any way to coerce, or give the appearance of coercing, another person to provide any financial benefit to him or persons with whom he has family, business, or financial ties.

(c) Gifts. An advisor or consultant shall not receive or solicit anything of value as a gift, gratuity, or favor for himself or persons with whom he has family, business, or financial ties, if the acceptance thereof would result in his loss of complete independence or impartiality in serving the Bank.

§ 400.735-42 Standards of conduct applicable to special Government employees.

The following is intended for the guidance of special Government employees who are working for the Bank:

(a) Use of Government employment. A special Government employee shall not use his Government 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.

(b) Use of inside information. (1) A special Government employee shall not use inside information obtained as a result of his Government 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 paragraph, "inside information" means information obtained under Government authority which has not become part of the body of public information.

(2) A special Government employee is encouraged to engage in teaching, lecturing, and writing that is not prohibited by law or regulations. However, a special Government employee shall not, either for or without compensation, engage in teaching, lecturing, or writing, including teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of the Civil Service Commission or the Board of Examiners for the Foreign Service, that is dependent on information obtained as a result of his Bank employment, except when that information has been made available to the general public or will be available on request, or when the President of the Bank gives written authorization for the

use of nonpublic information on the basis that the use is in the public interest.

(c) Coercion. A special Government employee shall not use his Government employment to coerce, or give the appearance of coercing, a person to provide financial benefit to himself or another person, particularly one with whom he has family, business, or financial ties.

(d) Gifts, entertainment, and favors. (1) Except as provided in paragraph (d) (2) of this section, a special Government employee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other think of monetary value, from a person who:

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

(ii) Has interests that may be substantially affected by the performance or nonperformance of the special Government employee's official duty.

In those cases in which the tender of any such gift, gratuity, or other thing of monetary value occurs under circumstances making the return thereof to the donor either impractical or impossible, or where it is considered that the return thereof would occasion embarrassment to the Bank, the special Government employee shall promptly deliver the item involved to the Vice President-Administration of the Bank. All such items delivered to the Vice President-Administration shall be disposed of by him in accordance with instructions of the Ethics Committee.

(2) Notwithstanding the foregoing, a special Government employee may:

(i) Accept gifts, entertainments, or favors given as a result of obvious family or personal relationships (such as those between parents, children, or spouse of the special Government employee and the special Government 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;

(ii) Accept food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting (including functions sponsored by a government or an embassy and ceremonial functions), or on an inspection tour where such special Government employee is au

thorized by the Bank to be in attendance;

(iii) Accept loans from banks or other financial institutions on customary terms to finance proper and normal activities of employees, such as home mortgage loans; and

(iv) Accept unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.

(e) Further disclosure. If a special Government employee submitted to the Bank information as to his private employment and financial interests, he shall advise the Bank of any major change in such information promptly after such change has occurred. A special Government employee shall promptly advise the Bank of any additional employment with other Government agencies which he may have accepted after his appointment by the Bank.

(f) Representation on certain matters. No person, while carried on the Bank's records as a special Government employee, shall be permitted to act as agent or attorney for anyone in connection with a particular matter involving a specific party or parties.

(1) In which the United States is a party or has a direct and substantial interest and in which he has at any time participated personally and substantially as a Government employee or a special Government employee, or

(2) Which is pending before the Bank unless he has worked for the Bank, as of the day he acts, less than 61 days of the preceding 365 days (such exception not being applicable if such person has been disqualified with respect to the same matter at any previous time). For this computation, parts of days on which duty is performed shall be counted as full working days and Saturdays, Sundays, and holidays on which duty is performed shall be included.

(g) Representation on matter worked on. No person who is or once was carried on the Bank's records as a special Government employee shall be permitted to act as agent or attorney for anyone in connection with any matter which relates to the subject on which he is or was working at the Bank unless his thus acting as agent or attorney occurs with the knowledge and express written approval of the appointing officer responsible for his appointment.

(h) Statements of employment and financial interest. The President of the Bank may waive the requirement in § 400.735-40 (d) 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 Bank 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 Government. For the purpose of paragraph (h) of this sections, "consultant" and "expert" have the meanings given those terms by Chapter 304 of the Federal Personnel Manual, but do not include:

(1) A physician, dentist, or allied medical specialist whose services are procured to provide care and service to patients;

(2) A veterinarian whose services are procured to provide care and service to animals; or

(3) A specialist appointed for intermittent confidential intelligence consultation of brief duration.

The rules set forth in §§ 400.735-52, 400.735-53, 400.735-54, and 400.735-55 shall apply in connection with the submission of statements of employment and financial interests by special Government employees.

