State attorneys general sue FDIC to invalidate “valid-when-made” rule
In a July 2020 Tucker Ellis Client Update, we reported that the attorneys general of California, Illinois, and New York had sued the Office of the Comptroller of the Currency (“OCC”) in an effort to invalidate the OCC’s recently adopted “valid-when-made” rule. On August 20, 2020, the attorneys general of those states and Massachusetts, Minnesota, New Jersey, and North Carolina, as well as the District of Columbia sued the Federal Deposit Insurance Corporation (“FDIC”) to invalidate the FDIC’s new rule that mirrors the OCC rule. Both rules attempt to resolve a national dispute about the legality of interest rates on loans after the loans are sold by certain financial institutions.
Read the Client Alert here.