1.03: Prohibition Against Certain Persons Holding Certain Positions

      No individual who has been convicted of robbery, bribery, extortion,
embezzlement, fraud, grand larceny, burglary, arson, a felony violation of state or
federal law defined in Section 102(a) of the Comprehensive Drug Abuse Prevention
and Control Act of 1970, murder, rape, kidnapping, perjury, assault with intent to
kill, any crime described in Section 9(a)(1) of the Investment Company Act of 1940
(15 U.S.C. 80a-9(a)(1)), a violation of Section 302 of the Labor-Management
Relations Act, 1947 (29 U.S.C. 186), a violation of Chapter 63 of Title 18, United
States Code, a violation of Section 874, 1027, 1503, 1505, 1506, 15l0, 195l, or 1954
of Title l8 United States Code, a violation of the Labor-Management Reporting and
Disclosure Act of 1959 (29 U.S.C. 401), any felony involving abuse or misuse of
such person's position or employment in a labor organization or employee benefit
plan to seek or obtain an illegal gain at the expense of the members of the labor
organization or the beneficiaries of the employee benefit plan, or conspiracy to
commit any such crimes, or a crime in which any of the foregoing is an element or
has been found by the Commission or any court to have violated his/her fiduciary
duty or has been found by the Ethics Commission or any court to have violated
M.G.L. c. 268A, shall serve or be permitted to serve:

(1) As a member, administrator, fiduciary, officer, trustee, custodian, counsel,
agent, employee or representative in any capacity of a board.

(2) As a consultant, manager or provider of goods or services to a board.

(3) In any capacity that involves decision making authority or custody or control of
the monies, funds, assets or property of any system.

1.04: Investment

      Members of a board which has received an exemption pursuant to 840 CMR
19.00 and has delegated investment discretion for assets to a qualified investment
manager or is participating in or purchasing shares of the PRIT Fund shall not be
liable for the acts or omissions of the qualified investment manager or of the PRIM
Board, provided the selection and retention of such investment manager or of the
PRIM Board is consistent with the members' fiduciary duty.

REGULATORY AUTHORITY
840 CMR 1.00: M.G.L. c. 7, § 50; c. 32, §§ 21 and 23.
(840 CMR 2.00 and 3.00 RESERVED)

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