usc 12 § 5553
Preservation of existing contracts (BANKS AND BANKING (12 U.S.C.))
Operative Text
This title, and regulations, orders, guidance, and interpretations prescribed, issued, or established by the Bureau, shall not be construed to alter or affect the applicability of any regulation, order, guidance, or interpretation prescribed, issued, and established by the Comptroller of the Currency or the Director of the Office of Thrift Supervision regarding the applicability of State law under Federal banking law to any contract entered into on or before , by national banks, Federal savings associations, or subsidiaries thereof that are regulated and supervised by the Comptroller of the Currency or the Director of the Office of Thrift Supervision, respectively.
Under 12 U.S.C. § 5553, the creation of the Consumer Financial Protection Bureau and its accompanying rules, guidance, and interpretations do not automatically override or change how federal banking regulators—specifically the Comptroller of the Currency and the Director of the Office of Thrift Supervision—had already determined state law applies to certain contracts. In other words, contracts entered into on or before the relevant date by national banks, federal savings associations, or their regulated subsidiaries remain governed by the same federal preemption framework that was in place when those contracts were made. This provision acts as a grandfather clause, preserving the regulatory status quo for those pre-existing agreements.
Plain English — not legal advice.
Property owners and managers who work with national banks or federal savings associations on financing arrangements should be aware that 12 U.S.C. § 5553 preserves the preemption determinations made by the OCC or OTS for contracts predating the Bureau's authority. Compliant operators generally maintain records of when financing contracts were executed, since the timing of contract formation is central to whether this preservation clause applies. Institutions regulated by the OCC or OTS typically continue to apply the state-law preemption framework that was in effect at the time those earlier contracts were signed.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants, 12 U.S.C. § 5553 is relevant background when questions arise about whether state consumer-protection or lending laws apply to a financing arrangement connected to their housing. This provision means that certain contracts made with national banks or federal savings associations before the Bureau's establishment may still be governed by older federal preemption rules, potentially affecting which state-law protections are available. Tenants who believe their rights under state law are being improperly denied in connection with such a contract can look into filing a complaint with the CFPB, contacting a local tenant-rights organization, or raising the issue as a defense in a relevant proceeding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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