# Permissible Interest on Loans That Are Sold, Assigned, or Otherwise Transferred
> **OCC** · Final rule. · Published 2020-06-02 · Effective 2020-08-03 · 85 FR 33530
## Document
- **Document number:** 2020-11963
- **Category:** banking-occ
- **Sub-agency:** OCC
- **Federal Register citation:** 85 FR 33530
- **CFR reference:** 12 CFR 7
- **Publication date:** 2020-06-02
- **Effective date:** 2020-08-03
- **Treasury docket:** Docket ID OCC-2019-0027
## Abstract

Federal law establishes that national banks and savings associations (banks) may charge interest on loans at the maximum rate permitted to any state-chartered or licensed lending institution in the state where the bank is located. In addition, banks are generally authorized to sell, assign, or otherwise transfer (transfer) loans and to enter into and assign loan contracts. Despite these authorities, recent developments have created legal uncertainty about the ongoing permissibility of the interest term after a bank transfers a loan. This rule clarifies that when a bank transfers a loan, the interest permissible before the transfer continues to be permissible after the transfer.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2020/06/02/2020-11963/permissible-interest-on-loans-that-are-sold-assigned-or-otherwise-transferred)
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