Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Rules and Regulations 28725

TABLE A–2.—GENERAL VALUES FOR A1 and A2—Continued

Contents

A1

(Ci)

A2

(TBq) (TBq) (Ci)

Alpha-emitting nuclides are known to be present, or no relevant data are available ....... 0.10 2.70 2x10¥5 5.41x10¥4

TABLE A–3.—ACTIVITY-MASS RELATIONSHIPS FOR URANIUM

Uranium Enrichment1 wt % U–235 present

Specific Activity

TBq/g Ci/g

0.45 ................................................................................................................................................................ 1.8×10¥8 5.0×10¥7

0.72 ................................................................................................................................................................ 2.6×10¥8 7.1×10¥7

1.0 .................................................................................................................................................................. 2.8×10¥8 7.6×10¥7

1.5 .................................................................................................................................................................. 3.7×10¥8 1.0×10¥6

5.0 .................................................................................................................................................................. 1.0×10¥7 2.7×10¥6

10.0 ................................................................................................................................................................ 1.8×10¥7 4.8×10¥6

20.0 ................................................................................................................................................................ 3.7×10¥7 1.0×10¥5

35.0 ................................................................................................................................................................ 7.4×10¥7 2.0×10¥5

50.0 ................................................................................................................................................................ 9.3×10¥7 2.5×10¥5

90.0 ................................................................................................................................................................ 2.2×10¥6 5.8×10¥5

93.0 ................................................................................................................................................................ 2.6×10¥6 7.0×10¥5

95.0 ................................................................................................................................................................ 3.4×10¥6 9.1×10¥5

1The figures for uranium include representative values for the activity of the uranium–234 that is concentrated during the enrichment process.

Dated at Rockville, MD this 29th day of

May 1996.

For the Nuclear Regulatory Commission.

James M. Taylor,

Executive Director for Operations.

[FR Doc. 96–14045 Filed 6–5–96; 8:45 am]

BILLING CODE 7590–01–P

DEFENSE NUCLEAR FACILITIES

SAFETY BOARD

10 CFR Part 1703

FOIA Fee Schedule

AGENCY: Defense Nuclear Facilities

Safety Board.

ACTION: Update of FOIA Fee Schedule.

SUMMARY: The Defense Nuclear

Facilities Safety Board is publishing its

annual update to the Freedom of

Information Act (FOIA) Fee Schedule

pursuant to 10 CFR § 1703.107(b)(6) of

the Board’s regulations.

EFFECTIVE DATE: June 1, 1996.

FOR FURTHER INFORMATION CONTACT:

Kenneth M. Pusateri, General Manager,

Defense Nuclear Facilities Safety Board,

625 Indiana Avenue, NW, Suite 700,

Washington, DC 20004–2901, (202) 208–

6447.

SUPPLEMENTARY INFORMATION: The FOIA

requires each Federal agency covered by

the Act to specify a schedule of fees

applicable to processing of requests for

agency records. 5 U.S.C. 552(a)(4)(i). On

March 15, 1991 the Board published for

comment in the Federal Register its

proposed FOIA Fee Schedule. 56 FR

11114. No comments were received in

response to that notice and the Board

issued a final Fee Schedule on May 6,

1991.

Pursuant to 10 CFR § 1703.107(b)(6) of

the Board’s regulations, the Board’s

General Manager will update the FOIA

Fee Schedule once every 12 months.

Previous Fee Schedule updates were

published in the Federal Register and

went into effect, most recently, on May

1, 1995. 59 FR 20887.

Board Action

Accordingly, the Board issues the

following schedule of updated fees for

services performed in response to FOIA

requests:

DEFENSE NUCLEAR FACILITIES SAFETY

BOARD SCHEDULE OF FEES FOR

FOIA SERVICES

[Implementing 10 CFR § 1703.107(b)(6))]

Search or Review Charge.$45 per hour.

Copy Charge

(paper).

$.05 per page or generally

available commercial rate

(approximately $.10 per

page).

Copy Charge

(3.5′′

diskette).

$5.00 per diskette.

Copy Charge

(audio cassette).

$3.00 per cassette.

Duplication of

Video.

$25.00 per video, $16.50 for

each additional video.

DEFENSE NUCLEAR FACILITIES SAFETY

BOARD SCHEDULE OF FEES FOR

FOIA SERVICES—Continued

[Implementing 10 CFR § 1703.107(b)(6))]

Copy Charge

for large

documents

(e.g., maps,

diagrams).

Actual commercial rates.

