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American Bankers Association CRCM Exam - Topic 4 Question 129 Discussion

Mills Company, Inc., is a manufacturing company with a working capital line of credit from First National Bank. The credit agreement governing the loan states that Mills cannot obtain additional unsecured credit without the approval of the bank. Mills believes that such a clause violates the Bank Holding Company Act's anti-tying clause. Does it?
C) No, since this clause relates to the soundness of the credit
A) Yes. It is a restraint of trade.
B) Yes, unless the bank will reasonably allow additional credit at Mills's request.
D) No, unless the bank refuses to grant additional credit to Mills itself

American Bankers Association CRCM Exam - Topic 4 Question 129 Discussion

Actual exam question for American Bankers Association's CRCM exam
Question #: 129
Topic #: 4
[All CRCM Questions]

Mills Company, Inc., is a manufacturing company with a working capital line of credit from First National Bank. The credit agreement governing the loan states that Mills cannot obtain additional unsecured credit without the approval of the bank. Mills believes that such a clause violates the Bank Holding Company Act's anti-tying clause. Does it?

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Suggested Answer: C

by Terrilyn at Jun 27, 2026, 01:06 PM

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Celestina
2 hours ago
I'm a bit confused about the implications of the bank's approval. Does that mean they could deny credit arbitrarily? I think that could relate to option B.
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Kendra
5 days ago
I lean towards option C because it seems like the clause is more about protecting the bank's interests rather than restricting trade.
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Lorriane
10 days ago
This question feels familiar! I think we practiced a similar scenario where the bank's control over additional credit was a key issue.
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Wai
16 days ago
I remember discussing the anti-tying clause in class, but I'm not entirely sure how it applies here. Is it really a restraint of trade?
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