University of Miami Law Review


Joseph L. Raia


This note discusses the operation of the Seventh Circuit's holding that pursuant to 12 U.S. C. section 85 a national bank located in Illinois may apply that state's interest rates in any other state. Through an economic analysis, the author argues that this operation is essentially sound but should be modified to permit the consideration of conflicts of law principles. The operation of the exception to this general rule is also considered. Specific attention is given to the application and effects of the words "located" and "existing" as used in section 85.