Bill Text: DE SB142 | 2013-2014 | 147th General Assembly | Draft
Bill Title: An Act To Amend Title 6 Of The Delaware Code Relating To Interest On Pension Loans And Advances.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-06-27 - Laid On Table in Senate [SB142 Detail]
Download: Delaware-2013-SB142-Draft.html
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SPONSOR: |
Sen. Marshall & Rep. Keeley |
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DELAWARE STATE SENATE 147th GENERAL ASSEMBLY |
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SENATE BILL NO. 142 |
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AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO INTEREST ON PENSION LOANS AND ADVANCES. |
Section 1. Amend Section 2301, Title 6 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strikethrough as follows:
§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. 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. Except as otherwise provided in this Code, any judgment entered on agreements governed by this subsection, whether the contract rate is expressed or not, shall, from the date of the judgment, bear post-judgment interest of 5% over the Federal Reserve discount rate including any surcharge thereon or the contract rate, whichever is less.
(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.
(e) Notwithstanding any other provision in this chapter to the contrary, the legal rate of interest on loans, advances, or any type of lending agreement against the pension and/or pension payments of an individual borrower or borrowers shall not exceed the rate set forth in paragraph (a) of this section. In determining whether the interest rate being charged under this paragraph (e) exceeds the cap in paragraph (a) of this section, all fees and other charges of any kind shall be included. The exemption set forth in paragraph (c) of this section shall not apply to loans, advances, or any type of lending agreement subject to this paragraph (e).
SYNOPSIS
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This Bill limits the interest rate that can be charged on pension loans or advances, and any type of lending agreement against the pension and/or pension payments of an individual borrower or borrowers, to the legal interest rate in 6 Delaware Code, Section 2301(a). |
Author: Senator Marshall