Dated: May 31, 1996.

Kenneth M. Pusateri,

General Manager.

[FR Doc. 96–14243 Filed 6–5–96; 8:45 am]

BILLING CODE 3670–01–M

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Part 336

RIN 3064–AB43

Minimum Standards of Fitness for

Employment With the Federal Deposit

Insurance Corporation

AGENCY: Federal Deposit Insurance

Corporation.

ACTION: Final rule.

SUMMARY: The Federal Deposit

Insurance Corporation (FDIC) is

publishing a final regulation to

implement the requirements contained

in section 19 of the Resolution Trust

Corporation Completion Act, which

amended the Federal Deposit Insurance

Act to prohibit certain persons from
28726 Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Rules and Regulations

becoming employed or providing

services to the FDIC.

EFFECTIVE DATE: July 8, 1996.

FOR FURTHER INFORMATION CONTACT:

Joy Crosser, Personnel Management

Specialist, Division of Administration,

(202) 942–3314; Michelle Borzillo,

Counsel, Legal Division, (202) 898–

7400; or Gladys C. Gallagher, Counsel,

Legal Division, (202) 898–3833.

SUPPLEMENTARY INFORMATION: This

regulation was published as a proposed

rule on February 15, 1996, 61 FR 5956.

Copies were provided to interested

parties, including the National Treasury

Employees Union. No comments were

received in the 30-day comment period,

which ended March 15, 1996; therefore,

the final rule is being published as

originally proposed, with one minor

technical correction at 336.3(f), the

definition of ‘‘Federal Deposit Insurance

Funds’’, to add ’’, or their successors,’’

after ‘‘(RTC)’’.

Paperwork Reduction Act

The collection of information

contained in this rule has been

approved by the Office of Management

and Budget (OMB) under control

number 3064–0121 (‘‘Certification of

Compliance With Mandatory Bars to

Employment’’), pursuant to the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501 et seq.). Comments

regarding the accuracy of the burden

estimate, and suggestions for reducing

the burden, should be addressed to the

Office of Management and Budget,

Paperwork Reduction Project (3064–

0121), Washington, D.C. 20503, with

copies of such documents sent to Steven

F. Hanft, Assistant Executive Secretary

(Regulatory Analysis), FDIC, Room F–

400, 550 17th Street, NW., Washington,

DC 20429.

The collection of information in this

rule is found in § 336.4(b) and takes the

form of a certification of compliance.

However, in addition to the

certification, the person applying for

employment must provide an

attachment to the certification

describing any instance in the preceding

five years in which the applicant, or a

company under the applicant’s control,

has defaulted on a material obligation to

an insured depository institution. The

information is used by the FDIC to

identify those persons prohibited from

becoming employed by or providing

services to the FDIC.

The estimated annual reporting

burden for the collection of information

requirement in this rule is summarized

as follows:

Number of Respondents: 200.

Number of Responses per

Respondent: 1.

Total Annual Responses: 200.

Hours per Response: 20 minutes.

Total Annual Burden Hours: 66.6.

This regulation was developed

consistent with the intent of section

303(a) of the Riegle Community

Development and Regulatory

Improvement Act of 1994, 12 U.S.C.

4803(a), to reduce regulatory burden

and improve efficiency.

Small Business Regulatory Enforcement

Fairness Act

The Small Business Regulatory

Enforcement Fairness Act of 1996

(Public Law 104–121) provides (with a

few limited exceptions) for

Congressional review of agency rules.

An exception is provided, however, for

rules relating to agency management or

personnel (5 U.S.C. 804(3)). Since this

regulation will only affect individuals

who are employed or will seek

employment with the FDIC, the Board

has determined that it is a rule relating

to agency management or personnel and

thus is not subject to Congressional

review.

Regulatory Flexibility Act

The Board hereby certifies that the

rule does not have a significant

economic impact on a substantial

number of small entities within the

meaning of the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.). This

regulation affects only those individuals

who are employed or will become

employed by the FDIC. Therefore, the

provisions of that Act relating to an

initial and final regulatory analysis (5

U.S.C. 603 and 604) do not apply here.

Background

The Resolution Trust Corporation

Completion Act (hereafter referred to as

the Completion Act), Pub. L. 103–204,

enacted on December 17, 1993,

amended section 12 of the Federal

Deposit Insurance Act, 12 U.S.C. 1822,

to prohibit any person from becoming

employed or providing service to or on

behalf of the FDIC who does not meet

minimum standards of competence,

experience, integrity, and fitness.

