The Depository Institutions Deregulation and Monetary Control
Act of 1980 (DIDA) sets a national standard for interest rates that state-chartered banks may charge on loans, preempting state laws that cap interest at lower rates. The statute expressly authorizes states to opt out of the national standard for “loans made in such State.” In 2023, Colorado announced it would do so–and enforce lower interest-rate caps on loans made by state banks to Colorado borrowers, irrespective of whether the banks were chartered in Colorado or other states. State-bank trade associations sued, and the district court agreed with their argument that the opt-out provision only applied to loans made by Colorado state-chartered banks, and granted a preliminary injunction.
A divided panel of the Tenth Circuit reversed, holding that “”loans made in such State’ to include the borrower’s state” Today, the Court granted en banc rehearing, posing a series of questions to be addressed in supplemental briefs.
