State of Idaho ex rel. Robson v. First Security Bank of Idaho, Civ. No. 1-69-83

CourtUnited States District Courts. 9th Circuit. District of Idaho
Writing for the CourtFRED M. TAYLOR
PartiesSTATE OF IDAHO ex rel. Robert M. ROBSON, Attorney General, and John D. Silva, Commissioner of Finance, Plaintiff, v. FIRST SECURITY BANK OF IDAHO, National Association, and William B. Camp, Comptroller of the Currency of the United States, Defendants. STATE OF IDAHO ex rel. Robert M. ROBSON, Attorney General, and John D. Silva, Commissioner of Finance, Plaintiff, v. The IDAHO FIRST NATIONAL BANK, and William B. Camp, Comptroller of the Currency of the United States, Defendants.
Decision Date22 April 1970
Docket Number1-69-101.,Civ. No. 1-69-83

315 F. Supp. 274

STATE OF IDAHO ex rel. Robert M. ROBSON, Attorney General, and John D. Silva, Commissioner of Finance, Plaintiff,
v.
FIRST SECURITY BANK OF IDAHO, National Association, and William B. Camp, Comptroller of the Currency of the United States, Defendants.

STATE OF IDAHO ex rel.
Robert M. ROBSON, Attorney General, and John D. Silva, Commissioner of Finance, Plaintiff,
v.
The IDAHO FIRST NATIONAL BANK, and William B. Camp, Comptroller of the Currency of the United States, Defendants.

Civ. Nos. 1-69-83, 1-69-101.

United States District Court, D. Idaho, S. D.

April 22, 1970.


315 F. Supp. 275

Robert M. Robson, Atty. Gen. of Idaho, Richard Greener, and Stewart A. Morris, Asst. Attys. Gen., Boise, Idaho, for plaintiff.

Paul B. Ennis, of Hawley, Troxell, Ennis & Hawley, Boise, Idaho, C. Preston Allen, of Ray, Quinney & Nebeker, Salt Lake City, Utah, for defendant First Security Bank of Idaho, N.A.

Willis E. Sullivan, of Langroise, Clark, Sullivan & Smylie, Boise, Idaho, for defendant Idaho First National Bank.

C. Westbrook Murphy, Office of the Comptroller of the Currency, Washington, D. C., Sherman F. Furey, Jr., U. S. Atty., D. Idaho, William D. Ruckleshaus, Asst. Atty. Gen., Harland F. Leathers, and A. James Barnes, Attys., Dept. of Justice, Washington, D. C., for defendant William B. Camp, Comptroller of the Currency.

Calvin Davison, James F. Bell, Peter B. Work, of Reavis, Pogue, Neal & Rose, Washington, D. C., John L. Runft, of Eberle, Berlin, Morgan, Kading & Turnbow, Boise, Idaho, of counsel, for National Association of Supervisors of State Banks, amicus curiae.

MEMORANDUM OF OPINION AND ORDER

FRED M. TAYLOR, Chief Judge.

The plaintiff State of Idaho brought these actions on the relation of its Attorney General and of its Commissioner of Finance, seeking a declaratory judgment of this court that an administrative ruling by the defendant Comptroller (Comptroller's Manual for National Banks, ¶ 7310) is contrary to federal and state law, and that activities undertaken by the defendant national banks under color of the authority provided by the Comptroller's ruling are similarly unlawful. The plaintiff also seeks an injunction prohibiting such authorization and enforcement thereof by the Comptroller, and further prohibiting the defendant banks from acting under the authority of that ruling.

The defendants in each action have moved to dismiss plaintiff's amended complaints on the grounds that the plaintiff lacks standing to maintain the suit; that the amended complaints present no justiciable case or controversy; and that this court lacks jurisdiction over the subject matter. In addition, the defendant Idaho First National Bank has moved to dismiss the complaint

315 F. Supp. 276
on the ground that it fails to state a claim upon which relief can be granted

The plaintiff alleges that Title 12 U. S.C. § 85 limits a national bank to that rate of interest allowed a state bank for a specific type of loan in the state in which the national bank is doing business. That section provides in part:

"Any association may take, receive, reserve and charge on any loan or discount made, * * * interest at the rate allowed by the laws of the state, * * * where the bank is located, * * * and no more, except that where by the laws of any state a different rate is limited for banks organized under state laws, the rate so limited shall be allowed for associations organized or existing in any such state under this chapter."

The plaintiff also alleges, inter alia, that the maximum interest that may be charged on installment loans is six per cent (6%) discount per annum, which constitutes an annual effective rate of eleven and one-half per cent (11½%); that the defendant banks have initiated programs of financing consumer purchases through credit cards issued and sponsored by the banks; that the banks are presently contracting with citizens of the State of Idaho for the issuance and use of these credit cards; and that the defendant banks are presently exacting an interest rate of one and one-half per cent (½%) per month, or an effective annual rate of eighteen per cent (18%), from bank customers using these credit cards.

The plaintiff alleges that the defendant banks justify the charging of this higher interest rate on the authority of the Comptroller's ruling to the effect that a national bank may charge any rate of interest allowed to any lender under the laws of the state; that the Comptroller included in such ruling the statement that a national bank might lawfully charge that rate of interest allowed a small loan company. The plaintiff contends that the ruling of the Comptroller is contrary to state...

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1 practice notes
  • Natural Resources Defense Council v. Patterson, Civ. No. S-88-1658 LKK.
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
    • April 30, 1992
    ...Cir.1981), cert. denied, 455 U.S. 981, 102 S.Ct. 1489, 71 L.Ed.2d 691 (1982), and State of Idaho ex rel. Robson v. First Security Bank, 315 F.Supp. 274 (S.D. Idaho Once the court has determined the relevant statute, it must examine whether the interest asserted by a plaintiff bears a "plaus......
1 cases
  • Natural Resources Defense Council v. Patterson, Civ. No. S-88-1658 LKK.
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
    • April 30, 1992
    ...Cir.1981), cert. denied, 455 U.S. 981, 102 S.Ct. 1489, 71 L.Ed.2d 691 (1982), and State of Idaho ex rel. Robson v. First Security Bank, 315 F.Supp. 274 (S.D. Idaho Once the court has determined the relevant statute, it must examine whether the interest asserted by a plaintiff bears a "plaus......

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