Section 723. Specific prohibited financial interests and transactions

1.
  Without limiting his fiduciary  obligation  provided  in  section  seven
  hundred  twenty-two,  it  shall  constitute a violation of his fiduciary
  obligation for an officer or agent of a labor organization:
    (a) To have, directly or indirectly, any  financial  interest  in  any
  business  or transaction of either an employer whose employees his labor
  organization represents or seeks to represent for purposes of collective
  bargaining, or an employer who is  in  the  same  industry  as  such  an
  employer;
    (b)  To  have,  directly  or indirectly, any financial interest in the
  business or transaction of any  person  who  sells  to,  buys  from,  or
  otherwise   deals  with  (i)  an  employer  whose  employees  his  labor
  organization represents or seeks to represent for purposes of collective
  bargaining, or (ii)  an  employer  organization  which  represents  such
  employer,  or  (iii)  an employer who is in the same industry as such an
  employer;
    (c) To have, directly or indirectly, any  financial  interest  in  the
  business  of any person who sells to, buys from, or otherwise deals with
  his labor organization;
    (d) To have, directly or indirectly, any  financial  interest  in  any
  transaction  with  his  labor  organization  for the purchase or sale of
  property  or  services,  except  reasonable  compensation  for  services
  rendered by him to such organization as officer or agent;
    (e)  To receive, directly or indirectly, any payments, loans, or gifts
  from (i) an employer whose employees his labor  organization  represents
  or  seeks to represent for purposes of collective bargaining, or (ii) an
  employer organization  which  represents  such  employer,  or  (iii)  an
  employer  who  is  in  the  same industry as such an employer; provided,
  however,  that  such  an  officer  or  agent  may   receive   reasonable
  compensation  for  services  rendered  by  him  as  an  employee of such
  employer, or payments required by collective agreement  to  be  made  in
  lieu  of  wages  for  time  lost  from  work while engaged in collective
  bargaining, handling of grievances, or otherwise in  the  administration
  of a collective agreement;
    (f)  To  lend  any  funds  of  the  labor  organization,  directly  or
  indirectly,  to  either  any  officer,  agent,  or  employee   of   such
  organization, or any business in which an officer, agent, or employee of
  such  organization  has,  directly  or indirectly, a financial interest;
  provided, however, that loans may be made from a  loan  fund  which  has
  been  set aside in accordance with a written resolution of the governing
  board of the labor organization  for  the  specific  purpose  of  making
  personal  loans  to  its  officers,  agents, and employees generally, in
  compliance with established, written rules; or
    (g) To lend or invest any funds of the labor organization, directly or
  indirectly, in any business of an employer  whose  employees  his  labor
  organization represents or seeks to represent for purposes of collective
  bargaining,  except  where the governing board of the labor organization
  has adopted a written resolution finding and determining that such  loan
  or  investment will promote the best interests of the employees and will
  not adversely affect collective bargaining.
    2. The fact that conduct or acts of an officer or  agent  of  a  labor
  organization  have  not caused damage to such organization or any of its
  members, or have been ratified or acquiesced in by such organization  or
  its  members,  shall not be relevant in determining whether such conduct
  or acts constitute a violation by such officer or agent of  any  of  the
  obligations  provided  in  section  seven hundred twenty-two and in this
  section.

    3. Nothing contained in this section  shall  prohibit  an  officer  or
  agent of a labor organization from:
    (a)  holding  a  financial  interest acquired as an employee through a
  regularly established employee benefit plan, including a stock purchase,
  profit sharing, pension or retirement plan;
    (b) holding securities traded on a securities exchange registered as a
  national exchange under the securities exchange act of nineteen  hundred
  thirty-four, or securities traded on over-the-counter markets within the
  meaning of such act, or shares in an investment company registered under
  the investment company act of nineteen hundred forty, or securities of a
  public  utility  holding  company  registered  under  the public utility
  holding company act of nineteen hundred  thirty-five,  and  all  federal
  laws  amendatory  and supplemental to such acts; provided, however, that
  any investment in such securities or shares shall  not  constitute  more
  than  one  per  cent  of  the  outstanding  securities  or shares of the
  respective class or classes of securities or shares which he holds;
    (c) lending to, or investing in, any business owned predominantly by a
  labor organization or labor organizations; or
    (d) receiving gifts, otherwise lawful, from employers whose  employees
  his  labor organization represents and from employer organizations which
  represent such employers, provided the cumulative retail value  of  such
  gifts from all such employers and employer organizations does not exceed
  one hundred dollars in any calendar year.
    4.  Nothing  contained  in  this  section  shall  prohibit  any  labor
  organization from:
    (a) Acquiring a nominal number of shares in any  corporation  for  the
  purpose  of  qualifying  as  stockholder  in  order  to obtain financial
  statements of the corporation; or
    (b) Lending to, or investing in, any business owned predominately by a
  labor organization or labor organizations.