More details are emerging about GMAC’s conversion to a bank holding company, their eligibility for $6 billion in TARP funds and the restrictions that come with that money. Automotive News reports:
 

GMAC LLC today said that as part of its $6 billion federal bailout and decision to become a bank, it will no longer have the exclusive right to provide low-interest loans to borrowers who buy General Motors cars and trucks.

In a U.S. Securities and Exchange Commission filing, GMAC also said it will have no obligation to provide financing for vehicle leases. GMAC has lost money on leases because trade-in values are falling, especially on less fuel-efficient models such as large sport-utility vehicles…

In the SEC filing, GMAC said that for two years, GM will be able to offer incentives such as low-interest loans through other lenders, subject to various restrictions. Some of these restrictions will be lifted in December 2010, and all will be lifted in December 2013, the filing said.

Previously, GMAC had paid an annual amount to GM in order to have the exclusive rights to provide low interest loans on GM vehicles.