On Monday June 27, the U.S. Supreme Court declined to review a Second Circuit decision that had ruled that state usury laws applied to debt that had been purchased from a national bank. Madden vs. Midland has been closely watched by marketplace lenders and other firms in securitization industries.
RK&O partner Vincent Basulto spoke with Crowdfund Insider and explained that while the denial of cert was not unexpected, it will continue to cause legal uncertainty. “Long term we must address the Madden case head on,” he said. “You have this very negative precedent out there until it is affirmatively over-ruled.”