In Cantero v. Bank of America, N.A., 49 F.4th 121 (2d Cir. 2022), the U.S. Court of Appeals for the Second Circuit addressed the preemptive effect of National Bank Act (NBA) and the Dodd-Frank Wall Street Reform and Consumer Protection Act on state laws regulating banks. Plaintiffs in two putative class actions argued that Bank of America’s failure to pay interest on mortgage escrow accounts ran afoul of a New York statute requiring payment of two percent interest on such accounts; Bank of America responded that the NBA preempted the state-law claims.

In an opinion written by Circuit Judge Michael Park and joined by Chief Judge Debra Livingston and Judge Myrna Pérez, the court held that the NBA preempts the New York interest-on-escrow law under “ordinary legal principles of pre-emption,” and that the Dodd-Frank Act “merely codified those rules.”

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