(a) Scope of section. This section shall apply to ex parte communications with respect to applications made to the Board for permission to organize Federal savings and loan associations and for branch office and mobile facilities of such associations under Subchapter C of this chapter, applications for insurance of accounts or requests for a commitment to insure accounts under Subchapter D of this chapter, applications for District of Columbia branch offices under Subchapter E of this chapter, and to ex parte communications with respect to any matter which is the subject of a hearing conducted by or on behalf of the Board. However, this section shall not apply to ex parte communications with respect to those applications as to which public notice is not required; and this section shall not apply to ex parte communications with respect to any hearing which is subject to the provisions of Part 509 of this subchapter, which communications shall be handled in accordance with applicable law.

(b) Prohibited communications. Except as provided in paragraph (c) of this section, any ex parte communication, either written or oral, relating to any matter within the scope of this section, by any person, other than an officer, agent, or employee of the Board or the Federal Savings and Loan Insurance Corporation, to any member of the Board, a hearing officer, or any other employee or agent of the Board participating in the decisional process, is prohibited prior to final decision on such matter.

(c) Exceptions. The provisions of this section shall not apply to communications on the subject matter of any hearing on the proposed adoption or repeal of, or amendment to, rules or regula

133 F.R. 137, Jan. 5, 1968.

tions, to inquiries limited exclusively to the status of a pending matter or directed only to procedural questions, to reports or investigations made at the Board's request by or at the request of an officer, agent, or employee of the Board, communications and other material filed pursuant to the regulations in this chapter governing the applications and requests referred to in paragraph (a) of this section, or communications from authorities having governmental examining or supervisory functions relating to savings and loan, building and loan, and homestead associations or cooperative banks.

(d) Action to be taken. (1) The recipient of any written communication made in contravention of the provisions of this section shall promptly transmit such communication to the Secretary to the Board. The recipient of any oral communication made in contravention of the provisions of this section shall immediately prepare a written statement of the substance of the communication and promptly transmit such statement to such Secretary. Such transmittal shall be accompanied by a written statement of the circumstances under which the communication was made, if such circumstances are not otherwise apparent.

(2) The Secretary to the Board shall place all material so transmitted to him in the public record, and shall transmit copies of all such material to all interested parties for comment or rebuttal. Any such comment or rebuttal by any person shall be delivered to the Office of the Secretary to the Board within 10 days after such transmittal to such person, unless the Board shall otherwise provide, and shall be placed by such Secretary in the public record. The Board may provide for such other or further action with respect to any such communication as it may deem advisable.

(3) The references in subparagraphs (1) and (2) of this paragraph to "Secretary to the Board" and "Office of the Secretary to the Board" shall be deemed to be references to "Supervisory Agent" and "Office of the Supervisory Agent" in the case of a communication made with respect to an application or request within the scope of this section at a time when such application or request is in the Office of a Supervisory Agent. As used in this paragraph, the term “Supervisory Agent" shall mean the agent of the Board who is processing such an application or request.

(e) Sanctions. A violation of any of the provisions of this section shall be good cause for imposition of such sanctions as the Board may deem just and proper.

(Sec. 17, 47 Stat. 736, as amended; sec. 5, 48 Stat. 132, as amended; secs. 402, 408, 48 Stat. 1256, 1257, as amended; 12 U.S.C. 1437, 1464, 1725, 1726. Reorg. Plan No. 3 of 1947, 3 CFR, 1943-1948 Comp.) [35 F.R. 2509, Feb. 4, 1970]

§ 510.2 Restrictions as to former employees.

(a) As used in this section:

(1) The term "employee" includes a Member of the Board, a special Government employee, an officer, an agent, or an attorney.

(2) The term "Corporation" means the Federal Savings and Loan Insurance Corporation.

(3) The term "Bank" means a Federal Home Loan Bank.

(b) No former employee of the Board, the Corporation or a Bank shall appear in any proceeding or other matter before the Board as attorney or other representative of any party (other than the Board, the Corporation or a Bank) to any proceeding or other matter, formal or informal:

(1) In which the former employee participated personally and substantially during the period of such employment; or (2) For which the former employee was officially responsible during the period of such employment, unless 1 year has elapsed since the termination of such employment.

