Require Opening Deposit Acct. for Loan Request?

Answered by:

Question:

Can we require a borrower to open a deposit account with our institution as a condition for approving their loan request?

Answer:

by Randy Carey: Sure, if you want a bunch of worthless deposit accounts with $5 in them.

Answer:

by Jim Bedsole: Yes. You can even mandate a specific minimum balance that must be maintained in the deposit account to avoid the worthless deposit account scenario presented by Randy. Tying prohibitions specifically exclude tying to traditional banking products/services, so tying a deposit account to a loan request is OK.