Second Circuit Denies Request for Rehearing in Madden v. Midland Funding Case

August 18, 2015

In a case closely watched by the lending industry, on August 12, 2015, the U.S. Second Circuit Court of Appeals denied a request by Midland Funding, LLC (Midland Funding) to rehear a case decided in May (Madden v. Midland Funding, LLC) in which the court ruled that a non-bank assignee of a national bank could not rely on federal preemption under the National Bank Act to override New York state’s usury laws. Midland Funding is expected to appeal to the U.S. Supreme Court, particularly given the apparent conflict with decisions in other circuits.

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