---
kind: "section"
citation: "29 U.S.C. § 503"
title: "29"
title_heading: "Labor"
number: "503"
heading: "Financial transactions between labor organization and officers and employees"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/503"
units:
  - "Chapter 11 — Labor-Management Reporting and Disclosure Procedure"
  - "Subchapter VI — Safeguards for Labor Organizations"
---

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

- (a) **Direct and indirect loans—** No [labor organization](/usc/29/402.md?p=i) shall make directly or indirectly any loan or loans to any [officer](/usc/29/402.md?p=n) or [employee](/usc/29/402.md?p=f) of such organization which results in a total indebtedness on the part of such [officer](/usc/29/402.md?p=n) or [employee](/usc/29/402.md?p=f) to the [labor organization](/usc/29/402.md?p=i) in excess of $2,000.
- (b) **Direct or indirect payment of fines—** No [labor organization](/usc/29/402.md?p=i) or [employer](/usc/29/402.md?p=e) shall directly or indirectly pay the fine of any [officer](/usc/29/402.md?p=n) or [employee](/usc/29/402.md?p=f) convicted of any willful violation of this chapter.
- (c) **Penalty for violations—** Any [person](/usc/29/402.md?p=d) who willfully violates this section shall be fined not more than $5,000 or imprisoned for not more than one year, or both.

## Source credit

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