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Can you summarize 12 USC Chapter 22?
BANKS AND BANKING > TYING ARRANGEMENTS
Short Summary
The provided legal document pertains to tying arrangements in the banking industry. It prohibits banks from extending credit, leasing or selling property, furnishing services, or fixing or varying consideration on certain conditions or requirements. These conditions include the customer obtaining additional credit, property, or services from the bank, its holding company, or subsidiaries, or providing additional credit, property, or services to the bank or its holding company. However, banks may impose reasonable conditions in credit transactions to ensure credit soundness. The Board has the authority to issue regulations and permit exceptions to this prohibition. Additionally, the document outlines restrictions on banks maintaining correspondent accounts and making extensions of credit to executive officers, directors, or related interests of other banks. Violations of this section may result in civil money penalties, with varying penalty amounts depending on the severity of the violation.
Whom does it apply to?
Banks, bank holding companies, subsidiaries, and other related parties
What does it govern?
Tying arrangements in the banking industry
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
Civil money penalties, with varying amounts depending on the severity of the violation
Jurisdiction
U.S. Federal Government