Interest Rate Exportation and Related Lending Issues

Summary

This practice note discusses federal and state laws and regulations regarding usury, interest rate exportation, and the authority of insured depository institutions to select the most favorable interest rate in lending transactions occurring in other states. This practice note also reviews the most favored lender doctrine, which permits a National Bank, regardless of state usury laws, to charge the highest interest rate a lender in a state can charge for the same type of lending transaction.