Page images
[blocks in formation]

1 Do not include any provision for possible loan losses that the bank establishes as a precautionary measure. Include only any provision that (1) has been established through a charge against income, (2) represents management's judgment as to possible loss or value depreciation, and (3) is in excess of the provision taken under the Treasury tax formula. 2 Describe briefly in a footnote any such addition. 3 Indicate by parenthesis the gross amount of any credit adjustment to undivided profits.

4 Describe briefly in a footnote the basis used in computing the amount accumulated in the allowance at the end of the period. State the amount that could have been deducted for Federal income tax purposes if such amount is in excess of the amount provided by the bank pursuant to the Treasury tax formula. NOTE: The sum of the balances should equal the amount of allowance for loan losses reported in the balance sheet. SCHEDULE VIII-RESERVES ON SECURITIES Sec.

336.735-12 Outside employment. Item

Amount 1

336.735-13 Financial interests. Balance at beginning of period.-

336.735-14 Use of Corporation property. Additions due to mergers and absorp

336.735-15 Misuse of information. tions 2

336.735-16 Indebtedness. Transfers to reserve:

336.735-17 Gambling, betting, and lotteries, From income..

336.735–18 General conduct prejudicial to From undivided profits.

the Government. Totals

336.735-19 Miscellaneous statutory proviLosses charged to reserve-

sions. Transfers from reserve.. Balance at end of period 3

Subpart C-Ethical and Other Conduct and Re

sponsibilities of Special Corporation Employees 1 Do not include any provision the bank establishes as a precautionary measure.

336.735-21 Use of Corporation employment. 2 Describe briefly in a footnote any such

336.735-22 Use of inside information. addition,

336.735-23 Coercion.

336.735-24 3 Balance should equal the amount of Re

Gifts, entertainment, and favors.

336.735-25 serves on securities reported in the balance

Miscellaneous statutory provi

sions. sheet. (34 F.R. 20326, Dec. 30, 1969; 35 F.R. 385, Subpart D-Statements of Employment and Jan. 10, 1970]

Financial Interests

336.735-31 Employees required to submit PART 336_EMPLOYEE RESPONSIBILI


336.735–312 Employees' complaint on filing TIES AND CONDUCT

requirement. Subpart A-General Provisions

336.735-32 Employees not required to subSec.

mit statements. 336.735-1 Purpose.

336.735–33 Time and place for submission of 336.735-2 Definitions.

employees' statements. 336.735-3 Effective date, distribution, and 336.735-34 Supplementary statements. counseling.

336.735–35 Interests of employees' relatives.

336.735-36 Information not known by emSubpart B-Ethical and Other Conduct and

ployees. Responsibilities of Employees

336.735-37 Information prohibited. 336.735–10 Proscribed actions.

336.735-38 Confidentiality of employees' 336.735–11 Gifts, entertainment, and favors.



[ocr errors]


§ 336.735–3 Effective date, distribution, 336.735-39 Effect of employees' statements and counseling.

on other requirements. 336.735-40 Specific provisions or regulations

(a) This part and any amendment for special Corporation em

thereto shall be effective after approval ployees.

by the Civil Service Commission and 336.735–41 Reviewing statements and re- upon publication in the FEDERAL

porting conflicts of interest. REGISTER. 336.735–42 Disciplinary and other remedial

(b) The Personnel Division of the action.

Corporation shall distribute one copy Appendix AEmployees who must fille (and supply additional copies on request) statements.

of this part to every employee and every AUTHORITY: The provisions of this Part 336

special Corporation employee within 90 issued under E.O. 11222; 3 CFR, 1964-1965

days after the effective date, and to each Comp.; 5 CFR 735.104.

new employee and special Corporation

employee at the time of entrance on duty, SOURCE: The provisions of this Part 336

and distribute to every employee and appear at 31 F.R. 5751, Apr. 14, 1966, unless otherwise noted.

every special Corporation employee each

calendar year thereafter a reminder of Subpart A-General Provisions the basic provisions of this part.

(c) A Counselor designated herein and § 336.735–1 Purpose.

