source:
  type: guide
  id: usda-hb-3555-1.10
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶1.10 —
    Conflict Of Interest
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶1.10
    — Conflict Of Interest.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-1.10-full
  canonical_id: usda-hb-3555-1.10-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶1.10 — Conflict
    Of Interest
  type: do
  tags:
  - regulator-direct
  - usda
  - usda-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶1.10
      — Conflict Of Interest
    source_class: usda-handbook
    source_url: https://www.rd.usda.gov/sites/default/files/hb-1-3555_consolidated.pdf
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-05-25T14:10:13Z'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '1.10 CONFLICT OF INTEREST All Agency staff must strive to maintain
      the highest levels of honesty, integrity, and impartiality in conducting activities
      on behalf of the Agency. In order to avoid conflicts of interest, applicants
      and borrowers must disclose to the lender any prohibited relationship or association
      with any Rural Development employee and the lender must report this information
      to the Agency. Lenders must also disclose to the Agency any prohibited relationship
      or association that it or any of its employees has with any Rural Development
      employee. A. Prohibited Relationships Prohibited relationships and associations
      include: x Immediate family members, including parents and children, whether
      related by blood or marriage, and any household residents; x Close relatives,
      including grandmother, grandfather, aunt, uncle, sister, brother, niece, nephew,
      granddaughter, grandson, or first cousin, whether related by blood or marriage;
      x Immediate working relationships, including co-workers in the same office,
      subordinates, and immediate supervisors; and x Close business associations with
      an identity of financial interest, including, but not limited to, business partnerships,
      joint ventures, or closely-held corporations. HB-1-3555 (03-09-16) SPECIAL PN
      1-9 Revised (06-24-22) PN 563 Guidance documents lack the force and effect of
      law, unless expressly authorized by statute or incorporated into a contract.
      USDA may not cite, use, or rely on any guidance that is not available through
      their guidance portal, except to establish historical facts. B. Disclosure Requirements
      Disclosure of prohibited relationships and associations under this section will
      not result in applicant, borrower, or lender ineligibility. Disclosures may
      result in special handling or reassignment of Rural Development employee responsibilities
      with regard to the loan guarantee request in question, to ensure no prohibited
      relationships or associations exist between the Rural Development employees
      responsible for the loan guarantee transaction, and the lender(s), borrower(s),
      or applicant(s). Applicants are required to disclose any known relationship
      or association with a Rural Development employee. When a relationship or association
      is identified in the application, the lender is required to notify the Agency
      prior to submission of the application. Attachment 1-A, Notice of Relationship/Association
      Between SFHGLP Applicant and Rural Development Employee, may be used to notify
      the Agency. After review by the Agency, the lender will be notified of any special
      handling procedures. When a Rural Development employee is aware of a relationship
      or association with an applicant, the employee is required to notify the Agency
      in writing. Attachment 1-A may be used to notify the Agency of the relationship
      or association. Special handling of the application will be provided to avoid
      a potential conflict of interest. The Agency official, as determined by a Director
      of the OPD, may use Attachment 1- B, Requirements for Handling SFHGLP Application
      of Employee, Relative or Associate, to determine the processing and servicing
      procedures. A copy of the notice will be provided to the lender and Agency employee.'
  judgment: false
