Justices Lean Toward Exempting National Banks From State Law (1)

US Supreme Court justices seemed poised to continue allowing national banks to avoid complying with some state laws, though conservative and liberal justices wrestled with determining when state policies “significantly interfere” with a national bank’s operations.

The case, Cantero v. Bank of America Corp., will determine whether the National Bank Act, a Civil War-era law governing national banks, blocks a New York law mandating that banks pay at least 2% interest on mortgage escrow accounts.

The US Court of Appeals for the Second Circuit in 2022 ruled that the National Bank Act preempts New York’s law. A decision ...