---
kind: "section"
citation: "12 C.F.R. § 366.10"
title: "12"
number: "366.10"
heading: "When would I have a conflict of interest?"
url: "https://uscodex.org/cfr/12/366.10"
---

# §366.10. When would I have a conflict of interest?

- (a) You have a conflict of interest when you, any person that owns or controls you, or any entity you own or control:
  - (1) Has a personal, business, or financial interest or relationship that relates to the services you perform under the contract;
  - (2) Is a party to litigation against us, or represents a party that is;
  - (3) Submits an offer to acquire an asset from us for which services were performed during the past three years, unless the contract allows for the acquisition; or
  - (4) Engages in an activity that would cause us to question the integrity of the service you provided, are providing or offer to provide us, or impairs your independence.
- (b) **The following are examples of a conflict of interest.** These examples are not inclusive.
  - (1) You submit an offer to perform property management services for us and you own or manage a competing property.
  - (2) You audit a business under a contract with us and you or a partner in your firm has an ownership interest in that business.
  - (3) You perform loan services on a pool of loans we are selling, and you submit a bid to purchase one or more of the loans in the pool.
  - (4) You audit your own work or provide nonaudit services that are significant or material to the subject matter of the audit.

## Notes

### Authority

Authority: Section 9 (Tenth) of the Federal Deposit Insurance Act (FDI Act), 12 U.S.C. 1819 (Tenth); sections 12(f)(3) and (4) of the FDI Act, 12 U.S.C. 1822(f)(3) and (4); and section 19 of Pub. L. 103-204, 107 Stat. 2369.

### Source

Source: 67 FR 69991, Nov. 20, 2002, unless otherwise noted.