Delaware

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Delaware's consumer financial services regulation is extremely favorable to banks. In 1979, the United States Supreme Court's issue its decision in ''Marquette National Bank of Minneapolis v. First Omaha Service Corp.'', 439 U.S. 299, 99 S.Ct. 540, 58 L.Ed.2d 534 (1978),<ref>[http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=439&invol=299] The decision</ref> finding that the National Banking Act permits a national bank to charge interest at the rate permitted by the state in which the bank "resides" (defined by federal law) rather than the interest rate of the state in which the consumer resides.  The case started a rapid "race to the bottom," with national banks choosing to "reside" in those states with the most favorable (e.g. least regulated and lowest) interest rates<ref>Christopher L. Peterson, ''The Card Act in Perspective: Ongoing Efforts to Find Balance in Credit Card Regulation'', 2001, No. 2 Utah L. Rev. 336 (2011); Samuel Issacharoff & Erin F. Delaney, Credit Card Accountability, 73 U. Chi. L. Rev.  157,  160-61  (2006)</ref>. Delaware and South Dakota quickly capitalized on the natural consequences of the decision. Delaware repealed its own interest rate cap altogether in 1981<ref>[http://delcode.delaware.gov/sessionlaws/ga131/chp002.shtml]</ref>, leaving its resident national banks free to charge rates on consumer loans that would have been capped at significantly lower rates.<ref>See, e.g., the Illinois Interest Act, [http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2322&ChapterID=67&Print=True 815 ILCS 205/4], capping the general interest rate at 9% simple interest annually.</ref> "Most leading banking states had relaxed or repealed their interest rate ceiling by 1982."<ref>JING  JIAN XIAO, HANDBOOK OF CONSUMER FINANCE RESEARCH 403 (1st ed. 2008)</ref> The Court's 1996 decision in ''Smiley v. Citibank South Dakota, NA'', 116 S.Ct. 1730, 135 L.Ed.2d 25 (1996)<ref>[http://www.law.cornell.edu/supct/html/95-860.ZS.html] The decision</ref>, held that banks were also free to charge whatever late fees they wished as "interest" under ''Marquette''.
 
