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U.S. Code as of:
01/19/04
Section 1831d. State-chartered insured depository institutions and insured branches of foreign banks
(a) Interest rates
In order to prevent discrimination against State-chartered
insured depository institutions, including insured savings banks,
or insured branches of foreign banks with respect to interest
rates, if the applicable rate prescribed in this subsection exceeds
the rate such State bank or insured branch of a foreign bank would
be permitted to charge in the absence of this subsection, such
State bank or such insured branch of a foreign bank may,
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 1 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 such State bank or such insured
branch of a foreign bank is located or at the rate allowed by the
laws of the State, territory, or district where the bank is
located, whichever may be greater.
(b) Interest overcharge; forfeiture; interest payment recovery
If the rate prescribed in subsection (a) of this section exceeds
the rate such State bank or such insured branch of a foreign bank
would be permitted to charge in the absence of this section, and
such State fixed rate is thereby preempted by the rate described in
subsection (a) of this section, the taking, receiving, reserving,
or charging a greater rate of interest than is allowed by
subsection (a) of this section, 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 has been agreed to
be paid thereon. If such greater rate of interest has been paid,
the person who paid it may recover in a civil action commenced in a
court of appropriate jurisdiction not later than two years after
the date of such payment, an amount equal to twice the amount of
the interest paid from such State bank or such insured branch of a
foreign bank taking, receiving, reserving, or charging such
interest.
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