(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.
8-570
(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).