The Completion Act provides that

FDIC employees are subject to title 18 of

the U.S. Code, and are subject to the

ethics and conflict of interest rules and

regulations issued by the Office of

Government Ethics, including those

concerning employee conduct, financial

disclosure, and post-employment

activities. The statute also provides that

the Corporation shall issue regulations

implementing provisions that prohibit

any person from becoming employed

who: has been convicted of any felony;

has been removed from, or prohibited

from participating in the affairs of any

insured depository institution pursuant

to any final enforcement action by any

appropriate federal banking agency;

demonstrated a pattern or practice of

defalcation regarding obligations to

insured depository institutions; or

caused a substantial loss to federal

deposit insurance funds. The statute

requires the collection from applicants

for employment information describing

any instance during the preceding 5

years in which the applicant or a

company under the applicant’s control

defaulted on a material obligation to an

insured depository institution, along

with other information the Corporation

may require by regulation. The

Completion Act gives the Corporation

sole discretion over any issues that arise

as a result of these prohibitions, and any

decisions made by the Corporation shall

not be subject to review.

A. Scope of the Regulation

FDIC operates in a number of separate

and distinct capacities and situations.

This part applies to all FDIC employees

performing duties for or on behalf of the

FDIC in any capacity.

This regulation implements the

mandatory bars contained in section 19

of the Completion Act which amends 12

U.S.C. 1822(f)(4)(E). This part does not

in any way modify other applicable

rules and regulations governing

employee conduct, ethics, or

qualification standards. Further, there is

no need to augment in FDIC regulations

the existing education and experience

requirements defined in the U.S. Office

of Personnel Management’s (U.S. OPM)

Operating Manual for General Schedule

Qualification Standards.

B. Definitions

Section 336.3 contains definitions of

terms used throughout this regulation.

Company: The definition of company

expands on that used in section 2(b) of

the Bank Holding Company Act of 1956

(12 U.S.C. 1841(b)) to include firms,

societies and joint ventures. These

entities are included to amplify the

original definition and for consistency

with the application of the Completion

Act to contractors providing services to

the FDIC.

Default on a Material Obligation: The

FDIC defines this term to mean a

delinquency of 90 or more days as to

payment of principal or interest, or a

combination thereof, on a loan or

advance from an insured depository

institution in any amount. As prescribed

by the statute, this regulation requires

that all applicants for employment

submit a list and description of defaults

on material obligations incurred by
Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Rules and Regulations 28727

themselves or a company under their

control during the 5 years preceding the

submission. All defaults are to be listed

regardless of whether or not they have

been cured. The Corporation has set no

minimum dollar value to this definition;

information regarding the candidate’s

conduct in meeting obligations to

insured depository institutions is

significant in assessing the fitness and

integrity of an individual for

employment with the FDIC. Therefore,

all defaults which meet this definition,

regardless of outstanding balances, shall

be reported, but are not automatic bars

to employment in themselves.

Pattern or Practice of Defalcation

Regarding Obligations: This definition

addresses two situations. The first

concerns individuals who have a history

of financial irresponsibility with regard

to an open insured depository

institution to such an extent that the

FDIC’s employment of such an

individual reflects adversely on the

FDIC’s integrity and credibility. The

second situation concerns individuals

who have wrongfully refused to fulfill

obligations to an insured depository

institution.

In the first situation involving

financial irresponsibility, a pattern or

practice of defalcation regarding

obligations exists when an employee

has defaulted on obligations totalling in

excess of $50,000 in the aggregate.

Defaults caused by catastrophic events

such as death, disability or illness, or

loss of financial support are not

considered a violation of this standard.

Examples are provided in the

regulation’s definition to clarify the

meaning of ‘‘financial irresponsibility’’,

including the example of failing to pay

debts which were secured by uninsured

property that was destroyed. Another

example of such financial

irresponsibility would be an abuse of

credit cards or incurring excessive debt

well beyond the individual’s ability to

repay.

The second part of this definition

addresses individuals who wrongfully

refuse to fulfill duties and obligations to

insured depository institutions. Again,

examples are provided, which illustrate

the full scope of ‘‘wrongful refusal to

fulfill duties and obligations’’. The

examples include misconduct on the

part of a borrower, such as use of false

financial statements, misrepresentation

of ability to repay a debt, or concealing

assets. Additional examples focus on

findings of misconduct on the part of

officers, employees, contractors or

others providing service to an insured

depository institution, or who have

committed fraud, embezzlement or

similar misconduct.

