Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp.
Citation | 262 N.W.2d 358 |
Decision Date | 10 November 1977 |
Docket Number | No. 47561,47561 |
Parties | The MARQUETTE NATIONAL BANK OF MINNEAPOLIS, Respondent, v. FIRST OF OMAHA SERVICE CORPORATION, Appellant, and State of Minnesota, Intervenor, Respondent. |
Court | Supreme Court of Minnesota (US) |
Syllabus by the Court
A national bank may charge its nonresident credit card customers an interest rate on unpaid accounts allowable in the state where it is located, or the interest rate of the state where it is doing business, whichever is higher.
Mackall, Crounse & Moore, Clay R. Moore, Minneapolis, Swarr May, Smith & Andersen, William E. Morrow, Jr., and Donald J. Buresh, Omaha, Neb., for appellant.
Levitt, Palmer, Bowen, Bearmon & Rotman and John Troyer and J. Patrick McDavitt, Minneapolis, for Marquette Nat. Bank.
Warren Spannaus, Atty. Gen., Richard B. Allyn, Sol. Gen., Thomas R. Muck, Asst. Atty. Gen., Stephen Shakman and Roderick I. MacKenzie, Sp. Asst. Attys. Gen., St. Paul, for the State.
Considered and decided by the court en banc.
The Marquette National Bank of Minneapolis (Marquette) sought to enjoin the First National Bank of Omaha (Omaha Bank) and its wholly-owned subsidiary, First of Omaha Service Corporation (Omaha Service) from issuing BankAmericard credit cards to the State of Minnesota. The Omaha Bank program assessed customers an annual interest rate of 18 percent on unpaid balances of less than $1,000, to be computed upon the prior month's balance of the individual account. The Minnesota Credit Card Act (Minn.St. 48.185) 1 sets a maximum interest rate of 12 percent per annum with the interest charge to be based on an amount no greater than the average balance of the individual account for the prior month. As a result of procedural actions, Omaha Service remains as the only defendant, but the matter was considered as though the Omaha Bank still remained as a defendant. The district court entered judgment permanently enjoining Omaha Service from soliciting BankAmericard customers on behalf of the Omaha Bank in Minnesota in contravention of the provisions of Minn.St. 48.185. We reverse.
Prior to the hearing on the matter, the parties agreed to a stipulation of facts which provides:
The procedural history of this case is significant. Marquette originally commenced an action in Minnesota district court against the Omaha Bank, Omaha Service, and the Credit Bureau of St. Paul, Inc., alleging violations of the Minnesota Credit Card Act (Minn.St. 48.185), and the Minnesota Deceptive Trade Practices Act (Minn.St. 325.772); and seeking money damages and injunctive relief to restrain the defendant from solicitation in Minnesota for defendant's BankAmericard program. Since the Omaha Bank was a national bank, the case was removed to the United States District Court for Minnesota pursuant to 28 U.S.C.A., § 1441. Marquette thereafter dismissed Omaha Bank as ...
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Marquette National Bank of Minneapolis v. First of Omaha Service Corporation Minnesota v. First of Omaha Service Corporation
...the bank's nonresident customers. The Minnesota Supreme Court held that the bank is allowed by § 85 to charge the higher rate. Minn., 262 N.W.2d 358 (1977). We The First National Bank of Omaha (Omaha Bank) is a national banking association with its charter address in Omaha, Neb.2 Omaha Bank......
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First Nat. Bank of Omaha v. Marquette Nat. Bank of Minneapolis
...Court's granting of certiorari in litigation involving the enforcement of the Minnesota act, Marquette National Bank of Minneapolis v. First of Omaha Service Corp., 262 N.W.2d 358 (D.Minn.1977), cert. granted, 436 U.S. 916, 98 S.Ct. 2261, 56 L.Ed.2d 757 (1978), aff'd 439 U.S. 299, 99 S.Ct. ......
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