---
kind: "section"
citation: "2 C.F.R. § 3485.995"
title: "2"
number: "3485.995"
heading: "Principal."
url: "https://uscodex.org/cfr/2/3485.995"
---

# §3485.995. Principal.


Principal means—

- (a) An officer, director, owner, partner, principal investigator, or other person within a participant with management or supervisory responsibilities related to a covered transaction; or
- (b) A consultant or other person, whether or not employed by the participant or paid with Federal funds, who—
  - (1) Is in a position to handle Federal funds;
  - (2) Is in a position to influence or control the use of those funds; or
  - (3) Occupies a technical or professional position capable of substantially influencing the development or outcome of an activity required to perform the covered transaction.
- (c) **For the purposes of Department of Education title IV, HEA transactions—**
  - (1) A third-party servicer, as defined in 34 CFR [668.2](/cfr/34/668.2.md) or [682.200](/cfr/34/682.200.md); or
  - (2) Any person who provides services described in 34 CFR [668.2](/cfr/34/668.2.md) or [682.200](/cfr/34/682.200.md) to a title IV, HEA participant, whether or not that person is retained or paid directly by the title IV, HEA participant.

## Notes

### Authority

Authority: E.O. 12549 (3 CFR 1986 Comp., p. 189); E.O. 12689 (3 CFR 1989 Comp., p. 235); sec. 2455, Pub. L. 103-355, 108 Stat. 3327 (31 U.S.C. 6101 note); 20 U.S.C. 1082, 1094, 1221e-3, and 3474, unless otherwise noted.

### Source

Source: 77 FR 18673, Mar. 28, 2012, unless otherwise noted.