Delaware's consumer financial services regulation is extremely favorable to banks. In 1979, the United States Supreme Court's issue its decision in ''Marquette National Bank of Minneapolis v. First Omaha Service Corp.'', 439 U.S. 299, 99 S.Ct. 540, 58 L.Ed.2d 534 (1978),<ref>[http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=439&invol=299] The decision</ref> finding that the National Banking Act permits a national bank to charge interest at the rate permitted by the state in which the bank "resides" (defined by federal law) rather than the interest rate of the state in which the consumer resides.  The case started a rapid "race to the bottom," with national banks choosing to "reside" in those states with the most favorable (e.g. least regulated and lowest) interest rates<ref>Christopher L. Peterson, ''The Card Act in Perspective: Ongoing Efforts to Find Balance in Credit Card Regulation'', 2001, No. 2 Utah L. Rev. 336 (2011); Samuel Issacharoff & Erin F. Delaney, Credit Card Accountability, 73 U. Chi. L. Rev.  157,  160-61  (2006)</ref>. Delaware and South Dakota quickly capitalized on the natural consequences of the decision. Delaware repealed its own interest rate cap altogether in 1981<ref>[http://delcode.delaware.gov/sessionlaws/ga131/chp002.shtml]</ref>, leaving its resident national banks free to charge rates on consumer loans that would have been capped at significantly lower rates.<ref>See, e.g., the Illinois Interest Act, [http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2322&ChapterID=67&Print=True 815 ILCS 205/4], capping the general interest rate at 9% simple interest annually.</ref> "Most leading banking states had relaxed or repealed their interest rate ceiling by 1982."<ref>JING  JIAN XIAO, HANDBOOK OF CONSUMER FINANCE RESEARCH 403 (1st ed. 2008)</ref> The Court's 1996 decision in ''Smiley v. Citibank South Dakota, NA'', 116 S.Ct. 1730, 135 L.Ed.2d 25 (1996)<ref>[http://www.law.cornell.edu/supct/html/95-860.ZS.html] The decision</ref>, held that banks were also free to charge whatever late fees they wished as "interest" under ''Marquette''.
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==Notable features==
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*Like most of the northeastern states, it has a city named Dover.
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*It has a border that is unique in that it is a true arc segment.<ref>This makes it the southernmost place that can be described as "arctic."</ref>
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*Delaware's income tax rate is below the national average in the US,<ref>http://www.taxfoundation.org/research/topic/18.html</ref> along with tax incentives for businesses, making it something of an inland [[tax haven]].
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*Because DuPont had the gold and thus made the rules, Delaware is the incorporation capital of the US, with 50% of US corporations being registered there, since they managed to make their rules the laxest fastest.
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*Delaware's former senator [[Joe Biden]] is the reason all of your credit cards can treat you like crap, because they have the least oversight ''and'' their laws apply to all credit card companies that incorporate there.  Which is why they all did so.
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*It also survives by mooching on those who have to cross through to get from DC to NYC.  The roads are all tolls, and are extortionate.
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*Near the Delaware Memorial Bridge tollbooth is a sign that says "[http://dcortesi.com/gallery/d/2968-2/Information_Police_Closeup.png Information Police]."
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==Delawaristic culture==
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*The state has a lack of renown as a vacation destination.<ref>[[WP:Delaware#Tourism | Really!]]</ref>
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*George Washington was cross with Delaware, or something like that. He sailed a boat made from cherry wood. Or was that his teeth? Anyway, he probably slept there.
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*George Thorogood and the Destroyers!
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===License plates===
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Delaware issues license plates that are unique in North America.  Currently, Delaware plates have a number sequence with up to six numbers, but no letters.  As of 1 May 2005, the state had registered 821,618 vehicles, so the number sequences of new plates may soon be increased to seven-digits.  The plates are neither embossed nor debossed, but are instead created with a silk screen process.<ref>[http://www.aaroads.com/delaware/license_plates.htm "The First State Plates"]  AARoads.com website.  Accessed 18 October 2009.</ref>  This makes issuing vanity plates impractical.
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Instead, Delawareans have their own version of vanity plates.<ref>Yes, that's what they're called.  And like "team," there is no "I" in "Delawarean."</ref>  Because number sequences currently run from 1 to 999999, and because these sequences date back to the first plates issued in 1909, plates with one, two, three or even four digit numbers are highly prized.  And since the state does not permanently assign plates to vehicles, low-sequence plates can be auctioned off when an owner moves out of state, dies, or needs fast cash.  In 2008, Delaware plate number 6 was auctioned off for US$675,000.<ref>[http://www.cbsnews.com/stories/2008/04/04/eveningnews/main3994634.shtml "The $675,000 License Plate:  In Delaware, Prestige Isn’t Judged By The Car You Drive, But By Its License Plate Number"]  CBS Evening News website, accessed 18 October 2009.  (Note:  There is a typo in this article.  Plate 6 was auctioned for $675,000, not plate 11.)</ref>  (Plates numbered 1, 2, and 3 are reserved for the current governor, lieutenant governor and state attorney general, respectively.)
  
 
==Footnotes==
 
==Footnotes==

Revision as of 01:20, 13 May 2012

Some kind of coin.

Delaware is one of the thirteen British colonies that rebelled and formed the United States. They were the first to ratify the new constitution several years later. The state was named after Earl De La Warr.[1]

Vice-president Joe Biden hails from Delaware, and apparently used to ride Amtrak home every night.[citation needed]

Contents

Corporate and consumer financial services haven

Delaware's income tax rate is below the national average in the US,[2] along with tax incentives for businesses, making it something of an inland tax haven. Because DuPont had the gold and thus made the rules, Delaware is the incorporation capital of the US, with 50% of US corporations being registered there, since they managed to make their rules the laxest fastest.

