(j) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917). (k) The prohibition against fraud or false statements in a Government

matter (18 U.S.C. 1001).

(1) The prohibition against mutilating or destroying a public record (18 U.S.C. 2071).

(m) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

(n) The prohibitions 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).

(0) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285).

(p) The prohibitions against political activities in subchapter III of chapter 73 of title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608.

(q) The prohibition against the disclosure of information by a bank examiner (18 U.S.C. 1906).

(r) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219).

(s) The prohibition against the unauthorized accumulation of information on individuals by employees and the disclosure of personal information on individuals by employees, under the Privacy Act of 1974 (5 U.S.C. 552a(i)).

(t) The prohibition against accepting excessive honorariums (2 U.S.C. 441i). [31 FR 5751, Apr. 14, 1966, as amended at 32 FR 13964, Oct. 7, 1967; 40 FR 48499, Oct. 16, 1975; 43 FR 60268, Dec. 27, 1978]

ment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business, or financial ties.

§ 336.735-22 Use of inside information.

(a) A special Corporation employee shall not use inside information obtained as a result of his Government employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he has family, business, or financial ties. For the purpose of this section, "inside information" means information obtained under Corporation authority which has not become part of the body of public information.

(b) A special Corporation employee may teach, lecture, or write in a manner not inconsistent with § 336.735-12(d) in regard to employees. § 336.735-23 Coercion.

(a) Except as provided in paragraph (b) of this section, a special Corporation employee, while so employed or in connection with his employment, shall not receive or solicit from a person having business with this Corporation 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) Exemptions to paragraph (a) of this section are the same as those authorized to employees under § 336.73511(b).

§ 336.735-25 Miscellaneous statutory provisions.

Each special Corporation employee shall acquaint himself with each stat

ute that relates to his ethical and other conduct as a special Corporation employee of the Corporation and of the Government. In addition to the statutes cited in the body of the regulations in this part, the attention of each special Corporation employee is directed to the statutory provisions listed in § 336.735-19.

Subpart D-Statements of Employment and Financial Interests

§ 336.735-31 Criteria to determine who must submit statements.

Except as provided in § 336.735-32, statements of employment and financial interest shall be filed by the following employees

(a) Those paid at a level of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code.

(b) Positions which meet the following criteria:

(1) Positions the incumbent of which is responsible for making a Corporation decision or taking a Corporation action in regard to:

(i) Contracting or procurement;

(ii) Administering

grants or subsidies;

(iii) Regulating or auditing a private or other non-Federal enterprise; or

(iv) Other activities where the decision or action has an economic impact on the interests of banks or any other non-Federal enterprise.

(2) Positions which the Corporation determines require the incumbent to report employment and financial interest in order to carry out the purposes of law, Executive Order, this part, or any other Corporation regulations.

(3) Approval of the Civil Service Commission will be obtained before requiring the incumbent of a position below the GS-13 level to file a statement under this section.

[43 FR 60268, Dec. 27, 1978]

§ 336.735-31a Corporation employees required to file statements.

(a) The Corporation has determined that all positions enumerated in paragraphs (b) and (c) of this section meet the criteria described in § 336.735-31.

Holders of these positions are required to file statements of employment and financial interest, unless § 336.735-32 is applicable to them.

(b) The Ethics Counselor shall file a statement with the Chairman of the Board of Directors.

(c) The following employees shall file statements with the Ethics Counselor:

(1) Assistants to the Board of Directors;

(2) Deputies or Assistants to the individual Directors;

(3) Division and Office Heads who report directly to the Board of Directors or its individual members;

(4) The holder or holders of the position immediately subordinate to a Division or Office Head covered paragraph (c)(3) (whether designated as Deputy, Assistant or any other title); (5) Regional Directors;

(6) Assistant Regional Directors;

(7) Branch or comparable office heads;

(8) All commissioned bank examiners, as well as other employees of the Division of Bank Supervision who do not regularly examine banks but who are paid at or above the GS-13 level;

(9) Employees of the Division of Liquidation paid at or above the GS-13 level;

(10) Assessment Auditors paid at or above the GS-11 level;

(11) Those employees of the Operations Branch, the Office of the Controller, paid at the GS-9 level or above who evaluate, recommend, purchase, or contract for equipment, materials and services required by the Corporation;

(12) Employees assigned to the Software and Hardware: Support and Evaluation Section paid at or above the GS-14 level;

(13) Individuals employed by the Corporation as attorneys, whether assigned to the Washington Office of the Legal Division, another Washington Division or Office, a Regional Office or a liquidation office. This paragraph does not include outside attorneys retained by the FDIC, and who are otherwise engaged in the private practice of law.

