Document: 439 U.S. 299 99 S.Ct. 540 58 L.Ed.2d 534 MARQUETTE NATIONAL BANK OF MINNEAPOLIS, Petitioner,v.FIRST OMAHA SERVICE CORPORATION et al. State of MINNESOTA, Petitioner, v. FIRST Nos. 77-1265, 77-1258. Argued Oct. 31, 1978. Decided Dec. 18, Syllabus The First National Bank Omaha (Omaha Bank) is a national banking association chartered in Nebraska; it enrolled the BankAmericard plan, and solicits for that plan Minnesota. charges its Minnesota cardholders interest on their unpaid balances at rate permitted by Nebraska law, but excess law. Marquette Minneapolis (Marquette), Minnesota-chartered brought suit against subsidiary, respondent Service Corp., inter alia, to enjoin operation Bank's program until such time as complied with usury Rejecting respondent's contention Minnesota's law was preempted Act provision codified 12 U.S.C. § 85, which authorizes "to charge any loan" allowed laws "where bank located," state trial court granted Marquette's motion partial summary judgment. Supreme Court reversed. Held: Section 85 permits customers higher sanctioned Pp. 307-319. (a) As bank, federal instrumentality whose governed under may "on where "located." P. 308. (b) Apart from program, located Nebraska, chartered. 309. (c) cannot be deprived location merely because extends credit residents another State, extended honoring sales drafts customers, unpaid-balance finance are assessed, payments received, cards issued. 310-312 (d) Nor does statutory change can used purchase goods services outside Nebraska. 547-548. (e) Congress enacting 1864 intended facilitate "national system," interstate nature fully recognized, there no intention exempt loans reach predecessor 85. 313-318. (f) Though "exportation" rates, occurred here, impair ability States maintain effective laws, impairment has always been implicit correction situation would have achieved legislatively. 318-319. Affirmed. Richard B. Allyn, St. Paul, Minn., petitioner No. John Troyer, Minneapolis, 77-1265. Robert H. Bork, Washington, D. C., respondents. Mr. Justice BRENNAN delivered opinion Court. 1 question decision whether Act, Rev.Stat. 5197, amended, 85,1 based one out-of-state credit-card an home when greater than bank's nonresident customers. held rate. 262 N.W.2d 358 (1977). We affirm. 2 * charter address Omaha, Neb.2 card-issuing member plan. This enables participating merchants obtain cash advances banks throughout United world. systematically sought enroll residents, merchants, nearby solicitation carried Corp. Corp.), wholly owned subsidiary Bank. 3 obligated pay outstanding BankAmericards. cardholder accounts 18% per year first $999.99, 12% amounts $1,000 over.3 however, fixes permissible annual 12%.4 To compensate reduced interest, fees up $15 privilege using card.5 4 instant case began (Marquette)6 itself plan,7 District Hennepin County, soliciting law.8 claimed losing because, unlike forced low $10 fee use cards. App. 7a-15a, 45a-48a. 5 named defendants Bank, organized qualified do business doing Minnesota,9 Credit Bureau Inc., corporation having principal office Minn. participates entering into agreements necessary scheme. Id., 30a. At filed complaint, had not yet entered Minnesota, although so. 30a, 92a, 94a. For services, receives extend or receive interest.10 94a, 97a-110a. It alleged solicited prospective 9a, 6 remove action Federal See 94.11 responded dismissing without prejudice see Fed.Rule Civ.Proc. 41(a)(1)(i), Court, citing Gully Nat. 109, 57 96, 81 L.Ed. 70 (1936), remanded County. 422 F.Supp. 1346 (Minn.1976). thereupon moved judgment declared violation statute, Minn.Stat. 48.185 (1978),12 permanently remaining engaging activity connection offering further Defendants argued 85,13 enforcement statute program. Upon being notified this challenge 48.185, Attorney General Minnesota14 intervened party plaintiff joined prayer declaratory permanent injunction. 7 County plaintiffs' judgment, holding unreported "nothing contained precludes preempts application Statutes, Omaha's operated Minnesota." 139a-140a. enjoined "as agent Omaha," "engaging other card 48.185."15 140a-141a. 8 On appeal, Noting dismissal procedural device removed jurisdiction courts Eighth Circuit, noting recent Appeals Circuit made plain rather should govern Fisher 548 F.2d 255 (1977),16 concluded "inappropriate permit devices result inconsistent existing doctrine Circuit." N.W.2d, 365.17 Plaintiffs timely petitions writs certiorari,18 we granted, 436 916, 98 2261, 56 757 (1978), order decide appropriate II 9 In present posture longer defendant. presented nevertheless There allegation petitioners' complaints either themselves extending therefore occasion determine case. 10 bank; "instrumentalit[y] government, created public purpose, necessarily subject paramount authority States." Davis Elmira Savings 161 275, 283, 16 502, 503, 40 700 (1896). thus Farmers' & Mechanics' Dearing, 91 29, 34, 23 196 (1875). called states: 11 "Any take, receive, reserve, loan discount made, upon notes, bills exchange, evidences debt, Territory, located, . more, except different limited so shall associations chapter." (Emphasis supplied.) plainly provides before us narrowed "located" reason entitled authorized law.19 13 itself, apart Petitioners concede much. Brief Petitioner 77-1258, p. 3; pp. 3, 16, 33-34. requires organization certificate "[t]he place operations deposit on, designating district, particular county city, town, village." 