29 USC § 503 - Financial transactions between labor organization and officers and employees

---
identifier: "/us/usc/t29/s503"
source: "usc"
legal_status: "official_prima_facie"
title: "29 USC § 503 - Financial transactions between labor organization and officers and employees"
title_number: 29
title_name: "LABOR"
section_number: "503"
section_name: "Financial transactions between labor organization and officers and employees"
chapter_number: 11
chapter_name: "LABOR-MANAGEMENT REPORTING AND DISCLOSURE PROCEDURE"
subchapter_number: "VI"
subchapter_name: "SAFEGUARDS FOR LABOR ORGANIZATIONS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 86–257, title V, § 503, Sept. 14, 1959, 73 Stat. 536.)"
---


# § 503. Financial transactions between labor organization and officers and employees

**(a)** **Direct and indirect loans** No labor organization shall make directly or indirectly any loan or loans to any officer or employee of such organization which results in a total indebtedness on the part of such officer or employee to the labor organization in excess of $2,000.

**(b)** **Direct or indirect payment of fines** No labor organization or employer shall directly or indirectly pay the fine of any officer or employee convicted of any willful violation of this chapter.

**(c)** **Penalty for violations** Any person who willfully violates this section shall be fined not more than $5,000 or imprisoned for not more than one year, or both.

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**Source Credit**: (Pub. L. 86–257, title V, § 503, Sept. 14, 1959, 73 Stat. 536.)