OK, solved my own problem--the answer was implicit in a lot of Jens' 
responses here but I didn't grok it. Here's the correct code:

Lender.find_by_contents(params[:name], {:limit=>:all}, 
{:conditions=>["sta1 = 'DC'"]})

Reason: If you don't use the :limit option, find_by_contents limits the 
number of results automatically, and does so BEFORE ActiveRecord applies 
the conditions.

Hope this helps someone.

-- 
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