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Code of Federal Regulations Title 5. Administrative Personnel § 5.6801.107 Disqualification of supervisory employees from matters involving lenders

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) Disqualification required. A supervisory employee may not participate by action, advice or recommendation in any application, enforcement action, investigation, or other particular matter involving specific parties to which a depository institution or its affiliate is a party if any of the following are indebted to the depository institution or any of its affiliates:

(1) The employee;

(2) The spouse or dependent child of the employee;

(3) A company or business if the employee or the employee's spouse or dependent child owns or controls more than 10 percent of its equity;  or

(4) A partnership if the employee or the employee's spouse or dependent child is a general partner.

(b) Exceptions—

(1) Consumer credit on nonpreferential terms. Disqualification of a supervisory employee is not required by paragraph (a) of this section for the following types of indebtedness if payment on the indebtedness is current and the indebtedness is on terms and conditions offered to the public:

(i) Credit extended through the use of a credit card;

(ii) Credit extended through use of an overdraft protection line;

(iii) Amortizing consumer credit (e.g., home mortgage loans, automobile loans);  and

(iv) Credit extended under home equity lines of credit.

(2) Indebtedness of a spouse or dependent child. Disqualification is not required with respect to any indebtedness of the employee's spouse or dependent child, or a company, business or partnership in which the spouse or dependent child has an interest described in paragraphs (a)(3) and (a)(4) of this section, if:

(i) The indebtedness represents the sole financial interest or responsibility of the spouse, child, company, business or partnership and is not derived from the employee's income, assets or activities;  and

(ii) The employee has no knowledge of the identity of the lender.

(c) Waivers. The Board's Designated Agency Ethics Official, after consulting with the relevant Division director, may grant a written waiver from the disqualification requirement in paragraph (a) of this section using the authorization process set forth in the Office of Government Ethics' Standards of Ethical Conduct at 5 CFR 2635.502(d).

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Cite this article: FindLaw.com - Code of Federal Regulations Title 5. Administrative Personnel § 5.6801.107 Disqualification of supervisory employees from matters involving lenders - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-5-administrative-personnel/cfr-sect-5-6801-107/

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