| "(k) Prohibition on Personal Loans to Executives.-- |
"(1) In general.-- It shall be unlawful for any issuer (as defined
in section 2 of the Sarbanes-Oxley Act of 2002), directly or indirectly,
including through any subsidiary, to extend or maintain credit, to arrange
for the extension of credit, or to renew an extension of credit, in
the form of a personal loan to or for any director or executive officer
(or equivalent thereof) of that issuer. An extension of credit maintained
by the issuer on the date of enactment of this subsection shall not
be subject to the provisions of this subsection, provided that there
is no material modification to any term of any such extension of credit
or any renewal of any such extension of credit on or after that date
of enactment. |
"(2) Limitation.-- Paragraph (1) does not preclude any home improvement
and manufactured home loans (as that term is defined in section 5 of
the Home Owners' Loan Act (12 U.S.C. 1464)), consumer credit (as defined
in section 103 of the Truth in Lending Act (15 U.S.C. 1602)), or any
extension of credit under an open end credit plan (as defined in section
103 of the Truth in Lending Act (15 U.S.C. 1602)), or a charge card
(as defined in section 127(c)(4)(e) of the Truth in Lending Act (15
U.S.C. 1637(c)(4)(e)), or any extension of credit by a broker or dealer
registered under section 15 of this title to an employee of that broker
or dealer to buy, trade, or carry securities, that is permitted under
rules or regulations of the Board of Governors of the Federal Reserve
System pursuant to section 7 of this title (other than an extension
of credit that would be used to purchase the stock of that issuer),
that is-- |
"(A) made or provided in the ordinary course of the consumer credit
business of such issuer;
|
"(B) of a type that is generally made available by such issuer to
the public; and
|
"(C) made by such issuer on market terms, or terms that are no more
favorable than those offered by the issuer to the general public for
such extensions of credit.
|
"(3) Rule of construction for certain loans.-- Paragraph (1) does
not apply to any loan made or maintained by an insured depository institution
(as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813)), if the loan is subject to the insider lending restrictions of
section 22(h) of the Federal Reserve Act (12 U.S.C. 375b).". |
