DIDMCA’s Section 525 Opt-Out: Congress Allowed States to Reimpose Usury Limits on Their Own Banks, Not on Out-of-State Lenders

The purpose of this blog is to respond to questions we have received as to why a state like Colorado would ever use Section 525 of DIDMCA to opt out of Section 521 of DIDMCA if it would not preclude rate exportation by out-of-state, state-chartered banks. The question suggests that Congress would not have enacted Section 525 for any purpose other than to prevent rate exportation.... Continue…