§43 Interpretations Concerning Preemption of Certain State Laws

Summary

Federal bank regulators must tell the public before saying federal law overrides state rules about community reinvestment, consumer protection, fair lending, or opening branches inside a state. They must put a notice in the Federal Register that explains the state law they are looking at, give people at least 30 days to send written comments, and then consider those comments before writing a final opinion or making a determination under section 36(f)(1)(A)(ii). The agency must also publish any final opinion or interpretive rule that finds federal law overrides those state laws, and any determination under section 36(f)(1)(A)(ii). There are exceptions: the process is not required if the issue is the same as one already decided by courts or the agency, if the request has no real legal basis, or if the material is for court, Congress, or internal use. The agency can skip the notice step in writing if delay would threaten a bank’s safety and soundness, or when the opinion is tied to buying banks that are in default or close to default (see section 1813) or to acquisitions with FDIC help under section 1823(c).