Additional financial services as condition for loan approval prohibited; offer of services; certain transactions or requirements not prohibited; applicability of section to depository institution subject to 12 U.S.C. 1972; definitions.

Sec. 9. A regulated lender shall not require as a condition of approving a loan that the borrower contract for 1 or more additional financial services offered by the regulated lender or a particular service provider designated by the regulated lender. This section does not preclude a regulated lender from offering a combination of 2 or more services under prices or terms that are more favorable to the borrower than the prices or terms the services would be offered separately. This section does not prohibit a transaction or requirement that is not prohibited by federal law. This section does not apply to a requirement by a depository institution subject to 12 U.S.C. 1972 or by an affiliate of 1 or more of such depository institutions. As used in this section: "Affiliate" means a person that controls, is controlled by, or is under common control with 1 or more depository institutions. "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person. History: 1995, Act 162, Eff. Mar. 28, 1996