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?

If the bank has referred any customers to this title company, give it back unless you look extremely fetching in stripes.

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.

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.

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;

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.

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.

Of course most anyone on BOL would be willing 'dispose' of the card for you...

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.

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.