This bill modifies federal banking law to give states more control over interest rate rules for loans made by banks and credit unions chartered within their borders. Currently, federal law allows out-of-state banks and credit unions to charge interest rates permitted in their home state, even when making loans to borrowers in other states. The legislation lets individual states opt out of this federal rule, but only for loans made by institutions that the state itself has chartered, not for out-of-state lenders operating within the state. States can opt out by passing a law or through voter referendum. The bill repeals an existing provision from 1980 and applies these new rules retroactively to any previous state actions under the older law. No specific funding or implementation timeline is specified in the legislation.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.