Bank of America v. Sundquist

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The Supreme Court held that, as used in the National Bank Act, Congress’s use of the word “located” is ambiguous, and therefore, Chevron, U.S.A., Inc. v. National Resource Defense Council, Inc., 467 U.S. 837 (1984), requires that the Court defer to the “not unreasonable” interpretation the Comptroller of the Currency has provided. After Loraine Sundquist's property was sold, the Federal National Mortgage Association brought this action seeking an order forcing Sundquist from her home. The district court entered an eviction order. On interlocutory review, Sundquist asserted that the sale was invalid because Utah law does not permit a bank to act as a trustee on a trust deed. The primary inquiry became whether corporations were permitted to serve as trustees of trust deeds under the laws of the State in which ReconTrust Co., the trustee on the deed of trust, was located. The Supreme Court concluded that the statutory language was unambiguous and that a federally chartered “bank” that seeks to foreclose on real property in Utah must comply with Utah law. On appeal, the Supreme Court overturned its previous decision, holding that the Comptroller’s interpretation of the relevant statute required deference. The Court remanded the case for an evaluation of where ReconTrust is located under the correct standard. View "Bank of America v. Sundquist" on Justia Law