Prohibited commitments under the Rural Economic Development
Finance Program include the following:
(1) Commitments for lobbying activities, as such activities
are defined under state or federal law;
(2) Commitments involving the acquisition or holding
of passive investments, such as commercial real estate ownership;
(3) Commitments for the repayment of delinquent federal
or state income taxes;
(4) Commitments for the repayment of payroll or sales
taxes, or other taxes required to be held in trust or escrow;
(5) Commitments that are, or are made in a manner that
is, prohibited by federal or state laws that pertain to the investment
of public money; and
(6) Commitments to an entity that a member of the Authority
may have an interest in or a commitment to an entity that could present
a conflict of interest. A conflict of interest occurs when a person
serves or represents two distinct entities and must choose between
two conflicting interests or loyalties. Generally, when an individual's
official duties clash with the individual's personal interests, a
conflict of interest may occur. Examples include nepotism, personal
or professional relationships, direct or indirect financial interests,
or business or professional activity, including incurring an obligation
or receiving a benefit of any nature, that is in substantial conflict
with the proper discharge of the officer or employee's duties in the
public interest.
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