PART 31—TROUBLED ASSET RELIEF PROGRAM Authority: 31 U.S.C. 321; Pub. L. 110-343; 122 Stat. 3765. Source: 76 FR 61049, Oct. 3, 2011, unless otherwise noted. § 31.1 General. This part sets forth regulations to implement and administer the Emergency Economic Stabilization Act of 2008 (Pub. L. 110-343; 122 Stat. 3765). Subpart A [Reserved] Subpart B—Conflicts of Interest § 31.200 Purpose and scope. (a) Purpose. (b) Scope. § 31.201 Definitions. As used in this part: Arrangement Dependent child EESA Key individual Organizational conflict of interest (1) A prior or current arrangement between the Treasury and the retained entity that may give the retained entity an unfair competitive advantage in obtaining a new arrangement with Treasury. (2) The retained entity is, or represents, a party in litigation against the Treasury relating to activities under the EESA. (3) The retained entity provides services for Treasury relating to the acquisition, valuation, disposition, or management of troubled assets at the same time it provides those services for itself or others. (4) The retained entity gains, or stands to gain, an unfair competitive advantage in private business arrangements or investments by using information provided under an arrangement or obtained or developed pursuant to an arrangement with Treasury. (5) The retained entity is a potential candidate for relief under EESA, is currently participating in an EESA program, or has a financial interest that could be affected by its performance of the arrangement. (6) The retained entity maintains a business or financial relationship with institutions that have received funds from Treasury pursuant to the EESA. Personal conflict of interest Related entity Retained entity Special government employee Treasury Treasury employee Troubled assets, §§ 31.211-31.216 [Reserved] § 31.217 Confidentiality of information. (a) Nonpublic information defined. (b) Prohibitions. (1) Disclose nonpublic information to anyone except as required to perform the retained entity's obligations pursuant to the arrangement, or pursuant to a lawful court order or valid subpoena after giving prior notice to Treasury. (2) Use or allow the use of any nonpublic information to further any private interest other than as contemplated by the arrangement. (c) Retained entity's responsibility. (1) Security measures to prevent unauthorized access to facilities and storage containers where nonpublic information is stored. (2) Security measures to detect and prevent unauthorized access to computer equipment and data storage devices that store or transmit nonpublic information. (3) Periodic training to ensure that persons receiving nonpublic information know their obligation to maintain its confidentiality and to use it only for purposes contemplated by the arrangement. (4) Programs to ensure compliance with federal securities laws, including laws relating to insider trading, when the arrangement relates to the acquisition, valuation, management, or disposition of troubled assets. (5) A certification from each key individual stating that he or she will comply with the requirements in section 31.217(b). The retained entity shall obtain this certification, in the form of a nondisclosure agreement, before a key individual performs work under the arrangement, and then annually thereafter. (d) Certification. § 31.218 Enforcement. (a) Compliance with these rules concerning conflicts of interest is of the utmost importance. In the event a retained entity or any individual or entity providing information pursuant to 31 U.S.C. part 31 violates any of these rules, Treasury may impose or pursue one or more of the following sanctions: (1) Rejection of work tainted by an organizational conflict of interest or a personal conflict of interest and denial of payment for that work. (2) Termination of the arrangement for default. (3) Debarment of the retained entity for Federal government contracting and/or disqualification of the retained entity from future financial agency agreements. (4) Imposition of any other remedy available under the terms of the arrangement or at law. (5) In the event of violation of a criminal statute, referral to the Department of Justice for prosecution of the retained entity and/or its officers or employees. In such cases, the Department of Justice may make direct and derivative use of any statements and information provided by any entity, its representatives and employees or any individual, to the extent permitted by law. (b) To the extent Treasury has discretion in selecting or imposing a remedy, it will give significant consideration to a retained entity's prompt disclosure of any violation of these rules.