Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 1 - BYLAWS AND ADMINISTRATION OF THE FINANCE AUTHORITY OF MAINE
Section 457-1-6 - CODE OF ETHICS

A. Ineligible for any direct loan

Any member of the Board or employee of the Authority and/or such person's spouse, children, parents, brothers and sisters, the spouse's children, parents, brothers and sisters, and anyone sharing a household with a Board member or employee (collectively "immediate relations").

Any firm, partnership, corporation or other entity, including a sole proprietorship, if either a member of the board or employee of the Authority is materially involved in management

Any firm, partnership, corporation or other entity, including a sole proprietorship, 10% or more of which is owned in the aggregate by a board member or employee and/or such person's immediate relations.

B. Ineligible for any other benefits from the Authority

Any member of the Board or employee of the Authority and/or such person's immediate relations except for those benefits attributable to status as a Board member or employee or relative thereof

Any firm, partnership, corporation or other entity, including a sole proprietorship (other than a financial institution seeking insurance for a loan or loans it desires to make), if either a member of the board or employee of the Authority is materially involved in management

Any firm, partnership, corporation or other entity, including a sole proprietorship, 10% or more of which is owned in the aggregate by a board member or employee and/or such person's immediate relations

C. A member or employee shall abstain in all aspects and respects and avoid contact with any other member and any other employee regarding any matter involving, any person, firm, partnership, corporation or other entity, including a sole proprietorship, which is either an applicant or a borrower or participating coordinate lender if:

the member or employee is (i) an officer, director, attorney, accountant or other representative of such applicant or borrower or participating coordinate lender; (ii) a vendor, competitor or vendee of any such applicant, borrower, or participating coordinate lender, to any significant degree; or (iii) such person is the member or employee or such person's immediate relations, or is a firm, partnership, corporation or other entity, including a sole proprietorship 2% of more of which is owned in the aggregate by, the member or employee and/or such person's immediate relations.

Any degree of involvement must be disclosed in writing to, and whether such is significant or not is to be determined by, the Chief Executive Officer in consultation with the Office of General Counsel of the Authority, subject to appeal.

D. Subsections A and B of this Section 6 notwithstanding, this Rule shall not impair any member, employee, or relative thereof from being eligible for benefits under any and all Federal and State Educational Financial Assistance Programs operated by the Authority under Title 20-A M.R.S.A or from being eligible (in his or her individual capacity or as the holder of an interest in a separate legal entity) for benefits (as an investor only, and not as the subject business) under the Maine Seed Capital Tax Credit program administered by the Authority under 10 MRSA §1100-T, provided, however, that in each such case, subsection C of this Section 6 shall apply, and provided further that in the event that the applicant is the Chief Executive Officer or one of his or her immediate relations or an entity 2% of which is owned in the aggregate by such persons, the benefits shall not be approved except by the members, and if the applicant is a member or one of member's immediate relations or an entity 2% or more of which is owned by such persons, the benefits shall not be approved unless eligibility is determined by an independent party chosen or approved by a majority of the disinterested members and that independent party's finding is approved by a majority of the disinterested members at a regular or special meeting of the members at which the action is scheduled and properly noticed to be heard.

E. Any benefits extended as of the effective date of this Rule may be renewed without violating this Rule.

F. Any interpretation of this Code of Ethics, including whether participation in any particular program in which the Authority plays any significant role constitutes a "benefit," whether a degree of involvement is "significant" or material, or whether an interest is "direct" or "indirect" shall be made by the Chief Executive Officer in consultation with the Office of General Counsel of the Authority and be subject to appeal to the members, as shall be the application of this Code with regard to an employee of the Authority. It will take the affirmative vote of at least two-thirds (2/3) of the members present and voting, but not less than five (5) members, to overrule a ruling by the Chief Executive Officer in consultation with the Office of General Counsel or to waive the application of this Code with regard to an employee of the Authority.

G. Each and every contact by any Member of the Board or employee of the Authority who has a Conflict of Interest as defined above shall be reported to the Office of General Counsel by the member or employee of the Authority who is contacted. The report of contact shall be made to the Office of General Counsel and a list of any such contacts shall be provided to the Members of the Board. The Board shall thereupon take such action as it shall deem appropriate.

H. A Conflict of Interest will remain a conflict for one year following the termination of the relationship which caused the conflict.

H-1. A member of the Board or an employee may not knowingly accept any gift, compensation or service from any person or organization:

I. Members of the board shall read and sign this Code of Ethics each year on or before the first meeting of members following the annual meeting of the Authority and each new member of the board and each new employee of the Authority shall read and sign this Code of Ethics.