5134, 22. Douglas Neb. operates branch cf. Seattle Trust California, 492 48 (CA9 1974), nor apparently could law.20 36(c).21 14 contends conclusion must altered if considered: "In context transactions deemed 'located' purposes program." Reply 7. 15 disagree. originally enacted 30 1864,22 Stat. 108.23 congressional debates surrounding enactment were conducted assumption section certificate. Cong.Globe, 38th Cong., 1st Sess., 2123-2127 (1864). foreign State. free visit suggested apply transactions. Although convenience modern mail BankAmericards visiting similarly banks.24 Finance assessed Neb., all remitted Furthermore, issues after assessments city. fact "in merchants" determinative holder world." Stipulation Facts, 91a. New York mail-order Michigan. If depend whereabouts each transaction, meaning term stretched throw confusion complex system banking. A never certain contacts sufficient alter choose invite these difficulties rendering elastic mere suffice "locate" 85.25 Second Leavenworth Smoot, D.C. 371, 373 (1876). III 17 Since language "allowed" contend, reading violates basic legislative intent Act. Train Colorado Public Interest Research Group, 426 1, 9-10, 96 1938, 1942, 434 (1976). 1864, 108, argument runs, insure competitive equality between charging interest." 24. policy best effectuated limiting located. addressing financial incorporated "local institutions," did "contemplate established." 17. Therefore interpret those involved only enlarge impermissibly original Congress, also undercut foundations upsetting now banks. 18 accept argument. Whatever "competitive equality" discerned sections see, e. g., Dickinson, 396 122, 131, 90 337, 342, 24 312 (1969); Logan Walker Co., 385 252, 261-262, 87 492, 497, 343 (1966), descendants interpreted over century give "advantages competitors." Tiffany Missouri, Wall. 409, 413, 21 862 (1874). "National banks," said Tiffany, "have favorites."26 banks, truly core Instead, confronted inequalities occur applies rates dealing These affect both Indeed, claiming injured unequal charged bank.27 Whether "exported" violate part depends aware existence seem part. 19 Close examination history, historical makes clear that, contrary suggestion petitioners, what Representative Hooper28 termed system." 1451 Report Comptroller Currency 31 example, recognized American providing three-fifths 15% aggregate amount notes circulation required hand, lawful money" 20 "consist due available redemption circulating approved comptroller currency, act, cities Saint Louis, Louisville, Chicago, Detroit, Milwaukie [sic ], Orleans, Cincinnati, Cleveland, Pittsburg, Baltimore, Philadelphia, Boston, York, Albany, Leavenworth, San Francisco, Washington City." 109.29 portray great regional interdependence. Senator Chandler Michigan, noted: 22 "[T]he Northwest done exchange. wool clip wheat crop hog Iowa, purchased drawn chiefly [New Boston]. bought Boston. I put three convenient customer, broker, merchant, enabled draft places." 2144 (1864).30 id., 1343, 1376, 2143-2145, 2152, 2181-2182. Similarly, 41 provided shares taxed personal property assessment taxes imposed elsewhere," 112, demonstrated sensitive awareness possibilities ownership control See, 1271, 1898-1899 specific discussion impact loans, developed market. early 1839 note: "Money frequently borrowed state, another. numerous established states constant habit contracting usages commerce trade general public, practiced long period time, generally acquiesced states, overlook them ." Augusta Earle, Pet. 519, 590-591, 274 (1839). Examples market noted historians F. Redlich, Molding Banking 49 (1968); James, Growth Chicago Banks 546 (1938); Breckenridge, Discount Rates States, Pol.Sci.Q. 119, 136-138 (1898). Evidence found judicial decisions cases arising out Woodcock Campbell, Port. 456 (Ala.1835); Clarke Mississippi, Ark. 516 (1850); Planters Bass, La.Ann. 430 (1847); Knox 27 Miss. 65 (1854); Bard Poole, N.Y. 495 (1855); Curtis Leavitt, (1857). After passage involving begin appear some frequency courts. re Wild, 28 Fed.Cas. page 1211, No.17,645 (S.D.N.Y.1873); Cadle Tracy, 967, No.2,279 McElhinney, 42 801 (S.D.Iowa 1890); 371 25 assume oblivious common commercial find implausible conclude, therefore, meant through silence 30. certainly exceedingly reluctant read hiatus regulatory scheme absence evidence intent. adduced evidence. 