Pursuant to Title 6 (Commerce and Trade), Chapter 23 (Interest) Section 2301, the legal rate of interest that a lender may charge or collect from a borrower shall be five percent over the Federal Reserve discount rate. As provided in the same section, even without any express contract, the legal rate charged by the lender should not be in excess of five percent.
As provided under Section 2304, a borrower or debtor shall not be required to pay the excess over the lawful rate. In that case the borrower can retain or deduct the excess amount charged against the lender. Furthermore, in any situation if the borrower had paid the sum loaned together with the excess lawful amount, s/he can bring an action within one year after the time of such payment to recover a sum of three times the amount of interest collected on any loan in excess of that permitted by law or the sum of $500, whichever is greater, from the lender.
According to Section 2301, any judgment based upon a contract action entered after May 13, 1980 against the lender shall bear interest at the rate specified in the contract. Apart from this if there is no written contract, the rate of interest on the judgment rendered against the lender must be not more than five percent over the Federal Reserve discount rate including any surcharge as of the time from which interest is due.
Under Section 2301 (c), there shall be no limitation on the rate of interest charged if the amount loaned exceeded $1,00,000, and where repayment thereof is not secured by a mortgage against the principal residence of any borrower.
6 Del. C. § 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, and judgments entered after May 13, 1980, shall bear interest at the rate in the contract sued upon. 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.
(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.
6 Del. C. § 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 the borrower’s or debtor’s 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 a personal representative, may recover in an action against the person who has taken or received the debt and interest, or the personal representative, the sum of 3 times the amount of interest collected on any loan in excess of that permitted by law or the sum of $ 500, whichever is greater, if such action is brought within 1 year after the time of such payment.