sented at any other meeting shall be submitted to the management of the bank a reasonable time before the solicitation is made. This paragraph (k) shall not apply, however, to elections to office.

(2) If the management opposes the proposal, it shall also, at the written request of the security holder, include in the proxy statement (i) the name and address of the security holder, or a statement that such name and address will be furnished upon request, and (ii) a statement of the security holder, which shall not include such name and address, of not more than 100 words in support of the proposal. The statement and request of the security holder shall be furnished to the management at the same time that the proposal is furnished. Neither the management nor the bank shall be responsible for such statement. (3) Notwithstanding subparagraphs (1) and (2) of this paragraph, the management may omit a proposal and any statement in support thereof from its proxy statement and form of proxy under any of the following circumstances:

(i) If the proposal is impossible to accomplish or, under applicable law, is not a proper subject for action by security holders; or

(ii) If the proposal consists of a recommendation or request that the management take action with respect to a matter relating to the conduct of the ordinary business operations of the bank; or

(iii) If it appears that the proposal is submitted by the security holder principally for the purpose of enforcing a personal claim or redressing a personal grievance against the bank or its management, or principally for the purpose of promoting general economic, political, racial, religious, social, or similar causes;

or

(iv) If the management has at the security holder's request included a proposal in its proxy statement and form of proxy relating to either of the two preceding annual meetings of security holders or any special meeting held subsequent to the earlier of such two annual meetings, and such security holder has failed without good cause to present the proposal, in person or by proxy, for action at the meeting; or

(v) If substantially the same proposal has previously been submitted to security holders in the management's proxy statement and form of proxy relating to any meeting of security holders held within the preceding 5 calendar years, it may be omitted from the proxy statement relating to any meeting of security holders held within the 3 calendar years after the latest such previous submission: Provided, That (a) if the proposal was submitted at only one meeting during such preceding period, it received less than 5 percent of the total number of votes cast in regard thereto, or (b) if the proposal was submitted at only two meetings during such preceding period, it received at the time of its second submission less than 10 percent of the total number of votes cast in regard thereto, or (c) if the proposal was submitted at three or more meetings during such period, it received at the time of its latest submission less than 20 percent of the total number of votes cast in regard thereto; or

(vi) If, prior to the receipt of such proposal, substantially the same proposal has been received by the management from another security holder and is to be included in the bank's proxy soliciting material.

(4) Whenever the management asserts that a proposal and any statement in support thereof may properly be omitted from the proxy statement and form of proxy, it shall file with the Corporation, not later than 20 days prior to the date the preliminary copies of the proxy statement and form of proxy are filed pursuant to paragraph (f)(1) of this section or such shorter period prior to such date as the Corporation may permit, a copy of the proposal and any statement in support thereof as received from the security holder, together with a statement of the reasons why the management deems such omission to be proper in the particular case, and, where such reasons are based on matters of law, a supporting opinion of counsel. The management shall at the same time,

if it has not already done so, notify the security holder submitting the proposal of its intention to omit the proposal from its proxy statement and shall forward to him a copy of the statement of the reasons why the management deems the omission of the proposal to be proper and a copy of such supporting opinion of counsel.

[F.R. Doc. 67-14057; Filed, Dec. 5, 1967; 8:45 a.m.]

TITLE 12-BANKS AND BANKING

CHAPTER III-FEDERAL DEPOSIT INSURANCE CORPORATION

PART 336-EMPLOYEE RESPONSIBILITIES AND CONDUCT
Miscellaneous Amendments

Effective October 7, 1967, Part 336 is amended as follows:

Section 336.735-11(c) is deleted and the provisions thereof transferred to §336.735-10; §336.735-11(d) is amended to indicate the circumstances under which a gift to an official superior may be allowed; the heading of §336.735-12 is amended for clarity and paragraph (f)(1) of that section is deleted and the provisions thereof transferred to §336.735-11(f) and amended to show that the exception does not allow non-Corporation reimbursement for travel on official business under Corporation orders; §§336.735-11(d) and (e) and 336.735-19 are amended to correct statutory references made obsolete by the codification of Title 5, United States Code; paragraph (r) is added to §336.735-19 to include reference to 18 U.S.C. 219; §§336.735-13(a)(1), 336.735-31, and 336.735-32 are amended, and §336.735-31a is added, to restrict the requirements relative to reporting employment and financial interests to those employees in positions in which the possibility of conflicts-of-interest involvement is clear and to evidence the availability of the Corporation's grievance procedure for settling questions concerning the applicability of the reporting requirement. Section 336.735-34 is amended to eliminate quarterly supplementary statements; §336.735-38 is amended to insure the confidentiality of statements submitted; and §336.735-40 (a) (2) is amended to clarify the Corporation's discretionary authority relative to which financial interests are to be reported by a special Corporation employee. These amendments were approved by the Civil Service Commission on September 20, 1967. Effective upon publication in the Federal Register, Part 336 is amended as set out below.

