§ 1506.7 - Personal conflicts of interest.

(a) Contractor's responsibility. A contractor shall ensure that all management officials and key employees have no personal conflicts of interest.

(b) Information required. A contractor shall obtain from its management officials and key employees the following information about the personal, business, and financial relationships of themselves, their spouses, and minor children;

(1) Loans from, employment by, or an ownership interest in the depository institution whose assets are the subject of the contract;

(2) Relationships within the last five years with any other insured depository institution, or depository institution holding company, as an officer, director, or controlling shareholder or employee;

(3) Financial, business, or close personal relationships with any person or entity, who to their knowledge, has an interest in the assets which are the subject of the contract, including information about negotiations or arrangements for future employment with such person or entity;

(4) A list and description of any instance during the preceding five years in which there was a default on any material obligation to an insured depository institution; and

(5) Any other information deemed necessary by the RTC.

(c) Certification. The contractor shall determine whether any management official or key employee has an interest which conflicts with responsibilities to the RTC. In making those determinations the contractor may rely on the information obtained pursuant to paragraph (b) of this section, unless the contractor has reason to believe that the information provided is false or inaccurate.

(d) Disqualification. The contractor shall disqualify persons with personal conflicts of interests from performing work pursuant to the contract. If appropriate, the contractor may seek a waiver from the Contractors’ Conflicts Committee or the Outside Counsels’ Conflicts Committee, to allow employment of an individual with a personal conflict of interest on the contract work. In addition, the contractor shall certify to the RTC that all management officials and key employees for whom no waiver is sought, have no business, personal, or financial interest which conflicts with responsibilities to the RTC.

(e) Contractors’ Responsibilities. The contractor shall establish a procedure to monitor for interests which conflict with the performance of contract responsibilities. The contractor shall require management officials and key employees to provide the required information prior to employment on the contract work, and to update information within 10 days of any change.

(f) Subsequent notification. Within 10 days after learning of a management official's or key employee's conflict of interest, the contractor shall notify the RTC of the conflict and either describe the steps it has taken to eliminate the conflict or request a waiver from the Contractors’ Conflicts Committee or the Outside Counsels’ Conflicts Committee.

(g) Retention of information. Information obtained by a contractor from its management officials and key employees pursuant to paragraph (b) of this section shall be retained during the term of the contract and for a period of three years following termination or expiration of the contract and shall be made available for review by the RTC upon request, except to the extent that disclosure is prohibited by law.

(Approved by the Office of Management and Budget under control number 3205-0001)