Any association may take, receive, reserve, and charge on any loan or discount made, or upon any notes, bills of exchange, or other evidences of debt, interest at the rate allowed by the laws of the State, Territory, or District where the bank is located, or at a rate of 1 per centum in excess of the discount rate on ninety-day commercial paper in effect at the Federal reserve bank in the Federal reserve district where the bank is located, whichever may be the greater, and no more, except that where by the laws of any State a different rate is limited for banks organized under State laws, the rate so limited shall be allowed for associations organized or existing in any such State under title 62 of the Revised Statutes. When no rate is fixed by the laws of the State, or Territory, or District, the bank may take, receive, reserve, or charge a rate not exceeding 7 per centum, or 1 per centum in excess of the discount rate on ninety day commercial paper in effect at the Federal reserve bank in the Federal reserve district where the bank is located, whichever may be the greater, and such interest may be taken in advance, reckoning the days for which the note, bill, or other evidence of debt has to run. The maximum amount of interest or discount to be charged at a branch of an association located outside of the States of the United States and the District of Columbia shall be at the rate allowed by the laws of the country, territory, dependency, province, dominion, insular possession, or other political subdivision where the branch is located. And the purchase, discount, or sale of a bona fide bill of exchange, payable at another place than the place of such purchase, discount, or sale, at not more than the current rate of exchange for sight drafts in addition to the interest, shall not be considered as taking or receiving a greater rate of interest.
Notes of Decisions
Beneficial Nat'l Bank v. Anderson, 539 U.S. 1 (2003).
· cites it 6× “§ 5197, as amended, 12 U. S. C. § 85 , [1] is the exclusive provision *5 governing the rate of interest that a national bank may lawfully charge, that the rates charged to respondents complied with that provision, that Rev.”
Deposit Guar. Nat'l Bank v. Roper, 445 U.S. 326 (1980).
· cites it 6× “§§ 5197, 5198, as amended, 12 U. S. C. §§ 85 , 86. Section 85 permits banks within the coverage of the Act to charge interest "at the rate allowed by the laws of the State, Territory, or District where the bank is located.”
Watters v. Wachovia Bank, N. A., 550 U.S. 1 (2007).
· cites it 2× “For example, state usury laws govern the maximum rate of interest national banks can charge on loans, 12 U.S.C. § 85 , contracts made by national banks "are governed and construed by State laws," National Bank v.”
Marquette Nat'l Bank of Minneapolis v. First of Omaha Serv. Corp., 439 U.S. 299 (1978).
· cites it 6× “§ 5197, as amended, 12 U. S. C. § 85 , 1 authorizes a national bank based in one State to charge its out-of-state credit-card customers an interest rate on unpaid balances allowed by its home State, when that rate is greater than that permitted by the State of the bank’s…”
Mazaika v. Bank One, Columbus, N.A., 653 A.2d 640 (Pa. Super. Ct. 1995).
· cites it 16× “12 U.S.C. § 85 . The National Bank Act was enacted by the 38th Congress in 1864 to place national banks on a competitive footing with state-chartered banks, and sought to prevent state legislatures from discriminating against national banks.”
Marquette Nat. Bank v. First Nat. Bank of Omaha, 422 F. Supp. 1346 (D. Minnesota 1976).
· cites it 10× “The defendants, on the other hand, contend that the cause of action alleging an illegal interest rate, notwithstanding the plaintiff’s characterization thereof as a violation of Minnesota law, must be construed as a claim that 12 U.”
In re TD Bank, N.A., 150 F. Supp. 3d 593 (D.S.C. 2015).
· cites it 7× “TD Bank argues' that the sustained overdraft fee is simply not “interest” within the meaning of 12 U.S.C. § 85 . The Bank points to OCC regulations, which differentiate between bank, charges of interest, governed by 12 C.”
Michael Lutz v. Portfolio Recovery Assocs., 49 F.4th 323 (3rd Cir. 2022).
· cites it 2× “4001(e)—provides: “[i]nterest on a loan that is permissible under 12 U.S.C. § 85 shall not be affected by the sale, assignment, or other transfer of the loan.”
Meadow Brook Nat'l Bank v. Recile, 302 F. Supp. 62 (E.D. La. 1969).
· cites it 13× “reserve, or charge a rate not exceeding 7 per centum, or 1 per centum in excess of the discount rate on ninety-day commercial paper in effect at the Federal reserve bank in the Federal reserve district where the bank is located, whichever may be the greater, and such interest…”
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