---
kind: "section"
citation: "7 C.F.R. § 3565.10"
title: "7"
number: "3565.10"
heading: "Conflict of interest."
url: "https://uscodex.org/cfr/7/3565.10"
---

# §3565.10. Conflict of interest.

- (a) **Objective.** It is the objective within the Rural Development mission area to maintain the highest standards of honesty, integrity, and impartiality by employees.
- (b) **Rural Development requirement.** To reduce the potential for employee conflict of interest, all Rural Development activities will be conducted in accordance with [7 CFR part 1900](/cfr/7/part1900.md), [subpart D](/cfr/7/subpartD.md), or successor regulation by Rural Development employees who:
  - (1) Are not themselves a beneficiary;
  - (2) Are not family members or known relatives of any beneficiary; and
  - (3) Do not have any business or personal relationship with any beneficiary or any employee of a beneficiary.
- (c) **Rural Development employee responsibility.** Rural Development employees must disclose any known relationship or association with a lender or borrower or their agents, regardless of whether the relationship or association is known to others. Rural Development employees or members of their families may not purchase a Real Estate Owned property, security property from a borrower, or security property at a foreclosure sale.
- (d) **Loan closing agent responsibility.** Loan closing agents (or members of their families) who have been involved with a particular property are precluded from purchasing such properties.
- (e) **Lender and borrower responsibility.** Lenders, borrowers, and their agents must identify any known relationship or association with a Rural Development employee.

## Notes

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

### Source

Source: 63 FR 39458, July 22, 1998, unless otherwise noted.