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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.


SPECIAL FLOOD HAZARDS Sec. 339.0 Introduction and scope. 339.1 Requirement to purchase flood insur

ance. 339.2 Prohibition as to loans in nonpartic

Ipating communities. 339.3 Exemption. 339.4 Records of compliance. 339.5 Notice to borrower of special flood

bazard. AUTHORITY: Sec. 102(b), 202(b), 205(b), 87 Stat. 978, 982, 983, unless otherwise noted.:

SOURCE: 39 FR 4756, Feb. 7, 1974, unless otherwise noted. $ 339.0 Introduction and scope.

The provisions of this Part 339 apply to certain loans secured by improved real estate made by insured State nonmember banks in areas determined by the Secretary of Housing and Urban Development to be areas having special flood hazards. $ 339.1 Requirement to purchase flood

insurance. On and after the effective date of this Part 339, no insured State nonmember bank shall make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan

by flood insurance in an amount at least equal to the outstanding principal balance of the loan or to the maximum limit of coverage made available with respect to the particular type of property under the Act, whichever is less. § 339.2 Prohibition as to loans in non

participating communities. On and after July 1, 1975 no insured State nonmember bank shall make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards, unless the community in which such area is situated is then participating in the national flood insurance program. § 339.3 Exemption.

Notwithstanding the provisions of $ 339.1 of this part 339, flood insurance shall not be required on any Stateowned property that is covered under an adequate policy of self-insurance satisfactory to the Secretary of Housing and Urban Development who shall publish and periodically revise the list of States falling within the exemption provided by this section. $ 339.4 Records of compliance.

Each insured State nonmember bank shall maintain, in connection with all loans secured by improved real estate, or a mobile home, sufficient records to indicate the method used by the bank to determine whether or not such loans fall within the provisions of 88 339.1, 339.2 or $ 339.3 of this Part 339. § 339.5 Notice to borrower of special

flood hazard. After September 21, 1974, each insured State nonmember bank sball, as a con

. For the purposes of this Part 339, & community is a State or a political subdivision thereof which has building code jurisdiction over a particular area having special flood hazards.

3 For the purposes of this part 339, & community participating in the national flood insurance program is a community which has complied with the requirements for participation as set forth in $ 1909.22 of the regulations of the Federal Insurance Administration of the Department of Housing and Urban Development (24 CFR 1909.22) and in which flood insurance is currently being sold.

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dition of making, increasing, extending, or renewing any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards, mail or deliver as soon as feasible but not less than 10 days in advance of closing of the transaction (or not later than the bank's commitment, if any, if the period between commitment and closing is less than 10 days) a written notice to the borrower that the property securing the loan is in an area so identified. In lieu of the notification re

quired in this section, a bank may obtain satisfactory written assurances from the seller or lessor that such seller or lessor has notified the borrower, prior to the execution of any agreement for sale or lease, that the property securing the loan is in an area so identified. A bank shall require the borrower, prior to closing, to provide the bank with a written acknowledgment that the borrower realizes that the property, securing the loan or upon which a mobile home is or will be located, is in an area so identified. (Sec. 816(a), Pub. L. 93–383, 88 Stat. 739) (39 FR 34021, Sept. 23, 1974)



Part 400 401 402 403

Standards of conduct.
Extension of credit.
Classification, downgrading, declassification, and safeguarding of national

security information.
Disclosure of information.




400.735-31 Bank employees other than reguSec.

lar full-time. 400.735-1 General.

400.736–32 Presidential appointees. Subpart A-Regular Full-Time Bank Employees Standards of Conduct

Subpart D-Procedures Applicable to Other Than

Regulár Full-Time Bank Employees and certain 400.735-5 Gifts, gratuities, entertainment, Related Standards of Conduct and favors.

400.735–40 Procedures governing appoint400.735-6 Outside employment and other

ment and utilization. activities.

400.735-41 Standards of conduct for persons 400.735-7 Financial interest of Bank em

appearing before the Bank ployee or connected person or

other than as officers or ementity.

ployees of the Bank. 400.7358 Confidential information,

400.735–42 Standards of conduct applicablo 400.735-9 Former employees.

to special Government em400.735-10 Preferential treatment.

ployees. 400.735–11 Use of Government property. 400.735–12 Personal financial integrity.