(d) An employee may object to the Ethics Counselor that his or her posi

tion has been improperly included as one requiring the submission of a statement of employment and financial interest. When an objection cannot be resolved or explained satisfactorily to the employee, he or she shall be granted a review of the matter through the Corporation's grievance procedure.

[43 FR 60269, Dec. 27, 1978]

§ 336.735-32 Employees not required to submit statements.

Employees or Special Employees who hold positions at GS-16 level or above shall file disclosure statements under Title II of the Ethics in government Act of 1978 rather than statements of employment and financial interest under this Part 336.

(12 U.S.C. 1819; 5 CFR 735.104; E.O. 11222) [44 FR 6084, Jan. 31, 1979]

§ 336.735-33 Time and place for submission of employees' statements.

(a) An employee required to submit a statement of employment and financial interest under § 336.735-31 shall be advised in writing of this obligation by the Office of Personnel Management at least 15 days before the date the report is required.

(b) Employees shall file statements not later than 30 after the effective date of this revision to Part 336 if employed on or before that effective date, or 30 days after entrance on duty or reassignment or promotion to a covered position.

(c) Notwithstanding any other provision in this section, filing may be required prior to employment or promotion for executive level persons and certain other senior positions.

[43 FR 60269, Dec. 27, 1978]

§ 336.735-34 Supplementary statements.

(a) Changes in, or additions to, the information contained in an employee's statement of employment and financial interest shall be reported in a supplementary statement as of June 30 each year. If no changes or additions occur, a report to that effect is required.

(b) Employees required to file these annual supplementary statements

must be advised in writing of this obligation, with a copy of the relevant reporting form. Except as otherwise provided by the Board of Directors, a letter to this effect shall be distributed by the Office of Personnel Management no later than June 15th with the instruction that the statement must be returned after July 1st, but no later than July 31st.

(c) The filing of the annual supplementary statement required of certain employees by this section does not authorize any person to engage in any activity or maintain any interest prohibited by law, regulation, or order. [43 FR 60269, Dec. 27, 1978]

§ 336.735-35 Financial interests of employee's spouse and dependent child.

A financial interest of an employee's spouse or of an employee's dependent child is considered to be an interest of the employee, except that such interest shall not be so regarded if—

(a) The interest is solely the financial interest and responsibility of the spouse or of the dependent child, and the employee has no knowledge of it; and

(b) The interest is not in any way, past or present, derived from the income, assets, or activities of the employee; and

(c) The employee neither derives, nor expects to derive, any financial or economic benefit from the interest.

[43 FR 60269, Dec. 27, 1978]

§ 336.735-36 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.

§ 336.735-37 Information prohibited.

This subpart 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 con

nection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a 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 Government are deemed "business enterprises” and are required to be included in an employee's statement of employment and financial interests.

§ 336.735-38 Confidentiality of employees' statements.

The Corporation shall hold statements of employment and financial interest, and each supplementary statement, in confidence. All statements shall be received, reviewed, and retained in the office of the Ethics Counselor who is responsible for maintaining the statements in confidence and shall not allow access to, or allow information to be disclosed from, a statement except to carry out the purposes of this part. The Corporation may not disclose information from a statement except as the Chairman of the Corporation or the Chairman of the Civil Service Commission may determine for good cause shown.

[32 FR 13964, Oct. 7, 1967, as amended at 43 FR 60269, Dec. 27, 1978]

§ 336.735-39 Effect of employees' statements on other requirements.

The statements of employment and financial 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 regulation. The submission of a statement or supplementary statement by an employee does not permit him or any other person to participate in a manner in which his or the other person's participation is prohibited by law, order, or regulation.

