son to provide financial benefit to himself or another person, particularly one with whom he has family, business, or financial ties.

§ 511.735-28 Gifts, entertainment, and favors.

(a) Except as provided in paragraph (b) of this section, a special Government employee, while so employed or in connection with his employment, shall not receive or solicit from a person having business with the Agency anything of value as a gift, gratuity, loan, entertainment, or favor for himself or another person, particularly one with whom he has family, business or financial ties.

(b) Paragraph (a) of this section shall not apply to activities necessary to, or compatible with the duties and responsibilities of, the Agency and its special Government employees. These activities include those contained in paragraph § 511.735-11(b).

§ 511.735-29

Other provisions applicable to special Government employees.

Sections 511.735-12, 511.735-13, 511.735-17, 511.735-18, 511.735-20, 511.73521 and 511.735-22 shall be applicable to special Government employees. Subpart D-Statements of Employment and Financial Interests

§ 511.735-35 Filing and review

of

statements of employment and financial interests.

(a) Each employee required to do so by 511.735-36 shall complete and file Form 511A1in accordance with § 511.73538. Each special Government employee shall complete and file Form 511B1 in accordance with § 511.735-44.

(b) All Forms 511A and 511B shall be filed with the Director of the Personnel Management Division who shall submit them for review by the General Counsel of the Board to determine whether there are any conflicts of interest or other violations of law or this part. Information obtained from other sources shall be treated as if it were contained in the forms.

(c) All reports, forms, papers and the information contained therein, filed pursuant to this section shall be confidential, except as the Board or the Civil Service Commission may determine for good cause shown.

1 Forms 511A and 511B filed as part of the original document.

(d) To insure the confidentiality of the information contained in Forms 511A and 511B and attachments, such forms and attachments shall only be accessible to the Chairman, Board Members, the Director of the Personnel Management Division, the General Counsel, the Counselor and Deputy Counselors referred to in § 511.735-4 and such other persons as the General Counsel or the Director of the Personnel Management Division may, from time to time, deem appropriate or necessary. They shall be responsible for maintaining the statements in confidence and shall not allow access to or allow information to be disclosed from such forms and attachments to such forms except to carry out the purpose of this part and for good cause shown. [39 FR 11176, Mar. 26, 1974] § 511.735-36

Employees required to submit statements.

Except as provided in § 511.735-37 of this part, statements of employment and financial interests on Form 511A shall be filed by each employee of the Board classified at GS-13 or above, or at a comparable pay level, who is a Director, Deputy Director, Associate Director, or Assistant Director of a Division or an Office (regardless of the specific title), an Adviser or Assistant to the Board, an Assistant to the Chairman or Member of the Board, the Chief of the Special Services Branch, the Director of the Holding Companies Section, a Chief Examiner, an Assistant Chief Examiner, a Field Supervisor, a Chief Analyst, a Regional Director, a Regional Supervisor, an Assistant Regional Director or Supervisor, an Appraiser and an Examiner serving as Examiner-in-Charge. However, employees described in this paragraph may be excluded from the reporting requirement when the General Counsel, subject to the concurrence of the Chairman of the Board, determines that:

(a) The duties of a position are such that the likelihood of the incumbent's involvement in a conflicts-of-interest situation is remote; or

(b) The duties of a position are at such a level of responsibility that the submission of a statement of employment and financial interests is not necessary because of the degree of supervision and review over the incumbent or the inconsequential effect on the integrity of the Agency and the Government. [39 FR 11177, Mar. 26, 1974]

§ 511.735-36a Employee's complaint on filing requirement.

The Board's grievance procedure is available to consider a complaint by an employee that his position has been improperly included under the regulations as one requiring the submission of a statement of employment and financial interests.

[32 F.R. 14817, Oct. 26, 1967]

§ 511.735-37 Board Members not required to submit statements.

Neither Form 511A nor Form 511B is required by this part from a Member of the Board. Board Members are subject to separate reporting requirements under section 401 of Executive Order 11222.

