his charges for such other services are reasonable or at standard rates;

(e) (1) Shall acquire, directly or indirectly (including acquisition by membership in syndicates), any lands or interests therein, including mineral interests, which are owned by any such corporation or which were thus owned at any time within the preceding 12 months. Definition: As used in this paragraph, "mineral interests" means any interest in minerals, oil, or gas, including, but not limited to, any right derived directly or indirectly from a mineral, oil, or gas lease, deed, or royalty conveyance;

(2) Shall separately acquire, directly or indirectly (including acquisition by membership in syndicates), any mineral interests in lands which are mortgaged to any such corporation or which were thus mortgaged at any time within the preceding 12 months, but this shall not prohibit mineral interests being acquired incidentally with surface interests;

(3) Shall acquire, directly or indirectly (including acquisition by membership in syndicates), any interests in lands (including mineral interests being acquired incidentally with surface interests) which are mortgaged to any such corporation or which were thus mortgaged at any time within the preceding 12 months, without obtaining the specific prior approval of the board of directors of such corporation (meaning the Federal land bank as agent in the case of the Federal Farm Mortgage Corporation) in addition to conforming with any other applicable regulations. Exception: This paragraph shall not apply to acquisitions by will or inheritance; nor to presidents and vice presidents of national farm loan associations and production credit associations;

(f) Shall participate directly or indirectly in any transaction concerning the purchase or sale of corporate stocks or bonds, commodities, or other property for speculative purposes if such action might tend to interfere with the proper and impartial performance of his duties or bring discredit upon the Farm Credit Administration or any such corporation. Employees are not prohibited by this paragraph from making bona fide investments. When an employee is uncertain as to whether a contemplated transaction is prohibited by this paragraph, he should consult his immediate superior;

(g) Shall at any time conduct himself in a manner which might cause embarrassment to or criticism of the Farm

Credit Administration or any such corporation, or interfere with the efficient performance of his duties.

§ 5.2 Soliciting support in polls for district or Federal Farm Credit Board membership.

(a) Bank personnel. No officer or employee of a Federal land bank, Federal intermediate credit bank, bank for cooperatives, or general agent's office shall take any part, directly or indirectly, in the designation of nominees for the Federal Farm Credit Board or in the nomination or election of a member of a district or Central Bank board of directors, or make any statement, either orally or in writing, which may be construed as intended to influence any vote in such designations, nominations, or elections. Action shall immediately be taken to dismiss, in accordance with applicable procedures, any such officer or employee who violates the provisions of this section.

(b) Farm Credit Administration personnel. No officer or employee of the Farm Credit Administration except as authorized in the discharge of his or her official duties shall take any part, directly or indirectly, in the designation of nominees for the Federal Farm Credit Board or in the nomination or election of a member of a district farm credit board or the board of the Central Bank for Cooperatives or make any statement, either orally or in writing, which may be construed as intended to influence any vote in such designations, nominations, or elections. Any such officer or employee who violates the provisions of this section shall be dismissed.

§ 6.1 Basis.

Under section 6(a)(1) of the Farm Credit Act of 1937, as amended by section 201(b) of the Farm Credit Act of 1959, effective January 1, 1960, appointments, promotions, and separations of officers and employees of the Federal land banks, Federal intermediate credit banks, and banks for cooperatives (sometimes referred to in this part as "Farm Credit banks" or simply "banks") shall be consistent with the laws under which such banks are organized and operate; shall be based on merit and efficiency and no political test or qualification shall be permitted or given consideration; and each district farm credit board shall, under rules and regulations prescribed by the Farm Credit Administration, provide limitations against political activity by officers and employees of such banks.

§ 6.2 General limitation.

No employee (as used throughout these rules and regulations the term "employee" includes an "officer") of a Farm Credit bank shall use his official authority or influence for the purpose of interfering with an election or affecting the result thereof; neither shall he take any active part in political management or in political campaigns; but all such persons shall retain the right to vote as they may choose and to express their opinions on all political subjects and candidates. Specific activities which are considered to be prohibited by the general limitation are listed in § 6.3 and specific activities which are considered to be permissible under the general limitation are listed in § 6.4.

