900 Regulations Governing Business of Banks and Trust Companies

904 Exceptions to Tying Restrictions

[5Del.C.§929]

Effective Date:December 11, 2005

1.0 Purpose.

This Regulation authorizes certain conduct as exceptions to the anti-tying restrictions of Section 929 of the State Banking Code(5 Del.C . §929), pursuant to Section 929(f). These exceptions are in addition to those elsewhere in Section 929.

2.0 Exceptions to statute.

Subject to the limitations of paragraph 3.0 of this Regulation, a bank may:

1. 2.1 Safe harbor for combined-balance discounts. Vary the consideration for any product or package of products based on a customer's maintaining a combined minimum balance in certain products specified by the bank (eligible products), if:

   1. 2.1.1 The bank offers deposits, and all such deposits are eligible products; and
   2. 2.1.2 Balances in deposits count at least as much as nondeposit products toward the minimum balance.

2. 2.2 Safe harbor for foreign transactions. Engage in any transaction with a customer if that customer is:

   1. 2.2.1 A corporation, business, or other person (other than an individual) that:

      1. 2.2.1.1 Is incorporated, chartered, or otherwise organized outside the United States; and
      2. 2.2.1.2 Has its principal place of business outside the United States; or
   2. 2.2.2 An individual who is a citizen of a foreign country and is not resident in the United States.

3.0 Limitations on exceptions.

Any exception authorized pursuant to this Regulation shall terminate upon a finding by the Commissioner that the arrangement is resulting in anti-competitive practices. The eligibility of a bank to operate under any exception authorized pursuant to this Regulation shall terminate upon a finding by the Commissioner that its exercise of this authority is resulting in anti-competitive practices.

9 DE Reg. 1004 (12/01/05)