5 C.F.R. § 3201.102 Extensions of credit from FDIC-insured depository institutions.
Title 5 - Administrative Personnel
(a) Credit subject to this section. The prohibition, disqualification, and retention provisions of this section apply to a current or contingent financial obligation of the employee. For purposes of this section, a current or contingent financial obligation of an employee's spouse or minor child is considered to be an obligation of the employee. (b) Prohibition on acceptance of credit from FDIC-insured State nonmember banks applicable to certain high-level officials. (1) An employee described in paragraph (b)(2) of this section shall not, directly or indirectly, accept or become obligated on an extension of credit from an FDIC-insured State nonmember bank or its subsidiary, except credit extended through the use of a credit card under the same terms and conditions as are offered to the general public. (2) The prohibition in paragraph (b)(1) of this section applies to: (i) An employee who is a member of the Board of Directors, an assistant or deputy to the Board of Directors or to an appointed Board member, and a covered employee who is an assistant to such person; and (ii) The director of a Washington office or of a division, other than the Division of Supervision and Consumer Protection, and a covered employee who holds a position immediately subordinate to such director. (c) Prohibition on acceptance of credit from FDIC-insured State nonmember banks for employees assigned to the Division of Supervision and Consumer Protection. (1) An employee described in paragraph (c)(2) of this section shall not, directly or indirectly, accept or become obligated on an extension of credit from an FDIC-insured State nonmember bank or from an officer, director, employee, or subsidiary of such bank, except: (i) For an employee assigned to the Washington office, credit extended through the use of a credit card on the same terms and conditions as are offered to the general public; (ii) For an employee assigned to a regional or area office, credit extended by an FDIC-insured State nonmember bank headquartered outside the employee's region or area of official assignment through the use of a credit card on the same terms and conditions as are offered to the general public; (iii) For an employee assigned to a field office, credit extended by an FDIC-insured State nonmember bank headquartered outside the employee's field office of official assignment through the use of a credit card on the same terms and conditions as are offered to the general public; and (iv) For a field office supervisor and supervisory examiner, credit extended by an FDIC-insured State nonmember bank headquartered outside the field office supervisor's and supervisory examiner's respective official territories of assignment through the use of a credit card on the same terms and conditions as are offered to the general public. (2) The prohibition in paragraph (c)(1) of this section applies to the Director of the Division of Supervision and Consumer Protection, a covered employee immediately subordinate to the Director of the Division of Supervision and Consumer Protection, and the following employees assigned to the Division of Supervision and Consumer Protection: an Assistant Director, Regional Director, Deputy Regional Director, Assistant Regional Director, examiner, assistant examiner, review examiner, compliance examiner, assistant compliance examiner, and a covered employee. (3) Upon accepting credit extended by a credit card in accordance with paragraph (c)(1)(i), (c)(1)(ii), or (c)(1)(iii) of this section, the employee shall be disqualified in accordance with paragraph (f)(1) of this section, and, within 30 days of accepting such credit, shall file with the appropriate director a Statement of Credit Card Obligation in Insured State Nonmember Bank and Acknowledgement of Conditions for Retention—Notice of Disqualification. (d) Two-year prohibition on acceptance of credit from FDIC-insured depository institutions. (1) An employee described in paragraph (d)(2) of this section shall not, directly or indirectly, accept or become obligated on an extension of credit from an FDIC-insured depository institution or its subsidiary for a period of two years from the date of the employee's last personal and substantial participation in an audit, resolution, liquidation, supervisory proceeding, or internal agency deliberation affecting that particular institution, its predecessor or successor, or any subsidiary of such institution. This prohibition does not apply to credit obtained through the use of a credit card under the same terms and conditions as are offered to the general public. (2) The prohibition in paragraph (d)(1) of this section applies to an employee in the Division of Finance, Division of Resolutions and Receiverships, Division of Insurance and Research, Legal Division, or who is a member of a standing committee of the Board of Directors whose official duties include: (i) Audit of insured depository institutions for deposit insurance assessment purposes; (ii) Resolution or liquidation of failed or failing insured depository institutions; (iii) Participation in the supervision of insured depository institutions or enforcement proceedings under the Federal Deposit