(c) The restrictions contained in this paragraph shall apply to employees and former employees of the Board or the Corporation who are or were so employed on or after the effective date of this section and who, during such employment, engaged in activities involving discretion with respect to either (1) the granting of a loan or other financial assistance by the Corporation to an insured institution or (2) the granting of an application of any kind filed by an insured institution or an institution seeking insurance. No such employee or former employee may accept any salaried position or any fulltime position with such an institution within a period of 1 year following the earlier of (i) the date of the granting to the institution of the loan, financial assistance, or application or (ii) the date of the termination of his employment

with the Board or the Corporation. The discretionary nature of the activities of employees shall be determined by the Board as may be required. Any employee or former employee of the Board or the Corporation who, during the period of restriction set forth in this paragraph, wishes to accept any such position shall, prior to such acceptance, apply to the Board for such a determination.

(Sec. 17, 47 Stat. 736, as amended; sec. 5, 48 Stat. 132, as amended; secs. 402, 403, 48 Stat. 1256, 1257, as amended; 12 U.S.C. 1437, 1464, 1725, 1726. Reorg. Plan No. 3 of 1947, 3 CFR, 1943-48 Comp.) [33 F.R. 137, Jan. 5, 1968]

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

511.735-38 Time and place for submission of employees' statements.

511.735-39 Supplementary statements. 511.735-40 Interests of employees' relatives. 511.735-41 Information not known by employees.

511.735-42 Information not required. 511.735-43 Effect of employees' statements on other requirements. 511.735-44 Specific provisions of Agency regulations for special Government employees.

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

511.735-50 Reporting unresolved conflicts of interest.

511.735-51 Opportunity to be heard. 511.735-52 Action by the Chairman. 511.735-53

Violations of this part cause for disciplinary action.

511.735-54 Remedial action to be effected in accordance with law and regulation. 511.735-55 Miscellaneous statutory provisions.

AUTHORITY: The provisions of this Part 511 issued under E.O. 11222; 3 CFR, 19641965 Comp., 5 CFR, 735.104, unless otherwise noted.

SOURCE: The provisions of this Part 511 appear at 31 F.R. 4277, Mar. 11, 1966, unless otherwise noted.

Subpart A-General Provisions § 511.735-1

Purpose.

The maintenance of unusually high standards of honesty, integrity, impartiality, and conduct by employees and special Government employees is essential to assure the proper performance of Government business and the maintenance of confidence by citizens in their Government. The avoidance of misconduct and conflicts of interest on the part of employees and special Government employees through use of informed judgment is indispensable to the maintenance of these standards. To accord with these concepts, this part prescribes standards of conduct and responsibilities, and governs statements reporting employment and financial interests of the Agency's employees and special Government employees.

39-057-75-15

(b) "Employee" means an officer or employee of the Agency or a Member of the Board but does not include a special Government employee.

(c) "Special Government employee" means a "special Government employee" as defined in section 202 of Title 18 of the United States Code who is employed by the Agency.

(d) "Conflict of interest" means a conflict or the appearance of a conflict between the interests of an employee or special Government employee and the performance of his services for the Agency.

(e) "Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company or any other organization or institution.

(f) "Member institution" means an institution which is a member of a Federal Home Loan Bank or which is a member of the Federal Savings and Loan Insurance Corporation.

§ 511.735-3 Effective date and distribution.

(a) This part and any amendments thereto shall be effective upon publication in the FEDERAL REGISTER.

(b) The Office of Personnel Management shall distribute one copy (and supply additional copies on request) of this part to every employee and every special Government employee within 90 days after the effective date, and distribute one copy to each new employee and special Government employee at the time of entrance on duty. The office of Personnel Management shall, once each calendar year, thereafter distribute to every employee and every special Government employee a reminder of the basic provisions of this part.

§ 511.735-4 Counseling.

A Counselor and one or more Deputy Counselors, appointed by the Chairman, shall be available for counseling and guidance respecting statutes and regulation affecting employee responsibility and conduct, including interpretations of the provisions of this part, and each employee and special Government employee shall be notified of this service and advised of the names of the Counselor and his Deputy or Deputies by the Office of Personnel Management at the time he receives a copy of this part.

Subpart B-Ethical and Other Conduct and Responsibilities of Employees § 511.735-10 General prohibitions.

