Section 5-408 - Credit agreements.
§ 5-408. Credit agreements.
(a) Definitions.-
(1) In this section the following words have the meanings indicated.
(2) (i) "Credit agreement" means a covenant, promise, undertaking, commitment, or other agreement by a financial institution to:
1. Lend money;
2. Forbear from repayment of money, goods, or things in action;
3. Forbear from collecting or exercising any right to collect a debt; or
4. Otherwise extend credit.
(ii) "Credit agreement" includes agreeing to take or to not take certain actions by a financial institution in connection with an existing or prospective credit agreement.
(3) "Financial institution" means:
(i) A bank;
(ii) A trust company;
(iii) A savings bank;
(iv) A savings and loan association; or
(v) An affiliate or subsidiary of a bank, trust company, savings bank, or savings and loan association.
(b) Enforceability.- A credit agreement is not enforceable by way of action or defense unless it:
(1) Is in writing;
(2) Expresses consideration;
(3) Sets forth the relevant terms and conditions of the agreement; and
(4) Is signed by the person against whom its enforcement is sought.
(c) Applicability.-
(1) This section applies only to commercial transactions.
(2) This section does not apply to:
(i) Credit agreements made primarily for personal, family, or household purposes; or
(ii) Credit extended by means of, or in connection with, a credit or charge card.
[1989, ch. 682; 1997, ch. 14, § 9.]