Skip to content
BOL Conferences Top Gun 23
Thread Options Tools
#51188 - 12/30/02 10:10 PM Gift Card
Anonymous
Unregistered

I just got back to my desk and found a Gift Card for $50.00 addressed to me from a local title company that our bank president has a 25% interest in. What do I do?

Return to Top
General Discussion
#51189 - 12/30/02 10:22 PM Re: Gift Card
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 81,354
Galveston, TX
If the bank has referred any customers to this title company, give it back unless you look extremely fetching in stripes.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#51190 - 12/30/02 10:28 PM Re: Gift Card
DawgFan Offline
Diamond Poster
DawgFan
Joined: Jul 2002
Posts: 1,678
United States
I would check your bank policy on this. But if your President owns 25% of the company, I would think twice about taking it. I know it's only $50, but I think you could open yourself up to some criticism on this. IMHO it's better to respectfully refuse it.
_________________________
Opinions expressed are solely my own.

Return to Top
#51191 - 12/30/02 10:48 PM Re: Gift Card
straw Offline
Power Poster
straw
Joined: Nov 2002
Posts: 9,121
Good rule of thumb is the old attorney and judge ethical standard of "appearance of impropriety". Even if something is perfectly innocent, you should avoid anything that gives off the mere appearance of impropriety.

Given the common control between your institution and the title company, I would respectfully decline.

Return to Top
#51192 - 12/31/02 12:06 AM Re: Gift Card
Don_Narup Offline

Power Poster
Joined: Jul 2001
Posts: 3,708
Las Vegas Nevada
How about informing your President in a nice way that you appreciate it, but that this could be a real Reg O violation.

As a part owner of a title company, and as a bank President one would think the Board of Directors are aware of the potentrial problem, or have resolved it with regulators some way.

Here is a qouate from FDIC Cease and Desist Orders:

The financial interests and obligations of individuals that appear to conflict with that individual's duties and responsibilities such as:

(i) Participating in any manner in any transaction or loan in which the individual, the individual's spouse, child, partner, or organization is involved; or in which the individual serves as an officer, director, trustee, partner, or employee, or has a financial interest, either directly or indirectly;

(iii) Providing goods or services to the Insured Institution;



_________________________
Compliance Analysis and Research - Software for your CRA/HMDA analysis needs

Return to Top
#51193 - 12/31/02 12:28 AM Re: Gift Card
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Also, in many states, it is illegal for title companies to give gifts, so the bank president could be wrong on both sides of the transaction. In the past several years, a number of title companies have been charged/fined with violations of their state statutes on this topic.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#51194 - 12/31/02 12:44 AM Re: Gift Card
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,655
On the Net
I think your issues are RESPA and possibly your bank's Code of Ethics. My emphasis is on RESPA as $50 for a gift may be acceptable (but also watch the source) and again the state laws referenced could be issues as well.

The second part of the problem may well be who else found a similar gift card and boy will you be the Grinch of the new year.

You might suggest that the cards be donated to a local charity or simply returned. I say this because I am not sure how you would justify keeping the gift if you adhere to the rules.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#51195 - 12/31/02 01:54 PM Re: Gift Card
William Offline
Gold Star
William
Joined: Oct 2000
Posts: 470
In a location
Of course most anyone on BOL would be willing 'dispose' of the card for you...
_________________________
Comments are mine and not those of my employer.

Return to Top
#51196 - 12/31/02 02:35 PM Re: Gift Card
Anonymous
Unregistered

If I know of others who received the same and they accept the gift, am I under any obligation to report it? I will return mine.

Return to Top
#51197 - 12/31/02 02:42 PM Re: Gift Card
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,655
On the Net
I believe you have an obligation to ensure your bank and its officers/employees are not knowingly or unknowingly violating the law.

They need information and management should ensure the gifts are returned if they are found to be inappropriate.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top