[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR612.2150]



[Page 89-90]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 612_STANDARDS OF CONDUCT AND REFERRAL OF KNOWN OR SUSPECTED CRIMINAL 

VIOLATIONS--Table of Contents

 

                     Subpart A_Standards of Conduct

 

Sec. 612.2150  Employees--prohibited conduct.



    An employee of a System institution shall not:

    (a) Participate, directly or indirectly, in deliberations on, or the 

determination of, any matter affecting, directly or indirectly, the 

financial interest of the employee, any relative of the employee, any 

person residing in the employee's household, any business partner of the 

employee, or any entity controlled by the employee or such persons 

(alone or in concert), except those matters of general applicability 

that affect all shareholders/borrowers in a nondiscriminating way, e.g. 

a determination of interest rates.

    (b) Divulge or make use of, except in the performance of official 

duties, any fact, information, or document not generally available to 

the public that is acquired by virtue of employment with a System 

institution.

    (c) Use the employee's position to obtain or attempt to obtain 

special advantage or favoritism for the employee, any relative of the 

employee, any person residing in the employee's household, any business 

partner of the employee, any entity controlled by the employee or such 

persons (alone or in concert), any other System institution, or any 

person transacting business with the institution, including borrowers 

and loan applicants.

    (d) Serve as an officer or director of an entity that transacts 

business with a System institution in the district or of any commercial 

bank, savings and loan, or other non-System financial institution, 

except employee credit unions. For the purposes of this paragraph, 

``transacts business'' does not include loans by a System institution to 

a family-owned entity, service on the board of directors of the Federal 

Agricultural Mortgage Corporation, or transactions with nonprofit 

entities or entities in which the System institution has an ownership 

interest. With the prior approval of the board of the employing 

institution, an employee of a Farm Credit Bank or association may serve 

as a director of a cooperative that borrows from a bank for 

cooperatives. Prior to approving an employee request, the board shall 

determine whether the employee's proposed service as a director is 

likely to cause the employee to violate any regulations in this part or 

the institution's policies, e.g., the requirements relating to devotion 

of time to official duties.

    (e) Use the employee's position or information acquired in 

connection with the employee's position to solicit or obtain any gift, 

fee, or other present or deferred compensation or for any other personal 

benefit for the employee, any relative of the employee, any person 

residing in the employee's household, any business partner of the 

employee, any entity controlled by the employee or such persons (alone 

or in concert), any other System institution, or any person transacting 

business with the institution, including borrowers and loan applicants.

    (f) Accept, directly or indirectly, any gift, fee, or other present 

or deferred compensation that is offered or could reasonably be viewed 

as being offered to influence official action or to obtain information 

the employee has access to by reason of employment with a System 

institution.

    (g) Knowingly acquire, directly or indirectly, except by 

inheritance, any interest in any real or personal property, including 

mineral interests, that was owned by the employing, supervising, or any 

supervised institution within the preceding 12 months and that had been 

acquired by any such institution as a result of foreclosure or similar 

action.

    (h) Directly or indirectly borrow from, lend to, or become 

financially obligated with or on behalf of a director, employee, or 

agent of the employing, supervising, or a supervised institution



[[Page 90]]



or a borrower or loan applicant of the employing institution, unless:

    (1) The transaction is with a relative or any person residing in the 

employee's household;

    (2) The transaction is undertaken in an official capacity in 

connection with the institution's discounting, lending, or participation 

relationships with OFIs and other lenders; or

    (3) The Standards of Conduct Official determines, pursuant to 

policies and procedures adopted by the board, that the potential for 

conflict is insignificant because the transaction is in the ordinary 

course of business or is not material in amount and the employee does 

not participate in the determination of any matter affecting the 

financial interests of the other party to the transaction except those 

matters affecting all shareholders/borrowers in a nondiscriminatory way.

    (i) Violate an institution's policies and procedures governing 

standards of conduct.

    (j) Act as a real estate agent or broker; provided that this 

paragraph shall not apply to transactions involving the purchase or sale 

of real estate intended for the use of the employee, a member of the 

employee's family, or a person residing in the employee's household.

    (k) Act as an agent or broker in connection with the sale and 

placement of insurance; provided that this paragraph shall not apply to 

the sale or placement of insurance authorized by section 4.29 of the 

Act.