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Can you summarize 5 DECO Chapter 9, Subchapter II?
REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES > Bank Revolving Credit
Short Summary
This legal document, part of the Delaware Code, governs the business of banks and trust companies in Delaware, specifically related to Bank Revolving Credit. It provides definitions for terms such as ‘Bank’, ‘Borrower’, ‘Individual borrower’, ‘Revolving credit plan’, ‘Purchases’, ‘Loans’, ‘Credit device’, and ‘Outstanding unpaid indebtedness’. The document allows banks to offer and extend credit to borrowers under a revolving credit plan, charging periodic interest, interest charges, and other permitted charges. Collateral can be taken as security for the credit. The document also allows credit to be extended through the acquisition of obligations arising from the honoring of a credit device. It specifies that periodic interest can be calculated using various methods and billing cycles can be established as specified in the agreement governing the plan. The document permits variable rates of interest, which can be applied to outstanding unpaid indebtedness. It also allows banks to charge various fees and charges as interest, including late or delinquency charges. The document provides provisions for insurance requirements, amendment of agreements, and the option to omit monthly installments. It states that the provisions of this subchapter are not exclusive and banks may choose to extend credit under other applicable laws. The document also addresses attorney’s fees and collection costs in case of default. Overall, the document establishes the regulations and guidelines for banks and trust companies offering revolving credit plans in Delaware.
Whom does it apply to?
The definitions and provisions in this subchapter are applicable to banks, borrowers, and individuals borrowing for personal, household, or family purposes.
What does it govern?
The document governs the business of banks and trust companies related to Bank Revolving Credit. It outlines the features and requirements of a revolving credit plan, including the bank's permission for borrowers to make purchases and obtain loans, repayment obligations, and the collection of interest.
What are exemptions?
The document does not mention any specific exemptions related to the extension of credit under a revolving credit plan by banks.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Delaware