Offer for procurement of Federal Reserve bank loan and discount of commercial paper
Official text prohibited actmental stateif conditionpenaltylegal term
Whoever stipulates for or gives or receives, or consents or agrees to give or receive, any fee, commission, bonus, or 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 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 or imprisoned not more than one year, or both.
History: (June 25, 1948, ch. 645, 62 Stat. 695 (PDF, 39 MB), §214, formerly §219; renumbered §214, Pub. L. 87–849, §1(d), Oct. 23, 1962, 76 Stat. 1125 (PDF, 1.6 MB); Pub. L. 103–322, title XXXIII, §330016(1)(K), Sept. 13, 1994, 108 Stat. 2147 (PDF, 52 MB).)
Simplified explanation
It is a federal crime to give, receive, or agree to any fee, commission, or other payment for getting or trying to get a loan or credit from a Federal Reserve bank, unless the fee and all key facts about the arrangement are disclosed in writing in the loan application.