PRIA, Government Policy, Made Personal

Summary

Anyone who gives, takes, or agrees to give or take any fee, commission, bonus, or anything of value to help get an advance, loan, credit extension, discount, purchase, or related commitment from a Federal Reserve bank, either directly or through another lender, must put that fee and the important facts about the deal in the written application or request. If they do not make that written disclosure, they can be fined under federal law, jailed for not more than one year, or both.

Title 18, §214

Crimes and Criminal Procedure, Source: USLM XML via OLRC

Whoever stipulates for or gives or receives, or consents or agrees to give or receive, any fee, commission, bonus, or thing of value for procuring or endeavoring to procure from any Federal Reserve bank any advance, loan, or extension of credit or discount or purchase of any obligation or commitment with respect thereto, either directly from such Federal Reserve bank or indirectly through any financing institution, unless such fee, commission, bonus, or thing of value and all material facts with respect to the arrangement or understanding therefor shall be disclosed in writing in the application or request for such advance, loan, extension of credit, discount, purchase, or commitment, shall be fined under this title or imprisoned not more than one year, or both.

Notes & Related Subsidiaries

Historical and Revision Notes

Based on section 599 of title 12, U.S.C., 1940 ed., Banks and Banking (Dec. 23, 1913, ch. 6, § 22(k), as added by act June 19, 1934, ch. 653, § 3, 48 Stat. 1108). Final sentence of said section 599, imposing civil liability on violators, was omitted as unnecessary, being merely a declaration of that rule of common law which in the absence of statute fixes civil liability on the wrongdoer. Minor changes were made in phraseology.

Editorial Notes

Prior Provisions

A prior section 214 of this title was renumbered section 210.

Amendments

1994—Pub. L. 103–322 substituted “fined under this title” for “fined not more than $5,000”.

§214 Offer for Procurement of Federal Reserve Bank Loan and Discount of Commercial Paper