Interest on Escrow Funds? Yes, Even From National Banks, Says Ninth Circuit in ‘Lusnak’

By: Richard E. Gottlieb
– The Recorder

In a shot across the bow for national banks, the U.S. Court of Appeals for the Ninth Circuit ruled that such banks may not avoid paying interest on funds held in California escrow accounts. The reason? The California law does not significantly interfere with or impede a national bank’s exercise of its banking powers.

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