A.2.2.1.4 Gifts

A. Example 1 . A bill at dinner celebrating a closing would not be considered a prohibited gift that could create an IOI so long as the amount of the bill was customary and typical.

B. Example 2. A Non-Profit Borrower is considering proposals for refinancing their transactions. A MAP Lender gives a board member of a Non-Profit Borrower an expensive Swiss wristwatch so the Borrower will be influenced to select the Lender to process the MAP transaction. COB would conclude that this is a prohibited inducement.

C. Example 3. For Christmas, the principals of a MAP Lender and of a Borrower exchange inexpensive gifts because they have been friends for 20 years and often do activities together with their families. There is an exemption for gifts that are clearly demonstrated to be based on a longstanding or purely personal relationship, which would appear to be the situation here. Factors to be considered are the reciprocal nature of the relationship, timing and whether the amounts involved are de minimis and typical of social relationships outside of the industry.