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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1947 Enrolled Bill (ENR)]

        S.1947

                       One Hundred Eighth Congress

                                 of the

                        United States of America

                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
           the seventh day of January, two thousand and three

                                 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;
            ``(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.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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