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of a just financial obligation, and which (f) The prohibitions against (1); the Corporation determines does not, disclosure of classified information under the circumstances, reflect ad U.S.C. 798, 50 U.S.C. 783); and (2= versely on it as the employer. In the disclosure of confidential informa: event of dispute between an employee (18 U.S.C. 1905). and an alleged creditor, this section does (g) The provision relating to the not require the Corporation to deter bitual use of intoxicants to excess mine the validity or amount of the dis U.S.C. 7352). puted debt.

(h) The prohibition against the =

use of a Government vehicle (31 US 336.735-17 Gambling, betting, and lotteries.

638a (c)).

(i) The prohibition against the = An employee shall not participate, use of the franking privilege (18 US while on Corporation-owned or leased 1719). property or while on duty for the Corpo (j) The prohibition against the ration, in any gambling activity includ deceit in an examination or perso ing the operation of a gambling device, in action in connection with Governme. conducting a lottery or pool, in a game employment (18 U.S.C. 1917). for money or property, or in selling or (k) The prohibition against fraud purchasing a numbers slip or ticket. false statements in a Government ma However, this section does not preclude (18 U.S.C. 1001). activities:

(1) The prohibition against mutis (a) Necessitated by an employee's law

or destroying a public record (18 C: enforcement duties; or

2071). (b) Under section 3 of Executive Order

(m) The prohibition against core 10927 and similar Corporation-approved feiting and forging transportation activities.

quests (18 U.S.C. 508). 8 336.735–18 General conduct prejudi. (n) The prohibitions against (1) cial to the Government.

bezzlement of Government money An employee shall not engage in crim

property (18 U.S.C. 641); (2) failir: inal, infamous, dishonest, immoral, or

account for public money (18 US notoriously disgraceful conduct, or other

643); and (3) embezzlement of " conduct prejudicial to the Corporation.

money or property of another pers.

the possession of an employee by reise § 336.735–19 Miscellaneous statutory of his employment (18 U.S.C. 654). provisions.

(0) The prohibition against UL. Each employee shall acquaint himself thorized use of documents relating : with each statute that relates to his claims from or by the Government ethical and other conduct as an employee

U.S.C. 285). of the Corporation and of the Govern (p) The prohibitions against polit ment. In addition to the statutes cited activities in subchapter VII of chara: in the body of these regulations the at 73 of title 5, United States Code and i tention of each employee is directed to U.S.C. 602, 603, 607, and 608. the following statutory provisions:

(q) The prohibition against the (a) House Concurrent Resolution 175, closure of information by a bank exe 85th Congress, 2d Session, 72 Stat. B12, iner (18 U.S.C. 1906). the “Code of Ethics for Government (r) The prohibition against an e Service.”

ployee acting as the agent of a forec (b) Chapter 11 of title 18, United

principal registered under the ForeStates Code, relating to bribery, graft,

Agents Registration Act (18 U.S.C. 253 and conflicts of interest, as appropriate

131 F.R. 5751, Apr. 14, 1966, as amended

32 F.R. 13964, Oct. 7, 1967) to the employees concerned.

(c) The prohibition against lobbying Subpart C-Ethical and Other Condi: with appropriated funds (18 U.S.C. and Responsibilities of Speco 1913).

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

& 336.735-21 Use of Corporation es 1918).

ployment. (e) The prohibition against the em A special Corporation employee shs ployment of a member of a Communist not use his Corporation employment for organization (50 U.S.C. 784).

a purpose that is, or gives the appearape:

being, motivated by the desire for pri Subpart D-Statements of Employ. ite gain for himself or another person, ment and Financial Interests trticularly one with whom he has fam1, business, or financial ties.

§ 336.735–31 Employees required to

submit statements. 336.735-22 Use of inside information.

Except as provided in § 336.735–32, (a) A special Corporation employee

statements of employment and financial iall not use inside information obtained

interests will be filed by the following ; a result of his Government employ

employees: lent for private gain for himself or an

(a) Those paid at a level of the Exher person either by direct action on

ecutive Schedule in subchapter II of is part or by counsel, recommendation,

Chapter 53 of title 5, United States Code. r suggestion to another person, particu

(b) Those receiving compensation irly one with whom he has family, busi

equivalent to that prescribed under secess, or financial ties. For the purpose

tion 5332 of title 5, United States Code f this section, "inside information"

for grade GS–13 or above whose positions jeans information obtained under Cor

are specifically identified in Appendix oration authority which has not become

A to this part which are included by art of the body of public information.

reason of meeting the following criteria: · (b) A special Corporation employee

(1) Positions the incumbents of which nay teach, lecture, or write in a manner

are responsible for making a Corporanot inconsistent with $ 336.735–12(d) in egard to employees.

tion decision or taking a Corporation

action in regard to: ( 336.735–23 Coercion.

