The Second Circuit has been urged to reject the preemption defense in a dispute involving Bank of America and a New York statute. This statute mandates that all banks must pay at least 2% interest on mortgage-escrow accounts. A former Bank of America mortgage customer presented this argument to the appeals court following a remand from the U.S. Supreme Court. Federal courts have already addressed similar issues, and the outcome of this case could have significant implications on the interpretation and application of state financial regulations. For further details on the case, refer to the reporting by Law360.