§ 891. — Definitions and rules of construction.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 18USC891]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART I--CRIMES
CHAPTER 42--EXTORTIONATE CREDIT TRANSACTIONS
Sec. 891. Definitions and rules of construction
For the purposes of this chapter:
(1) To extend credit means to make or renew any loan, or to enter
into any agreement, tacit or express, whereby the repayment or
satisfaction of any debt or claim, whether acknowledged or disputed,
valid or invalid, and however arising, may or will be deferred.
(2) The term ``creditor'', with reference to any given extension of
credit, refers to any person making that extension of credit, or to any
person claiming by, under, or through any person making that extension
of credit.
(3) The term ``debtor'', with reference to any given extension of
credit, refers to any person to whom that extension of credit is made,
or to any person who guarantees the repayment of that extension of
credit, or in any manner undertakes to indemnify the creditor against
loss resulting from the failure of any person to whom that extension of
credit is made to repay the same.
(4) The repayment of any extension of credit includes the repayment,
satisfaction, or discharge in whole or in part of any debt or claim,
acknowledged or disputed, valid or invalid, resulting from or in
connection with that extension of credit.
(5) To collect an extension of credit means to induce in any way any
person to make repayment thereof.
(6) An extortionate extension of credit is any extension of credit
with respect to which it is the understanding of the creditor and the
debtor at the time it is made that delay in making repayment or failure
to make repayment could result in the use of violence or other criminal
means to cause harm to the person, reputation, or property of any
person.
(7) An extortionate means is any means which involves the use, or an
express or implicit threat of use, of violence or other criminal means
to cause harm to the person, reputation, or property of any person.
(8) The term ``State'' includes the District of Columbia, the
Commonwealth of Puerto Rico, and territories and possessions of the
United States.
(9) State law, including conflict of laws rules, governing the
enforceability through civil judicial processes of repayment of any
extension of credit or the performance of any promise given in
consideration thereof shall be judicially noticed. This paragraph does
not impair any authority which any court would otherwise have to take
judicial notice of any matter of State law.
(Added Pub. L. 90-321, title II, Sec. 202(a), May 29, 1968, 82 Stat.
160.)
Effective Date
Chapter effective May 29, 1968, see section 504(a) of Pub. L. 90-
321.
Congressional Findings and Declaration of Purpose
Section 201 of Pub. L. 90-321 provided that:
``(a) The Congress makes the following findings:
``(1) Organized crime is interstate and international in
character. Its activities involve many billions of dollars each
year. It is directly responsible for murders, willful injuries to
person and property, corruption of officials, and terrorization of
countless citizens. A substantial part of the income of organized
crime is generated by extortionate credit transactions.
``(2) Extortionate credit transactions are characterized by the
use, or the express or implicit threat of the use, of violence or
other criminal means to cause harm to person, reputation, or
property as a means of enforcing repayment. Among the factors which
have rendered past efforts at prosecution almost wholly ineffective
has been the existence of exclusionary rules of evidence stricter
than necessary for the protection of constitutional rights.
``(3) Extortionate credit transactions are carried on to a
substantial extent in interstate and foreign commerce and through
the means and instrumentalities of such commerce. Even where
extortionate credit transactions are purely intrastate in character,
they nevertheless directly affect interstate and foreign commerce.
``(4) Extortionate credit transactions directly impair the
effectiveness and frustrate the purposes of the laws enacted by the
Congress on the subject of bankruptcies.
``(b) On the basis of the findings stated in subsection (a) of this
section, the Congress determines that the provisions of chapter 42 of
title 18 of the United States Code are necessary and proper for the
purpose of carrying into execution the powers of Congress to regulate
commerce and to establish uniform and effective laws on the subject of
bankruptcy.''
Annual Report to Congress by Attorney General
Section 203 of Pub. L. 90-321 directed Attorney General to make an
annual report to Congress of activities of Department of Justice in
enforcement of this chapter, prior to repeal by Pub. L. 97-375, title I,
Sec. 109(b), Dec. 21, 1982, 96 Stat. 1820.
Section Referred to in Other Sections
This section is referred to in section 1961 of this title.
