ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Compliance and Risk

OCC Issues Long-Awaited Final Rule Clarifying ‘Valid When Made’ Principle

May 29, 2020
Reading Time: 1 min read

The OCC issued a long-awaited final rule today affirming that permissible interest on a loan made by a national bank or federal thrift remains valid when the loan is transferred or sold, codifying the “valid when made” principle for nationally chartered banks. Under the final rule, which was adopted as proposed, federal regulations would provide that interest on permissible loans “shall not be affected by the sale, assignment, or other transfer of the loan.”

The so-called “Madden fix”—which ABA has long urged—addresses a Second Circuit Court of Appeals ruling in Madden v. Midland Funding, which held that a nonbank buyer of a loan issued by a national bank could not export the originated interest rate into another state. The Supreme Court declined to take up an appeal of Madden, resulting in conflicting precedent around the country and increasing the urgency of regulatory or legislative action.

“The rule supports the orderly function of markets and promotes the availability of credit by answering the legal uncertainty created by the Madden decision,” said Acting Comptroller of the Currency Brian Brooks. “Such certainty allows secondary markets to work efficiently and to serve their essential role in the business of banking and helping banks access liquidity and alternative funding, improve financial performance ratios, and meet customer needs.”

The FDIC has also issued a similar proposal, which ABA also supported, ensuring that “valid when made” is codified for both national and state-chartered banks.

ADVERTISEMENT
Tags: ComplianceInterest ratesValid-when-made
ShareTweetPin

Related Posts

FinCEN to propose new rules on money laundering, whistleblower program

Treasury official outlines principles for Bank Secrecy Act modernization

Compliance and Risk
June 18, 2025

The Treasury Department is exploring ways to streamline the filing process for suspicious activity reports and currency transaction reports as part of a broader effort to modernize BSA enforcement, Deputy Secretary of the Treasury Michael Faulkender said.

FDIC, OCC tighten policy considerations for bank merger applications

Report: Bank merger activity continues at steady pace

Community Banking
June 18, 2025

While there was a temporary stall in bank merger activity in early 2025 because of the economic fallout of tariffs and other Trump administration policies, overall quarterly deal announcements have held steady, according to a new analysis by...

CFPB launches ‘tip line’ to report on bureau employees

CFPB proposes ending using civil penalty funds for consumer education, financial literacy

Newsbytes
June 18, 2025

The CFPB is proposing to stop using funds from its Civil Penalty Fund to finance consumer education and financial literacy programs, saying the practice created incentives for regulators to bring enforcement actions “for the purpose of aggrandizing the...

FOMC minutes: Persistent inflation clouds path forward

FOMC once again holds rates steady

Economy
June 18, 2025

The Federal Open Market Committee announced that it will hold the target range for the federal funds rate at 4.25%-4.5%.

ABA suggests splitting proposal to expand Fedwire, NSS operating hours

FATF releases revisions to international standard for payment transparency

Compliance and Risk
June 18, 2025

FAFT announced several revisions to its recommendation on payments transparency, which it said will enhance the safety and security of cross-border payments to better detect financial crime.

Housing starts rise in August

Housing starts dip in May

Economy
June 18, 2025

Privately-owned housing units authorized by building permits in May increased to a seasonally adjusted annual rate of 1.393 million, according to the U.S. Department of Commerce.

NEWSBYTES

Treasury official outlines principles for Bank Secrecy Act modernization

June 18, 2025

Report: Bank merger activity continues at steady pace

June 18, 2025

CFPB proposes ending using civil penalty funds for consumer education, financial literacy

June 18, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025

Podcast: What bankers need to know about ‘First Amendment audits’

June 5, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.