Substantial Loss to Federal Deposit

Insurance Funds: This definition

incorporates $50,000 as the threshold

amount for establishing a substantial

loss. This loss must have inured to one

of the Federal Deposit Insurance Funds

(Insurance Funds) maintained by the

FDIC, the Resolution Trust Corporation

(RTC), Federal Savings & Loan

Insurance Corporation, or their

successors. Two types of losses are

addressed, which are: (1) debts in

default for which there remain a legal

obligation to pay; and (2) final

judgments, regardless of whether

forgiven in whole or in part in a

bankruptcy proceeding.

C. Minimum Standards for

Appointment to a Position with the

FDIC

All applicants, including former

employees of the FDIC who are

reemployed after a break in service of

more than 3 days, are subject to this

regulation for any noncompliance with

the prohibitions which occurred either

before or after the enactment of the

Completion Act. Applicants are

required to submit a certification prior

to employment which addresses each of

the statutory prohibitions and are

required to submit information

regarding any default during the

previous five years. Investigations are

conducted on all new appointees to

ascertain all relevant information

regarding the individual’s history of

defaults. Regardless of the number of

years for which an applicant is required

to submit a written report regarding

defaults, any pattern or practice of

defalcation regarding obligations or

substantial loss, as defined in this

regulation, is subject to these minimum

standards. Similarly, any felony

conviction and any removal from, or

prohibition from participation in the

affairs of, any insured depository

institution by a federal banking agency

is subject to the prohibitions of this

regulation without time limitation. A

felony conviction that has been

pardoned, as opposed to being

overturned on appeal, remains a

conviction and is therefore subject to

the prohibition mandated by the

Completion Act.

D. Minimum Standards for Employment

With the FDIC

The Corporation finds sufficient

support in the text of the statute for

applying the terms of the Completion

Act prospectively, and therefore does

not require the enforcement of these

minimum standards against incumbent

employees of the FDIC under an

appointment authorized by title 5 of the

United States Code on or before June 17,

1994, for noncompliance which

occurred prior to that date. However,

any final enforcement action by any

appropriate federal banking agency, any

final judgment or any felony conviction

which is finalized on or after June 18,

1994, even though the act or omission

which is the basis of the action or

judgment occurred prior to June 18,

1994, is subject to the standards of this

regulation. Additionally, eligibility for

employment with the FDIC continues to

be based on suitability standards for

federal employment as measured from

past and present conduct which

determines whether or not an employee

can perform his or her duties with

efficiency and effectiveness.

All employees, regardless of date of

first appointment or tenure, are subject

to this regulation for any

noncompliance with the standards that

occurs on or after June 18, 1994.

Further, any noncompliance with the

standards that first occurred prior to

June 18, 1994, which meets the

definitions of causing a substantial loss

to the Insurance Funds or a pattern or

practice of defalcation regarding

obligations to an insured depository

institution based on financial

irresponsibility and which resulted in

indebtedness that remains uncured after

June 18, 1994, cannot be excused.

Employees appointed prior to the

June 18, 1994 effective date for section

19 of the Completion Act and who

continue without a break in service of

more than 3 days from one type of

appointment with the FDIC to another

are not subject to the prohibitions for

noncompliance prior to June 18, 1994.

For example, an employee serving on an

excepted-service temporary

appointment who may be selected for a

competitive-service time-limited or

permanent appointment without a break

in service would not be considered a

new applicant for purposes of this

regulation. This regulation applies to all

appointments, including co-operative

student hires, experts and consultants,

detailees from other agencies and any

other individual appointed to provide

service to or on behalf of the FDIC.

Employees assigned to the RTC were

held to comparable minimum standards

of fitness for employment in the

Financial Institutions Reform, Recovery,

and Enforcement Act of 1989, Pub. L.

101–73, as implemented by regulation

in 12 CFR Part 1605, which were

applied retroactively by statute.

Therefore, unlike incumbent FDIC

employees who were not covered by

Pub. L. 101–73 minimum standards, any

noncompliance with the standards by

incumbent employees assigned to RTC
28728 Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Rules and Regulations

prior to June 18, 1994, remain subject to

the Public Law 101–73 minimum

standards, and is not excused.

Noncompliance occurring on or after

June 18, 1994, with the standards

contained in this regulation is a basis for

removal of the employee under the

authority of the Completion Act.

