Attachment_4_-_OCC_Confidential_Financial_Disclosure_Report_(HELP).pdf

OOOCCCCCC CCCOOONNNFFFIIIDDDEEENNNTTTIIIAAALLL FFFIIINNNAAANNNCCCIIIAAALLL DDDIIISSSCCCLLLOOOSSSUUURRREEE RRREEEPPPOOORRRTTT for Contractors of the Office of the Comptroller of the Currency Who Participate in Bank

Examinations and Other Bank Supervisory Activities

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Affiliates of a Commercial Bank or a Savings Association includes any holding company that owns a national bank, state-chartered bank, federal savings association, or state-chartered savings association.

It also includes any company owned by such a holding company. For example, a mortgage company owned directly by a bank holding company is a bank affiliate.

Bank Pensions and Retirement Plans - Part 2.C. requests information on pensions or retirement plans from banks or savings associations and their affiliates which OCC contractors or their spouses participate in as well as other employment-related agreements or arrangements which the OCC contractor has entered into with banks or savings associations, including arrangements for future employment and continuations of payment.

Remember: The questions in Part 2.C. apply only if you or your spouse have worked for a bank or a savings association or an affiliate of a bank or a savings association, or have entered into an agreement or arrangement to work for one of these employers.

Business Activity includes services performed with or without compensation for a corporation, company, firm, partnership, or other business enterprise, nonprofit organization, or educational or other institution as an employee, owner, director, member, trustee, partner, advisor, or consultant. The term does not include uncompensated activity that does not involve making business decisions about an organization.

Nor is reporting required for positions with religious, social, fraternal, or political entities or positions solely of an honorary nature, unless there is a conflict or apparent conflict of interest.

Children, Reporting Interest of – On the OCC disclosure report, the contractor must list certain financial interests of their "minor" children. Generally, under the law a child is a "minor" until age 18.

Credit cards – Contractors may obtain personal credit cards from national banks or federal savings associations without any recusal, provided they satisfy generally applicable financial requirements and the credits are extended to the contractor on terms and conditions no more favorable than those available to other similarly situated borrowers. In addition, when contractors provide services at a bank or a savings association from which they hold a credit card, they must inform their OCC contact and ethics officials prior to performing the service if a significant issue exists with respect to their credit card debt, e.g., their payments are not current, they are involved in a billing dispute, or they are negotiating with the bank or savings association concerning restructuring the debt. In such cases, a recusal may be required.

Family Member includes:

• The spouse, father, mother, brother, sister, child, grandparent, and grandchild of the contractor;

• The father, mother, brother, sister, and grandparent of the contractor's spouse;

• The spouse of the contractor's father, mother, brother, sister, child, grandparent, and grandchild; and

• Any other member of the contractor's household.

Federal Savings Association includes any federal savings association or any subsidiary of a federal savings association.

Financial Interest in Banks or Savings Associations – All contractors are required to report:

• Pension plans and other financial interests in commercial banks or savings associations or their affiliates where the contractor formerly worked;

• Arrangements or agreements for future employment with a bank or a savings association or an affiliate of a bank or a savings association;

• Any ownership of securities of 1) commercial banks (both national and state), 2) savings associations

(both federal and state), and 3) affiliates of banks or savings associations (e.g., bank holding companies);

• Any ownership of the above-identified securities by their spouse or minor children; and

• Any ownership of the above-identified securities attributable to the contractor. This includes ownership in securities deriving from:

1) A partnership in which the contractor or the contractor's spouse or minor child is a general partner;

2) A partnership in which the contractor or the contractor's spouse or minor child is a limited partner, if the contractor, spouse, or child, individually or jointly, holds an interest of more than 10 percent;

3) A closely held corporation in which the contractor or the contractor's spouse or minor child, individually or jointly, holds an equity stock interest of more than 10 percent;

4) A trust in which the contractor or the contractor's spouse or minor child has a legal or beneficial interest;

5) An investment club or similar informal investment arrangement with others;

6) A qualified profit-sharing, retirement, or similar plan (Note: This does not include the use of a commercial bank or a savings association or an affiliate of a bank or savings association as custodian or trustee of accounts containing tax-deferred retirement funds); or

7) Any other entity in which the contractor or the contractor's spouse or minor child, individually or jointly, has an equity interest of more than 25 percent.

Loan Reporting – Contractors are required to report:

• Their loans and extensions of credit from national banks or federal savings associations and their subsidiaries in Part 1 A and from affiliates of national banks or federal savings associations in Part 1 C.

• Certain loans and extensions of credit to their spouses or minor children in Part 1 B.

• Certain other loans and extensions of credit from national banks or federal savings associations that are attributable to them, including extensions of credit, to -

1) A partnership in which the contractor or the contractor's spouse or minor child is a general partner;

2) A partnership in which the contractor or the contractor's spouse or minor child is a limited partner, if the contractor, spouse, or child, individually or jointly, holds an interest of more than 10 percent;

3) A closely held corporation in which the contractor or the contractor's spouse or minor child, individually or jointly, holds an equity stock interest of more than 10 percent;

4) A trust in which the contractor or the contractor's spouse or minor child has a legal or beneficial interest;

5) Any other entity in which the contractor or the contractor's spouse or minor child, individually or jointly, has an equity interest of more than 25 percent.