§ 511.735-38 Time and place for submission of employees' statements.

(a) An employee required to submit a Form 511A under this part shall submit that form to the Director of the Personnel Management Division by the later of: (1) May 31, 1974, if employed on or before May 1, 1974; or

(2) Thirty days after his entrance on duty; or

(3) Thirty days after the inclusion of his position in § 511.735-36.

(b) Prior to December 31 of each year, the Director of the Personnel Management Division shall furnish the appropriate form to each employee required to submit a supplementary statement under § 511.735-39. Each employee shall submit the completed form to the Director of the Personnel Management Division not later than January 31 of the following year.

(c) The Director of the Personnel Management Division shall promptly report to the General Counsel any failure to submit Form 511A as required by this section or of failure to submit a supplementary statement as required by 511.735-39.

[39 FR 11177, Mar. 26, 1974]

§ 511.735-39

ments.

Supplementary

state

Changes in, or additions to, the information contained in an employee's Form 511A shall be reported in a supplementary statement as of December 31 each year. If no changes or additions occur, a negative report is required. Notwithstanding the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or take

an action that could result, in a violation of the conflict-of-interest provisions of section 208 of title 18 U.S.C. or Subpart B of this part.

[39 FR 11177, Mar. 26, 1974]

§ 511.735-40 Interests of employees' relatives.

The interest of a spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee. For the purpose of this section, "member of an employee's immediate household" means those blood relations who are residents of the employee's household.

§ 511.735-41 Information not known by employees.

If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf.

§ 511.735-42 Information not required.

This section does not require an employee to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee's connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or similar organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Agency are deemed "business enterprises" and are required to be included in an employee's statement of employment and financial interests. § 511.735-43 Effect of employees' statements on other requirements.

The statements of employment and flnancial interests and supplementary statements required of employees are in addition to, and not in substitution for, or in derogation of, any similar requirement imposed by law, order or regulations. The submission of a statement or supplementary statement by an employee does not permit him or any other person to participate in a matter in which his or the other person's participation is prohibited by law, order or regulations.

§ 511.735-44 Specific provisions of Agency regulations for special Government employees.

(a) Except as provided in paragraph (b) of this section, each special Government employee shall submit on Form 511B a statement of employment and financial interests which reports:

(1) All other employment; and

(2) The financial interests of the special Government employee which are determined to be relevant in the light of the duties he is to perform.

(b) The Board may waive the requirement in paragraph (a) of this section for the submission of a statement of employment and financial interests in the case of a special Government employee who is not a consultant or an expert when the Agency finds that the duties of the position held by that special Government employee are of a nature and at such a level of responsibility that the submission of the statement by the incumbent is not necessary to protect the integrity of the Agency and the Government. For the purpose of this paragraph, "consultant" and "expert" have the meaning given those terms by Chapter 304 of the Federal Personnel Manual, but do not include a physician, dentist, or allied medical specialist whose services are procured to provide care and service to patients.

(c) The statement of employment and financial interests required to be submitted under this section shall be submitted in accordance with the provisions of § 511.735-35. Supplemental information, as required, shall be filed on Form 511B. The provisions of §§ 511.735-40, 511.735-41, 511.735-42 and 511.735-43 shall apply to statements of employment and financial interest of special Government employees, where appropriate.

[31 F.R. 4277, Mar. 11, 1966, as amended at 32 F.R. 14817, Oct. 26, 1967]

Subpart E-Reporting Conflicts-Disciplinary or Remedial Action-Miscellaneous Statutory Provisions

§ 511.735-50 Reporting unresolved conflicts of interest.

When conflicts of interest or other violations or apparent violations of this part cannot be resolved or explained to the satisfaction of the General Counsel, he shall report the matter to the Chairman of the Board.

[39 FR 11177, Mar. 26, 1974]

§ 511.735-51 Opportunity to be heard.