The general limitation against political activities is considered to prohibit the following specific activities:

(a) Being a candidate for nomination or for election to a national or a State office, although running for a community office is permitted as noted in § 6.4(g);

(b) Soliciting others to become candidates for nomination or election to partisan offices;

(c) Campaigning for or against a political party or candidate;

(d) Using automobile to transport voters, except customary riders or members of immediate family, to the polls; (e) Distributing campaign material; (f) Marching in a political parade;

(g) Selling tickets for or otherwise actively promoting such activities as political dinners;

(h) Writing for publication or publishing any article or letter soliciting votes for or against any political party or candidate;

(i) Soliciting or receiving any assessment or contribution for any political purpose;

(j) Making a political contribution in the bank building or to some other bank officer or employee.

§ 6.4

Permissible activities.

The following specific activities are considered to be permissible under the general limitation against political activities:

(a) Registering and voting as preferred;

(b) Expressing opinions on all political subjects and candidates as long as it is not done in such a manner as to take an active part in political management or political campaigns of a partisan nature;

(c) Making a voluntary campaign contribution to any regularly constituted political organization;

(d) Displaying a political sticker on a private automobile if the use of stickers is permitted by local ordinance, but this should not be done while on duty conducting bank business;

(e) Wearing a political badge or button while not on duty performing bank business;

(f) Accepting appointment to such positions as justice of the peace and member of boards of education, school committees, and boards of public libraries and religious or charitable institutions if the farm credit board of the district decides the holding of these local offices will not conflict or interfere with the discharge of bank duties, but if such offices are elective, participation in a partisan political election is not permitted;

(g) Participating in a nonpartisan local election in which party designation, nomination, and sponsorship are completely absent, and being a candidate for office in such an election and holding the office after election if the farm credit board of the district decides that holding it will not interfere with the bank employment;

(h) Petitioning Congress or any Member of Congress, for example, writing the local Congressman and telling him how it is thought he should vote on any issue;

(i) Signing petitions, including nominating petitions, but not initiating them or canvassing for the signature of others if they are identified with partisan political management or campaigns;

(j) Attending political rallies and joining political clubs, but not taking an active part in the conduct of a rally or the operation of the club or acting as chairman, officer, committee member, or delegate, and voting on issues but not speaking for or against them.

§ 6.5 Activity through another person.

Any political activity that is prohibited in the case of an employee acting independently is also prohibited in the case of an employee acting in open or secret cooperation with others. Whatever the employee may not do directly or personally, he may not do indirectly or through an agent chosen by him or subject to his control. Employees are, therefore, accountable for political activity by persons other than themselves, including wives or husbands if, in fact, the employees are thus accomplishing by collusion and indirection what they may not lawfully do directly and openly. Political activity in fact, regardless of the methods or means used by the employee, constitutes the violation.

§ 6.6 Employees on leave.

In general, an employee who is subject to the limitations against political activity while on active duty is subject to them while on leave with pay, leave without pay, or furlough, and incurs the same penalties for an offense committed while in leave or furlough status as for an offense committed while on active duty. This is true even though the leave is terminal leave, and even though the employee's resignation has been submitted and accepted. However, if lump-sum payment is made for accrued annual leave the person involved is not subject to the limitations against political activity during the period covered by the lumpsum payment or thereafter. It is not permissible for an employee to take leave of absence for the purpose of working with a political candidate, committee, or organization, or for the purpose of becoming a candidate for office with the understanding that he will resign his position if nominated or elected.

§ 6.7 Part-time and intermittent employees.

Any person whose employment with a bank is only part-time and intermittent,

not in any case occupying a substantial portion of his time and not affording his principal means of livelihood, is subject to the limitations against political activity while in active-duty status, and not otherwise. Such an employee may be listed as a candidate for a public elective office provided that he does not engage in political activity on any day on which he performs duty as a bank employee. The period of active duty embraces the whole period of status as a paid employee, rather than just the working hours of the day.

§ 6.8

Penalties for violation.