§ 336.735-40 Specific provisions of regulations for special Corporation employ

ees.

(a) Except as provided in paragraph (b) of this section, each Special Corpo

ration Employee who is not required to file disclosure statements under § 336.735-32, shall submit a statement of employment and financial interests which reports:

(1) All other employment; and

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

(b) The Chairman of the Corporation 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 Corporation employee, who is not a consultant or an expert when the Chairman finds that the duties of the position held by that special Corporation 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 Corporation. For the purpose of this paragraph, "consultant" and "expert" have the meanings 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. Special Corporation Employees who are relieved of the requirement of filing a statement include, but are not limited to: Summer personnel, student interns, and individuals paid out of the "Imprest Funds" to assist in bank liquidations.

(c) A statement of employment and financial interests required to be submitted under this section shall be submitted not later than the time of employment of the special Corporation employee. Each special Corporation employee shall keep his statement current throughout his employment with the Corporation by the submission of supplementary statements.

[31 FR 5751, Apr. 14, 1966, as amended at 32 FR 13964, Oct. 7, 1967; 43 FR 60269, Dec. 27, 1978]

§ 336.735-41 Reviewing statements and reporting conflicts of interest.

(a) Annual supplementary statements submitted under § 336.735-34

will be reviewed by the Ethics Counselor by August 31. The Ethics Counselor may be assisted in his or her review by no more than two of the Deputy Ethics Counselors referred to in § 336.735-3(c).

(b) When a statement submitted under § 336.735-31 and § 336.735-34, or information from other sources indicates a possible conflict between the interests of an employee or Special Corporation Employee and the performance of his or her service for the Corporation:

(1) The Ethics Counselor shall investigate the matter and allow the employee or Special Corporation Employee a reasonable opportunity, orally and in writing, to explain why he or she does not believe a conflict or appearance of conflict exists.

(2) The Ethics Counselor shall attempt to resolve the matter expeditiously.

(3) If an employee is dissatisfied with the Ethics Counselor's proposed resolution, and the matter cannot be resolved by the September 30 following the filing of a required statement, the information concerning the conflict or appearance of conflict shall be reported to the Chairman of the Board of Directors for resolution.)

[43 FR 60269, Dec. 27, 1978]

§ 336.735-42 Disciplinary and other remedial actions.

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

(b) When, after consideration of the explanation of the employee or special Corporation employee provided by § 336.735-41, the Chairman of the Board decides that remedial action is required, he shall take immediate action to end the conflicts or appearance of conflicts of interest. Remedial action includes, but is not limited to: (1) Changes in assigned duties; (2) Divestment by the employee or special Corporation employee of his conflicting interest;

(3) Disciplinary action; or

(4) Disqualification for a particular assignment.

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

PART 337-UNSAFE AND UNSOUND BANKING PRACTICES

Sec.

337.1 Scope.

337.2 Standby letters of credit. 337.3-337.9 [Reserved]

337.10 Waiver.

337.11 Effect on other banking practices.

AUTHORITY: Sec. 9, 64 Stat. 881-882, (12 U.S.C. 1819).

SOURCE: 39 FR 29179, Aug. 14, 1974, unless otherwise noted.

§ 337.1 Scope.

The provisions of this part apply to certain banking practices which are likely to have adverse effects on the safety and soundness of insured State nonmember banks or which are likely to result in violations of law, rule, or regulation.

§ 337.2 Standby letters of credit.

(a) Definition. As used in this § 337.2, the term "standby letter of credit" means any letter of credit, or similar arrangement however named or described, which represents an obligation to the beneficiary on the part of the issuer: (1) To repay money borrowed by or advanced to or for the account of the account party, or (2) to make payment on account of any indebtedness undertaken by the account party, or (3) to make payment on account of any default (including any statement of default) by the account party in the performance of an obligation. The term "similar arrangement" includes the creation of an acceptance or similar undertaking.

1

'As defined in this paragraph (a), the term "standby letter of credit" would not include commercial letters of credit and similar instruments where the issuing bank expects the beneficiary to draw upon the issuer, which do not "guaranty" payment of a money obligation of the account party and which do not provide that payment is occasioned by default on the part of the account party.