CEO 76-52 -- March 16, 1976
CONFLICT OF INTEREST
CITY COUNCILMAN ALSO DIRECTOR OF BANK WITH AN OUTSTANDING LOAN TO CITY
To: Jack B. McPherson, City Attorney, New Port Richey
Prepared by: Gene Rhodes
Does a prohibited conflict of interest exist where a city councilman is also a member of the board of directors of a bank with an outstanding loan to the city?
Your question is answered in the negative.
You have advised us in your letter of inquiry that a city councilman in your city is privately a member of the board of directors of a bank which has an outstanding loan to the city. Said loan has been in existence for more than 3 years.
Please find enclosed a copy of a previous opinion of this commission, CEO 75-195, the situation of which is similar to the one you describe. The rationale in the last paragraph of that opinion applies equally, in our view, to a loan transaction negotiated some 3 years ago, i.e., prior to the existence of the subject statute. Your question is answered accordingly in the negative.