Subpart E-Procedures for Submission of State.

ments of Employment and Financial Interests 400.735–13 Gambling, betting, and lotteries. 400.735–14 General conduct prejudicial to 400.785-50 Applicability. the Bank.

400.735-51 Time and place for submission. 400.735–15 Courtesy.

400.735–52 Form of statements. 400.735–16 Miscellaneous statutory provi. 400.735–53 Confidentiality of employees' sions.


400.735–54 Effect of employees' statements Subpart B-Implementation

on other requirements. 400.735–20 Dissemination.

400.735-55 Review of statements and reme400.735–21 Ethics Committee.

dial action. 400.735-22 Counselor on Ethics.

AUTHORITY: E.O. 11222 of May 8, 1965, 30 400.735–23 Deputy Counselor on Ethics.

F.R. 6469, 3 CFR E.O. 11222; 5 CFR 736.104. 400.735–24 Avallability of counseling. 400.735–25 Complaints.

SOURCE: 38 FR 21682, Aug. 9, 1973, unless 400.735–26 Disciplinary and other remedial otherwise noted. action.

$ 400.735-1 General. Subpart C—Special Categories of Bank Employees

(a) Subparts A through C of this part

400 are issued to direct attention of 400.735–30 Certain Bank employees who are required to submit statements

Bank employees to certain important of employment and inancial provisions of statute, in particular Pubinterests.

lic Law 87–849 effective January 21, 1963, relating to bribery, graft, and conflicts Ice Regulations provide that the foregoof interest, and to Executive Order 11222, ing does not prohibit a voluntary gift of dated May 8, 1965—Prescribing Stand- nominal value or donation in a nominal ards of Ethical Conduct for Government amount made on a special occasion such Officers and Employees, and to set forth as marriage, illness, or retirement. additional rules which each Bank em- (5) A Bank employee shall not request ployee must observe. The references to or otherwise encourage the tender of a statutes appearing in Subparts A through gift or decoration from a foreign goyC are not intended to be complete and ernment, and a Bank employee shall not the comments are not intended to be ex- accept a gift, present, decoration, or haustive. Therefore, even though Bank other thing from a foreign government employees shall be expected to conduct unless the employee has complied with themselves in accordance with Subparts apppropriate regulations issued by the A through C, they shall not regard these Department of State (Article I, section requirements as the entire expression of 9, U.S. Constitution; 5 U.S.C. 7342; 22 the highest standards of conduct and CFR Part 3). integrity.

(b) Rules and comment. (1) Except as (b) Subpart D of this part prescribes provided in paragraph (b) (2) of this secprocedures governing the appointment tion, a Bank employee shall not solicit and utilization of other than regular full- or accept, directly or indirectly, any gift, time Bank employees, and standards of gratuity, favor, entertainment, loan, or conduct for persons appearing before the any other thing of monetary value, from Bank other than as officers or employees a person who: of the Bank and standards of conduct (i) Has, or is seeking to obtain, conapplicable to special Government em- tractual or other business or financial ployees.

relations with the Bank; or (c) Subpart E of this part prescribes (ii) Has interests that may be subprocedures for the submission of state- stantially affected by the performance or ments of employment and financial nonperformance of the Bank employee's interests.

official duty. Subpart A-Regular Full-Time Bank In those cases in which the tender of

Employees—Standards of Conduct any such gift, gratuity, or other thing § 400.735–5 Gifts, gratuities, entertain

of monetary value occurs under circumment, and favors.

stances making the return thereof to the

donor either impractical or impossible, (a) Constitutional and Statutory. (1)

or where it is considered that the return Criminal statutes prohibit a Bank em- thereof would occasion embarrassment ployee from soliciting or receiving any- to the Bank, the Bank employee shall thing of value for himself or another in

promptly deliver the item involved to return for being influenced in the per- the Vice President-Administration of the formance of an official act (18 U.S.C.

Bank. All such items delivered to the 201).

Vice President-Administration shall be (2) Criminal statutes prohibit a Bank

disposed of by him in accordance with employee from soliciting or receiving for instructions of the Ethics Committee himself anything of value for or be

(see Subpart B of this part). because of any official act performed or (2) Notwithstanding the foregoing, a to be performed by the Bank employee Bank employee may: (18 U.S.C. 201).

