Title 7, AgricultureRelease 119-110

§1986 Conflicts of Interests

Title 7 › CHAPTER 50 — AGRICULTURAL CREDIT › SUBCHAPTER IV — ADMINISTRATIVE PROVISIONS › § 1986

Last updated Sep 22, 2026|Official source

Summary

Blocks officers, attorneys, and other employees who work for the Secretary from taking any fee, commission, gift, or other payment tied to business under this chapter, except their regular salary. If a Department of Agriculture worker handled or reviewed a loan to buy land, they may not buy any interest in that land for three years after that action, unless the Secretary earlier finds a former county committee member acted in good faith. County committee members must not certify loans for land that they or a close family member (second-degree by blood or marriage) have or might get an interest in, or certify loans for applicants who are such relatives. Breaking these rules can bring a fine up to $2,000, up to two years in jail, or both.

Full Legal Text

Title 7, §1986

Agriculture, Source: USLM XML via OLRC

(a)Acceptance of fees, commissions, gifts, or other considerations prohibited
No officer, attorney, or other employee of the Secretary shall, directly or indirectly, be the beneficiary of or receive any fee, commission, gift, or other consideration for or in connection with any transaction or business under this chapter other than such salary, fee, or other compensation as he may receive as such officer, attorney, or employee.
(b)Acquisition of interest in land by certain officers or employees of Department of Agriculture prohibited; 3-year period
Except as otherwise provided in this subsection, no officer or employee of the Department of Agriculture who acts on or reviews an application made by any person under this chapter for a loan to purchase land may acquire, directly or indirectly, any interest in such land for a period of three years after the date on which such action is taken or such review is made. This prohibition shall not apply to a former member of a county committee upon a determination by the Secretary, prior to the acquisition of such interest, that such former member acted in good faith when acting on or reviewing such application.
(c)Certifications on loans to family members prohibited
No member of a county committee shall knowingly make or join in making any certification with respect to a loan to purchase any land in which he or any person related to him within the second degree of consanguinity or affinity has or may acquire any interest or with respect to any applicant related to him within the second degree of consanguinity or affinity.
(d)Penalties
Any persons violating any provision of this section shall, upon conviction thereof, be punished by a fine of not more than $2,000 or imprisonment for not more than two years, or both.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a) and (b), was in the original “this title”, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see

Short Title

note set out under section 1921 of this title and Tables.

Amendments

2002—Subsec. (b). Pub. L. 107–171 struck out “provided for in section 1982 of this title” after “former member of a county committee”. 1984—Pub. L. 98–258 designated first, second, and third sentences of existing provisions as subsecs. (a), (c), and (d), respectively, and added subsec. (b).

Reference

Citations & Metadata

Citation

7 U.S.C. § 1986

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110