(a) Prohibitions. For all personal and intangible property, and for all real property exempted under § 614.4260(c) of this subpart, no person may:

1. (1) Perform evaluations in connection with transactions in which such person has a direct or indirect interest, financial or otherwise, in the loan or subject property;
2. (2) As a director, vote on or approve a loan decision on which such person performed a collateral evaluation; or
3. (3) As a director, perform a collateral evaluation in connection with any transaction on which such person made or will be required to make a credit decision.

(b) Officers and employees. If the institution's internal control procedures required by § 618.8430 of this chapter include requirements for either a prior approval or post-review of credit decisions, officers and employees may:

1. (1) Participate in a vote or approval involving assets on which they performed a collateral evaluation; or
2. (2) Perform a collateral evaluation in connection with a transaction on which they have made or will be required to make a credit decision.

(c) Real estate appraiser. Except as provided in § 614.4260(c) of this subpart, all evaluations of real property that serve as the primary security for a loan shall be performed by a qualified real estate appraiser who has no direct or indirect interest, financial or otherwise, in the loan or subject property and is not engaged in the marketing, lending, collection, or credit decision processes of any of the following:

1. (1) A Farm Credit System institution making or originating the loan;
2. (2) A Farm Credit System institution operating under common management with the institution making or originating the loan; or
3. (3) A Farm Credit System institution purchasing an interest in the loan.