"For example, as a last resort, we got a loan from Graham's older brother, and he 'would' only give us money if Graham embarrassed himself by dyeing his hair a weird color--"

What's the exact meaning of this 'would' in the line above??
1. he would give us money whenever Graham dyed his hair. (past repetitive action)
2. he considered to give us money if Graham dyed his hair. (the past meaning of 'will')

I can't think of any other meanings that I know of. If those two interpretations both incorrect, could you give me the right interpretation of that 'would'??