The National Association of Industrial Bankers, the Online Lenders Alliance and the American Financial Services Association moved for a preliminary injunction on July 9, 2026, in the U.S. District Court for the District of Oregon. The trade groups want the court to block Oregon House Bill 4116 before it reaches loans made by out-of-state banks. Their complaint claims the law is preempted by Section 521 of the Depository Institutions Deregulation and Monetary Control Act and violates the dormant Commerce Clause.
Effective June 5, 2026, HB 4116 exercises Oregon’s right under DIDMCA Section 525 to opt out of federal rate exportation for state-chartered banks. Oregon’s Division of Financial Regulation says it has tracked more than 31,000 loans worth at least $61 million written above the state’s 36% cap since 2020, some carrying rates over 100% APR.
Oregon’s authority to regulate its own chartered banks isn’t at issue here. The complaint targets a narrower provision: loans made by banks chartered elsewhere, at those states’ rates, to Oregon borrowers. Section 525’s opt-out only covers “loans made in such State,” and the whole case turns on what “made” means.
Oregon isn’t writing on a blank slate. In NAIB v. Weiser, a Colorado federal court sided with these same plaintiffs in 2024, ruling that a loan is made where the bank operates, not where the borrower lives, and enjoined Colorado’s opt-out law. That case now sits before the Tenth Circuit sitting en banc, and its answer on what “made” means could decide Oregon’s fight before Oregon’s own judge even rules.
An order on the injunction is immediately appealable to the Ninth Circuit.
James Okafor