[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR6801.107]

[Page 845-846]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
     CHAPTER LVIII--BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
 
PART 6801_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE BOARD 
 
Sec. 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) 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) 
and (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.

[[Page 846]]

    (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) 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).