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New Orleans National Banking Association v. Adams was a case heard by the United States Supreme Court in 1883. The case involved a dispute between the New Orleans National Banking Association and the defendant, Adams. The bank had loaned Adams money and he had given the bank a promissory note as security. Adams had failed to make payments on the note and the bank sought to recover the money by foreclosing on the security. Adams argued that the bank had failed to comply with the Louisiana usury laws, which prohibited interest rates higher than 10%. The Supreme Court held that the bank was not liable for usury because the loan was made in a state other than Louisiana and the usury laws of that state did not apply. The Court also held that the bank was entitled to foreclose on the security and recover the money owed. The decision established that the usury laws of one state do not apply to loans made in another state.
In New Orleans National Banking Association v. Adams, the Supreme Court was asked to decide whether a state court had jurisdiction over an action brought by a national bank against one of its shareholders for unpaid dividends on stock held in the bank. The majority opinion found that it did not have such jurisdiction because Congress had given exclusive authority to federal courts to hear cases involving national banks. Justice Field dissented from this decision and argued that while Congress may have intended for only federal courts to handle disputes between national banks and their shareholders, there were no explicit provisions in any statute or regulation which prohibited state courts from hearing such cases. He further noted that if states were barred from exercising jurisdiction over these matters, then they would be deprived of their right under the Constitution's Full Faith and Credit Clause to enforce judgments rendered by other states' courts concerning actions arising out of contracts made within those states' borders.