16.3A - CONFLICTS OF INTEREST.
16.3A CONFLICTS OF INTEREST.
1. a. If a member or employee of the authority other than the
executive director of the authority has an interest, either direct or
indirect, in a contract to which the authority is, or is to be, a
party, or in a mortgage lender requesting a loan from, or offering to
sell mortgage loans to, the authority, the interest shall be
disclosed to the authority in writing and shall be set forth in the
minutes of the authority. The member or employee having the interest
shall not participate in any action of the authority with respect to
that contract or mortgage lender.
b. A violation of a provision of this subsection is
misconduct in office under section 721.2. However, a resolution of
the authority is not invalid because of a vote cast by a member in
violation of this subsection unless the vote was decisive in the
passage of the resolution.
c. For the purposes of this subsection, "action of the
authority with respect to that contract or mortgage lender" means
only an action directly affecting a separate contract or mortgage
lender, and does not include an action which benefits the general
public or which affects all or a substantial portion of the contracts
or mortgage lenders included in a program of the authority.
2. Nothing in this section shall be deemed to limit the right of
a member, officer, or employee of the authority to acquire an
interest in bonds or notes of the authority or to limit the right of
a member or employee other than the executive director to have an
interest in a bank or other financial institution in which the funds
of the authority are, or are to be, deposited or which is, or is to
be, acting as trustee or paying agent under a trust indenture to
which the authority is a party.
3. The executive director shall not have an interest in a bank or
other financial institution in which the funds of the authority are,
or are to be, deposited or which is, or is to be, acting as trustee
or paying agent under a trust indenture to which the authority is a
party. The executive director shall not receive, in addition to
fixed salary or compensation, any money or valuable thing, either
directly or indirectly, or through any substantial interest in any
other corporation or business unit, for negotiating, procuring,
recommending, or aiding in any purchase or sale of property, or loan,
made by the authority, nor shall the executive director be
pecuniarily interested, either as principal, coprincipal, agent, or
beneficiary, either directly or indirectly, or through any
substantial interest in any other corporation or business unit, in
any such purchase, sale, or loan. Section History: Recent Form
2007 Acts, ch 54, §14