§336.735-10 Proscribed actions.

An employee shall avoid any action, whether or not specifically prohibited by this subpart 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 Corporation efficiency or economy;

(d) Losing complete independence or impartiality;

(e) Making a Corporation decision outside official channels; or

(f) Affecting adversely the confidence of the public in the integrity of the Corporation.

§336.735-11 Gifts, entertainment, and favors.

(a) Except as provided in paragraphs (b) and (f) 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:

(c) [Deleted]

*

**

**

(d) 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 marriage, illness, or retirement.

(e) 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 Public Law 89-673, 80 Stat. 952.

(f) Neither this section nor §336.735-12 precludes an employee from 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 Corporation payment or reimbursement is made. However, 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 a person for travel on official business under Corporation orders when reimbursement is prescribed by the Corporation.

§336.735-12 Outside employment and other activity.

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

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

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

(j) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).

**

*

*

*

(p) The prohibitions against political activities in subchapter III of chapter 73 of title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608.

(r) 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). §336.735-13 Financial interests.

(1) Own, directly or indirectly, or control the ownership of stock in an insured bank, without full disclosure in writing to, and with the approval of, the Board of Directors of the Corporation.

Except as provided in §336.735-32, statements of employment and financial interests will be filed by the following employees:

(a) Those paid at a level of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code.

(b) Those receiving compensation equivalent to that prescribed under section 5332 of title 5, United States Code for grade GS-13 or above whose positions are specifically identified in appendix A to this part which are included by reason of meeting the following criteria:

(1) Positions the incumbents of which are responsible for making a Corporation decision or taking a Corporation action in regard to:

(i) Contracting or procurement;

(ii) Administering or monitoring grants or subsidies;

(iii) Regulating or auditing private or other non-Federal enterprise; or

(iv) Other activities where the decision or action has an economic impact on the interests of any non-Federal enterprise.

(2) Positions which the Corporation determines require the incumbent to report employment and financial interests in order to carry out the purpose of law, Executive order, this part, and the Corporation's regulations.

(c) Alterations to, deletions from and other amendments of the list of positions in appendix A to this part may be made under the criteria in paragraph (b) of this section and are effective upon approval by the Chairman of the Board and actual notification to the incumbents. Amendments to the list in appendix A to this part shall be submitted annually for publication in the Federal Register.

§336.735-31a Employee's complaint on filing requirement.

An employee may complain to the Counselor designated in the regulations in this part that his position has been improperly included in the regulations in this part as one requiring the submission 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.

§336.735-32 Employees not required to submit statements.

Employees subject to separate reporting requirements under section 401 of the Executive order.

§336.735-34 Supplementary statements.

Changes in, or additions to, the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement as 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.

§336.735-38 Confidentiality of employees' statements.

The Corporation shall hold statements of employment and financial interest, and each supplementary statement, in confidence. All statements shall be received, reviewed, and retained in the office of the assistant to the Chairman of the Board of Directors who is responsible for maintaining the statements in confidence and shall not allow access to, or allow information to be disclosed from, a statement except to carry out the purpose of this part. The Corporation may not disclose information from a statement except as the Chairman of the Corporation or the Civil Service Commission may determine for good cause shown.

§336.735-40 Specific provisions of regulations for special Corporation employ

ees.

(a) ***

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

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 Supervising Examiner.

An Assistant Supervising Examiner.

[F.R. Doc. 67-11859; Filed, Oct. 6, 1967; 8:47 a.m.]

STATE BANKING LEGISLATION-1967

In 1967, the legislatures of 47 States held regular sessions. Some of the more important State banking legislation enacted during 1967 is listed below on a State-by-State basis.

Pension funds-investment in bank certificates of deposit ..