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.

(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.

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

(a) When a statement submitted under this subpart or information from other sources indicates a conflict between the interests of an employee or special Corporation employee and the performance of his services for the Corporation, the Counselor designated in the regulations in this part shall investigate and dispose of the matter in such manner as he may deem appropriate. When the conflict or appearance of conflict is not resolved by the Coun

selor, the information concerning the conflict or appearance of conflict shall be reported to the Chairman of the Board of Directors.

(b) The employee or special Corporation employee concerned shall have a reasonable opportunity, orally and/or in writing to explain the conflict or appearance of conflict.

§ 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.