An employee found to have violated the limitations against political activity shall be immediately removed from the position held by him and shall not be reemployed in any position in a Farm Credit bank, but if the farm credit board of the district determines by unanimous vote that the violation does not warrant such removal it may impose a lesser penalty, but the penalty so imposed shall not be less than a 90-day suspension without pay.

§ 6.9 Further application of limitations.

If there is uncertainty as to whether proposed activities by an employee would violate the limitations against political activity, a complete statement of the matter should be presented in writing to the Deputy Governor, Farm Credit Administration, Washington 25, D.C., for a ruling before the employee engages in the activities.

§ 6.10 District board action.

The action taken by the farm credit board in each district to provide limitations against political activity under these rules and regulations, and any changes therein, shall be reported to the Farm Credit Administration. In the case of the Central Bank for Cooperatives, any corresponding action shall be by its board of directors.

Under section 6(a) (1) of the Farm Credit Act of 1937, as amended by section 201(b) of the Farm Credit Act of 1959, effective January 1, 1960, appointments and separations of officers and employees in the Federal land banks, Federal intermediate credit banks, and banks for cooperatives (sometimes referred to in this part as "Farm Credit banks" or simply "banks") shall be consistent with the laws under which such banks are organized and operate; shall be based on merit and efficiency; and shall be subject to veterans' preference to be provided for by each district farm credit board under rules and regulations prescribed by the Farm Credit Administration. § 7.2

Persons entitled.

The following, upon establishing their status as such to the satisfaction of the employing bank, are entitled to the veterans' preference to be provided for under these rules and regulations:

(a) Veterans. Honorably separated veterans who served on active duty in the armed forces of the United States during any war, or during the period April 28, 1952, through July 1, 1955, or in any campaign or expedition for which a campaign badge or service medal has been authorized.

(b) Disabled veterans. An honorably separated veteran who served on active duty in the armed forces at any time, and who (1) has a service-connected disability or (2) is receiving compensation, disability retirement benefits, or pension under laws administered by the Veterans Administration, Army, Navy, Air Force, Coast Guard, or Public Health Service. A veteran who has been awarded the Purple Heart for wounds received in action is considered to have a serviceconnected disability.

(c) Wives of disabled veterans. The wife of a veteran whose service-connected disability disqualifies him for appointment to positions along the general line of his usual occupation.

(d) Widows of veterans. Until she remarries, the widow of an honorably separated veteran who served on active duty during any war, or during the period

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April 28, 1952, through July 1, 1955, or in a campaign or expedition for which a campaign badge or service medal was authorized. This includes the widow of a man who died in service, unless the circumstances surrounding his death would have been cause for other than honorable separation.

(e) Mothers of veterans. The mother of a veteran who lost his life under honorable conditions while on active duty in a war or in a campaign or expedition for which a campaign badge or service medal has been authorized, or during the period April 28, 1952, through July 1, 1955, or who became permanently and totally disabled because of a serviceconnected disability, provided that she is widowed, divorced, or separated from the father of the veteran, or the father is permanently and totally disabled. An otherwise eligible mother who has remarried may be granted preference only if, with reference to the subsequent marriage, her husband is permanently and totally disabled, or she is divorced or legally separated, or she has been widowed.

§ 7.3

Preference in appointments.

(a) Applicability. Subject to the procedural modifications contained in paragraph (g)(1) of this section, the provisions of this section respecting the examination, rating, and selection for appointment of applicants are required to be followed whenever a qualified person entitled to veterans' preference under 7.2 applies for employment by a Farm Credit bank or by two or more such banks jointly.

The

(b) Handling of applications. handling of applications for employment in positions covered by this section shall be uniform. Incomplete applications and applications for positions in which there is no vacancy and to which it is not expected that any appointment will be made in the near future may be returned. If an application is retained but there is no occasion to process it for consideration under paragraph (d) of this section within 12 months after it was received, the application may thereafter be considered inactive.

(c) Qualification standards. The requirements inherent in the duties and responsibilities of each position shall constitute the qualification standards of the position. Whenever a position is being filled and one of the applicants is a person entitled to preference under

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