Deputy Counselors, appointed by the The maintenance of unusually high Chariman of the Board, shall be available standards of honesty, integrity, impar- for counseling and guidance respecting tiality, and conduct by Corporation statutes and regulations affecting ememployees and special Corporation em- ployee responsibility and conduct, inployees is essential to assure the proper

cluding interpretations of the provisions performance of the Corporation business

of this part, and each employee and and the maintenance of confidence by

special Corporation employee shall be

notified of this service by the Personnel citizens in their Government. The avoid

Division at the time he receives a copy ance of misconduct and conflicts of inter

of this part. ests on the part of Corporation employees

(d) The Assistant to the Chairman of and special Corporation employees the Board of Directors of the Corporation through informed judgment is indispen- shall act as the Corporation's Counselor. sable to the maintenance of these stand

Subpart B-Ethical and Other Conduct ards. To accord with these concepts, this

and Responsibilities of Employees part sets forth the Corporation's regulations covering the Corporation's employ- § 336.735–10 Proscribed actions. ees and special Corporation employees, An employee shall avoid any action, prescribing standards of conduct and whether or not specifically prohibited by responsibilities, and governing state- this subpart which might result in, or ments reporting employment and finan

create the appearance of: cial interests.

(a) Using public office for private

gain; § 336.735–2 Definitions.

(b) Giving preferential treatment to In this part:

any person; (a) “Employee" means an officer or

(c) Impeding Corporation efficiency or

economy; employee of the Corporation, but does not

(d) Losing complete independence or include a special Corporation employee.

impartiality; (b) "Executive order" means Execu

(e) Making a Corporation decision tive Order 11222 of May 8, 1965.

outside official channels; or (c) "Person" means an individual, a

(f) Affecting adversely the confidence bank, a corporation, a company, an as- of the public in the integrity of the Corsociation, a firm, a partnership, a society poration. a joint stock company, or any other [32 F.R. 13964, Oct. 7, 1967] organization or institution.

§ 336.735–11 Gifts, entertainment, and (d) “Special Corporation employee"

favors. means a “special Government employee"

(a) Except as provided in paragraphs as defined in section 202 of Title 18 of the (b) and (f) of this section, an employee United States Code.

shall not solicit or accept, directly or in

directly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from a person who:

(1) Has, or is seeking to obtain, contractual or other business or financial relations with the Corporation;

(2) Conducts operations or activities that are regulated or examined or may be regulated or examined by the Corporation;

(3) Has interests that may be substantially affected by the performance or noperformance of his official duty.

(b) Paragraph (a) of this section shall not apply:

(1) Where obvious family or personal relationships govern (such as those between the parents, children, or spouse of the employee and the employee) when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors;

(2) To the acceptance of food, refreshments, and accompanying entertainment of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other function or on an inspection tour where an employee is properly in attendance;

(3) The acceptance of lodging on rare or infrequent occasions where an employee is properly in attendance and circumstances thereof are reported to the Corporation;

(4) To the acceptance of unsolicited advertising or promotional material such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value; and

(5) To the acceptance and loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans. However, a Corporation examiner or assistant examiner shall not accept a loan of gratuity from any bank examined by him or any bank he has the authority to examine or from any person connected therewith (18 U.S.C.212 and 213).

(c) [Reserved]

(d) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value

or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(e) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in Public Law 89-673, 80 Stat. 952.

(f) Neither this section nor $ 336.735– 12 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Corporation payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under Corporation orders when reimbursement is prescribed by the Corporation. [31 F.R. 5751, Apr. 14, 1966, as amended at 32 F.R. 13964, Oct. 7, 1967] $ 336.735–12 Outside employment.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Corporation employment. Incompatible activities include but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interests; or

(2) Outside employment which tends to impair his mental or physical capacity to perform his Corporation duties and responsibilities in an acceptable manner.

(b) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Corporation (18 U.S.C. 209).

(c) A Corporation examiner or assistant examiner shall not perform any other service, for compensation, for any bank, or for any person connected therewith (18 U.S.C. 1909).

