Preemption Determinations

Pursuant to Article VI, Clause 2 of the U.S. Constitution, a state or U.S. territory law that conflicts with federal law is preempted. The OCC periodically clarifies the application of state and U.S. territory laws to national banks and federal savings associations. Set forth below is a list of preemption determinations issued by the Comptroller of the Currency that identifies the activities and practices covered by each determination and the requirements and constraints determined to be preempted.

Topic	Preemption Determination	Date	Activities and Practices	Preempted State or U.S. Territory Law
Interest or other compensation paid on funds held in, and fees assessed in connection with, mortgage escrow accounts	Preemption Determination: State Interest-on-Escrow Laws	05/19/2026	Restrictions on the flexibility of national banks and federal savings associations to decide whether and to what extent to (1) pay interest or other compensation on funds placed in real estate escrow accounts; or (2) assess fees in connection with such accounts. See also Real Estate Lending Escrow Accounts.	(1) California: Cal. Civ. Code sec. 2954.8; (2) Connecticut: Conn. Gen. Stat. sec. 49-2a; (3) Guam: 11 Guam Code Ann. sec. 106103; (4) Maine: Me. Rev. Stat. Ann. tit. 9-B, sec. 429; Me. Rev. Stat. Ann. tit. 33, sec. 504; (5) Maryland: Md. Code Ann., Com. Law secs. 12-109, 12-109.2; (6) Massachusetts: Mass. Gen. L. ch. 183, sec. 61; (7) Minnesota: Minn. Stat. Ann. sec. 47.20, subd. 9; (8) New York: N.Y. Gen. Oblig. Law sec. 5-601; (9) Oregon: Or. Rev. Stat. secs. 86.245, 86.250; (10) Rhode Island: 19 R.I. Gen. Laws sec. 19-9-2; (11) United States Virgin Islands: V.I. Code tit. 9, sec. 67; (12) Utah: Utah Code Ann. sec. 7-17-3; (13) Vermont: Vt. Stat. Ann. tit. 8, sec. 10404; and (14) Wisconsin: Wis. Stat. secs. 138.051, 138.052.
Illinois interchange fee prohibition and data use limitation	Order Preempting the Illinois Interchange Fee Prohibition Act	04/29/2026	Prohibition on national banks and federal savings associations charging or receiving interchange fees on the tax and gratuity portions of payment card transactions; and Restriction on national banks and federal savings associations using payment card transaction data. See also National Bank Non-Interest Charges and Fees.	Illinois: 815 Ill. Comp. Stat. 151/150-1 et seq.