(1) Contracting or procurement; A special Corporation employee shall (i) Administering or

monitoring not use his Corporation employment to grants or subsidies; oerce, or give the appearance of coerc (14) Regulating or auditing private or ng, a person to provide financial benefit

other non-Federal enterprise; or co himself or another person, particu

(iv) Other activities where the delarly one with whom he has family, busi

cision or action has an economic impact aess, or financial ties.

on the interests of any non-Federal $ 336.735–24 Gifts, entertainment, and enterprise. favors.

(2) Positions which the Corporation (a) Except as provided in paragraph

determines require the incumbent to re(b) of this section, a special Corporation

port employment and financial interests employee, while so employed or in con

in order to carry out the purpose of nection with his employment, shall not law, Executive order, this part, and the receive or solicit from a person having

Corporation's regulations. business with this Corporation anything

(c) Alterations to (deletions from and of value as a gift, gratuity, loan, enter

other amendments of the list of positions tainment, or favor for himself or another in Appendix A to this part may be made person, particularly one with whom he under the criteria in paragraph (b) of has family, business, or financial ties.

this section and are effective upon ap(b) Exemptions to paragraph (a) of

proval by the Chairman of the Board this section are the same as those author

and actual notification to the incumized to employees under $ 336.735–11(b).

bents. Amendments to the list in appen8 336.735–25 Miscellaneous statutory

dix A to this part shall be submitted provisions.

annually for publication in the FEDERAL

REGISTER. Each special Corporation employee

(32 F.R. 13964, Oct. 7, 1967) shall acquaint himself with eac statute that relates to his ethical and other con

§ 336.735–31a Employee's complaint on duct as a special Corporation employee

filing requirement. of the Corporation and of the Govern An employee may complain to the ment. In addition to the statutes cited Counselor designated in the regulations in the body of the regulations in this in this part that his position has been part, the attention of each special Cor improperly included in the regulations poration employee is directed to the stat in this part as one requiring the subutory provisions listed in § 336.735-19. mission of a statement of employment

and financial interests. When a complaint cannot be resolved or explained satisfactorily to the employee he shall be granted a review of the matter through the Corporation's grievance procedure. 132 F.R. 13964, Oct. 7, 1967) 8 336.735–32 Employees not required

to submit statements. Employees subject to separate reporting requirements under section 401 of the Executive order. (32 F.R. 13964, Oct. 7, 1967) § 336.735–33 Time and place for sub

mission of employees' statements. An employee required to submit statements of employment and financial interest under $ 336.735–31 shall submit that statement to the Assistant to the Chairman of the Board of Directors not later than:

(a) Ninety days after the effective date of the agency regulations issued under this part if employed on or before that effective date; or

(b) Thirty days after his entrance on duty, but not earlier than ninety days after the effective date, if appointed after that effective date. & 336.735–34 Supplementary state

ments. Changes in, or addition to, the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement os of June 30 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 taking an action that would result, in a violation of the conflicts-of-interest provisions of section 208 of title 18, United States Code, or Subpart B of this part. (32 F.R. 13964, Oct. 7, 1967) 8 336.735-35 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 of the employee who

are residents of the employee's bcohold. § 336.735–36 Information

not be by employees. If any information required to included on a statement of employm: and financial Interests or supplement statement, including holdings placed trust, is not known to the employee is known to another person, the empieshall request that other person to sub information in his behalf. 8 336.735–37 Information prohibited

This subpart does not require are ployee to submit on a statement of ployment and financial interests ors. plementary statement any informat relating to the employee's connec. with, or interest in, a professional socks or a charitable, religious, social, fratenal, recreational, public service, civic political organization or a similar 07 nization not conducted as a busine enterprise. For the purpose of this tion, educational and other instituta doing research and development or lated work involving grants of mo from or contracts with the Govern are deemed “business enterprises" are required to be included in an e ployee's statement of employment financial interests. § 336.735–38 Confidentiality of empleo

ees' statements. The Corporation shall hold stateme of employment and financial intere and each supplementary statement, -confidence. All statements shall be re ceived, reviewed, and retained in the c. fice of the assistant to the Chairman the Board of Directors who is responsib: for maintaining the statements in com fidence and shall not allow access to, ** allow information to be disclosed from a statement except to carry out the pri poses of this part. The Corporation map not disclose information from a state ment except as the Chairman of the Com poration or the Civil Service Commissione may determine for good cause shown. 132 F.R. 13964, Oct. 7, 1967) 8 336.735-39 Effect of employees' state

ments on other requirements. The statements of employment and inancial interests and supplementary statements required of employees are E addition to, and not in substitution for,

rin derogation of, any similar requireTent imposed by law, order, or regulaon. The submission of a statement or ipplementary statement by an emloyee does not permit him or any other erson to participate in a manner in hich his or the other person's particsation is prohibited by law, order, or egulation. 336.735–40 Specific provisions of reg.

ulations for special Corporation em

ployees. (a) Except as provided in paragraph b) of this section, each special Corporaion employee shall submit a statement f employment and financial interests thich reports:

(1) All other employment; and

(2) The financial interests of the speial Corporation employee which the Corporation determines are relevant in he light of the duties he is to perform.