(d) Employees are encouraged to engage in teaching, lecturing, speaking and writing relating to the Corporation's functions or responsibilities. However, an employee shall not, either for or without compensation, engage in any such activity that is dependent on information obtained as a result of his Corporation employment except when that information has been made available to the general public or will be made available on request, or when the Corporation Chairman gives written authorization for use of nonpublic information on the basis that the use is in the public interest. And no employee shall write for publication or accept invitations to speak before banking or other public organizations on matters concerning the Corporation without prior approval and prior clearance of their manuscript by the Corporation. In addition, an employee who is a Presidential appointee covered by section 401(a) of the Executive Order shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance, the subjecct matter of which is devoted substantially to the responsibilities, programs, or operations of the Corporation, or which draws substantially on official data or ideas which have not become part of the body of public information.

(e) An employee shall not engage in outside employment under a State or local government, except in accordance with Part 734 of the Civil Service Regulations (5 CFR Part 734).

(f) This section does not preclude an employee from:

(1) [Reserved]

(2) Participation in the activities of National or State political parties not proscribed by law.

(3) Participation in the affairs of or aoceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization. [31 F.R. 5751, Apr. 14, 1966, as amended at 32 F.R. 13964, Oct. 7, 1967) § 336.735–13 Financial interests.

(a) An employee shall not:

(1) Own, directly or indirectly, or control the ownership of stock in an insured bank, without full disclosure in writing to, and with the approval of, the Board of Directors of the Corporation.

(2) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his Corporation duties and responsibilities; or

(3) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Corporation employment.

(b) This section does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Corporation so long as it is not prohibited by law, the Executive Order, this section, or the regulations in this part. (31 F.R. 5751, Apr. 14, 1966, as amended at 32 F.R. 13964, Oct. 7, 1967) $ 336.735–14 Use of Corporation prop

erty. An employee shall not directly or indirectly use, or allow the use of, Corporation property of any kind, including property leased to the Corporation, for other than officially approved activities. An employee has a positive duty to protect and conserve Corporation property, including equipment, supplies, and other property entrusted or issued to him. $ 336.735–15 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 336.735–12(d), directly or indirectly use, or allow the use of, official information obtained through or in connection with his Corporation employment which has not been made available to the general public. § 336.735–16 Indebtedness.

An employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. For the purpose of this section, a "just financial obligation" means one acknowledged by the employee or reduced to judgment by a court, and “in a proper and timely manner" means in a manner that the Corporation will not be called upon to assist a creditor in the collection of a just financial obligation, and which the Corporation determines does not, under the circumstances, reflect adversely on it as the employer. In the event of dispute between an employee and an alleged creditor, this section does not require the Corporation to determine the validity or amount of the disputed debt.

§ 336.735–17 Gambling, betting, and

lotteries. An employee shall not participate, while on Corporation-owned or leased property or while on duty for the Corporation, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket. However, this section does not preclude activities:

(a) Necessitated by an employee's law enforcement duties; or

(b) Under section 3 of Executive Order 10927 and similar Corporation-approved activities. § 336.735–18 General conduct prejudi.

cial to the Government. An employee shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Corporation. § 336.735–19 Miscellaneous statutory

provisions. Each employee shall acquaint himself with each statute that relates to his ethical and other conduct as an employee of the Corporation and of the Government. In addition to the statutes cited in the body of these regulations the attention of each employee is directed to the following statutory provisions:

(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, as appropriate to the employees concerned.

(c) The prohibition against lobbying with appropriated funds (18 U.S.C.

(h) The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a(c)).

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

(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). [31 F.R. 5751, Apr. 14, 1966, as amended at 32 F.R. 13964, Oct. 7, 1967) Subpart C-Ethical and Other Conduct

and Responsibilities of Special

Corporation Employees § 336.735-21 Use of Corporation em

ployment. A special Corporation employee shall not use his Corporation employment 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


(d) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918).

(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); and (2) the disclosure of confidential information (18 U.S.C. 1905).

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

« PreviousContinue »