523C.17 - LENDING INSTITUTIONS, SERVICE COMPANIES, AND INSURANCE COMPANIES.
523C.17 LENDING INSTITUTIONS, SERVICE COMPANIES, AND INSURANCE COMPANIES. A bank, savings and loan association, insurance company, or other lending institution shall not require the purchase of a residential service contract as a condition of a loan. A service company or an insurer, either directly or indirectly, as a part of any real property transaction in which a residential service contract will be issued, purchased, or acquired, shall not require that a residential service contract be issued, purchased, or acquired in conjunction with or as a condition precedent to the issuance, purchase, or acquisition, by any person, of a policy of insurance. A lending institution shall not sell a residential service contract to a borrower unless the borrower signs an affidavit acknowledging that the purchase is not required. Violation of this section is punishable as provided in section 523C.13.
Section History: Recent Form 83 Acts, ch 87, § 18; 93 Acts, ch 60, §10