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

Current through 2024-29, July 17, 2024
The members of the Authority recognize that either the
				  existence or the perception of a Conflict of Interest can be harmful.
				  Therefore, the members of the Finance Authority of Maine, adopt this Code of
				  Ethics regarding Conflict of Interest.
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)
with whom FAME currently does
				business;
(ii)
with
				whom FAME has done business in the past twelve months; or
(iii)
that is known to be considering
				or attempting to do business with FAME in the future (collectively, "Prohibited
				Gifts").
Prohibited Gifts include the waiver or withholding of
				  any charge or penalty and also includes gifts, services, compensation or
				  waivers given to members of the Board member's or employee's immediate family
				  or household and gifts, services, compensations or waivers which may be given
				  to anyone on behalf of the Board member or employee.
For the purposes of this Gift Policy, "Prohibited
				  Gifts" shall not include:
(1)
gifts, compensation or services, or waivers of charges or penalties,
				which, collectively with any other gifts, compensation, service or waivers
				received directly or indirectly from the same source within the prior twelve
				month period, have a fair value of less than $25 ("De Minimis Gifts");
(2)
reasonable payments for
				services rendered by the Board member or the employee to the person or
				organization in a capacity unrelated to their Board service or FAME employment
				("Permitted Compensation");
(3)
reasonable services provided by the
				person or organization in exchange for payment by the Board member or employee
				("Permitted Services"); or
(4)
reasonable and customary gifts
				(other than De Minimis Gifts) provided to the Board member or the employee in
				connection with such member or employee's relationship to the person or
				organization in a capacity clearly unrelated to their Board service or FAME
				employment ("Permitted Gifts").
The fact that compensation, services or gifts may be
				  considered De Minimis Gifts, Permitted Compensation, Permitted Services or
				  Permitted Gifts, shall not:
(A)
permit the payer, provider or donor to receive loans or other FAME
				benefits when otherwise proscribed under this Code of Ethics; nor
(B)
eliminate a conflict of
				interest or requirement for abstention of a Board member or FAME employee when
				otherwise defined or required under this Code of Ethics. In the event that a
				Board member or FAME employee accepts a Permitted Gift, Permitted Compensation,
				or Permitted Service, they shall provide prompt notice to the Chief Executive
				Officer, if it has not been previously disclosed.
Members of the Board and employees should be sensitive to the
				  appearance of impropriety in accepting any gift, service or compensation of any
				  value, including the purchase of meals.
No gift, service or compensation,
even if otherwise
				  considered a De Minimis Gift, Permitted Compensation, Permitted Service or
				  Permitted Gift,
may be accepted if the intent is to influence
				  decision-making. Members of the Board and employees should use prudent judgment
				  when evaluating the purpose of gift-giving and the acceptance of any gift, even
				  a token item of minimal value.