[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR302.17]

[Page 609]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 302_GENERAL TERMS AND CONDITIONS FOR INVESTMENT ASSISTANCE--Table of 
 
Sec.  302.17  Conflicts of interest.

    (a) General. It is EDA's and the Department's policy to maintain the 
highest standards of conduct to prevent conflicts of interest in 
connection with the award of Investment Assistance or its use for 
reimbursement or payment of costs (e.g., procurement of goods or 
services) by or to the Recipient. A conflict of interest generally 
exists when an Interested Party participates in a matter that has a 
direct and predictable effect on the Interested Party's personal or 
financial interests. A conflict may also exist where there is an 
appearance that an Interested Party's objectivity in performing his or 
her responsibilities under the Project is impaired. For example, an 
appearance of impairment of objectivity may result from an 
organizational conflict where, because of other activities or 
relationships with other persons or entities, an Interested Party is 
unable to render impartial assistance, services or advice to the 
Recipient, a participant in the Project or to the Federal government. 
Additionally, a conflict of interest may result from non-financial gain 
to an Interested Party, such as benefit to reputation or prestige in a 
professional field.
    (b) Prohibition on direct or indirect financial or personal 
benefits. (1) An Interested Party shall not receive any direct or 
indirect, financial or personal benefits in connection with the award of 
Investment Assistance or its use for payment or reimbursement of costs 
by or to the Recipient. Recipients shall establish safeguards to 
prohibit an Interested Party from using its position for a purpose that 
constitutes or presents the appearance of personal or organizational 
conflicts of interest or of personal gain. See also 15 CFR 14.42 and 
24.36(b)(3); Forms SF-424B and SF-424D.
    (2) An Interested Party shall also not, directly or indirectly, 
solicit or accept any gift, gratuity, favor, entertainment or other 
benefit having monetary value, for himself or herself or for another 
person or entity, from any person or organization which has obtained or 
seeks to obtain Investment Assistance from EDA.
    (3) Costs incurred in violation of any conflicts of interest rules 
contained in this chapter or in violation of any assurances by the 
Recipient may be denied reimbursement.
    (4) See Sec.  315.15 of this chapter for special conflicts of 
interest rules for Trade Adjustment Assistance Investments.
    (c) Special rules for Revolving Loan Fund (``RLF'') Grants. In 
addition to the rules set forth in this section:
    (1) An Interested Party of a Recipient of an RLF Grant shall not 
receive, directly or indirectly, any personal or financial benefits 
resulting from the disbursement of RLF loans;
    (2) A Recipient of an RLF Grant shall also not lend RLF funds to an 
Interested Party; and
    (3) Former board members of a Recipient of an RLF Grant and members 
of his or her Immediate Family shall not receive a loan from such RLF 
for a period of two (2) years from the date that the board member last 
served on the RLF's board of directors.