Download or read book Attorney General Opinion No. 1981-158 written by Robert T. Stephan and published by . This book was released on 1981 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The "most favored lender" doctrine established under 12 U.S.C. section 85 permits national banks to charge the maximum rate of interest permitted under state law to any competing lender. Section 521 of P.L. 96-221, the Depository Institutions Deregulatory and Monetary Control Act of 1980, accords most favored lender status to state-chartered, federally-insured banks. Thus, by virtue of the most favored lender doctrine and the express provisions of said section 521 (12 U.S.C. section 1831d), state banks in Kansas may charge interest at a rate which is the greatest of either: (1) one percent over the discount rate on ninety-day commercial paper in effect at the federal reserve bank in the federal reserve district where the bank is located; (2) the rate specifically prescribed for state banks by the laws of Kansas; or (3) the highest rate available to lenders generally pursuant to the laws of Kansas. Additionally, interest rates on agricultural and business loans of $1,000 or more have been preempted by federal legislation, and such rates are now prescribed by section 324 of P.L. 96-399. Cited herein: K.S.A. 1980 Supp. 16a-2-401, as amended by section 1 of 1981 House Bill No. 2578, L. 1980, ch. 76, section 1, 12 U.S.C. sections 85, 86a, 1831d, P.L. 96-221, sections 501, 511, 512, 521, 522, 523, 525, P.L. 96-399, section 324, 12 C.F.R. section 7.7310.