E. Verification of Compliance

Under the authority provided by 12

U.S.C. 1819 and 1822, the FDIC

conducts background investigations to

verify the information certified by

applicants and to determine suitability

for employment with the FDIC. In

addition, the FDIC screens the Financial

Institution’s Investigative and

Enforcement Records System

maintained internally by the FDIC’s

Division of Supervision regarding

records of federal banking agency

enforcement actions. The FDIC also

examines its own and other regulatory

records systems for findings of a pattern

or practice of defalcation regarding

obligations and/or a substantial loss to

the Insurance Funds as defined in this

regulation.

F. Employee Responsibility, Counseling

and Distribution of Regulation

Employees are required to familiarize

themselves with the provisions of this

regulation. Within ten days of the action

or the discovery of the noncompliance,

an employee shall report in writing to

the Ethics Counselor regarding

noncompliance with any of the

prohibitions contained in § 336.5(a) (1)

through (4) of this regulation. Also, if

the employee receives a letter from the

FDIC demanding payment on an

obligation that was initially owed to an

insured depository institution and is

now owed to the FDIC, the employee

must notify the Ethics Counselor within

10 days of receipt of such letter.

Employees shall consult with the Ethics

Counselor regarding the impact of this

regulation on their continued

employment. The Ethics Counselor shall

provide counseling and guidance to

employees regarding the statutes,

regulations and Corporation’s policies

under this part. The Ethics Counselor

shall review all information presented

by the employee and/or the employee’s

representative relevant to establishing

responsibility for the debt and

corrective actions taken. The employee

has a duty to cooperate with the Ethics

Counselor in providing the information

that is necessary to the Ethics

Counselor’s determination of

compliance or noncompliance.

G. Sanctions and Remedial Actions

There is no remedial action for an

employee found in noncompliance with

the standards at § 336.5(a)(1) and (2), for

felony convictions and enforcement

actions, as an employee is afforded the

opportunity to remedy those findings

through other proceedings. Also, there

is no remedial action for an employee

found in noncompliance with the

standards of § 336.4(a)(4), as the

Corporation’s Division of Depositor and

Asset Services provides the opportunity

to work out debts owed to the Insurance

Funds. Further, noncompliance with

§ 336.5(a)(3) based on wrongful refusal

to fulfill duties on obligations to insured

depository institutions cannot be

remedied. However, employees will be

provided a reasonable opportunity to

remedy following notification of

noncompliance with the prohibitions at

§ 336.5(a)(3) based on financial

irresponsibility as defined in 336.3(i)(1).

Such employees may establish an

agreement to resolve the outstanding

indebtedness that satisfies both the

insured depository institution and the

FDIC, or otherwise resolve the matter to

the satisfaction of the FDIC. This

remedial action provided employees

would not be extended to applicants for

employment. Filling a vacancy is not

delayed in order for an applicant to cure

his or her debts that are deemed not in

compliance with § 336.4(a)(3) through

(4).

Individuals appointed by the

President with the advice and consent

of the Senate, which includes both the

appointed and ex officio members of the

Board of Directors and the Inspector

General, cannot be removed from their

positions under the authority of the

FDIC. Therefore, this regulation does

not apply to individuals appointed to or

serving on an acting basis in positions

designated by Title 5 of the U.S. Code

as officials of the Federal Executive

Schedule. Federal employees who are

serving the FDIC, but are employed by

another agency, such as detailees or

employees of the Office of Thrift

Supervision or the Office of the

Comptroller of the Currency, may be

returned to the employing agency if

found not to be in compliance with the

minimum standards.

H. Finality of Determination

Section 336.9 of this regulation tracks

the language of the Federal Deposit

Insurance Act, 12 U.S.C.

1822(f)(4)(D)(ii).

List of Subjects in 12 CFR Part 336

Conflict of interests.

For the reasons set out in the

preamble, the Board of Directors of the

Federal Deposit Insurance Corporation

is revising part 336 of chapter III of title

12 of the Code of Federal Regulations as

follows:

PART 336—FDIC EMPLOYEES

Subpart A—Employee Responsibilities and

Conduct

Sec.

336.1 Cross-reference to employee ethical

conduct standards and financial

disclosure regulations.

Subpart B—Minimum Standards of Fitness

for Employment With the Federal Deposit

Insurance Corporation

336.2 Authority, purpose and scope.

336.3 Definitions.

336.4 Minimum standards for appointment

to a position with the FDIC.

336.5 Minimum standards for employment

with the FDIC.

336.6 Verification of compliance.

336.7 Employee responsibility, counseling

and distribution of regulation.