Delaware's consumer financial services regulation is extremely favorable to banks. In 1979, the United States Supreme Court's issue its decision in Marquette National Bank of Minneapolis v. First Omaha Service Corp., 439 U.S. 299, 99 S.Ct. 540, 58 L.Ed.2d 534 (1978),[3] finding that the National Banking Act permits a national bank to charge interest at the rate permitted by the state in which the bank "resides" (defined by federal law) rather than the interest rate of the state in which the consumer resides. The case started a rapid "race to the bottom," with national banks choosing to "reside" in those states with the most favorable (e.g. least regulated and lowest) interest rates[4]. Delaware and South Dakota quickly capitalized on the natural consequences of the decision. Delaware repealed its own interest rate cap altogether in 1981[5], leaving its resident national banks free to charge rates on consumer loans that would have been capped at significantly lower rates.[6] "Most leading banking states had relaxed or repealed their interest rate ceiling by 1982."[7] The Court's 1996 decision in Smiley v. Citibank South Dakota, NA, 116 S.Ct. 1730, 135 L.Ed.2d 25 (1996)[8], held that banks were also free to charge whatever late fees they wished as "interest" under Marquette.

Notable features

  • Like most of the northeastern states, it has a city named Dover.
  • It has a border that is unique in that it is a true arc segment.[9]
  • Delaware's income tax rate is below the national average in the US,[10] along with tax incentives for businesses, making it something of an inland tax haven.
  • Because DuPont had the gold and thus made the rules, Delaware is the incorporation capital of the US, with 50% of US corporations being registered there, since they managed to make their rules the laxest fastest.
  • Delaware's former senator Joe Biden is the reason all of your credit cards can treat you like crap, because they have the least oversight and their laws apply to all credit card companies that incorporate there. Which is why they all did so.
  • It also survives by mooching on those who have to cross through to get from DC to NYC. The roads are all tolls, and are extortionate.
  • Near the Delaware Memorial Bridge tollbooth is a sign that says "Information Police."

Delawaristic culture

  • The state has a lack of renown as a vacation destination.[11]
  • George Washington was cross with Delaware, or something like that. He sailed a boat made from cherry wood. Or was that his teeth? Anyway, he probably slept there.
  • George Thorogood and the Destroyers!

License plates

Delaware issues license plates that are unique in North America. Currently, Delaware plates have a number sequence with up to six numbers, but no letters. As of 1 May 2005, the state had registered 821,618 vehicles, so the number sequences of new plates may soon be increased to seven-digits. The plates are neither embossed nor debossed, but are instead created with a silk screen process.[12] This makes issuing vanity plates impractical.

Instead, Delawareans have their own version of vanity plates.[13] Because number sequences currently run from 1 to 999999, and because these sequences date back to the first plates issued in 1909, plates with one, two, three or even four digit numbers are highly prized. And since the state does not permanently assign plates to vehicles, low-sequence plates can be auctioned off when an owner moves out of state, dies, or needs fast cash. In 2008, Delaware plate number 6 was auctioned off for US$675,000.[14] (Plates numbered 1, 2, and 3 are reserved for the current governor, lieutenant governor and state attorney general, respectively.)

Footnotes

  1. In the United States, Thomas West, 3rd (or 12th) baron is often named in history books simply as Lord Delaware. He served as governor of the Jamestown Colony, and the Delaware Bay was named after him. The state of Delaware, Delaware River and Delaware Indians were so called after the bay, and thus ultimately derive their names from the barony. See Wikipedia.
  2. http://www.taxfoundation.org/research/topic/18.html
  3. [1] The decision
  4. Christopher L. Peterson, The Card Act in Perspective: Ongoing Efforts to Find Balance in Credit Card Regulation, 2001, No. 2 Utah L. Rev. 336 (2011); Samuel Issacharoff & Erin F. Delaney, Credit Card Accountability, 73 U. Chi. L. Rev. 157, 160-61 (2006)
  5. [2]
  6. See, e.g., the Illinois Interest Act, 815 ILCS 205/4, capping the general interest rate at 9% simple interest annually.
  7. JING JIAN XIAO, HANDBOOK OF CONSUMER FINANCE RESEARCH 403 (1st ed. 2008)
  8. [3] The decision
  9. This makes it the southernmost place that can be described as "arctic."
  10. http://www.taxfoundation.org/research/topic/18.html
  11. Really!
  12. "The First State Plates" AARoads.com website. Accessed 18 October 2009.
  13. Yes, that's what they're called. And like "team," there is no "I" in "Delawarean."
  14. "The $675,000 License Plate: In Delaware, Prestige Isn’t Judged By The Car You Drive, But By Its License Plate Number" CBS Evening News website, accessed 18 October 2009. (Note: There is a typo in this article. Plate 6 was auctioned for $675,000, not plate 11.)
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