(i) Statutory provisions. Attention is directed to the following statutory provisions:

(1) The prohibition against a Bank employee participating, in any manner, in the deliberation or determination of any matter affecting his personal interest or the interests of any corporation, partnership, or association in which he is directly or indirectly interested, (12 U.S.C. 635a (e)).

(2) The prohibition against bribes and related offenses, (18 U.S.C. 201).

(3) The prohibition against gifts among Government employees who are in the position of superior-subordinate to each other, (5 U.S.C. 7351).

(4) The prohibition against gifts and so forth from a foreign government unless authorized by State Department regulations, (Article I, section 9, U.S. Constitution; 5 U.S.C. 7342; 22 CFR Part 3).

(5) The prohibitions relating to conflicts of interests and related offenses, (18 U.S.C. 203, 205, 207, and 208).

(6) The prohibition against lobbying with appropriated funds, (18 U.S.C. 1913).

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

(8) The prohibition against the employment of a member of a Communist organization, (50 U.S.C. 784).

(9) The prohibitions against: (i) The disclosure of classified information, (18 U.S.C. 798, 50 U.S.C. 783); and (ii) the disclosure of confidential information, (18 U.S.C. 1905).

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

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

(12) The prohibition against fraud or false statements in a Government matter, (18 U.S.C. 1001).

(13) The prohibition against mutilating or destroying a public record, (18 U.S.C. 2071).

(14) The prohibition against counterfeiting and forging transportation requests, (18 U.S.C. 508).

(15) The prohibition against: (i) Embezzlement of Government money or property, (18 U.S.C. 641); (ii) failing to account for public money, (18 U.S.C. 643); and (iii) 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).

(16) The prohibition against unauthorized use of documents relating to claims from or by the Government, (18 U.S.C. 285).

(17) The prohibitions against political activities in subchapter III of chapter 73 of title 5, United States Code, and 18 U.S.C. 602, 603, and 607.

(18) 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). Subpart E-Procedures for Submission of Statements of Employment and Financial Interests

$400.735-50 Applicability.

Pursuant to Executive Order 11222 dated May 8, 1965, and Part 735 of Civil Service Commission regulations (5 CFR Part 735), this Subpart E sets forth the rules which shall apply in connection with the submission of statements of employment and financial interests.

Statements referred to shall be submitted by all employees of the Bank (whether full-time or part-time) who are required to submit such statements on June 30 of each year. Employees who, after June 30, 1973, are appointed to a position requiring submission of such statements, shall submit such statements within 30 days after appointment. All statements shall be submitted to the Chairman of the Ethics Committee. Each employee who previously submitted any such statement shall submit a supplementary statement each June 30, regardless of whether or not there were occurrences which would require changes in, or additions to, information previously submitted, and 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 of this part.

§ 400.735-52 Form of statements.

Statements of employment and financial interests shall be submitted on standard forms provided by the Civil Service Commission, copies of which are available in the Personnel Office of the Bank. The following rules shall be observed in preparing the statements:

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

(b) 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.

(c) An employee is not required 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 of a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar organization

not conducted as a business enterprise. For the purpose of paragraph (c) of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed "business enterprises" and are required to be included in an employee's statement of employment and financial interests.

§ 400.735-53 Confidentiality of employees' statements.

The Bank shall hold each statement of employment and financial interests, and each supplementary statement, in confidence. To insure this confidentiality, the Chairman of the Ethics Committee is designated to review and retain the statements, and shall be responsible for the maintenance of the statements in confidence, and he shall not allow access to, or allow information to be disclosed from, a statement except to carry out the purpose of this part. The Bank may not disclose information from a statement except as the Civil Service Commission or the President of the Bank may determine for good cause shown.

§ 400.735-54 Effect of employees' statements 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 similiar requirement imposed by law, order, or regulation. 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 person's participation is prohibited by law, order, or regulation.

§ 400.735-55 Review of statements and remedial action.

All statements submitted to the Chairman of the Ethics Committee shall be reviewed by him in consultation with the other members of the Ethics Committee as he deems appropriate. If any statement or information from other sources discloses a conflict of interest, or an apparent conflict of interest, between the interests of an employee and the performance of such employee's duties at the Bank, the Chairman of the Ethics Committee shall give such employee an opportunity to explain such conflict, or apparent conflict, and if such explanation is not satisfactory, the Chairman

of the Ethics Committee shall take such action as he deems appropriate to resolve such conflict, or apparent conflict. If the Chairman of the Ethics Committee is unable to resolve such conflict, or apparent conflict, he shall report the matter to the President of the Bank who shall then take appropriate remedial action to end such conflict, or apparent conflict. Remedial action may include, but is not limited to:

(a) Changes in assigned duties; (b) Divestment by the employee of his conflicting interest;

(c) Disciplinary action; or

(d) Disqualification for a particular assignment.

