What Conduct Is Prohibited by Section 106?
Section 106 prohibits a bank from extending credit, leasing or selling any property or furnishing any service, or fixing or varying the consideration for any of the foregoing, on the condition or requirement that the customer do any of the following: 1. Obtain some additional credit, property or service from the bank, other than a loan, discount, deposit or trust service; 2. Provide some additional credit, property or service to the bank, other than those related to and usually provided in connection with a loan, discount, deposit or trust service; 3. Obtain from or provide to an affiliate of the bank some additional credit, property or service; or 4. Not obtain some additional credit, property or service from a competitor of the bank or of an affiliate of the bank, unless the condition is reasonably imposed in a credit transaction to ensure the soundness of the credit. [13] As this list illustrates, section 106 prohibits banks from imposing certain tying arrangements as well as certai
