BFNB » Topics » Anti-Tying Restrictions.

These excerpts taken from the BFNB 10-K filed Mar 14, 2008.
Anti-Tying Restrictions.  Under amendments to the BHCA and Federal Reserve regulations, a bank is prohibited from engaging in certain tying or reciprocity arrangements with its customers.  In general, a bank may not extend credit, lease, sell property, or furnish any services or fix or vary the consideration for these on the condition that (i) the customer obtain or provide some additional credit, property, or services from or to the bank, the bank holding company or subsidiaries thereof or (ii) the customer may not obtain some other credit, property, or services from a competitor, except to the extent reasonable conditions are imposed to assure the soundness of the credit extended.  Certain arrangements are permissible: a bank may offer combined-balance products and may otherwise offer more favorable terms if a customer obtains two or more traditional bank products; and certain foreign transactions are exempt from the general rule.  A bank holding company or any bank affiliate also is subject to anti-tying requirements in connection with electronic benefit transfer services.

 

Anti-Tying Restrictions. 
Under
amendments to the BHCA and Federal Reserve regulations, a bank is prohibited
from engaging in certain tying or reciprocity arrangements with its
customers.  In general, a bank may not
extend credit, lease, sell property, or furnish any services or fix or vary the
consideration for these on the condition that (i) the customer obtain or
provide some additional credit, property, or services from or to the bank, the
bank holding company or subsidiaries thereof or (ii) the customer may not
obtain some other credit, property, or services from a competitor, except to
the extent reasonable conditions are imposed to assure the soundness of the
credit extended.  Certain arrangements
are permissible: a bank may offer combined-balance products and may otherwise
offer more favorable terms if a customer obtains two or more traditional bank
products; and certain foreign transactions are exempt from the general
rule.  A bank holding company or any bank
affiliate also is subject to anti-tying requirements in connection with
electronic benefit transfer services.



 



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Mar 14, 2008
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