336.8 Sanctions and remedial actions.

336.9 Finality of determination.

Subpart A—Employee Responsibilities

and Conduct

Authority: 5 U.S.C. 7301; 12 U.S.C.

1819(a).

§ 336.1 Cross-reference to employee

ethical conduct standards and financial

disclosure regulations.

Employees of the Federal Deposit

Insurance Corporation (Corporation) are

subject to the Executive Branch-wide

Standards of Ethical Conduct at 5 CFR

part 2635, the Corporation regulation at

5 CFR part 3201 which supplements the

Executive Branch-wide Standards, the

Executive Branch-wide financial

disclosure regulations at 5 CFR part

2634, and the Corporation regulation at

5 CFR part 3202, which supplements

the Executive Branch-wide financial

disclosure regulations.

Subpart B—Minimum Standards of

Fitness for Employment With the

Federal Deposit Insurance Corporation

Authority: 12 U.S.C. 1819 (Tenth), 1822(f).

§ 336.2 Authority, purpose and scope.

(a) Authority. This part is adopted

pursuant to section 12(f) of the Federal

Deposit Insurance Act, 12 U.S.C. 1822,

and the rulemaking authority of the

Federal Deposit Insurance Corporation

(FDIC) found at 12 U.S.C. 1819. This

part is in addition to, and not in lieu of,

any other statutes or regulations which

may apply to standards for ethical

conduct or fitness for employment with

the FDIC and is consistent with the
Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Rules and Regulations 28729

goals and purposes of 18 U.S.C. 201,

203, 205, 208, and 209.

(b) Purpose. The purpose of this part

is to state the minimum standards of

fitness and integrity required of

individuals who provide service to or

on behalf of the FDIC and provide

procedures for implementing these

requirements.

(c) Scope. (1) This part applies to

applicants for employment with the

FDIC under title 5 of the U.S. Code

appointing authority in either the

excepted or competitive service,

including Special Government

Employees. This part applies to all

appointments, regardless of tenure,

including intermittent, temporary, timelimited and permanent appointments.

(2) In addition, this part applies to all

employees of the FDIC who serve under

an appointing authority under chapter

21 of title 5 of the U.S. Code.

(3) Further, this part applies to any

individual who, pursuant to a contract

or any other arrangement, performs

functions or activities of the

Corporation, under the direct

supervision of an officer or employee of

the Corporation.

§ 336.3 Definitions.

For the purposes of this part:

(a) Company means any corporation,

firm, partnership, society, joint venture,

business trust, association or similar

organization, or any other trust unless

by its terms it must terminate within

twenty-five years or not later than

twenty-one years and ten months after

the death of individuals living on the

effective date of the trust, or any other

organization or institution, but shall not

include any corporation the majority of

the shares of which are owned by the

United States, any state, or the District

of Columbia.

(b) Control means the power to vote,

directly or indirectly, 25 percent or

more of any class of the voting stock of

a company, the ability to direct in any

manner the election of a majority of a

company’s directors or trustees, or the

ability to exercise a controlling

influence over the company’s

management and policies. For purposes

of this definition, a general partner of a

limited partnership is presumed to be in

control of that partnership. For purposes

of this part, an entity or individual shall

be presumed to have control of a

company if the entity or individual

directly or indirectly, or acting in

concert with one or more entities or

individuals, or through one or more

subsidiaries, owns or controls 25

percent or more of its equity, or

otherwise controls or has power to

control its management or policies.

(c) Default on a material obligation

means a loan or advance from an

insured depository institution which is

or was delinquent for 90 or more days

as to payment of principal or interest, or

any combination thereof.

(d) Employee means any officer or

employee, including a liquidation

graded or temporary employee,

providing service to or on behalf of the

FDIC who has been appointed to a

position under an authority contained

in title 5 of the U.S. Code. This

definition excludes those individuals

designated by title 5 of the U.S. Code as

officials in the Federal Executive

Schedule.

(e) Federal banking agency means the

Office of the Comptroller of the

Currency, the Office of Thrift

Supervision, the Board of Governors of

the Federal Reserve System, or the

Federal Deposit Insurance Corporation,

or their successors.

(f) Federal deposit insurance fund

means the Bank Insurance Fund, the

Savings Association Insurance Fund,

the Federal Savings and Loan Insurance

Corporation (FSLIC) Resolution Fund,

or the funds that were formerly

maintained by the Resolution Trust

Corporation (RTC), or their successors,

for the benefit of insured depositors.

(g) FDIC means the Federal Deposit

Insurance Corporation, in its

receivership and corporate capacities.

