---
kind: "section"
citation: "12 C.F.R. § 612.2135"
title: "12"
number: "612.2135"
heading: "Standards of conduct—core principles."
url: "https://uscodex.org/cfr/12/612.2135"
---

# §612.2135. Standards of conduct—core principles.

- (a) **Conduct.** If you are a System institution director or employee, you must:
  - (1) **Maintain high ethical standards, including high standards of care, honesty, integrity, and fairness.**
  - (2) **Act in the best interest of the institution.**
  - (3) **Preserve the reputation of the institution and the public's confidence in the Farm Credit System.**
  - (4) **Exercise diligence and good business judgment in carrying out official duties and responsibilities.**
  - (5) Report to the Standards of Conduct Official conflicts of interest and circumstances or transactions that have the appearance of creating a conflict of interest involving yourself, your family, or your reportable business entity.
  - (6) Work with the Standards of Conduct Official to identify conflicts and resolve reported conflicts of interest and appearances of conflicts of interest.
  - (7) Avoid self-dealing and acceptance of gifts or favors that may be deemed as offered, or have the appearance of being offered, to influence official actions or decisions.
- (b) **Responsibilities.** To achieve the high standards of conduct of this subpart, every institution director and employee must:
  - (1) Comply with the standards of conduct and Code of Ethics policies and procedures maintained at his or her institution.
  - (2) **Comply with all applicable laws and regulations.**
  - (3) Timely report to the Standards of Conduct Official, or use the institution's anonymous reporting procedures, any known or suspected:
    - (i) Illegal or unethical activity; or
    - (ii) **Violation of the institution's standards of conduct and Code of Ethics.**
- (c) **Fiduciary duties.** Every officer or director of a System institution must fulfill his or her fiduciary duties to the institution and its stockholders.

## Notes

### Source

Source: 86 FR 50975, Sept. 13, 2021, unless otherwise noted.

### Authority

Authority: Secs. 5.9, 5.17, 5.19, 5.31A of the Farm Credit Act of 1971, as amended, (Act) (12 U.S.C. 2243, 2252, 2254, 2267a); Sec. 514 of Pub. L. 102-552, 106 Stat. 4102.

### Source

Source: 59 FR 24894, May 13, 1994, unless otherwise noted.