Have State-Chartered, FDIC-Insured Banks Finally Achieved Interstate Usury Parity with National Banks?

Join us for a webinar that examines a landmark, precedent-setting opinion rendered by the Federal District Court for the District of Colorado regarding recently enacted state legislation on interstate loans. This decision has significant implications for loans made to Colorado residents by out-of-state, FDIC-insured state banks. Learn more about the ruling here.  

We will explore the intricacies and ramifications of Colorado's newly enacted "opt out" legislation and its alignment with the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). Our panel will dissect the court's ruling, which rejected arguments from Colorado's Attorney General, UCCC Commissioner, and the FDIC, ultimately focusing on the location of the bank rather than the borrower to determine where a loan is "made." 

Topics Include:

• Section 521 of DIDMCA: Language and legislative history granting state-chartered, FDIC-insured banks the same usury authority as national banks.

• Section 525 of DIDMCA: Legislative history and states that have opted out and back in.

• Colorado Opt-Out Statute: An examination of the statute attempting to override Section 521 for loans to Colorado residents and the April 22, 2024 and June 21, 2024 interpretive letters from the UCCC Commissioner.

• Motion for Preliminary Injunction: Review of the complaint, briefs, and oral arguments—including amicus briefs filed by the FDIC and the American Bankers Association and Consumer Bankers Association (by Ballard Spahr).

• Judge Daniel Domenico’s Opinion: Analysis of the opinion and its implications.

• Preliminary Injunction: Impact on out-of-state state banks not part of the plaintiff trade groups.

• Potential Appeal: Possibility of appeal to the 10th Circuit Court of Appeals and its composition.

• Motion to dismiss filed by defendants.

• Potential Impact in Iowa: Iowa has opted out of Section 521 and has aggressively enforced Iowa’s usury laws against out-of-state state banks.

• Status of Opt-Out Legislation/Referendums in Other States: Rhode Island, Minnesota, DC, Maryland, and Nevada.

THIS WEBINAR IS INTENDED PRIMARILY FOR EMPLOYEES AND ATTORNEYS OF STATE-CHARTERED BANKS AND NON-BANKS THAT ARE PARTNERING WITH THEM TO OFFER INTERSTATE LOANS AND EXTENSIONS OF CREDIT