---
kind: "section"
citation: "5 C.F.R. § 6801.107"
title: "5"
number: "6801.107"
heading: "Disqualification of supervisory employees from matters involving lenders."
url: "https://uscodex.org/cfr/5/6801.107"
---

# §6801.107. Disqualification of supervisory employees from matters involving lenders.

- (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)](#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)](#a-3) and [(a)(4)](#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)](#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)](/cfr/5/2635.502.md?p=d).

## Notes

### Authority

Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 1978); 12 U.S.C. 244, 248; E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p.215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p.306; 5 CFR 2635.105, 2635.403(a), 2635.502, 2635.803.

### Source

Source: 61 FR 53828, Oct. 16, 1996, unless otherwise noted.