§ 2-186. Prohibited transactions.

The following transactions are expressly prohibited:

(1)

Any transactions not authorized by this policy.

(2)

The purchase of securities on margin.

(3)

Director purchases of single-family or commercial mortgages.

(4)

Purchases of foreign bonds.

(5)

The short sale of securities.

(6)

Investment in obligations issued or guaranteed by federal agencies or U.S. government instrumentalities which are collateralized mortgage obligations that have been stripped into interest only or principal only obligations, inverse floaters, or structured notes. The term "structured note" means securities of U.S. government agencies, instrumentalities, or government-sponsored enterprises which have been restructured, modified, and/or reissued by private entities.

(Code 2004, § 27.5)