We are an OCC regulated bank in NY. We currently comply with NYS Banking Law, which require us to pay interest on escrow accounts. Someone in senior management does not think this is required because we are OCC regulated.

I thought that state law regardless of who you are regulated by supercedes other laws if the state requires more? Is this true?

If this is indeed the case, can you point me to a source that can help me? I need to find support other then what I have found so far...

Thanks,
Jenny

I thought state laws were valid unless specifically overridden by Federal Statute, or there was a restrictive clause. In NH, some of the requirements are preceded by "for institutions regulated by the bank commissioner..", whereas yours seems to say "every mortgage investing institution.." in both §6-K and §14-b

National Banks - according to the OCC are exempt from any State laws governing escrow accounts - including the payment of interest.

Here's a good source regarding the National Bank Preemption Authority:

http://www.occ.treas.gov/qj/qj23-1/3-SpecialInterest.pdf