LexisNexis (December 9, 2019, 10:47 AM EST) -- On November 18, 2019, the OCC and FDIC began a rulemaking that would reverse the Second Circuit decision which ignores the “valid when made” principle of commercial law that allows the assignee of a contract to jump into the shoes of the assignor for purposes of applying state usury laws. The new rule will provide that, if the interest rate on bank credit card debt was not usurious for the national bank that originated the debt, it can’t be usurious for a nonbank buyer to which the debt was sold. We think the ruling in Madden v. Midland Funding LLC, 786 F.3d 246, 2015 U.S. App. LEXIS 8483 (2d Cir. 2015), is flat wrong because it contradicts 182 years of well-settled law, disrupts secondary markets, freezes liquidity, and interferes with the core powers of a national bank to sell its loans to third parties....