(1) Accept gifts, entertainment, or (3) Criminal statutes forbid outside

favors given as a result of obvious fampay for Government work (18 U.S.C.

ily or personal relationships (such as 209).

those between parents, children, or (4) Statutes prohibit a Bank employee

spouse of the Bank employee and the from soliciting contributions from an

Bank employee) when the circumstances other Bank employee for a gift to a Bank make it clear that it is those relation. employee in a superior official position, ships rather than the business of the prohibit a Bank employee from accepting

persons concerned which are the motia gift presented as a contribution from a

vating factors; Bank employee receiving less salary than

(ii) Accept food and refreshments of himself, and prohibit a Bank employee

nominal value on infrequent occasions in from making a donation as a gift to a the ordinary course of a luncheon or Bank employee in a superior official posi- dinner meeting or other meeting (intion (5 U.S.C. 7351). However, Civil Serv- cluding functions sponsored by a government or an embassy and ceremonial eign Service, that depends on informafunctions), or on an inspection tour tion obtained as a result of his Bank where such Bank employee is authorized employment, except when that informaby the Bank to be in attendance;

tion has been made available to the gen(ii) Accept loans from banks or other eral public or will be made available on financial institutions on customary terms request, or when the President of the to finance proper and usual activities of Bank gives written authorization for the employees, such as home mortgage loans; use of nonpublic information on the basis

(IV) Accept unsolicited advertising or that the use is in the public interest. promotional material, such as pens, pen- (3) To assure that no possible concils, note pads, calendars, and other flict with Bank duties and interest shall items of nominal intrinsic value; and arise, a Bank employee shall disclose the

(V) Accept table favors, mementos, re- nature of all outside employment to the membrances, or other tokens bestowed Ethics Committee and not undertake at oficial functions and other gifts of such employment unless the Ethics Comminimal value received as souvenirs or mittee shall approve. marks of courtesy from a foreign gov- (4) This $ 400.735-6 shall not preclude ernment, the burden of proof being upon a Bank employee from: the recipient to establish that the gift (i) Participating in discussions and is of minimal value (5 U.S.C. 7342; 22 meetings of a professional nature held CFR Part 3).

outside of Washington to which such $ 400.735–6 Outside employment and

Bank employee has been invited and other activities.

from receiving from outside sources

bona fide reimbursement for actual ex(a) Statutory. With certain


penses of travel and subsistence incurred ceptions, criminal statutes forbid a Bank

in connection with his participation if employee, except in discharge of official

such Bank employee's participation is not duty, from representing anyone else be

a part of his official duties at the Bank. fore a court or a Government agency in

(ii) Accepting (unless prohibited by & matter in which the United States

law) the unsolicited provision by others Government is a party or has a direct

of transportation, lodging, or meals or and substantial interest, (18 U.S.C. 203

the unsolicited reimbursement by others and 205).

for the cost thereof, provided acceptance (b) Rules and comment. (1) A Bank

by the Bank employee was made while employee shall not engage in outside em

the Bank employee was on official travel ployment or other outside activity not

status and was engaged in Bank busicompatible with the full and proper dis

ness, provided the transportation, lodgcharge of the duties and responsibilities

ing, or meals which were provided or of his Bank employment. Incompatible

subject to reimbursement by others were activities include but are not limited to:

not excessive in value and provided the (1) Acceptance of a fee, compensation,

Bank employee does not accept reimgift, payment of expense, or any other

bursement from the Bank for such transthing of monetary value in circumstances

portation, lodging, or meals. However, in which acceptance may result in, or

this paragraph does not allow an emcreate the appearance of, conflicts of interest; or

ployee to be reimbursed, or payment to be

made on his behalf, for excessive per(i) Outside employment which tends

sonal living expenses, gifts, entertainto impair his mental or physical capacity ment, or other personal benefits, nor to perform his Bank duties and respon- does it allow an employee to be reimsibilities in an acceptable manner.

bursed by a person for travel on official (2) Bank employees are encouraged business under agency orders when reimto engage in teaching, lecturing, and bursement is proscribed by Decision writing that is not prohibited by law or B-128527 of the Comptroller General regulations. However, a Bank employee dated March 7, 1967. shall not, either for or without compen- (iii) Participating in the affairs of or sation, engage in teaching, lecturing, or acceptance of an award for a meritorious writing, including teaching, lecturing, or public contribution or achievement given writing for the purpose of the special by a charitable, religious, professional, preparation of a person or class of per- social, fraternal, non-profit educational sons for an examination of the Commis- and recreational, public service, or civic sion or Board of Examiners for the For- organization.

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