(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 position 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]

8 336.735-35 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 connection 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 Corporation 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 state

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ment 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.

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 section, 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

(b) Restriction. A standby letter of credit issued by an insured State nonmember bank shall be combined with all other standby letters of credit and all loans for purposes of applying any legal limitation on loans of the bank (including limitations on loans to any one borrower, on loans to affiliates of the bank, or on aggregate loans); Provided, however, That if such standby letter of credit is subject to separate limitation under applicable State or federal law, then the separate limitation shall apply in lieu of the loan limitation. 2

'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.

2Where the standby letter of credit is subject to a non-recourse participation agreement with another bank or other banks, this section shall apply to the issuer and

(c) Exceptions. All standby letters of credit shall be subject to the provisions of paragraph (b) of this section except where:

(1) Prior to or at the time of issuance, the issuing bank is paid an amount equal to the bank's maximum liability under the standby letter of credit; or,

(2) Prior to or at the time of issuance, the issuing bank has set aside sufficient funds in a segregated deposit account, clearly earmarked for that purpose, to cover the bank's maximum liability under the standby letter of credit.

(d) Disclosure. Each insured State nonmember bank must maintain adequate control and subsidiary records of its standby letters of credit comparable to the records maintained in connection with the bank's direct loans so that at all times the bank's potential liability thereunder and the bank's compliance with this section may be readily determined. In addition, all such standby letters of credit must be adequately reflected on the bank's published financial statements.

§ 337.3 Limits on extensions of credit to executive officers, directors, and principal shareholders of insured nonmember banks.

(a) With the exception of §§ 215.5, 215.8, 215.9, and 215.10, insured nonmember banks are subject to the restrictions contained in subpart A of Federal Reserve Board Regulation O (12 CFR Part 215) to the same extent and to the same manner as though they were member banks.

(b) For the purposes of compliance with 215.4(b) of Federal Reserve Board Regulation O, no insured nonmember bank may extend credit or grant a line of credit to any of its executive officers, directors, or principal shareholders or to any related interest of any such person in an amount that, when aggregated with the amount of all other extensions of credit and lines of credit by the bank to that person and to all related interests of that person, exceeds $25,000 unless (1) the

each participant in the same manner as in the case of a participated loan.

extension of credit or line of credit has been approved in advance by a majority of the entire board of directors of that bank and (2) the interested party has abstained from participating directly or indirectly in the voting. [47 FR 47003, Oct. 22, 1982]

§§ 337.4-337.9 [Reserved]

§ 337.10 Waiver.

An insured State nonmember bank has the right to petition the Board of Directors of the Corporation for a waiver of this part or any subpart thereof with respect to any particular transaction or series of similar transactions. A waiver may be granted at the discretion of the Board upon a showing of good cause. All such petitions should be filed with the Office of the Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street, NW., Washington, D.C. 20429.

§ 337.11 Effect on other banking practices.

Nothing in this part shall be construed as restricting in any manner the Corporation's authority to deal with any banking practice which is deemed to be unsafe or unsound or otherwise not in accordance with law, rule, or regulation; or which violates any condition imposed in writing by the Corporation in connection with the granting of any application or other request by an insured State nonmember bank, or any written agreement entered into by such bank with the Corporation. Compliance with the provisions of this part shall not relieve an insured State nonmember bank from its duty to conduct its operations in a safe and sound manner nor prevent the Corporation from taking whatever action it deems necessary and desirable to deal with specific acts or practices which, although they do not violate the provisions of this part, are considered detrimental to the safety and sound operation of the bank engaged therein.

Sec.

PART 338-FAIR HOUSING

338.1 Definitions.

338.2 Nondiscriminatory advertising. 338.3 Equal housing lender poster.

338.4 Recordkeeping requirements. 338.5 Mortgage lending of a controlled entity.

APPENDIX A

AUTHORITY: Sec. 2, Pub. L. 86-671, 74 Stat. 547 (12 U.S.C. 1817); sec. 8, Pub. L. 797, 64 Stat. 879, as amended by sec. 202, 204, Pub. L. 89-695, 80 Stat. 1046, 1054, and sec. 110, Pub. L. 93-495, 88 Stat. 1506 (12 U.S.C. 1818); sec. 9, Pub. L. 797, 64 Stat. 881, as amended by sec. 205, Pub. L. 89-695, 80 Stat. 1055 (12 U.S.C. 1819); sec. 203, Pub. L. 89695, 80 Stat. 1053 (12 U.S.C. 1920(b)); sec. 805, Pub. L. 90-284, 82 Stat. 83, 84, as amended by sec. 808, Pub. L. 93-383, 88 Stat. 729 (42 U.S.C. 3605, 3608); sec. 501, Pub. L. 93-495, 88 Stat. 1521, as amended by sec. 2, Pub. L. 94-239, 90 Stat. 251 (15 U.S.C. 1691, et seq.); 40 FR 49306, 12 CFR Part 202; 37 FR 3429, 24 CFR Part 110.

SOURCE: 43 FR 11563, Mar. 20, 1978, unless otherwise noted.

§ 338.1 Definitions.

(a) "Applicant" means a natural person, including a coapplicant, who makes an application.

(b) "Application" means a written, or an oral in-person,' request for a home loan by a natural person which is receive on a bank's premises by any person at the bank who customarily receives or is authorized to received such requests.

(c) "Bank” means an insured State nonmember bank as defined in section 3 of the Federal Deposit Insurance Act.

(d) "Controlled entity" means a corporation, partnership, association, or other business entity with respect to which a bank possesses, directly or indirectly, the power to direct or cause the direction of management and policies, whether through the ownership of voting securities, by contract or otherwise.

(e) "Dwelling" means any building, structure (including a mobile home), or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one or more natural persons and any vacant land which is offered for sale or lease for the construction or location thereon of any such building, structure or portion thereof.

'Telephone communications are excluded.