Preserving Independence of Financial Institution Examinations Act of 2003
PL 108-198 (S.1947), enacted 12/19/2003

117 STAT. 2899
PUBLIC LAW 108–198—DEC. 19, 2003
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:
‘‘§ 212. Offer of loan or gratuity to financial institution exam-
iner
‘‘(a) IN GENERAL.—Except as provided in subsection (b), who-
ever, 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 regu-
latory 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;
18 USC 201 note.
Preserving
Independence
of Financial
Institution
Examinations
Act of 2003.
Dec. 19, 2003
[S. 1947]
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117 STAT. 2900
PUBLIC LAW 108–198—DEC. 19, 2003
‘‘(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 institu-
tion’ 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 gen-
erally to the examiner than the terms and conditions that
are generally applicable to credit card accounts or residen-
tial 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.
‘‘§ 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’, ‘Fed-
eral 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
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117 STAT. 2901
PUBLIC LAW 108–198—DEC. 19, 2003
LEGISLATIVE HISTORY—S. 1947:
CONGRESSIONAL RECORD, Vol. 149 (2003):
Nov. 24, considered and passed Senate.
Dec. 8, considered and passed House.
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.
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