An employee shall avoid any action, whether or not specifically prohibited by this part which might result in, or create the appearance of:

(a) Using public office for private gain;

(b) Giving preferential treatment to any person;

(c) Impeding Agency efficiency or economy;

(d) Losing complete independence or impartiality;

(e) Making an Agency decision outside official channels; or

(f) Affecting adversely the confidence of the public in the integrity of the Agency and the Government.

§ 511.735-11 Gifts, entertainment, favors and loans.

(a) General. Except as provided in paragraph (b) of this section, an employee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor entertainment, loan or any other thing of monetary value, from a person who:

(1) Has or is seeking to obtain contractual or other business or financial relations with the Agency;

(2) Conducts operations or activities that are regulated by the Agency;

(3) Has interests that may be substantially affected by the performance or nonperformance of his official duty; or

(4) Is an officer, director, or employee of any member institution or an officer, director, or employee of a trade organization comprising member institutions or an officer, director, or employee of a corporation which holds or controls within the meaning of section 408 of the National Housing Act at least 10 percent of the stock of a member institution.

(b) Exceptions. Paragraph (a) of this section does not prohibit any activity that is necessary to, or compatible with the duties and responsibilities of, the Agency and its employees. These activities include:

(1) The acceptance, except as provided by law or the regulations in this part of loans from, or other financial relations with, member institutions in the ordinary course of business of the member institutions, so long as the employee is granted terms no more favorable than

would be available in like circumstance to persons who are not employees of the Agency.

(2) Obvious family or personal relationships (such as those between the parents, children, or spouse of the employee and the employee) when the circumstances make it clear that it is those relationships rather than the business of the persons concerned that are the motivating factors;

(3) The acceptance of food, refreshments and accompanying entertainment on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other function or inspection tour where an employee is properly in attendance;

(4) The acceptance of lodging on infrequent occasions if an employee is properly in attendance on Agency business and the circumstances thereof are reported to the Agency; and for which no Government payment or reimbursement is or will be made;

(5) The acceptance of bona fide reimbursement, unless prohibited by law, for actual expenses for travel to fulfill a speaking engagement, for which no Government payment or reimbursement is or will be made; and

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

(7) The receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is or will be made. This paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf for excessive personal living expenses, gifts, entertainment or other personal benefits, nor does it allow an employee to be reimbursed by any person for travel on official business under agency orders when reimbursement is proscribed by decision B-128527 of the Comptroller General dated March 7, 1967.

An employee may not accept reimbursement, and payment may not be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits.

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

§ 511.735-12 Soliciting contributions; accepting and giving gifts.

An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as a marriage, illness or retirement.

[32 F.R. 14817, Oct. 26, 1967]

§ 511.735-13

Accepting gifts from for

eign governments.

An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 7342. [32 F.R. 14817, Oct. 26, 1967]

§ 511.735-14 Outside employment and other activities.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his employment. Incompatible activities include but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value, in circumstances in which acceptance may result in conflicts of interest or, except as provided in this part, the use of nonpublic information gained through, or incidental to, his duties; or

(2) Outside employment which tends to impair his mental or physical capacity to perform his duties and responsibilities in an acceptable manner.

(3) Private practice of the law by attorneys in the Office of the General Counsel, with or without compensation, except with the prior written consent of the General Counsel.

(b) Employees are encouraged to engage in teaching, lecturing, speaking, and writing that is related to the Agency's functions and responsibilities and not prohibited by law, Executive Order 11222 or this part. However, employees shall not, either for or without compensation, engage in any such activities or engage in 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

Board of Examiners for the Foreign Service without official approval by the Agency. He shall consult his Department or Division Head for the appropriate procedure to obtain such approval.

(c) [Reserved]

(d) This section does not preclude an employee from:

(1) [Reserved]

(2) Participation in the activities of national or State political parties not prohibited by law;

(3) Participation in the affairs of, or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization.

(4) Using information obtained as a result of his Government employment when that information has been made available to the general public or will be made available on request or when the Board gives written authorization for the use of nonpublic information on the basis that the use is in the public interest. (18 U.S.C. 201-209) [31 F.R. 4277, Mar. 11, 1966, as amended at 32 F.R. 14817, Oct. 26, 1967; 33 F.R. 12959, Sept. 13, 1968; 35 F.R. 8544, June 3, 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.