Interest Rate Equalization Act of 1980
Latest action. Referred to House Committee on Small Business.
Interest Rate Equalization Act of 1980 - Title I: Interest Rate Amendments Regarding State Usury Ceilings on Certain Loans - Amends the Federal Deposit Insurance Act, the National Housing Act, and the Federal Credit Union Act to permit federally insured banks, savings and loan associations, credit unions, and approved mortgagees under Federal mortgage insurance programs to charge interest at one percent in excess of the discount rate in effect in their Federal Reserve districts notwithstanding lower State usury ceilings. Penalizes the charging of interest in excess of such rate by forfeiture of the creditor's entire interest in the indebtedness. Terminates such preemption of State law on July 1, 1982. Amends the Small Business Investment Company Act of 1958 to permit qualified small business investment companies to charge interest on business loans at a rate equal to the lower of the following, if such rate would be higher than an applicable State usury law: (1) the maximum rate prescribed by regulation of the Small Business Administration for loans made by any small business investment company determined without regard to any State rate incorporated by such regulation; or (2) the higher of the Federal Reserve discount rate plus one percent or the applicable State usury ceiling. Terminates such preemption of State law on July 1, 1982. Establishes penalties for the charging of interest in excess of such ceilings. Authorizes a small business company aggrieved by a violation of this Act to recover twice the amount of the interest paid on a usurious loan by bringing a civil action in an appropriate court. Title II: Applicability of State Usury Ceilings to Certain Obligations Issued by Banks and Affiliates - Amends the Federal Reserve Act, the Federal Deposit Insurance Act, and the Federal Home Loan Bank Act to preclude specified financial institutions from pleading or claiming with respect to any deposit or obligation of such institution any defense or right under any State law regulating interest rates. Suspends any penalty which would otherwise attach under any such State law. Stipulates that the provisions of this title shall apply only with respect to deposits made or obligations issued during the period beginning with the enactment of this Act and ending on July 1, 1982. Title III: General Provisions - States that this Act shall not affect the applicability of provisions of Federal law governing rates of interest on certain business and agricultural loans in excess of $25,000. Provides for the severability of the provisions of this Act.
Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Introduced in House" stage on February 13, 1980. It describes the bill, it is not the legal text.
Where is it in the process, and what happens next?
4 steps remain before this bill could become law.
The record's latest action, on February 13, 1980: Referred to House Committee on Small Business.
- Clearing the committees it was referred to, and being scheduled for a floor vote
- Passage by the House
- Passage by the Senate
- The President's signature. If the President vetoes it, two-thirds of both chambers must vote to override.
How likely is it to become law?
Civibrief does not forecast outcomes and this page has no opinion about this one. What the record supports is a base rate, which is a fact about the whole pile, not a prediction about this measure.
In the 96th Congress (1979-80), 613 of the 12,581 bills and joint resolutions introduced became law, about 4.9 percent. That count covers every measure at every stage, including the many that never left committee.
This one is not there yet: 4 steps are still outstanding, listed above.
Has anyone actually voted on it?
No. No roll call in this Congress cites this measure. That is the ordinary outcome: most measures never reach a recorded floor vote, and a committee ends most of them simply by not acting.
A vote is not the only thing that happens to a measure. Hearings, markups, and referrals are all recorded actions, and none of them is a vote of the full chamber.
Who is behind it?
WILLIAM ALEXANDER (D-AR) introduced it on February 13, 1980, and 15 members have since signed on as cosponsors.
They come from both major parties: 9 Democrats, 6 Republicans.
Cosponsoring is a formal signature on the text. It is not a commitment to vote for the measure, it does not bind anyone's party, and a long list of cosponsors is a measure of attention rather than of prospects.
How long has it been in play?
It was introduced on February 13, 1980, 17011 days ago. The most recent recorded action was 17011 days ago, on February 13, 1980.
Measures do not carry over. Anything the 96th Congress has not finished by January 3, 1981 dies when the term ends, and has to be introduced again from the start in the next Congress.
Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.
Vote history
- HouseIn committee, no floor vote yet
- SenateAwaits House passage
- PresidentAwaits both chambers