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#1576341 - 07/11/11 07:19 PM Loan origination limits
Curious Banker Offline
100 Club
Joined: May 2004
Posts: 184
Midwest
I thought Iowa Code 535.8 regarding loan origination fees being capped to 2% of the loan was not applicable to National banks. I have a handout from Iowa Bankers that states "Iowa Code 535.8 limits state chartered banks..." but I also have another handout from them that all charters must comply with 535.8.

Which is correct? If it doesn't apply to National Banks, where will I find this cite?

Thanks.

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#1576516 - 07/12/11 12:27 AM Re: Loan origination limits Curious Banker
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,622
Galveston, TX
If Iowa is your home state, then preemption authority does not apply. It will not preempt State law where you are located.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1576647 - 07/12/11 02:13 PM Re: Loan origination limits rlcarey
Curious Banker Offline
100 Club
Joined: May 2004
Posts: 184
Midwest
We are a National bank chartered in Illinois. We have branches in Iowa.

When you write, "if Iowa is your home state...", do you mean chartered or branch located?

Thanks!

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#1576697 - 07/12/11 03:02 PM Re: Loan origination limits Curious Banker
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,622
Galveston, TX
12 CFR 36:

(f) Law applicable to interstate branching operations
(1) Law applicable to national bank branches
(A) In general
The laws of the host State regarding community reinvestment, consumer protection, fair lending, and establishment of intrastate branches shall apply to any branch in the host State of an out-of-State national bank to the same extent as such State laws apply to a branch of a bank chartered by that State, except—

(i) when Federal law preempts the application of such State laws to a national bank; or

(ii) when the Comptroller of the Currency determines that the application of such State laws would have a discriminatory effect on the branch in comparison with the effect the application of such State laws would have with respect to branches of a bank chartered by the host State.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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