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Expert Analysis

9th Circ. Preemption Ruling Could Be Costly For Banks

By Richard Gottlieb and Diana Eisner (May 31, 2018, 12:01 PM EDT) -- In a ruling that could prove costly to some national banks, the Ninth Circuit has ruled that the National Bank Act, or NBA, does not preempt California state law mandating that financial institutions pay borrowers interest on funds held in their escrow accounts "because it does not prevent or significantly interfere with" the exercise of national bank powers....

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