[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1947 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1947

    To prohibit the offer of credit by a financial institution to a 
        financial institution examiner, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 24, 2003

 Mr. Leahy (for himself and Mr. Hatch) introduced the following bill; 
   which was read twice, considered, read the third time, and passed

_______________________________________________________________________

                                 A BILL


 
    To prohibit the offer of credit by a financial institution to a 
        financial institution examiner, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preserving Independence of Financial 
Institution Examinations Act of 2003''.

SEC. 2. OFFER AND ACCEPTANCE OF CREDIT.

    (a) In General.--Title 18, United States Code, is amended by 
striking sections 212 and 213 and inserting the following:
``Sec. 212. Offer of loan or gratuity to financial institution examiner
    ``(a) In General.--Except as provided in subsection (b), whoever, 
being an officer, director or employee of a financial institution, 
makes or grants any loan or gratuity, to any examiner or assistant 
examiner who examines or has authority to examine such bank, branch, 
agency, organization, corporation, association, or institution--
            ``(1) shall be fined under this title, imprisoned not more 
        than 1 year, or both; and
            ``(2) may be fined a further sum equal to the money so 
        loaned or gratuity given.
    ``(b) Regulations.--A Federal financial institution regulatory 
agency may prescribe regulations establishing additional limitations on 
the application for and receipt of credit under this section and on the 
application and receipt of residential mortgage loans under this 
section, after consulting with each other Federal financial institution 
regulatory agency.
    ``(c) Definitions.--In this section:
            ``(1) Examiner.--The term `examiner' means any person--
                    ``(A) appointed by a Federal financial institution 
                regulatory agency or pursuant to the laws of any State 
                to examine a financial institution; or
                    ``(B) elected under the law of any State to conduct 
                examinations of any financial institutions.
            ``(2) Federal financial institution regulatory agency.--The 
        term `Federal financial institution regulatory agency' means--
                    ``(A) the Office of the Comptroller of the 
                Currency;
                    ``(B) the Board of Governors of the Federal Reserve 
                System;
                    ``(C) the Office of Thrift Supervision;
                    ``(D) the Federal Deposit Insurance Corporation;
                    ``(E) the Federal Housing Finance Board;
                    ``(F) the Farm Credit Administration;
                    ``(G) the Farm Credit System Insurance Corporation; 
                and
                    ``(H) the Small Business Administration.
            ``(3) Financial institution.--The term `financial 
        institution' does not include a credit union, a Federal Reserve 
        Bank, a Federal home loan bank, or a depository institution 
        holding company.
            ``(4) Loan.--The term `loan' does not include any credit 
        card account established under an open end consumer credit plan 
        or a loan secured by residential real property that is the 
        principal residence of the examiner, if--
                    ``(A) the applicant satisfies any financial 
                requirements for the credit card account or residential 
                real property loan that are generally applicable to all 
                applicants for the same type of credit card account or 
                residential real property loan;
                    ``(B) the terms and conditions applicable with 
                respect to such account or residential real property 
                loan, and any credit extended to the examiner under 
                such account or residential real property loan, are no 
                more favorable generally to the examiner than the terms 
                and conditions that are generally applicable to credit 
                card accounts or residential real property loans 
                offered by the same financial institution to other 
                borrowers cardholders in comparable circumstances under 
                open end consumer credit plans or for residential real 
                property loans; and
                    ``(C) with respect to residential real property 
                loans, the loan is with respect to the primary 
                residence of the applicant.
``Sec. 213. Acceptance of loan or gratuity by financial institution 
              examiner
    ``(a) In General.--Whoever, being an examiner or assistant 
examiner, accepts a loan or gratuity from any bank, branch, agency, 
organization, corporation, association, or institution examined by the 
examiner or from any person connected with it, shall--
            ``(1) be fined under this title, imprisoned not more than 1 
        year, or both;
            ``(2) may be fined a further sum equal to the money so 
        loaned or gratuity given; and
            ``(3) shall be disqualified from holding office as an 
        examiner.
    ``(b) Definitions.--In this section, the terms `examiner', `Federal 
financial institution regulatory agency', `financial institution', and 
`loan' have the same meanings as in section 212.''.
    (b) Technical and Conforming Amendment.--The table of sections of 
chapter 11 of title 18, United States Code, is amended by striking the 
matter relating to sections 212 and 213 and inserting the following:

``212. Offer of loan or gratuity to financial institution examiner.
``213. Acceptance of loan or gratuity by financial institution 
                            examiner.''.
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