[31 FR 4277, Mar. 11, 1966, as amended at 32 FR 14817, Oct. 26, 1967; 33 FR 12959, Sept. 13, 1968; 35 FR 8544, June 8, 1970]

§ 511.735-15 Receipt of salary or compensation for service to Agency.

An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Agency.

§ 511.735-16 Payments to Board Members. A Member of the Board shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance, the subject matter of which is devoted substantially to the responsibilities, programs, or operations of the Board, or which draws substantially on official data or ideas which have not become part of the body of public information. This section does not prohibit the receipt of bona fide reimbursement, unless prohibited by law, for actual expenses for travel and such other subsistence as is compatible with this part for which no Government payment or reimbursement is or will be made. However, a Board Member may not be reimbursed, and payment may not be made on his behalf, for excessive personal living expenses or other personal benefits.

8511.735-17 Financial interest.

(a) An employee shall not:

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

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his employment with the Agency; or

(3) Purchase equity securities of a member institution or any securities of a holding company thereof as defined in section 408 of the National Housing Act; and an employee holding or acquiring such securities shall dispose of them as promptly as is practicable without causing undue hardship.

(b) An employee is not precluded from having a financial interest or engaging in financial transactions to the same extent as a private citizen not

employed by the Board, including investment in savings accounts and indebtedness to member institutions on the same terms and conditions available to the employee if he were not an employee of the Agency, so long as it is not prohibited by law, Executive Order 11222, or this part.

§ 511.735-18 Use of Agency property.

An employee shall not directly or indirectly use, or allow the use of, Agency property of any kind, including property leased to the Agency, for other than officially approved activities; an employee has a positive duty to protect and conserve Agency property, including equipment, supplies, and other property entrusted or issued to him.

§ 511.735-19 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as otherwise provided in this part, directly or indirectly use, or allow the use of, official information obtained through or in connection with his employment by the Agency which has not been made available to the general public.

§ 511.735-20 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. "In a proper and timely manner" means in a manner which the Agency determines does not, under the circumstances, reflect adversely on the Agency as his employer. In the event of dispute between an employee and an alleged creditor, this section does not require the Agency to determine the validity or amount of the disputed debt.

§ 511.735-21 Gambling, betting, and lotteries.

An employee shall not participate, while on Agency owned or leased property or while on duty for the Agency, in any gambling activity including the operating of a gambling device, in con

ducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket.

§ 511.735-22 General conduct prejudicial to the Government.

An employee shall not engage in criminal, infamous, dishonest, immoral or notoriously disgraceful conduct, or other conduct prejudicial to the Government or the Agency.

Subpart C-Ethical and Other Conduct and Responsibilities of Special Government Employees

§ 511.735-25 Use of Agency employment.

A special Government employee shall not use his Agency 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.

§ 511.735-26 Use of inside information.

A special Government employee shall not use inside information obtained as a result of his Agency 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 Agency authority which has not become part of the body of public information. A special Government employee may teach, lecture or write subject to the provisions of § 511.735-14 in regard to employees.

Subpart D-Statements of Employment and Financial Interests

§ 511.735-35 Filing and review of statements of employment and financial interests.

(a) Each employee required to do so by § 511.735-36 shall complete and file Form 511A1 in accordance with § 511.735-38. Each special Government employee shall complete and file Form 511B1 in accordance with § 511.735–44.

(b) All Forms 511A and 511B shall be filed with the Director of the Personnel Management Division who shall submit them for review by the General Counsel of the Board to determine whether there are any conflicts of interest or other violations of law or this part. Information obtained from other sources shall be treated as if it were contained in the forms.

(c) All reports, forms, papers and the information contained therein, filed pursuant to this section shall be confidential, except as the Board or the Civil Service Commission may determine for good cause shown.

(d) To insure the confidentiality of the information contained in Forms 511A and 511B and attachments, such forms and attachments shall only be accessible to the Chairman, Board

'Forms 511A and 511B filed as part of the original document.

be

Members, the Director of the Personnel Management Division, the General Counsel, the Counselor and Deputy Counselors referred to in § 511.735-4 and such other persons as the General Counsel or the Director of the Personnel Management Division may, from time to time, deem appropriate or necessary. They shall be responsible for maintaining the statements in confidence and shall not allow access to or allow information to be disclosed from such forms and attachments to such forms except to carry out the purpose of this part and for good cause shown. [39 FR 11176, Mar. 26, 1974]

§ 511.735-36 Employees

submit statements.

required to

Except as provided in § 511.735-37 of this part, statements of employment and financial interests on Form 511A shall be filed by each employee of the Board classified at GS-13 or above, or at a comparable pay level, who is a Director, Deputy Director, Associate Director, or Assistant Director of a Division or an Office (regardless of the specific title), an Adviser or Assistant to the Board, an Assistant to the Chairman or Member of the Board, the Chief of the Special Services Branch, the Director of the Holding Companies Section, a Chief Examiner, an Assistant Chief Examiner, a Field Supervisor, a Chief Analyst, a Regional Director, a Regional Supervisor, an Assistant Regional Director or Supervisor, an Appraiser and an Examiner serving as Examiner-in-Charge. However, employees described in this paragraph may be excluded from the reporting requirement when the General Counsel, subject to the concurrence of the Chairman of the Board, determines that:

(a) The duties of a position are such that the likelihood of the incumbent's involvement in a conflicts-of-interest situation is remote; or

(b) The duties of a position are at such a level of responsibility that the submission of a statement of employ

ment and financial interests is not necessary because of the degree of supervision and review over the incumbent or the inconsequential effect on the integrity of the Agency and the Government.

