Opinion ID: 222219
Heading Depth: 3
Heading Rank: 2

Heading: The NBA and the OCC

Text: The NBA, as the ultimate statutory authority for national banks, was originally enacted in 1864 to give banks broad authority to exercise all such incidental powers as shall be necessary to carry on the business of banking. 12 U.S.C. § 24 (Seventh). Congress subsequently delegated the supervision of national banks and the implementation of the NBA to the OCC. 12 U.S.C. § 93a. The OCC's authority includes prescrib[ing] rules and regulations to carry out the responsibilities of the office. Id. This regulatory authority, which carries the same weight as federal statutes, includes interpretation of state law preemption under the NBA. See Rose v. Chase Manhattan Bank USA, 396 F.Supp.2d 1116, 1122 (C.D.Cal.2005) (citing La. Pub. Serv. Comm'n v. FCC, 476 U.S. 355, 369, 106 S.Ct. 1890, 90 L.Ed.2d 369 (1986)). Under its delegated powers, the OCC has promulgated regulations specifically directed toward identifying which state laws affecting national banks are preempted. See OCC, Preemption Final Rule, 69 Fed.Reg.1916 (2004); 23 OCC Q.J. 28 (Mar.2004), 2004 WL 2360325. The regulation relevant here is the OCC's determination outlining which state laws affecting non-real estate lending are preempted in favor of federal law and OCC regulations. 12 C.F.R. § 7.4008. The portions of Section 7.4008 at issue are as follows: (d) Applicability of state law. (1) Except where made applicable by Federal law, state laws that obstruct, impair, or condition a national bank's ability to fully exercise its Federally authorized non-real estate lending powers are not applicable to national banks. (2) A national bank may make non-real estate loans without regard to state law limitations concerning: . . . (viii) Disclosure and advertising, including laws requiring specific statements, information, or other content to be included in credit application forms, credit solicitations, billing statements, credit contracts, or other credit-related documents; . . . . (e) State laws that are not preempted. State laws on the following subjects are not inconsistent with the non-real estate lending powers of national banks and apply to national banks to the extent that they only incidentally affect the exercise of national banks' non-real estate lending powers: (1) Contracts; . . . (4) Rights to collect debts[.] 12 C.F.R. § 7.4008(d), (e).