SEC AO92-020 December 18, 1991

SUBJECT: COG DIRECTOR WITH LOAN FROM COG REVOLVING LOAN FUND

 

SUMMARY:

A COG Director who has an economic development loan with the Revolving Loan Fund is advised to follow the disclosure and disqualification procedures of Section 8-13-700(B) concerning the restructuring or modification of the loan.

 

QUESTION:

The Executive Director of the Santee-Lynches Regional Council of Governments has requested an opinion concerning a member of the Board of Directors. An associated corporation, the Regional Development Corporation, has a Revolving Loan Fund to fund economic development activities in the district. In 1989, a loan was made to a corporation owned by two individuals, one of whom is an elected county council member who serves on the COG Board and also as a member of the Regional Development Corporation. The loan is still in existence with loan payments still current. This Director has requested that the original loan be modified to allow him total ownership of the company and make such other changes as the RDC Board feels is necessary. He questions whether there is a conflict of interests or other ethics question to be addressed.

DISCUSSION:

This opinion is rendered in response to a letter dated November 8, 1991 requesting an opinion from the State Ethics Commission. The Commission's jurisdiction is limited to the applicability of the State Ethics Act (Act No. 248 of 1991; Section 8-13-100 et. seq., 1976 Code of Laws). This opinion does not supersede any other statutory or regulatory restrictions or procedures which may apply to this situation.

Section 8-13-700(B) provides in part as follows:

(B) No public official, public member, or public employee may make, participate in making, or in any way attempt to use his office, membership, or employment