An act to authorize automatic transfer accounts at commercial banks, remote service units at Federal savings and loan associations, and share draft accounts at Federal credit unions during that period beginning on December 31, 1979, and ending on April 1, 1980.
Public Law 96-161 · H.R. 4998 · 96th Congress · began in the House
Signed by Jimmy Carter (D) on Dec 28, 1979 · Finance and Financial Sector
Sponsor: Rep. Parren Mitchell (D-MD-7)
Cosponsors (7): Rep. Norman D’Amours, Rep. Druie Barnard,
Passage votes
- HouseMethod not stated
- SenateMethod not stated
Data notes
The final version of the law, as each chamber passed it. A chamber that passed it by voice vote or unanimous consent has no count. “Method not stated” means the record does not say how the chamber voted. Where the record has a member-by-member vote, the “Who voted for it” section shows who voted yea.
Summary
The Congressional Research Service’s plain-language summary of what the law does.
(House agreed to Senate amendments with amendments)
=Title I: Consumer Services and Usury= - Amends the Federal Reserve Act and the Federal Deposit Insurance Act to permit member banks in the Federal Reserve System and federally insured nonmember banks to offer automatic funds transfer services between savings and checking accounts to individuals. Amends the Home Owner's Loan Act of 1933 to authorize Federal savings and loan associations to establish remote service units. Amends the Federal Credit Union Act to permit Federal credit unions to offer share draft accounts to individuals. Terminates the authority of such financial institutions to offer such services on March 31, 1980.
Preempts State laws limiting the rate of interest on certain mortgages, loans secured by liens on cooperative housing stock, and other deposits, accounts, and obligations of depository institutions. Permits a State to override such preemption by the enactment of new interest rate regulations within the two-year period following enactment of this Act. States that such preemption shall apply for the duration of any loan, mortgage, or advance made during such two year period.
Authorizes depository institutions in the State of New Jersey to offer negotiable order of withdrawal accounts.
=Title II: Interest Rate Amendments Regarding State Usury Ceilings on Certain Loans= - Amends the Federal Deposit Insurance Act, the National Housing Act, and other provisions of law to permit any national banking association, federally-insured bank, or federally-insured savings and loan association to charge interest on business and agricultural loans of $25,000 or more at a rate up to five percent in excess of the discount rate on 90 day commercial paper in effect at the Federal Reserve Bank in the Federal district where such institution is located notwithstanding State usury laws.
Amends the Small Business Investment Act of 1958 to permit qualified small business investment companies to charge interest on business loans of $25,000 or more at a rate not exceeding the lowest of the following: (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 law which has not been preempted by this Act; or (3) the higher of the discount rate on 90 day commercial paper in effect in the Federal Reserve district in which the principal office of the small business investment company is located plus five percentage points or the maximum rate authorized by applicable State law (determined without regard to the preemption of such State law).
Establishes penalties for charging interest in excess of the ceilings established by this Act.
Declares that the ceilings established by this title shall preempt State law with respect to loans made during the period beginning on the date of enactment of this Act and ending on the earlier of: (1) July 1, 1980, in the case of a State statute; or (2) the date, after enactment of this Act, on which a State enacts legislation or certifies that a referendum has been passed which renders the interest ceilings established by this title inapplicable in such State.
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 such amendments shall apply only with respect to deposits made or obligations issued during the period beginning with the enactment of this Act and ending on the earlier of: (1) July 1, 1980, in the case of a State statute; or (2) the date on which a State enacts overriding legislation or certifies that a referendum has been passed which renders the amendments made by this title inapplicable in such State.
Repeals provisions of law which permitted specified financial institutions to charge interest on business and agricultural loans over $25,000 at a rate up to five percent above the Federal discount rate regardless of State law, and which precluded such institutions from raising the defense of usury under such laws. States that such provisions shall remain in effect with respect to loans made in any State on or after November 5, 1979 but prior to such repeals.
States that the preemption of State usury laws provided in title II of this Act shall continue until July 1, 1981, in States with constitutional provisions limiting interest rates, subject to the authority of such States to override such preemptive provisions.
Committees
The committees the bill was sent to, and what each did with it.
Data notes
A committee links to its page only where it exists in the current Congress; older and renamed committees are named without a link.
Timeline
From introduction to signing, newest first: the committees, the floor and the president. 17 actions.
- Dec 28, 1979Became lawBecame law · Signed by President.
- PresidentPresident · Public Law 96-161.
- Dec 24, 1979PresidentPresident · Measure presented to President.
- PresidentPresident · Measure enrolled in Senate.
- Dec 21, 1979PresidentPresident · Measure enrolled in House.
- Dec 19, 1979Resolving differencesResolving differences · Senate agreed to House amendment.
- Resolving differencesResolving differences · House agreed to Senate amendment with amendments.
- Dec 18, 1979Resolving differencesResolving differences · Senate agreed to House amendment with an amendment.
- Dec 17, 1979Resolving differencesResolving differences · House agreed to Senate amendments with amendments (Pursuant to H. Res. 508).
- Dec 10, 1979FloorFloor · Measure passed Senate, amended.
- Nov 20, 1979CommitteeCommittee · Reported by Senate Banking, Housing, and Urban Affairs Committee
- Sep 18, 1979CommitteeCommittee · Referred to Senate Banking, Housing, and Urban Affairs Committee
- Sep 17, 1979FloorFloor · Measure passed House.
- FloorFloor · Measure called up under motion to suspend rules and pass in House.
- Sep 7, 1979CommitteeCommittee · Reported by House Financial Services Committee
- Jul 27, 1979CommitteeCommittee · Referred to House Financial Services Committee
- IntroducedIntroduced · Introduced in the House
Data notes
Shows the introduction, each committee and subcommittee step the source dates (referral, hearings, markup, report, discharge), and the floor, conference, presidential and became-law steps. Calendar placements, messages between the chambers, amendments and committee report numbers are not shown for laws before the 108th Congress. Two entries the source lists twice are shown once.
Official record
The bill’s full text and every action, including introduction and committee steps, are on Congress.gov. Data through Oct 7, 2026.