[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: 12CFR612.2260]



[Page 93]

 

                       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. 612.2260  Standards of conduct for agents.



    (a) Agents of System institutions shall maintain high standards of 

honesty, integrity, and impartiality in order to ensure the proper 

performance of System business and continued public confidence in the 

System and all its institutions. The avoidance of misconduct and 

conflicts of interest is indispensable to the maintenance of these 

standards.

    (b) System institutions shall utilize safe and sound business 

practices in the engagement, utilization, and retention of agents. These 

practices shall provide for the selection of qualified and reputable 

agents. Employing System institutions shall be responsible for the 

administration of relationships with their agents, and shall take 

appropriate investigative and corrective action in the case of a breach 

of fiduciary duties by the agent or failure of the agent to carry out 

other agent duties as required by contract, FCA regulations, or law.

    (c) System institutions shall be responsible for exercising 

corresponding special diligence and control, through good business 

practices, to avoid or control situations that have inherent potential 

for sensitivity, either real or perceived. These areas include the 

employment of agents who are related to directors or employees of the 

institutions; the solicitation and acceptance of gifts, contributions, 

or special considerations by agents; and the use of System and borrower 

information obtained in the course of the agent's association with 

System institutions.