(i) Signing petitions, including nominating petitions, but not initiating them or canvassing for the signature of others if they are identified with partisan political management or campaigns;

(j) Attending political rallies and joining political clubs, but not taking an active part in the conduct of a rally or the operation of the club or acting as chairman, officer, committee member, or delegate, and voting on issues but not speaking for or against them.

§ 6.5 Activity through another person.

Any political activity that is prohibited in the case of an employee acting independently is also prohibited in the case of an employee acting in open or secret cooperation with others. Whatever the employee may not do directly or personally, he may not do indirectly or through an agent chosen by him or subject to his control. Employees are, therefore, accountable for political activity by persons other than themselves, including wives or husbands if, in fact, the employees are thus accomplishing by collusion and indirection what they may not lawfully do directly and openly. Political activity in fact, regardless of the methods or means used by the employee, constitutes the violation.

In general, an employee who is subject to the limitations against political activity while on active duty is subject to them while on leave with pay, leave without pay, or furlough, and incurs the same penalties for an offense committed while in leave or furlough status as for an offense committed while on active duty. This is true even though the leave is terminal leave, and even though the employee's resignation has been submitted and accepted. However, if lump-sum payment is made for accrued annual leave the person involved is not subject to the limitations against political activity during the period covered by the lumpsum payment or thereafter. It is not permissible for an employee to take leave of absence for the purpose of working with a political candidate, committee, or organization, or for the purpose of becoming a candidate for office with the understanding that he will resign his position if nominated or elected.

not in any case occupying a substantial portion of his time and not affording his principal means of livelihood, is subject to the limitations against political activity while in active-duty status, and not otherwise. Such an employee may be listed as a candidate for a public elective office provided that he does not engage in political activity on any day on which he performs duty as a bank employee. The period of active duty embraces the whole period of status as a paid employee, rather than just the working hours of the day.

§ 6.8 Penalties for violation.

An employee found to have violated the limitations against political activity shall be immediately removed from the position held by him and shall not be reemployed in any position in a Farm Credit bank, but if the farm credit board of the district determines by unanimous vote that the violation does not warrant such removal it may impose a lesser penalty, but the penalty so imposed shall not be less than a 90-day suspension without pay.

§ 6.9 Further application of limitations.

If there is uncertainty as to whether proposed activities by an employee would violate the limitations against political activity, a complete statement of the matter should be presented in writing to the Deputy Governor, Farm Credit Administration, Washington 25, D.C., for a ruling before the employee engages in the activities.

§ 6.10 District board action.

The action taken by the farm credit board in each district to provide limitations against political activity under these rules and regulations, and any changes therein, shall be reported to the Farm Credit Administration. In the case of the Central Bank for Cooperatives, any corresponding action shall be by its board of directors.

Under section 6(a)(1) of the Farm Credit Act of 1937, as amended by section 201(b) of the Farm Credit Act of 1959, effective January 1, 1960, appointments and separations of officers and employees in the Federal land banks, Federal intermediate credit banks, and banks for cooperatives (sometimes referred to in this part as "Farm Credit banks" or simply "banks") shall be consistent with the laws under which such banks are organized and operate; shall be based on merit and efficiency; and shall be subject to veterans' preference to be provided for by each district farm credit board under rules and regulations prescribed by the Farm Credit Administration. § 7.2

Persons entitled.

The following, upon establishing their status as such to the satisfaction of the employing bank, are entitled to the veterans' preference to be provided for under these rules and regulations:

(a) Veterans. Honorably separated veterans who served on active duty in the armed forces of the United States during any war, or during the period April 28, 1952, through July 1, 1955, or in any campaign or expedition for which a campaign badge or service medal has been authorized.

(b) Disabled veterans. An honorably separated veteran who served on active duty in the armed forces at any time, and who (1) has a service-connected disability or (2) is receiving compensation, disability retirement benefits, or pension under laws administered by the Veterans Administration, Army, Navy, Air Force, Coast Guard, or Public Health Service. A veteran who has been awarded the Purple Heart for wounds received in action is considered to have a serviceconnected disability.

(c) Wives of disabled veterans. The wife of a veteran whose service-connected disability disqualifies him for appointment to positions along the general line of his usual occupation.

(d) Widows of veterans. Until she remarries, the widow of an honorably separated veteran who served on active duty during any war, or during the period

April 28, 1952, through July 1, 1955, or in a campaign or expedition for which a campaign badge or service medal was authorized. This includes the widow of a man who died in service, unless the circumstances surrounding his death would have been cause for other than honorable separation.

