Delaware General Assembly


CHAPTER 443

AN ACT TO AMEND TITLE 6, DELAWARE CODE, ENTITLED COMMERCE AND TRADE RELATED TO USURY.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Title 6, Delaware Code, is hereby amended by striking § 2304 therefrom and inserting a new § 2304 to read as follows:

§ 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 his 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 his personal representative, may recover in an action against the person who has taken or received the debt and interest, or his personal representative, the sum of three times the amount of interest collected on any loan in excess of that permitted by law or the sum of $500.00, whichever is greater, if such action is brought within one year after the time of such payment.

Approved August 9, 1968.