[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR4001.103]

[Page 733-734]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER XXX--FARM CREDIT SYSTEM INSURANCE CORPORATION
 
PART 4001_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE FARM 
 
Sec. 4001.103  Prohibited financial interests.

    (a) Prohibition. Except as provided in paragraph (c) of this section 
and Sec. 4001.109, no covered employee, or spouse or minor child of a 
covered employee, shall own, directly or indirectly, securities issued 
by a System institution or related entity.
    (b) Definition of securities. For purposes of this section, the term 
``securities'' includes all interests in debt or equity instruments. The 
term includes, without limitation, secured and unsecured bonds, 
debentures, notes, securitized assets and commercial paper, as well as 
all types of preferred and common stock. The term encompasses both 
current and contingent ownership interests, including any beneficial or 
legal interest derived from a trust. It extends to any right to acquire 
or dispose of any long and short position in such securities and 
includes, without limitation, interests convertible into such 
securities, as well as options, rights, warrants, puts, calls, and 
straddles relating to such securities.
    (c) Exceptions. Nothing in this section prohibits a covered 
employee, or spouse

[[Page 734]]

or minor child of a covered employee, from:
    (1) Investing in a publicly traded or publicly available investment 
fund which, in its prospectus, does not indicate the objective or 
practice of concentrating its investments in the securities of System 
institutions or related entities, if the employee neither exercises 
control over nor has the ability to exercise control over the financial 
interests held in the fund;
    (2) Having a legal or beneficial interest in a qualified profit 
sharing, retirement, or similar plan, provided that the plan does not 
invest more than 25 percent of its funds in securities of System 
institutions or related entities, and the employee neither exercises 
control over nor has the ability to exercise control over the financial 
interests held in the plan;
    (3) Owning securities of System institutions held as a result of 
pre-existing credit, as specified in Sec. 4001.104(b); or
    (4) Owning any security pursuant to a waiver granted under Sec. 
4001.109.