{"identifier":"/us/usc/t10/s988","title":10,"num":"\u00a7\u202f988.","heading":"Prohibition on ownership or trading of stocks in certain companies by certain officials of the Department of Defense","text":"\u00a7\u202f988.\nProhibition on ownership or trading of stocks in certain companies by certain officials of the Department of Defense\n(a)\nProhibition.\u2014\nExcept as provided in subsection (b), a covered official of the Department of Defense may not own or purchase publicly traded stock of a company if that company is one of the 10 entities awarded the most amount of contract funds by the Department of Defense in a fiscal year during the five preceding fiscal years.\n(b)\nExceptions.\u2014\nThis section shall not apply to the purchase or ownership of a publicly traded stock of a company otherwise described in subsection (a) as follows:\n(1) If the aggregate market value of the holdings of the covered official, and the spouse and minor children of the covered official, in the stock of that company, both before and after purchase (in the case of a purchase), does not exceed the de minimis threshold established in section 2640.202(a)(2) of title 5, Code of Federal Regulations.\n(2) If the stock is purchased and owned as part of an Excepted Investment Fund or mutual fund.\n(c)\nDefinitions.\u2014\nIn this section:\n(1) The term \u201ccovered official of the Department of Defense\u201d means any of the following:\n(A) A civilian appointed to a position in the Department of Defense by the President, by and with the advice and consent of the Senate.\n(B) If serving in a key acquisition position (as designated by the Secretary of Defense or the Secretary concerned for purposes of this section), the following:\n(i) A member of the armed forces in a grade above O\u20136.\n(ii) A civilian officer or employee in a Senior Executive Service, Senior-Level, or Scientific or Professional position.\n(2) The term \u201cExcepted Investment Fund\u201d means a widely-held investment fund described in section 102(f)(8) of the Ethics in Government Act of 1978 (5 U.S.C. App.).\n1\n1 See References in Text note below.","url":"https://projectusc.org/usc/t10/s988.html","content":[{"t":"sec","id":"/us/usc/t10/s988","children":[{"t":"num","text":"\u00a7\u202f988."},{"t":"heading","text":"Prohibition on ownership or trading of stocks in certain companies by certain officials of the Department of Defense"},{"t":"subsec","id":"/us/usc/t10/s988/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Prohibition.\u2014"},{"t":"content","text":"Except as provided in subsection (b), a covered official of the Department of Defense may not own or purchase publicly traded stock of a company if that company is one of the 10 entities awarded the most amount of contract funds by the Department of Defense in a fiscal year during the five preceding fiscal years.","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s988/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Exceptions.\u2014"},{"t":"chapeau","text":"This section shall not apply to the purchase or ownership of a publicly traded stock of a company otherwise described in subsection (a) as follows:"},{"t":"para","id":"/us/usc/t10/s988/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" If the aggregate market value of the holdings of the covered official, and the spouse and minor children of the covered official, in the stock of that company, both before and after purchase (in the case of a purchase), does not exceed the de minimis threshold established in section 2640.202(a)(2) of title 5, Code of Federal Regulations.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s988/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" If the stock is purchased and owned as part of an Excepted Investment Fund or mutual fund.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s988/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Definitions.\u2014"},{"t":"chapeau","text":"In this section:"},{"t":"para","id":"/us/usc/t10/s988/c/1","children":[{"t":"num","text":"(1)"},{"t":"chapeau","text":" The term \u201ccovered official of the Department of Defense\u201d means any of the following:"},{"t":"subpara","id":"/us/usc/t10/s988/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" A civilian appointed to a position in the Department of Defense by the President, by and with the advice and consent of the Senate.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s988/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" If serving in a key acquisition position (as designated by the Secretary of Defense or the Secretary concerned for purposes of this section), the following:"},{"t":"clause","id":"/us/usc/t10/s988/c/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" A member of the armed forces in a grade above O\u20136.","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s988/c/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" A civilian officer or employee in a Senior Executive Service, Senior-Level, or Scientific or Professional position.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s988/c/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" The term \u201cExcepted Investment Fund\u201d means a widely-held investment fund described in section 102(f)(8) of the Ethics in Government Act of 1978 (5 U.S.C. App.).","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSee References in Text note below."},{"t":"text","text":"\u202fSee References in Text note below."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}