§ 31a.8. Self-dealing.
(a) Purchase of obligations from association. Unless lawfully authorized by the instrument creating the relationship or by court order, funds held by an association as fiduciary shall not be invested in obligations of or property acquired from the association or its directors, officers or employes; individuals with whom there exists such a connection; organizations in which there exists such an interest as might affect the exercise of the best judgment of the association in acquiring the property; or affiliates of the association or their directors, officers or employes.
(b) Sale or transfer of trust assets to association. Property held by an association as fiduciary shall not be sold or transferred, by loan or otherwise, to the association or its directors, officers or employes; to individuals with whom there exists such a connection; to organizations in which there exists such an interest as might affect the exercise of the best judgment of the association in selling or transferring such property, or to affiliates of the association or their directors, officers or employes, except as follows:
(1) When lawfully authorized by the instrument creating the relationship or by court order.
(2) As provided in § 31a.11 (relating to collective investment).
(3) When required by the Department.
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