Prohibited commitments under the Rural Economic Development Finance Program include the following:(1) Commitments for lobbying activities, as such activities are defined under state or federal law;(2) Commitments involving the acquisition or holding of passive investments, such as commercial real estate ownership;(3) Commitments for the repayment of delinquent federal or state income taxes;(4) Commitments for the repayment of payroll or sales taxes, or other taxes required to be held in trust or escrow;(5) Commitments that are, or are made in a manner that is, prohibited by federal or state laws that pertain to the investment of public money; and(6) Commitments to an entity that a member of the Authority may have an interest in or a commitment to an entity that could present a conflict of interest. A conflict of interest occurs when a person serves or represents two distinct entities and must choose between two conflicting interests or loyalties. Generally, when an individual's official duties clash with the individual's personal interests, a conflict of interest may occur. Examples include nepotism, personal or professional relationships, direct or indirect financial interests, or business or professional activity, including incurring an obligation or receiving a benefit of any nature, that is in substantial conflict with the proper discharge of the officer or employee's duties in the public interest.