Bank Bribery Act Flashcards
- Which of the following would NOT be acceptable under the Bank Bribery Act and the relevant guidelines?
a. A luncheon paid for by a bank customer after a transaction is closed
b. A gift of a hunting rifle to a loan officer from a borrower at Christmas
c. The gift of a gold watch to a loan officer from a customer who is the loan officer’s cousin
d. An award of a writing pen and pencil set to a bank officer by a civic organization
b. A gift of a hunting rifle to a loan officer from a borrower at Christmas
Which of the following is NOT a written record the bank should retain in complying with the Bank Bribery Act?
a. A copy of the bank’s internal code of conduct
b. A list of all gifts received by bank officers during the year
c. Disclosures of unauthorized gifts
d. A list of all bank officers’ outside business interests
b. A list of all gifts received by bank officers during the year
Harvey Smith is a loan officer at First National Bank. Which of the following of Harvey’s outside business interests may be considered to be a conflict of interest that should be disclosed to the bank?
a. His ownership of 4,000 shares of stock in a local car dealership (the car dealership is not a bank customer)
b. His wife’s position as chair of the board of a local bank
c. His attendance at a party hosted by one of his customers where other financial institutions were represented
d. His role as honorary chair of a fund drive for a local charitable organization
b. His wife’s position as chair of the board of a local bank
Martin Taylor, a loan officer at First National Bank, is a long-time friend of Bill Evans, a local homebuilder. Bill would like a line of credit at the bank and discusses the potential loan with Martin. During the discussion, Martin expresses his desire to build a house one day and Bill offers to build him one “at cost plus five percent.” If Martin accepts Bill’s offer, can he continue to act as his loan officer?
a. No. The value of the gift is too great.
b. Yes, if Martin discloses this fact to the bank.
C. Yes, if Martin does not let the discount on the house affect his decision making process.
d. Yes, if the bank’s code of conduct allows such activity.
a. No. The value of the gift is too great.
Which of the following factors would NOT be considered when evaluating whether specific behavior by a banker violates the statute?
a. The social and family ties of the banker
b. The standard for business amenities and entertaining in that particular part of the country
c. Whether there was a demonstrable business purpose
d. Whether a business transaction was consummated as a result
d. Whether a business transaction was consummated as a result
When does a gift accepted by a banker clearly violate the Bank Bribery Act?
a. When it is given for personal reasons
b. When it is given with corrupt intent
c. When it is valued at a dollar amount exceeding $50
d. When it is not given in connection with a generally accepted holiday
b. When it is given with corrupt intent
