- In their Law360 article, A.J. Dhaliwal and Moorari Shah examine a pending Tenth Circuit case that could significantly reshape interstate lending. The court's interpretation of a four-word phrase in a 1980 federal statute may determine whether states can apply their interest rate caps to loans made by out-of-state banks, with major implications for bank-fintech lending programs.
- Dhaliwal and Shah note that the litigation is part of a broader state-level effort to regulate lending activity. Even if the banking industry prevails, states may continue pursuing alternative approaches through true lender laws, anti-evasion statutes and licensing requirements aimed at nonbank participants.
- The authors advise banks and fintech companies to prepare now rather than wait for the court's ruling. They recommend reviewing lending program structures, monitoring potential regulatory exposure and reassessing contractual risk-allocation provisions to account for multiple possible outcomes.
Article
4 Words In A 1980 Law Could Redraw Bank Lending
Law360
September 16, 2026Estimated Read Time: 1 min
Key Takeaways
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