(b) The Chairman of the Corporation nay waive the requirement in paragraph a) of this section for the submission of a tatement of employment and financial nterests in the case of a special Corporaion employee, who is not a consultant or in expert when the Chairman finds that he 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 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. 131 F.R. 6751, Apr. 14, 1966, as amended at 32 F.R. 13964, Oct. 7, 1967) § 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 Counselor, 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. APPENDIX A-EMPLOYEES WHO MUST FILE



A Head, Associate Head or Assistant Head of a Division or Office of the Corporation (regardless of his specific title)

An Adviser or Assistant to the Board of Directors

A Regional Director

An Assistant Regional Director (36 FR 1249, Jan. 27, 1971)

PART 337—UNSAFE AND UNSOUND separate limitation shall apply in lies : BANKING PRACTICES

the loan limitation. Sec.

(c) Exceptions. All standby letters: 337.1 Scope.

credit shall be subject to the provisia 337.2 Standby Letters of Credit.

of paragraph (b) of this section ence 337.3-337.9 (Reserved]

where: 337.10 Walter.

(1) Prior to or at the time of issues. 337.11 Effect on Other Banking Practices.

the issuing bank is paid an amount era AUTHORITY: Sec. 9, 64 Stat. 881-882, (12 to the bank's maximum liability ur U.S.C. 1819).

the standby letter of credit; or, SOURCES 39 FR 29179, Aug. 14, 1974, unless

(2) Prior to or at the time of issues otherwise noted.

the issuing bank has set aside sufficie

funds in a segregated deposit acco $ 337.1 Scope.

clearly earmarked for that purpose, The provisions of this part apply to cover the bank's maximum liability certain banking practices which are der.the standby letter of credit. likely to have adverse effects on the safe (d) Disclosure. Each insured 8. ty and soundness of insured State non nonmember bank must maintain 80 member banks or which are likely to quate control and subsidiary records result in violations of law, rule, or its standby letters of credit compara: regulation.

to the records maintained in connects

with the bank's direct loans so that § 337.2 Standby Letters of Credit.

all times the bank's potential liabi (a) Definition. As used in this $ 337.2,

thereunder and the bank's compliak the term "standby letter of credit"

with this $ 337.2 may be readily dea means any letter of credit, or similar

mined. In addition, all such standby <! arrangement however named orde

ters of credit must be adequately! scribed, which represents an obligation

flected on the bank's published finance to the beneficiary on the part of the statements. issuer (1) to repay money borrowed by or advanced to or for the account of the

$$ 337.3–337.9 · [Reserved] account party, or (2) to make payment $ 337.10 Waiver. on account of any indebtedness under

An insured State nonmember bank bs taken by the account party, or (3) to

the right to petition the Board of Die: make payment on account of any de

tors of the Corporation for a waiver I fault (including any statement of de

this part or any subpart thereof fault) by the account party in the per

respect to any particular transactior 1" formance of an obligation. The term

series of similar transactions. A waite "similar arrangement” includes the cre

may be granted at the discretion of the ation of acceptance or similar

Board upon a showing of good cause. undertaking.

such petitions should be filed with the (b) Restriction. A standby letter of

Office of the Executive Secretary, Fed credit issued by an insured State non

eral Deposit Insurance Corporation, a member bank shall be combined with all

17th Street, NW., Washington, D.C other standby letters of credit and all

20429. loans for purposes of applying any legal limitation on loans of the bank (includ $ 337.11 Effect on Other Banking Pran ing limitations on loans to any one bor

tices. rower, on loans to affiliates of the bank,

Nothing in this part shall be construe or on aggregate loans); Provided, how

as restricting in any manner the Cop! ever, That if such standby letter of credit

poration's authority to deal with edi is subject to separate limitation under

banking practice which is deemed to be applicable State or federal law, then the

unsafe or unsound or otherwise not

accordance with law, rule, or regulation 1 As defined in this paragraph (a), the term

or which violates any condition impose "standby letter of credit" would not include commercial letters of credit and similar Instruments where the issuing bank expects 2 Where the standby letter of credit is sub the beneficiary to draw upon the issuer, ject to a non-recourse participation agree which do not "guaranty" payment of a money ment with another bank or other banks, tos obligation of the account party and which section shall apply to the issuer and esc do not provide that payment is occasioned participant in the same manner as in the cei by default on the part of the account party. of a participated loan,


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