(1) For the purposes of this section, the term “financial institutions” means banks, savings and loan associations, and credit unions located within the State of Arkansas and which are insured by an agency of the federal government.
(2) This section shall be applicable in civil actions in which a claim is asserted against a financial institution, whether by complaint, counterclaim, third party complaint, or other pleading. If a claim asserted against a financial institution is determined by the court to be a breach of contract claim arising out of a loan of money or other extension of credit by the financial institution to the person asserting the claim, then punitive damages shall not be awarded to the person asserting the claim unless it is found that the person asserting the claim suffered personal injury or physical damage to property as a result of the financial institution's alleged action or inaction.