Insurance Act; or (iv) Internal agency deliberations affecting a particular insured depository institution, its predecessor or successor, or a subsidiary of such institution. (e) Prohibition on acceptance of credit from an assisted or assuming entity for employees of the Division of Resolutions and Receiverships. (1) An employee described in paragraph (e)(2) of this section shall not, directly or indirectly, accept or become obligated on any extension of credit from an assisted or assuming entity located in the employee's region of official assignment. This prohibition does not apply to credit obtained through the use of a credit card under the same terms and conditions as are offered to the general public. (2) The prohibition in paragraph (e)(1) of this section applies to a regional director, deputy regional director, and any other covered employee in the Division of Resolutions and Receiverships assigned to a service center or other field office. (f) Employee disqualification. (1) An employee described in paragraph (c)(2) of this section shall not participate in an examination, audit, visitation, review, or investigation, or other particular matter involving an FDIC-insured depository institution or other person with whom the employee has an outstanding extension of credit. (2) A covered employee, other than an employee who is described in paragraph (c)(2) of this section, shall not participate in any particular matter involving an FDIC-insured depository institution or other person with whom the employee has an outstanding extension of credit. (3) Disqualification is not required under paragraph (f)(2) of this section: (i) If the credit was extended through the use of a credit card on the same terms and conditions as are offered to the general public; or (ii) When the agency designee, with the concurrence of the appropriate director, has authorized the employee to participate in the matter using the standard set forth in 5 CFR 2635.502(d). (4) The Comptroller of the Currency and the Director of the Office of Thrift Supervision shall be disqualified from matters pending before the Board of Directors to the same extent as a covered employee subject to paragraph (f)(2) of this section. (g) Retention and renegotiation of pre-existing extensions of credit. (1) Nothing in this section prohibits the retention of a pre-existing extension of credit that an employee would be prohibited from accepting by §3201.102(b) or (c) if the extension of credit was permitted to be retained under 12 CFR part 336 prior to the adoption of this regulation or if the employee's acceptance of the extension of credit was proper at the time the obligation was incurred, as in the case of an extension of credit incurred prior to commencement of employment or reassignment to another division or location. Subsequent action affecting the status of the creditor, such as merger, acquisition, or transaction under 12 U.S.C. 1823, does not change the character of an extension of credit that was proper when incurred. An employee who retains a pre-existing extension that he or she would be prohibited from accepting by §3201.102(b) or (c) shall report the pre-existing extension of credit to the appropriate director or agency designee within 30 days from the following event, as appropriate: (i) Adoption of this part; (ii) Commencement of employment; (iii) Assignment to another division or location; or (iv) Action affecting the status of the creditor. (2) Any renegotiation of a pre-existing extension of credit shall be treated as a new extension of credit that is subject to the prohibitions contained in §3201.102(b) through (d). An employee may request that an exception be made to the prohibitions to permit renegotiation of a pre-existing extension of credit. Any such request shall be made in writing to the appropriate director and agency designee, or in the case of an employee described in paragraph (b)(2)(i) and (ii) of this section, to the Ethics Counselor, stating: (i) The purpose of the renegotiation; (ii) The terms and conditions of the original extension of credit; (iii) The terms and conditions now available to the general public; (iv) The terms and conditions now offered to the employee; (v) The action the employee has taken to move the loan to an institution from which an employee would not be prohibited from accepting an extension of credit; and (vi) The financial hardship, if any, denial of the request will cause. (3) After submission of the request, the appropriate director and agency designee, or the Ethics Counselor, may grant the employee's request based upon a written determination that the request is not inconsistent with 5 CFR part 2635 or otherwise prohibited by law and that, under the particular circumstances, application of the prohibition is not necessary to avoid the appearance of the misuse of position or loss of impartiality, or otherwise to ensure confidence in the impartiality and objectivity with which agency programs are administered. [60 FR 20174, Apr. 25, 1995, as amended at 62 FR 3772, Jan. 27, 1997; 67 FR 71070, Nov. 29, 2002]
Title 5: Administrative Personnel
PART 3201—SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE FEDERAL DEPOSIT INSURANCE CORPORATION
§ 3201.102 Extensions of credit from FDIC-insured depository institutions.
