18.2-444.2 - Giving or accepting a fee or gift for purposes of influencing decisions of financial institution. - Virginia Statutes

§ 18.2-444.2. Giving or accepting a fee or gift for purposes of influencingdecisions of financial institution.

A. No officer, director, or employee of a financial institution orsubsidiary, affiliate or holding company thereof, or stockholder owning tenpercent or more of the issued capital stock of any such financial institutionor holding company, shall accept, receive or acquire any fee, gift, propertyinterest, or other thing of value with the intent to influence the decisionof the financial institution, subsidiary, affiliate or holding company withregard to any extension of credit, investment, or purchase or sale of assetsby such financial institution, subsidiary, affiliate or holding company. Noperson shall give, provide or cause to be transferred to any such officer,director, employee or stockholder, any fee, gift, property interest or otherthing of value with the intent to influence the decision of the financialinstitution, subsidiary, affiliate or holding company with regard to anyextension of credit, investment or purchase or sale of assets by thefinancial institution, subsidiary, affiliate or holding company. Theforegoing provisions shall not apply to salary, wages, fees or othercompensation or consideration paid by, or expenses paid or reimbursed by,such financial institution, subsidiary, affiliate or holding company. Theviolation of this section shall be punishable as a Class 6 felony.

B. The provisions of this section shall not apply to any such officer,director, employee or stockholder who is a member of a firm of licensedbrokers, in buying for or from or selling to, or for the account of, thefinancial institution, in the ordinary course of business, real estate orbonds, stocks, or other evidences of debt at the usual rate of commission forsuch service, if the officer, director, employee or stockholder notifies theboard of directors of the financial institution, its cashier or secretary, inwriting, that such services will be rendered for compensation prior to therendition of the services or within five business days following thecommencement of the services. If a continuing business relationship exists,an annual disclosure may be made.

C. The provisions of this section shall not apply to fees paid to any suchofficer, director, employee, or stockholder who renders services to aborrower outside of his relationship with the financial institution inconnection with the preparation of a loan application, or in connection withthe closing of a loan, in evaluating the security or affecting a lien on thecollateral, where the fact of rendition of such services for compensation isdisclosed in writing to the board of directors of the financial institution,or its cashier or secretary, prior to the time such services are rendered orwithin five business days following the commencement of the services. If acontinuing business relationship exists, an annual disclosure may be made.

(Code 1950, § 6.1-121; 1966, c. 584; 1981, c. 339; 1991, c. 501; 1992, c.318.)