12 USC 25b - State law preemption standards for national banks and subsidiaries clarified

U.S Code last checked for updates: Nov 22, 2024

§ 25b.

State law preemption standards for national banks and subsidiaries clarified

(a)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

National bank

The term “national bank” includes—

(A)

any bank organized under the laws of the United States; and

(B)

any Federal branch established in accordance with the International Banking Act of 1978 [12 U.S.C. 3101 et seq.].

(2)

State consumer financial laws

(3)

Other definitions

(b)

Preemption standard

(1)

In general

State consumer financial laws are preempted, only if—

(A)

application of a State consumer financial law would have a discriminatory effect on national banks, in comparison with the effect of the law on a bank chartered by that State;

(B)

in accordance with the legal standard for preemption in the decision of the Supreme Court of the United States in Barnett Bank of Marion County, N. A. v. Nelson, Florida Insurance Commissioner, et al., 517 U.S. 25 (1996), the State consumer financial law prevents or significantly interferes with the exercise by the national bank of its powers; and any preemption determination under this subparagraph may be made by a court, or by regulation or order of the Comptroller of the Currency on a case-by-case basis, in accordance with applicable law; or

(C)

the State consumer financial law is preempted by a provision of Federal law other than title 62 of the Revised Statutes.

(2)

Savings clause

(3)

Case-by-case basis

(A)

Definition

(B)

Consultation

(4)

Rule of construction

(5)

Standards of review

(A)

Preemption

(B)

Savings clause

(6)

Comptroller determination not delegable

(c)

Substantial evidence

(d)

Periodic review of preemption determinations

(1)

In general

(2)

Reports to Congress

(e)

Application of State consumer financial law to subsidiaries and affiliates

(f)

Preservation of powers related to charging interest

(g)

Transparency of OCC preemption determinations

(h)

Clarification of law applicable to nondepository institution subsidiaries and affiliates of national banks

(1)

Definitions

(2)

Rule of construction

(i)

Visitorial powers

(1)

 So in original. No par. (2) has been enacted.

In general

(j)

Enforcement actions

(R.S. § 5136C, as added and amended Pub. L. 111–203, title X, §§ 1044(a), 1045, 1047(a), July 21, 2010, 124 Stat. 2014, 2017, 2018.)

cite as: 12 USC 25b