5 Del. C. § 3523: Redemption policy; disclosures [For application of this section, see 85 Del. Laws, c. 339, § 2].

(a) A permitted payment stablecoin issuer shall publicly disclose its redemption policy, which must do all of the following:

(1) Establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins.

(2) Specify any conditions, limitations, or fees associated with redemption, provided that:

a. Fees may only be changed upon not less than 7 days prior notice to holders.

b. Any discretionary suspension of redemptions may only be imposed by order of the Commissioner under § 3555 of this title, by order of the Board of Governors of the Federal Reserve System, or by a court of competent jurisdiction.

(3) Establish the following mandatory timing standards:

a. Require the issuer to complete any requested redemption not later than 2 business days following the date of the requested redemption, except as otherwise provided in paragraphs (a)(4) and (a)(5) of this section.

b. Prohibit the permitted payment stablecoin issuer from unilaterally limiting, suspending, or otherwise delaying redemptions for any reason in the absence of an order described in paragraph (a)(2)b. of this section.

c. Require the permitted payment stablecoin issuer to honor any redemption request for a whole number of payment stablecoins not less than 1, subject to applicable customer identification and onboarding requirements established by regulation.

(4) If a permitted payment stablecoin issuer faces redemption demands in excess of 10% of its outstanding issuance value in a single 24-hour period, the period for timely redemption under paragraph (a)(3)a. of this section is immediately extended to 7 calendar days by operation of this paragraph (a)(4) with respect to all redemption requests outstanding at the time the 10% threshold is met and all subsequent redemption requests. The issuer must notify the Commissioner within 24 hours of the time at which the 10% threshold is met. The Commissioner may, in the Commissioner’s discretion, permit the issuer to resume normal 2-business-day redemption prior to the expiration of the 7 calendar-day period upon a finding that the issuer has the ability to redeem in an orderly and fair manner. This extended period is nondiscretionary and operates by statute upon the occurrence of the trigger event.

(5) The required redemption policy disclosure must be posted in a clear and conspicuous manner on the issuer’s publicly accessible website and must include a statement consistent with paragraph (a)(3) of this section explaining the mandatory timing standards and the limited circumstances under which redemptions may be delayed.

(b) The Commissioner may, by written order, extend or modify the redemption period applicable to a permitted payment stablecoin issuer beyond the periods specified in this subsection in the event of an extraordinary market disruption, systemic liquidity crisis, material cybersecurity incident, or other emergency conditions posing imminent risk of harm to payment stablecoin holders or the financial system. Any order under this subsection must specify the duration and conditions of any extension and is subject to review under § 3555 of this title.

(c) A permitted payment stablecoin issuer may not pay interest or yield on payment stablecoins to holders. This prohibition does not prevent an issuer from earning returns on its reserve assets for the issuer’s own account. Notwithstanding anything in this subsection, if any federal law, regulation, order, or guidance permits a federally chartered or federally licensed payment stablecoin issuer to pay interest or yield on payment stablecoins to holders, then a state-chartered or state-licensed permitted payment stablecoin issuer shall be equally permitted to pay interest or yield on payment stablecoins to holders on the same terms and to the same extent as authorized for a federally permitted issuer, without further legislative action.

(d) A permitted payment stablecoin issuer may not issue or market a payment stablecoin in any name, mark, or description that states or implies that the payment stablecoin is issued, guaranteed, or backed by the United States government or any agency thereof.

(e) A permitted payment stablecoin issuer may not make the issuance of a payment stablecoin contingent upon the purchase of any other product or service.