A member of the board of directors or an employee of the association may not appoint or employ, or contract with, the following individuals for the provision of goods or services in connection with the operation or business of the association, if the individual to be appointed or employed, or with whom a contract is to be entered into, is to be directly or indirectly compensated from funds of the association:
(1) an individual related to the member or employee within a degree of relationship described by § 573.002, Government Code; or
(2) an individual related to any member of the board of directors or employee of the association within a degree of relationship described by § 573.002, Government Code.