(h) Insured depository institution

means any bank or savings association

the deposits of which are insured by the

FDIC.

(i) Pattern or practice of defalcation

regarding obligations means:

(1) A history of financial

irresponsibility with regard to debts

owed to insured depository institutions

which are in default in excess of

$50,000 in the aggregate. Examples of

such financial irresponsibility include,

without limitation:

(i) Failure to pay a debt or debts

totalling more than $50,000 secured by

an uninsured property which is

destroyed; or

(ii) Abuse of credit cards or incurring

excessive debt well beyond the

individual’s ability to repay resulting in

default(s) in excess of $50,000 in the

aggregate.

(2) Wrongful refusal to fulfill duties

and obligations to insured depository

institutions. Examples of such wrongful

refusal to fulfill duties and obligations

include, without limitation:

(i) Any use of false financial

statements;

(ii) Misrepresentation as to the

individual’s ability to repay debts;

(iii) Concealing assets from the

insured depository institution;

(iv) Any instance of fraud,

embezzlement or similar misconduct in

connection with an obligation to the

insured depository institution; and

(v) Any conduct described in any civil

or criminal judgment against an

individual for breach of any obligation,

contractual or otherwise, or any duty of

loyalty or care that the individual owed

to an insured depository institution.

(3) Defaults shall not be considered a

pattern or practice of defalcation where

the defaults are caused by catastrophic

events beyond the control of the

employee such as death, disability,

illness or loss of financial support.

(j) Substantial loss to federal deposit

insurance funds. (1) Substantial loss to

federal deposit insurance funds means:

(i) A loan or advance from an insured

depository institution, which is now

owed to the FDIC, RTC, FSLIC or their

successors, or any federal deposit

insurance fund, that is delinquent for

ninety (90) or more days as to payment

of principal, interest, or a combination

thereof and on which there remains a

legal obligation to pay an amount in

excess of $50,000; or

(ii) A final judgment in excess of

$50,000 in favor of any federal deposit

insurance fund, the FDIC, RTC, FSLIC,

or their successors regardless of whether

it becomes forgiven in whole or in part

in a bankruptcy proceeding.

(2) For purposes of computing the

$50,000 ceiling in paragraphs (j)(1)(i)

and (ii) of this section, all delinquent

judgments, loans, or advances currently

owed to the FDIC, RTC, FSLIC or their

successors, or any federal deposit

insurance fund, shall be aggregated. In

no event shall delinquent loans or

advances from different insured

depository institutions be separately

considered.

§ 336.4 Minimum standards for

appointment to a position with the FDIC.

(a) No person shall become employed

on or after June 18, 1994, by the FDIC

or otherwise perform any service for or

on behalf of the FDIC who has:

(1) Been convicted of any felony;

(2) Been removed from, or prohibited

from participating in the affairs of, any

insured depository institution pursuant

to any final enforcement action by any

appropriate federal banking agency;

(3) Demonstrated a pattern or practice

of defalcation regarding obligations to

insured depository institutions; or

(4) Caused a substantial loss to federal

deposit insurance funds.

(b) Prior to an offer of employment,

any person applying for employment

with the FDIC shall sign a certification

of compliance with the minimum

standards listed in paragraphs (a)(1)
28730 Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Rules and Regulations

through (4) of this section. In addition,

any person applying for employment

with the FDIC shall provide as an

attachment to the certification any

instance in which the applicant, or a

company under the applicant’s control,

defaulted on a material obligation to an

insured depository institution within

the preceding five years.

(c) Incumbent employees who

separate from the FDIC and are

subsequently reappointed after a break

in service of more than three days are

subject to the minimum standards listed

in paragraphs (a)(1) though (4) of this

section. The former employee is

required to submit a new certification

statement including attachments, as

provided in paragraph (b) of this

section, prior to appointment to the new

position.

§ 336.5 Minimum standards for

employment with the FDIC.

(a) No person who is employed by the

FDIC shall continue in employment in

any manner whatsoever or perform any

service for or on behalf of the FDIC who,

beginning June 18, 1994 and thereafter:

(1) Is convicted of any felony;

(2) Is prohibited from participating in

the affairs of any insured depository

institution pursuant to any final

enforcement action by any appropriate

federal banking agency;

(3) Demonstrates a pattern or practice

of defalcation regarding obligations to

insured depository institution(s); or

(4) Causes a substantial loss to federal

deposit insurance funds.

(b) Any noncompliance with the

standards listed in paragraphs (a)(1)

through (4) of this section is a basis for

removal from employment with the

FDIC.

