C.M.R. 02, 029, ch. 135 - PERMISSIBLE TIE-IN ARRANGEMENTS (REG. 35)

SUMMARY:

Title 9-B MRSA Section243(1) generally prohibits a financial institution authorized to do business in Maine from tying a product, service or the price of either to another product or service offered by the financial institution or any of its affiliates. The statute provides certain specific exceptions to the general anti-tying provisions and permits rule-making to further define exceptions to the anti-tying provisions that will not be contrary to the public interest and the purposes of the statute. The Maine statutory language parallels language in the Federal Bank Holding Company Act Amendments of 1970 ( 12 U.S.C. 1971 et seq.), which gives the Board of Governors of the Federal Reserve Board ("FRB") authority to permit by regulation or order exceptions to the general anti-tying prohibitions.

This regulation is being promulgated to provide Maine financial institutions the same authority to tie products, services or their price that has been authorized to federally-chartered banks. While the Bureau recognizes that FRB regulations and interpretations do not govern the activities of all types of financial institutions (i.e. credit unions), the Bureau has applied the provisions of this rule to all financial institutions authorized to do business in this state in order to permit certain tying arrangements regardless of charter type. This approach assures the broadest spectrum of benefits to Maine consumers and financial institutions, and promotes competition in the financial services system.