(a) A territorial officer or employee shall not be deemed to be interested in a contract entered into by a public agency of which he is a member within the meaning of this chapter if he has only a remote interest in the contract and if he fact of such interest is disclosed to the public agency of which he is a member and noted in its official records, and thereafter the public agency authorizes, approves, or ratifies the contract in good faith.
(b) As used in this chapter “remote interest” means:
(1) that of a nonsalaried officer or a nonprofit organization;
(2) that of a former employee or agency of a party contracting with the government, if the territorial officer or employee was an employee or agent of said contracting party for at least three (3) years prior to his initially becoming a territorial officer or employee. Time of employment with the contracting party shall be counted in computing the three (3) year period even though such contracting party has been converted from one form of business organization to a different form of business organization within the three (3) years of the initial taking of office by such territorial officer or employee. Time of employment in such case shall be counted only if, after the transfer or change in organization, the real or ultimate ownership of the contracting party is the same or substantially similar to that which existed before such transfer or change in organization. Stock holders, bond holders, partners, or other persons holding an interest in the contracting party are regarded as having the “real or ultimate ownership” of such contracting party.
(3) that of a parent in the earnings of his minor child for personal services.
(4) that of a landlord or tenant of the party contracting with the government.
(5) that of an attorney of the party contracting with the government but not representing the contracting party in negotiating with the government.
(6) that of a former supplier of goods or services to a party contracting with the government when such goods or services were supplied to the contracting party by the territorial officer or employee for at least five (5) years prior to his election or appointment to a territorial office or employment.
(c) The provisions of this section shall not be applicable to any territorial officer or employee interested in a contract who influences or attempts to influence another member of a public agency of which he is a member to enter into the contract.
(d) The willful failure of a territorial officer or employee to disclose the fact of his interest in a contract pursuant to this section shall be punishable as provided in this chapter. Such violation shall not void the contract, however, unless the contracting party had knowledge of the fact of the remote interest of the officer at the time the contract was executed.
(e) A territorial officer or employee shall not be deemed to be interested in a contract made pursuant to competitive bidding under a procedure established by law if his sole interest is that of an officer, director, or employee or a bank or financial institution with which a party to the contract has the relationship of borrower or depositor or creditor.