26 Petitioners' final case, will significantly enact laws. impairment, structure since citizens neighboring rates.31 Cf. 2123 accentuated ease But protection issue policy, plea end better addressed wisdom pertinent part: centum ninety-day paper effect reserve Reserve district agricultural $25,000 whichever greater, §§ 201, 206 Pub.L. 93-501, 88 1558, 1560. 22, create "organization certificate" specifically District, Neb.Rev.Stat. 8-815 8-823, 8-825 8-829 (1974). assesses daily balance entire previous purchases deducting during billing cycle. No imposed, portion account month's total paid full date shown monthly statement. 93a-94a. (1978) "Subdivision 1. Any savings pursuant Chapter 50, open arrangement debtor, debtor advances, satisfaction obligations incurred otherwise overdraft checking "Subd. 3. collect periodic extensions section, exceed percent month computed average cycle monthly, maximum percentage bears same relation number days 4. subdivision directly indirectly debtor: "(a) Annual charges, annum, payable advance, debts resulting satisfied debtor's 5. revolving attributable solely cycle, statement issued balance. 6. persons who induces enter arrangements continuous systematic personally mail, retail within contractually bound honor goods, furnished payment state. writing executed signed person specifying: apply; "(b) consents state; "(c) venue; "is invalid respect applies. An resident valid enforceable according 48.185(4)(a), supra n. terms extent applicable transaction. compliance provisions competitively violations institute civil injunction prohibiting section. court, proper proof defendant engaged practice future commission practice. Proof monetary damage loss profits required. relief addition remedies conduct statutes state." offices 2, supra. asked compensatory punitive damages. App., 16a. does, assignments delinquent and, incident collecting accounts, interest. venue 5198, 94, "Suits, actions proceedings chapter Territorial established, county, municipal city similar cases." 4, Defendant addressee injunction, relied Seventh 538 1284 Iowa reached conclusion. ex rel. Turner 269 409 appeal docketed, 78-846. reject untimely. November 10, 1977. petition rehearing, which, defers entry disposition petition. Minn.Rules Civ.App.Proc. 136.02, 140. rehearing denied December 8, 1977; 14, 1977, way separate document stating "the below, herein appealed from, hereby things reversed." H Cert. Petitions certiorari March 13, 1978, "after decree" allotted 2101(c). Puget Sound Power Light Co. King 264 24-25, 44 261, 262, 68 541 (1924); Commissioner Estate Bedford, 325 284-288, 1157, 1158-1159, 89 1611 (1945). parse phrase "associations added.) occurs "except" clause least (1874), "enabling" clause. "If fixed lenders generally, rate, associations." 411. "allowed more" "for generally," need relationship "organized existing" qualify operate grandfather 36(a). prohibits banking, establishment more two "detached auxiliary teller offices" maintained "within corporate limits located." 8-157(1) (2) manned unmanned "electronic satellite facilities." 8-157(3). facilities Last Term Citizens Southern Bougas, 35, 88, 54 218 (1977), supra, 11, designated certificate," places branches. 94. June ch. 106, 99, "An Provide .," title 1874 national-bank act." Ch. 343, 123. was, parts, virtually identical current stated: "[E]very note, bill territory preceded 46 1863, 678, provided: loan, delay money, contract parties, several respectively Once again, Corporation (1978). stipulation facts, parties describe follows: "III "While transactions, they advertise solicit applications then forwarded acceptance rejection, serve depository deposited whom agreements. "V "Minnesota wishing sign form evidencing transaction authenticated cardholder's card, exchange merchant respectively. forms his credit, forward advance credit. "VI "The renders statements account. Payments Omaha. "VII rendered However, 92a-94a. "transacts business" even Securities Exchange 1934 locate 11. Radzanower Touche Ross 148, 1989, America Whitney Central 261 171, 43 311, 67 594 (1923); Cope Anderson, 331 461, 467, 1340, 1602 (1947). "most favored lender" status regulations Currency. CFR 7.7310(a) premise prices money. Hooper reported become House Ways Means Committee. Million, Debate J.Pol.Econ. 251, 279 (1894). 29 Charleston Richmond added list keep fifths whenever, condition southern warrant it." 109. 32 Sherman, sponsor Senate, described following purpose 31: important is, centers redemption. Under old bill, redeem own counter. failed there, winding up. issues. Each center prescribed along Atlantic coast, places. That strengthen very much relieving noteholder trouble going remote village demanding counter bank." 1865 proposing amendment every enumerated money equal twenty-five deposits." 108. read: "And half cent. act Milwaukee, Portland consist Philadelphia." 2143 When passed House, uniform 7% 1866 (1864) (remarks Sen. Sherman); J. Knox, History 238-239, 248, 255-256 (1903, 1969 reprint). Such provision, course, eliminated among differing rates. "at must, statute.

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