    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    117 STAT. 2899

    Public Law 108-198
    108th Congress

    An Act

    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;

    [[Page 2900]]
    117 STAT. 2900

    ``(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

    [[Page 2901]]
    117 STAT. 2901

    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.''.

    Approved December 19, 2003.

    ---------------------------------------------------------------------------
    LEGISLATIVE HISTORY--S. 1947:
    -------------------

    CONGRESSIONAL RECORD, Vol. 149 (2003):
    Nov. 24, considered and passed Senate.
    Dec. 8, considered and passed House.

    [[Page 2902]]