PUBLIC LAW 96-104—NOV. 5, 1979
93 STAT. 789
Public Law 96-104 96th Congress
An Act To authorize on a temporary basis certain business and agricultural loans, notwithstanding interest limitations in State constitutions or statutes, and for other purposes.
Nov. 5, 1979 [H.R. 2515]
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That titles II and III Business and of the Act entitled "An Act to authorize the regulation of interest agricultural rates payable on obligations issued by affiliates of certain depository loans, temporary exemption from institutions, and for other purposes", approved October 29, 1974 State usury (Public Law 93-501; 88 Stat. 1557), are hereby repealed, except that— ceilings. (1) the amendments made by title II of such Act and the Repeal. 85, 12 USC provisions of such title shall apply to any loan made in any State 371b-l, 371b-l during the period specified in section 206 of such Act; and note, 1425b, (2) the amendments made by title III of such Act shall apply to 1730e, 1828, 1831a, 1831a any deposit made or obligation issued in any State during the notes; 15 USC period specified in section 304 of such Act. 687. TITLE I—INTEREST RATE AMENDMENTS REGARDING STATE USURY CEILINGS ON CERTAIN LOANS SEC. 101. Section 5197 of the Revised Statutes, as amended (12 U.S.C. 85), is amended by inserting in the first and second sentences before the phrase "whichever may be the greater", the following: "or in the case of business or agricultural loans in the amount of $25,000 or more, at a rate of 5 per centum in excess of the discount rate on ninety-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district where the bank is located,". SEC. 102. The Federal Deposit Insurance Act (12 U.S.C. 1811-1831) is amended by inserting after section 23 the following new section: "SEC. 24. (a) In order to prevent discrimination against Statechartered insured banks with respect to interest rates, if the applicable rate prescribed in this subsection exceeds the rate such State bank would be permitted to charge in the absence of this subsection, a State bank may in the case of business or agricultural loans in the amount of $25,000 or more, notwithstanding any State constitution or statute, which is hereby preempted for the purposes of this section, take, receive, reserve, and charge on any loan or discount made, or upon any note, bill of exchange, or other evidence of debt, interest at a rate of not more than 5 per centum in excess of the discount rate on ninety-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district where the bank is located, and such interest may be taken in advance, reckoning the days for which the note, bill, or other evidence of debt has to run. "(b) If the rate prescribed in subsection (a) exceeds the rate such State bank would be permitted to charge in the absence of this paragraph, and such State fixed rate is thereby preempted by the rate described in subsection (a), the taking, receiving, reserving, or charging a greater rate of interest than is allowed by subsection (a) when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which
12 USC 85 note. 12 USC 85 note.
State-chartered insured banks, interest rate charges, limitation. 12 USC 1831a.
Interest overcharge, forfeiture.
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