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Judge Blocks Dayton Law.(Brief Article)
Ohio state law pre-empts Dayton's predatory lending law, an Ohio judge ruled here on Aug. 26. The decision is the first in a series of court cases between cities in Ohio and the state itself over who has the legal right to regulate mortgage lending.
It will be hard for judges in Toledo and Cleveland, whose cases are pending, to ignore.
Judge Jack Davis of the Common Pleas Court in Montgomery County ruled that Dayton's claim of home rule was invalid because the state's law was one of general application. Such a law leaves no room for local laws on the same issue, thus rendering them invalid.
Since Ohio's state predatory lending law does little more than restate federal HOEPA guidelines, several Ohio cities have said that they have the constitutional right to pass their own legislation under the home rule provision of the Ohio ...
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