News & Analysis as of

Valid When Made Doctrine Banking Sector

Hudson Cook, LLP

Court Upholds "Valid When Made" Rules, But "True Lender" Risk Lives On

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In a victory for fintechs and the banks that partner with them, the U.S. District Court for the Northern District of California recently turned back two challenges by a consortium of state attorneys general to the "valid when...more

Husch Blackwell LLP

One Step Closer to Certainty: Court Dismisses States' Challenges to "Valid When Made" Rules

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On February 8, 2022, a federal district court in California issued separate orders concluding that the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) did not violate the...more

Troutman Pepper

OCC Defeats AGs’ Challenge to “Valid When Made” Rule

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On February 8, a Northern District of California judge ruled on cross motions for summary judgment filed by the states of California, Illinois, and New York (plaintiffs) and the Office of the Comptroller of the Currency and...more

Orrick, Herrington & Sutcliffe LLP

OCC and FDIC Successfully Defend Valid-When-Made Rules

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have successfully defended their respective valid-when-made rules. On February 8, 2022, Judge Jeffry S. White, U.S....more

McGlinchey Stafford

Federal Court Upholds OCC and FDIC Valid When Made Rules

McGlinchey Stafford on

On Tuesday, February 8, 2022, the United States District Court for the Northern District of California issued two separate orders that upheld the OCC’s and FDIC’s “valid-when-made” rules. In 2020, the OCC and FDIC issued...more

Goodwin

SEC Proposes Changes to Private Fund Regulation

Goodwin on

In This Issue. The U.S. Securities and Exchange Commission (SEC) proposed changes to private fund regulation; the Office of the Comptroller of the Currency (OCC) succeeded in validating its “valid-when-made” rulemaking; the...more

Morgan Lewis - All Things FinReg

“Madden Fix” Rules Withstand a Key Test: What Happens Next

More than six years after it was decided, the practical consequences of the US Court of Appeals for the Second Circuit’s Madden v. Midland Funding, LLC decision continue to diminish. The decision—which held that, under some...more

Sheppard Mullin Richter & Hampton LLP

OCC Prevails in Challenge to “Valid When Made” Rule

On February 8, the U.S. District Court for the Northern District of California ruled against three states – California, Illinois, and New York – challenging the OCC’s rule on the “valid when made” doctrine. In 2020, the OCC...more

Troutman Pepper

Congress Uses Congressional Review to Overturn OCC’s True Lender Rule

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On June 24, the House of Representatives, like the Senate on May 11, voted to overturn the Office of the Comptroller of Currency’s (OCC) “True Lender Rule” that was finalized in October 2020. The Senate initiated the process...more

Locke Lord LLP

United States District Court Accepts the “Valid When Made” Doctrine

Locke Lord LLP on

In Robinson v. National Collegiate Student Loan Trust 2006-2, the U.S. District Court for the District of Massachusetts accepted the validity of the “valid when made” doctrine. The District Court’s acceptance is noteworthy...more

Goodwin

Illinois Imposes 36% MAPR Rate Cap On Consumer Loans; Takes Aim At Fintech-Bank Partnerships And Secondary Market Transactions

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On March 23, 2021, the Predatory Loan Prevention Act (the “PLPA”) was signed into law by Illinois Governor J.B. Pritzker. The PLPA imposes a 36% military annual percentage rate (“MAPR”) cap on all loans made to Illinois...more

McGlinchey Stafford

True Lender Update: States vs. OCC; No FDIC Rule; Possible State True Lender Rules?

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In recent months, we’ve provided several updates on “True Lender” and “Valid When Made” developments from the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and state...more

McGuireWoods LLP

States Sue to Set Aside OCC’s True Lender Rule

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New York, California and six other States filed a widely expected lawsuit on January 5 seeking to invalidate the “True Lender” Rule recently issued by the Office of the Comptroller of the Currency (“OCC”). As we previously...more

Goodwin

OCC Issues Final “True Lender” Rule

Goodwin on

As Lender Law Watch previously reported, in July 2020, to resolve the legal uncertainty discouraging many banks and companies from entering into partnerships to offer loans to consumers, the OCC issued its proposed true...more

White & Case LLP

OCC Finalizes True Lender Rule, Attempting to End Uncertainty around Bank-Fintech Partnership Models

White & Case LLP on

The Office of the Comptroller of the Currency (OCC) issued a final rule that creates a bright-line test to determine when a national bank or federal savings association (bank) makes a loan and is the "true lender," including...more

McGuireWoods LLP

OCC Issues Final ‘True Lender’ Rule To Provide Clarity For Bank Lending Partnerships

McGuireWoods LLP on

On October 27, 2020, the Office of the Comptroller of the Currency (OCC) issued its final rule setting the test for determining who the ‘true lender’ is in a loan transaction, including in the context of a lending partnership...more

Ballard Spahr LLP

Hundreds comment on OCC proposed “true lender” rule

Ballard Spahr LLP on

We recently published a blog about the OCC’s proposed rule “National Banks and Federal Savings Associations as Lenders” (the “Proposed Rule”), which would clarify that a bank (or savings association) is properly regarded as...more

Troutman Pepper

Securitization Trust Defeats Efforts to Apply Madden

Troutman Pepper on

In the first case decided on the issue of whether Madden v. Midland Funding, LLC is applicable to a credit card securitization, the United States District Court for the Western District of New York, on September 21, 2020,...more

Goodwin

California, Illinois and New York Sue OCC on “Valid When Made” Rule

Goodwin on

On July 29, 2020, three states – California, Illinois, and New York – filed suit against the Office of the Comptroller of the Currency (OCC) in the U.S. District Court for the Northern District of California, challenging the...more

Goodwin

The OCC and FDIC Affirm the “Valid When Made” Doctrine

Goodwin on

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued Final Rules last month in an effort to address the “legal confusion” regarding the impact of the permissible...more

Bradley Arant Boult Cummings LLP

OCC, FDIC Issue Long-Awaited Valid-When-Made “Madden Fix”

Recently, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued final rules designed to resolve the uncertainty created by the Second Circuit Court of Appeals’...more

Locke Lord LLP

FDIC Follows OCC and Clarifies “Valid When Made” Doctrine

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On June 25, 2020, the Federal Deposit Insurance Corporation (the “FDIC”) issued its final rule (the “FDIC Rule”) clarifying that an assignee of a state-chartered bank or insured branch of a foreign bank (a “state bank”) has...more

McGuireWoods LLP

OCC Clarifies the “Valid When Made” Principle

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On May 29, 2020, the Office of the Comptroller of the Currency (OCC) issued a long-awaited final rule to clarify and underscore the ‘valid when made’ principle in which the interest rates permissible before a bank transfers a...more

Goodwin

Bank Regulators Propose Fix to Madden Problem

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Last week, the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) each issued a proposed rule designed to clarify that interest rates that are valid when a loan is made remain...more

Nutter McClennen & Fish LLP

Bank Report: November 2019

OCC and FDIC Propose Interest Rate Fix for Loans Transferred to Non-Banks - The FDIC and OCC have separately proposed rules that would codify the “valid-when-made” doctrine and clarify that when a bank sells, assigns, or...more

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