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Local Government and School Accountability

Protecting the Public’s Interest

A Tutorial on Local Government Ethics and Transparency in New York State

Module 3 - Case Studies on Conflicts of Interest

Situation 4

The Town Supervisor is unable to complete his term of office and an individual must be appointed to fill the vacancy. One of the potential replacements is well qualified, but he is an officer of the bank that is now the town depository, and he owns less than 5% of the bank’s stock. Neither this person’s pay and compensation from the bank, nor his duties with the bank, directly involve the bank’s relationship with the town. There are several other banks in the town that could also serve as the town depository.

If this individual is appointed as town supervisor, will he have a prohibited interest in contract? Why or why not? Are there any other issues with which the town should be concerned?

  Next: Discussion of Situation 4