The employee or special Government employee concerned shall be given opportunity to explain such conflicts of interest before the matter is reported to the Chairman of the Board.

§ 511.735-52 Action by the Chairman.

The Chairman of the Board, after consideration of the matter and after an opportunity for the employee or special Government employee concerned to appear, shall decide what steps are to be taken to remedy the situation. Among other steps, the Chairman of the Board may:

(a) Attempt to remove any conflict of interest by requiring a change in duties, disqualification for a particular assignment, or divestment of the conflicting interest by the employee or special Government employee;

(b) Take other corrective action; or (c) Where corrective actions are inadequate, impose disciplinary action. § 511.735-53 Violations of this part cause for disciplinary action.

A violation of the regulations contained in this part by an employee or special Government employee may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law.

§ 511.735-54 Remedial action to be effected in accordance with law and regulation.

Remedial action, whether disciplinary or otherwise, shall be effected in accordance with any applicable laws, executive orders, and regulations.

§ 511.735-55 Miscellaneous statutory provisions.

Each employee and each special Government employee shall acquaint himself with each statute that relates to his ethical and other conduct while an employee of the Agency. In particular, the following statutes shall be noted:

(a) House Concurrent Resolution 175, 85th Congress, 2d Session, 72 Stat. B12, the "Code of Ethics for Government Service."

(b) Chapter 11 of Title 18, United States Code, relating to bribery, graft, and conflicts of interest.

(c) The prohibtion against lobbying with appropriated funds (18 U.S.C. 1913) ($500 fine and/or 1 year in prison and removal from employment).

(d) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918) ($1,000 fine and/or 1 year and 1 day in prison).

(e) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

(f) The prohibitions against (1) the disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783) ($10,000 fine and/or 10 years in prison); and (2) the disclosure of confidential information (18 U.S.C. 1905) ($1,000 fine and/or 1 year in prison, and removal from employment).

(g) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352) (ineligibility for many positions).

(h) The prohibition against the misuse of a Government vehicle (suspension from duty or removal from employment). (31 U.S.C. 638a(c)).

(i) The prohibition against the misuse of the franking privilege (18 U.S.C. 1719) ($300 fine).

(j) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917) ($1,000 fine and/or 1 year in prison).

(k) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001) ($10,000 fine and/or 5 years in prison).

(1) The prohibtion against mutilating or destroying a public record (18 U.S.C. 2071) ($2,000 fine and/or 3 years in prison).

(m) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508) ($5,000 fine and/ or 10 years in prison).

(n) The prohibition against (1) embezzlement of Government money or property (18 U.S.C. 641); (2) failing to account for public money (18 U.S.C. 643) and (3) embezzlement of the money or property of another person in the possession of an employee by reason of his employment (18 U.S.C. 654) (fines from $1,000 to $10,000 and/or 1 to 10 years in prison).

(0) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285) ($5,000 fine and/or 5 years in prison.

(p) The prohibition against political activities in subchapter III of chapter 73 of Title 5, United States Code and 18

512.6 Obstruction of the proceedings. 512.7 Subpenas.

AUTHORITY: The provisions of this Part 512 issued under secs. 402, 407, 48 Stat. 1256, 1260, as amended, sec. 408, 48 Stat. 1261, as added by 73 Stat. 691, as amended; 12 U.S.C. 1725, 1730, 1730a. Reorg. Plan No. 3 of 1947; 3 CFR 1943-1948 Comp.

SOURCE: The provisions of this Part 512 appear at 34 F.R. 5596, Mar. 25, 1969, unless otherwise noted.

§ 512.1 Scope of part.

This part prescribes rules of practice and procedure applicable to the conduct of investigative proceedings under section 408(h) (2) of the National Housing Act (referred to in this part as the “Act”), as amended (12 U.S.C. 1730a(h) (2)), and to the conduct of formal examination proceedings with respect to insured institutions and affiliates under section 407 (m) (2) of the Act, as amended (12 U.S.C. 1730 (m) (2)). This part does not apply to adjudicative proceedings as to which hearings are required by statute, the rules for which are contained in Part 509 of this chapter. § 512.2 Definitions.

