable to the revolving credit plan between the bank and a borrower upon the occurrence of a delinquency or default or other failure of the borrower to perform in accordance with the terms of the plan.
Terms Used In Delaware Code Title 5 Sec. 950
- 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.
- 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) 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, § ?9; 68 Del. Laws, c. 303, § ?22; 70 Del. Laws, c. 327, § ?27; 71 Del. Laws, c. 19, § ?49;