§ 336.6 Verfication of compliance.

The FDIC’s Division of

Administration shall order appropriate

investigations as authorized by 12

U.S.C. 1819 and 1822 on newly

appointed employees, either prior to or

following appointment, to verify

compliance with the minimum

standards listed under § 336.4(a)(1)

through (4).

§ 336.7 Employee responsibility,

counseling and distribution of regulation.

(a) Each employee is responsible for

being familiar with and complying with

the provisions of this part.

(b) The Ethics Counselor shall provide

a copy of this part to each new

employee within 30 days of initial

appointment.

(c) An employee who believes that he

or she may not be in compliance with

the minimum standards provided under

§ 336.5(a)(1) through (4), or who

receives a demand letter from the FDIC

for any reason, shall make a written

report of all relevant facts to the Ethics

Counselor within ten (10) business days

after the employee discovers the

possible noncompliance, or after the

receipt of a demand letter from the

FDIC.

(d) The Ethics Counselor shall

provide guidance to employees

regarding the appropriate statutes,

regulations and corporate policies

affecting employee’s ethical

responsibilities and conduct under this

part.

(e) The Ethics Counselor shall provide

the Personnel Services Branch with

notice of an employee’s noncompliance.

§ 336.8 Sanctions and remedial actions.

(a) Any employee found not in

compliance with the minimum

standards except as provided in

paragraph (b) of this section below shall

be terminated and prohibited from

providing further service for or on

behalf of the FDIC in any capacity. No

other remedial action is authorized for

sanctions for noncompliance.

(b) Any employee found not in

compliance with the minimum

standards under § 336.5(a)(3) based on

financial irresponsibility as defined in

§ 336.3(i)(1) shall be terminated

consistent with applicable procedures

and prohibited from providing future

services for or on behalf of the FDIC in

any capacity, unless the employee

brings him or herself into compliance

with the minimum standards as

provided in paragraphs (b)(1) and (2) of

this section.

(1) Upon written notification by the

Corporation of financial irresponsibility,

the employee will be allowed a

reasonable period of time to establish an

agreement that satisfies the creditor and

the FDIC as to resolution of outstanding

indebtedness or otherwise resolves the

matter to the satisfaction of the FDIC

prior to the initiation of a termination

action.

(2) As part of the agreement described

in paragraph (b)(1) of this section, the

employee shall provide authority to the

creditor to report any violation by the

employee of the terms of the agreement

directly to the FDIC Ethics Counselor.

§ 336.9 Finality of determination.

Any determination made by the FDIC

pursuant to this part shall be at the

FDIC’s sole discretion and shall not be

subject to further review.

By order of the Board of Directors.

Dated at Washington, D.C. this 14th day of

May 1996.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Deputy Executive Secretary.

[FR Doc. 96–14001 Filed 6–5–96; 8:45 am]

BILLING CODE 6714–01–M

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 96–CE–23–AD; Amendment 39–

9645; AD 96–12–03]

RIN 2120–AA64

Airworthiness Directives; Aviat

Aircraft, Inc. Models S–1S, S–1T, S–2,

S–2A, S–2S, and S–2B Airplanes

(Formerly Known as Pitts Models S–

1S, S–1T, S–2, S–2A, S–2S, and S–2B

Airplanes)

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule; request for

comments.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that

applies to certain Aviat Aircraft, Inc.

(Aviat) Models S–1S, S–1T, S–2, S–2A,

S–2S, and S–2B airplanes that are

equipped with aft lower fuselage wing

attach fittings incorporating either part

number (P/N) 76090, 2–2107–1, or 1–

210–102. This action requires

repetitively inspecting the aft lower

fuselage wing attach fitting on both

wings for cracks and modifying any

cracked aft lower fuselage wing attach

fitting. Modifying the aft lower fuselage

wing attach fitting on both wings

eliminates the repetitive inspection

requirement of the AD. Several reports

of cracked fuselage wing attach fittings

on the affected airplanes prompted this

action. The actions specified by this AD

are intended to prevent possible inflight separation of the wing from the

airplane caused by a cracked fuselage

wing attach fitting.

DATES: Effective June 24, 1996.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of June 24,

1996.

Comments for inclusion in the Rules

Docket must be received on or before

August 9, 1996.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Central Region,

Office of the Assistant Chief Counsel,

Attention: Rules Docket 96–CE–23–AD,

Room 1558, 601 E. 12th Street, Kansas

City, Missouri 64106.