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

(a) Purpose. The purpose of the Export-Import Bank is to aid in financing and to facilitate the export sales of United States goods and services.

(b) Organization and funding. The Export-Import Bank is an independent corporate agency, founded by Executive Order in 1934, and currently operating under authority of the Export-Import Bank Act of 1945, as amended. One billion dollars in capital stock is held by the U.S. Treasury, to which the Bank pays dividends annually. The Bank does not use appropriated funds from the Congress. I tderives its funds primarily from selling debentures in the private market and secondarily from short term borrowings from the U.S. Treasury.

(1) Offices. The Bank's headquarters are located at 811 Vermont Avenue, NW., Washington, D.C. 20571. A branch office is maintained in the U.S. Embassy in Vienna and in the U.S. Consulate in Hong Kong.

(2) Board of Directors. The Board of Directors of the Export-Import Bank

consists of the President of the Bank who serves as Chairman and Chief Executive Officer, the First Vice President of the Bank who serves as Vice Chairman, and three additional Directors. All five members are appointed by the President of the United States, by and with the consent of the Senate. Of the five members, no more than three may be members of any one political party. A majority of the Board constitutes a quorum. The Board of Directors adopts, and from time to time amends, such bylaws as are necessary for the proper management of the Bank, and in such bylaws, designates the vice presidents and other officers and prescribes their duties.

(3) Advisory Committee. An Advisory Committee of nine members, broadly representative of production, commerce, finance, agriculture and labor, meets with the Bank one or more times a year, on the call of the President of the Bank, to advise with the Bank on its program. Members are appointed by the Board of Directors on the recommendation of the President of the Bank.

(c) Programs-(1) Direct loans and participation financing. Direct Loans are dollar credits extended by Eximbank directly to borrowers outside of the United States for purchases of U.S. goods and services. Disbursements under the loan agreement are made in the United States to the suppliers of the goods and services, and the loans plus interest must be repaid in dollars by the borrowers.

Participation financing is the combining of Eximbank's direct lending with loans provided by private sources of funds. If required by the private lender, Eximbank may extend its Financial Guarantee to assure repayment of that portion of the total financing. Eximbank also is prepared, when necessary, to finance through its direct lending the later maturities of the total credit, allowing the private lender to obtain repayment of its loan in a shorter period of time.

(2) Guarantees for U.S. financial institutions. Eximbank will extend its Financial Guarantee to cover loans made by U.S. financial institutions to the purchasers in other countries of U.S. goods and services. The buyer may be either a government or private entity. Eximbank's Financial Guarantee will unconditionally guarantee repayment by a borrower of up to 100 percent of the outstanding principal due on such loans plus interest at a rate satisfactory to Eximbank.

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(3) Guarantees for non-U.S. financial institutions. Eximbank will extend its Financial Guarantee to cover loans made by financial institutions located outside of the United States for exports of U.S. goods and services. Eximbank will unconditionally guarantee repayment by a borrower of up to 100 percent of the principal amount of the loan plus interest at a rate satisfactory to Eximbank. In the event of default, Eximbank payments will be made in the same currencies which the borrower has agreed to repay the lender.

(4) Local cost financing. Eximbank is prepared to assist exporters in obtaining local cost financing when it has been clearly demonstrated as necessary to support sales abroad of U.S. goods and services. As a form of such assistance, Eximbank is prepared to use its Financial Guarantee to cover loans made by non-U.S. financial institutions for the financing of local cost in cases in which the Bank is participating through a Direct Loan, a Financial Guarantee or a combination thereof, in financing the procurement of U.S. goods and services.

For transactions in the developing countries, there must be a clear indication that local cost support is essential to achieve an important contract or purchase arrangement and mobilization of the required funds does not appear feasible in the absence of Eximbank assistance. For transactions in the developed countries, there must be a clear indication that local cost support is necessary to counter non-U.S. competition offering publicly assisted local cost financing. Normally, Eximbank will guarantee local cost financing up to an amount equal to 15 percent of the value of the capital goods and services exported from the United States in the related transaction.

(5) Preliminary commitments. Eximbank is prepared to provide Preliminary Commitments outlining the terms and conditions of the financial assistance it would extend to purchasers of United States exports of goods and services. The Preliminary Commitment is issued without charge and in no way obligates the inquirer. The program can be used advantageously by U.S. exporters in their marketing efforts as well as in meeting tender requirements. A Preliminary Commitment can be helpful to buyers in planning new purchases and in making presentations to their governments. A financial institution may find a Preliminary Commitment useful when helping