As used in this part:

(a) "Board" means the Federal Home Loan Bank Board as the operating head of the Federal Savings and Loan Insurance Corporation;

(b) "Investigative proceeding" means an investigation conducted under section 408 (h) (2) of the Act;

(c) "Formal examination proceeding" means the administration of oaths and affirmations, taking and preserving of testimony, requiring the production of books, papers, correspondence, memoranda, and all other records, the issu

ance of subpenas, and all related activities in connection with examinations of insured institutions and affiliates thereof conducted under section 407(m) (2) of the Act; and

(d) "Designated representative" means the person or persons empowered by the Board to conduct an investigative proceeding or a formal examination proceeding.

§ 512.3 Confidentiality of proceedings.

All formal examination proceedings shall be private and, unless ordered otherwise by the Board, all investigative proceedings shall also be private. Unless otherwise ordered or permitted by the Board, or required by law, and except as provided in §§ 512.4 and 512.5, the entire record of any investigative proceeding or formal examination proceeding, including the Board resolution authorizing the proceeding, the transcript of such proceeding, and all documents and information obtained by the designated representative during the course of said proceeding, shall be for the confidential use of only the Board and its staff, and no part of such record shall be made public. § 512.4 Transcripts.

Transcripts, if any, of investigative proceedings or formal examination proceedings shall be recorded solely by an official reporter or by any other person or means authorized by the designated representative. A person who has submitted documentary evidence or given testimony in an investigative proceeding or formal examination proceeding shall be entitled to procure a copy of his documentary evidence or a transcript of his own testimony on payment of the cost thereof: Provided, That, in a private proceeding, a person seeking a transcript of his own testimony shall file a written request with the Board stating the reason he desires to procure such transcript, and the Board may for good cause deny such request. In any event, any witness (or his counsel) upon proper identification, shall have the right to inspect the transcript of the witness' own testimony.

§ 512.5 Rights of witnesses.

(a) Any person who is compelled or requested to furnish documentary evidence or give testimony at an investigative proceeding or formal examination proceeding shall have the right to examine, upon request, the Board resolution authorizing such proceeding. Copies of

such resolution shall be furnished, for their retention, to such persons only with the approval of the Director or the Deputy Director of the Office of Examinations and Supervision and the concurrence therewith of the General Counsel, the Deputy General Counsel, or an Associate General Counsel of the Board.

(b) Any witness at an investigative proceeding or formal examination proceeding may be accompanied, represented, and advised by counsel, who may be present with him during any investigative proceeding or formal examination proceeding. Such counsel may advise the witness before, during, and after the taking of his testimony and may briefly question the witness, on the record, at the conclusion of his testimony, for the sole purpose of clarifying any of the answers the witness has given. During the taking of the testimony of a witness, such counsel may make summary notes solely for the use of his client. All witnesses shall be sequestered, and, unless permitted in the discretion of the designated representative, no witness or accompanying counsel may be permitted to be present during the taking of the testimony of any other witness called in such proceeding.

(c) Unless otherwise ordered by the Board, in any public investigative proceeding (but in no other proceeding under this part), if the record shall contain implications of wrongdoing by any person, such person shall have the right to appear on the record; and in addition to the rights afforded other witnesses under this part, he shall have an opportunity to cross-examine and produce rebuttal testimony and/or documentary evidence. Such person shall be granted as full an opportunity to assert his position as may be consistent with administrative efficiency and with avoidance of undue delay, in the discretion of the designated representative.

§ 512.6 Obstruction of the proceedings.

The designated representative shall report to the Board any instances where any witness or counsel has engaged in dilatory, obstructionist, or contumacious conduct or has otherwise violated any provision of this part during the course of an investigative proceeding or formal examination proceeding; and the Board may take such action as the circumstances warrant, including the exclusion of counsel from further participation in such proceeding.