Main Office Address is the location of the main office of the bank or savings association or affiliate, not necessarily the place where payments are sent.

Mutual Fund Reporting Information – OCC contractors may invest in a mutual fund or other collective investment fund or in a widely held pension or similar fund provided the fund does not have a stated policy of concentrating in the financial services industry (including the banking sector) or has more than

25% of its assets invested in securities of banks or savings associations or their affiliates (which in most cases would be a financial services sector fund) and neither the contractor nor the contractor's spouse exercises control over nor has the ability to exercise control over the financial interests of the fund.

National Bank includes any national bank or any subsidiary of a national bank, such as a mortgage company owned by a national bank.

Primary Residence Mortgage Loans – Contractors are permitted to obtain mortgage loans secured by their primary residence from national banks, federal savings associations, and their subsidiaries provided they maintain a recusal from the lender and observe certain additional restrictions, as discussed on the financial disclosure report.

Recusals for Contractors with Loans – A contractor who takes out a primary residence mortgage loan is recused from examining or participating in other matters involving the national bank or a federal savings association extending the loan; but, if the contractor is subsequently assigned to a matter involving the bank or savings association, this recusal may be waived so long as it is determined that the loan was entered into appropriately, and there are no other circumstances present that might require that the recusal be continued.

Contractors who had loans from national banks or federal savings associations prior to their contract with the OCC (e.g., student loans) or who took out a loan with another lender that was subsequently transferred to a national bank or a federal savings association (e.g., a loan taken out with a state-chartered bank that was sold to a national bank) are required to recuse themselves from the bank department or subsidiary which holds the loan.

Recusals for Contractors Owning Securities in Commercial Holding Companies that Own or Operate Banks or Savings Associations – Contractors must also recuse themselves from performing services at banks or savings associations owned by commercial holding companies, i.e., publicly traded holding companies that, by virtue of their limited activities, do not cause their parent company to become a bank holding company under the Bank Holding Company Act of 1956 (for example, a bank engaged only in credit card activities) and the ownership or operation of the bank or savings association is not a significant activity of the holding company. In addition, contractors must recuse themselves from particular matters affecting their financial interests in the company. A list of these commercial companies is attached.

EXAMPLE Edmund owns stock in Target Corp. Edmund must recuse himself from matters related to Target National Bank, Sioux Falls, SD. He will enter this information under "Other Conflicts of Interest" in Part 6 of the OCC Financial Disclosure Report.

Recusals Because of Bank or Savings Association Employment of Contractor or Family Members

– The OCC Financial Disclosure Report requires the reporting of current employment by family members of OCC contractors as well as employment by the reporting contractor at a bank or a savings association or an affiliate of a bank or a savings association within the five years prior to the date of filing. Whenever a family member of a contractor is employed by, or serves in any other capacity with, a national bank or a federal savings association or an affiliate of a national bank or a federal savings association (hereinafter “an affiliate”), the OCC contractor may not participate in any matter involving the bank or savings association or affiliate where the family member serves. The appropriate ethics official may limit the recusal to specific bank departments or extend it to other affiliated companies. See instructions for a definition of "family member."

Contractors may also be recused on the basis of their own prior employment at a bank or a savings association or an affiliate, depending on the nature and the date of the work. The disclosure report requires reporting of services performed for a bank or a savings association or an affiliate within the five years prior to contracting with the OCC. The OCC ethics policy requires a contractor generally to be recused for two years from participating in matters involving a bank or a savings association where they worked immediately prior to contracting with the OCC. This recusal may be shortened or lengthened by the ethics official, depending on individual circumstances. Contractors should also report any other family member employment that might create a real or apparent conflict of interest in Part 6 under "Other Conflicts of Interest." For example, if a contractor has a close relationship with a cousin who holds an influential position in a small national bank, the contractor should consider a recusal to avoid any appearance of a conflict of interest. The contractor should discuss this matter with their OCC contact.

Securities includes all interests in debt or equity instruments. Thus, the term includes, without limitation, secured and unsecured bonds, debentures, notes, securitized assets and commercial paper, as well as all types of preferred and common stock. It encompasses both current and contingent ownership interests, including any beneficial or legal interest derived from a trust. The term extends to any right to acquire or dispose of any long and short position in such securities and includes, without limitation, interests convertible into such securities, as well as options, rights, warrants, puts, calls, and straddles with respect thereto. Bank or Savings Association securities, for the purposes of this report, does not include any investment in a publicly traded company owning banks or savings association that, by virtue of their limited activities, do not cause their parent company to become a bank holding company under the Bank Holding Company Act of 1956 (for example, a bank engaged only in credit card activities) and the ownership or operation of the banks or savings association is not a significant activity of the holding company. An OCC contractor who owns such an interest must be recused from participating in the regulation or supervision of the bank or savings association owned or operated by the company and from any particular matter that would affect his or her financial interests in the company. Also, interests in such companies should be reported in Part 6. Examples of such companies include General Electric, Nordstrom, and Target. A list of such holding companies is available in an Ethics Bulletin on the Ethics Page on the OCCnet.