[39 FR 11177, Mar. 26, 1974]

§ 511.735-36a Employee's complaint on filing requirement.

The Board's grievance procedure is available to consider a complaint by an employee that his position has been improperly included under the regulations as one requiring the submission of a statement of employment and financial interests.

[32 FR 14817, Oct. 26, 1967]

§ 511.735-37 Board Members not required to submit statements.

Neither Form 511A nor Form 511B is required by this part from a Member of the Board. Board Members are subject to separate reporting requirements under section 401 of Executive Order 11222.

8511.735-38 Time and place for submission of employees' statements.

(a) An employee required to submit a Form 511A under this part shall submit that form to the Director of the Personnel Management Division by the later of:

(1) May 31, 1974, if employed on or before May 1, 1974; or

(2) Thirty days after his entrance on duty; or

(3) Thirty days after the inclusion of his position in § 511.735-36.

(b) Prior to December 31 of each year, the Director of the Personnel Management Division shall furnish the appropriate form to each employee required to submit a supplementary statement under § 511.735-39. Each employee shall submit the completed form to the Director of the Personnel Management Division not later than January 31 of the following year.

(c) The Director of the Personnel Management Division shall promptly report to the General Counsel any failure to submit Form 511A as required by this section or of failure to submit a supplementary statement as required by § 511.735-39.

[39 FR 11177, Mar. 26, 1974]

§ 511.735-39 Supplementary statements.

Changes in, or additions to, the information contained in an employee's

Form 511A shall be reported in a supplementary statement as of December 31 each year. If no changes or additions occur, a negative report is required. Notwithstanding the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or take an action that could result, in a violation of the conflict-of-interest provisions of section 208 of Title 18 U.S.C. or Subpart B of this part.

[39 FR 11177, Mar. 26, 1974]

§ 511.735-40 Interests of employees' relatives.

The interest of a spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee. For the purpose of this section, "member of an employee's immediate household" means those blood relations who are residents of the employee's household.

§ 511.735-41 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.

§ 511.735-42 Information not required.

This section 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 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 Agency are deemed "business enterprises" and are required to be in

cluded in an employee's statement of employment and financial interests.

§ 511.735-43 Effect of employees' state ments 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 re quirement imposed by law, order or regulations. The submission of a statement or supplementary statement by an employee does not permit him or any other person to participate in a matter in which his or the other per son's participation is prohibited by law, order or regulations.

§ 511.735-44 Specific provisions of Agency regulations for special Government em ployees.

(a) Except as provided in paragraph (b) of this section, each special Gov. ernment employee shall submit on Form 511B a statement of employment and financial interests which reports:

(1) All other employment; and

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

(b) The Board 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 Government employee who is not a consultant or an expert when the Agency finds that the duties of the position held by that special Government 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 Agency and the Government. For the purpose of this paragraph, "consultant" and "expert" have the meaning 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) The statement of employment and financial interests required to be submitted under this section shall be

submitted in accordance with the provisions of § 511.735-35. Supplemental information, as required, shall be filed on Form 511B. The provisions of §§ 511.735-40, 511.735-41, 511.735-42 and 511.735-43 shall apply to statements of employment and financial interest of special Government employees, where appropriate.

[31 FR 4277, Mar. 11, 1966, as amended at 32 FR 14817, Oct. 26, 1967]

Subpart E-Reporting Conflicts-Disciplinary or Remedial Action— Miscellaneous Statutory Provisions

8 511.735-50 Reporting unresolved conflicts of interest.

When conflicts of interest or other violations or apparent violations of this part cannot be resolved or explained to the satisfaction of the General Counsel, he shall report the matter to the Chairman of the Board. [39 FR 11177, Mar. 26, 1974]

8511.735-51 Opportunity to be heard.

The employee or special Government employee concerned shall be given opportunity to explain such conflicts of interest before the matter is reported to the Chairman of the Board.

§ 511.735-52 Action by the Chairman.

The Chairman of the Board, after consideration of the matter and after an opportunity for the employee or special Government employee concerned to appear, shall decide what steps are to be taken to remedy the situation. Among other steps, the Chairman of the Board may:

(a) Attempt to remove any conflict of interest by requiring a change in duties, disqualification for a particular assignment, or divestment of the conflicting interest by the employee or special Government employee;

(b) Take other corrective action; or (c) Where corrective actions are inadequate, impose disciplinary action.

§ 511.735-53 Violations of this part cause for disciplinary action.

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

§ 511.735-54 Remedial action to be effected in accordance with law and regulation.

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

§ 511.735-55 Miscellaneous statutory provisions.

Each employee and each special Government employee shall acquaint himself with each statute that relates to his ethical and other conduct while an employee of the Agency. In particular, the following statutes shall be noted:

(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.

(c) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913) ($500 fine and/or 1 year in prison and removal from employment).

(d) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918) ($1,000 fine and/or 1 year and 1 day in prison).

(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) ($10,000 fine and/or 10 years in prison); and (2) the disclosure of confidential information (18 U.S.C. 1905) ($1,000 fine and/or 1 year in prison, and removal from employment).

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