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Full-Text Articles in Law

A Better Madden Fix: Holistic Reform, Not Band-Aids, To Modernize Banking Law, Matthew J. Razzano Jul 2020

A Better Madden Fix: Holistic Reform, Not Band-Aids, To Modernize Banking Law, Matthew J. Razzano

University of Michigan Journal of Law Reform Caveat

Historically, state usury laws prohibited lending above certain interest rates, but in 1978 the Supreme Court interpreted the National Bank Act (NBA) to allow chartered banks to issue loans at rates based on where they were headquartered rather than where the loan originated. States like South Dakota virtually eliminated interest rate ceilings to attract business, incentivizing national banks to base credit operations there and avoid local usury laws. In 2015, however, the Second Circuit decided Madden v. Midland Funding, LLC and reversed long-standing banking practices, ruling that non-chartered financial institutions were not covered by the NBA and were therefore subject …


The Propriety Of Benefit-Spreading Regulations Under The 10% Lending Limit Of The National Bank Act, Michigan Law Review Jun 1980

The Propriety Of Benefit-Spreading Regulations Under The 10% Lending Limit Of The National Bank Act, Michigan Law Review

Michigan Law Review

This Note examines whether the ten percent lending limit of the National Bank Act should be used to promote benefit-spreading. Section I evaluates the legislative and judicial history of the lending limit and concludes that Congress never intended the Comptroller to issue regulations to foster benefit-spreading. Section II examines the practical ramifications of the benefit-spreading regulations. It concludes that the lending limit cannot effectively foster benefit-spreading without undermining the risk-reducing function of the statute; that compliance with the benefit-spreading regulations is costly while the penalties for noncompliance are inappropriate and unfair; and that existing statutes better promote benefit-spreading while avoiding …


Conflict Of Laws-Limitation Of Actions-Determination Of Place Of Accrual Of Action To Enforce Liability Of Stockholders In Insolvent National Banks, Edwin F. Uhl S.Ed. Dec 1947

Conflict Of Laws-Limitation Of Actions-Determination Of Place Of Accrual Of Action To Enforce Liability Of Stockholders In Insolvent National Banks, Edwin F. Uhl S.Ed.

Michigan Law Review

Suits in equity were brought in the federal district courts of Ohio and Pennsylvania against resident shareholders of Banco Kentucky Company, a bank-stock holding corporation. The purpose of the litigation was to enforce an assessment under the National Bank Act on the shares of an insolvent national bank which Banco owned. Ohio and Pennsylvania have six year statutes of limitations on such an action. They also have borrowing statutes, barring suit on a cause of action no longer enforceable in the jurisdiction in which it arose. The bank had been authorized to conduct its activities in Louisville, Kentucky, had engaged …