(e) Mothers of veterans. The mother of a veteran who lost his life under honorable conditions while on active duty in a war or in a campaign or expedition for which a campaign badge or service medal has been authorized, or during the period April 28, 1952, through July 1, 1955, or who became permanently and totally disabled because of a serviceconnected disability, provided that she is widowed, divorced, or separated from the father of the veteran, or the father is permanently and totally disabled. An otherwise eligible mother who has remarried may be granted preference only if, with reference to the subsequent marriage, her husband is permanently and totally disabled, or she is divorced or legally separated, or she has been widowed.

§ 7.3 Preference in appointments.

(a) Applicability. Subject to the procedural modifications contained in paragraph (g) (1) of this section, the provisions of this section respecting the examination, rating, and selection for appointment of applicants are required to be followed whenever a qualified person entitled to veterans' preference under 7.2 applies for employment by a Farm Credit bank or by two or more such banks jointly.

The

(b) Handling of applications. handling of applications for employment in positions covered by this section shall be uniform. Incomplete applications and applications for positions in which there is no vacancy and to which it is not expected that any appointment will be made in the near future may be returned. If an application is retained but there is no occasion to process it for consideration under paragraph (d) of this section within 12 months after it was received, the application may thereafter be considered inactive.

(c) Qualification standards. The requirements inherent in the duties and responsibilities of each position shall constitute the qualification standards of the position. Whenever a position is being filled and one of the applicants is a person entitled to preference under

tions; (ii) positions paid on a fee basis; and (iii) positions of a confidential or policy-determining character such as the principal officers and any confidential assistants.

(2) Special plans. Any district farm credit board may submit to the Farm Credit Administration a system for making appointments which will result in granting preference to veterans but which does not conform to all of the procedural requirements set forth in this section, but no such system may be put into effect until it has received the prior approval of the Administration.

§ 7.4 Reductions in force.

When a reduction in personnel is to be made in any type and level of work, due to lack of work, shortage of funds, reorganization, or exercise of reemployment rights, and an employee entitled to veterans' preference under § 7.2 is among the competing employees, any preference employees whose performance is satisfactory may not be separated unless or until all nonpreference employees in the same type and level of work and with the same type of appointment are separated, but employees with temporary appointments for one year or less, or who have not completed their probationary period, may be separated without regard to the regulations in this section. Between preference employees with the same type of appointment and whose performance is equally satisfactory, the employee with least service in the banks, including active military service in the armed forces of the United States, shall be separated before an employee who has more such service. Only in unusual cases where the preference just indicated for reductions in force would cause undue interruptions in the activity involved may there be a variance from such preference. In any such case, the variance should be substantiated in writing, with a copy thereof to be given any employee whose preference is denied upon his so requesting.

§ 7.5 Discharge, suspension, etc., only

for cause.

For the purposes of this section, employees during their first year of current continuous service, employees appointed for periods specifically limited to one year or less, and employees whose annuity under the Civil Service Retirement Act was continued upon reemployment on or after October 1, 1956, shall

not be deemed to be permanent or indefinite preference eligibles. No permanent or indefinite preference eligible shall be discharged, suspended for more than 30 days, furloughed without pay, reduced in rank or compensation, except as provided in the preceding section, or for such cause as will promote the efficiency of the service and for reasons given in writing, and the person whose discharge, suspension for more than 30 days, furlough without pay, or reduction in rank or compensation is sought shall have at least 30 days advance written notice (except where there is a reasonable cause to believe the employee to be guilty of a crime for which a sentence of imprisonment can be imposed), stating any and all reasons, specifically and in detail, for any such proposed action. Such preference eligible shall be allowed 10 days for answering the same personally and in writing, and for furnishing affidavits in support of such answer, and from an adverse decision thereon shall have the right to appeal locally as provided in the next sentence. Such appeal shall be made in writing within 10 days after receipt of notice of such adverse decision and shall be made to the farm credit board of the district unless the board shall have designated the general agent or a senior officer not connected with the employing bank to hear such appeals locally. On such local appeal, the matter shall be reviewed with the preference eligible and the appropriate bank officers and such recommendation shall be made (or conclusion reached in the case of the board) as is deemed advisable. The preference eligible shall be notified in writing of the action taken as a result of the local appeal. If this does not conclude the matter satisfactorily, such preference eligible, may, within 30 days after receiving notice of the action on the local appeal, further appeal in writing to the Deputy Governor, Farm Credit Administration, Washington 25, D.C. Such preference eligible shall have the right to make a personal appearance, or an appearance through a designated representative, as may be arranged with the Deputy Governor. After investigation and consideration of the evidence submitted, the Deputy Governor shall submit his decision to the bank and shall send copies of the same to the appellant or to his designated representative. Such decision of the Deputy Governor shall be final and binding upon all parties

§ 7.2, the qualification standards shall be decided upon before the applicants are rated. Information concerning the standards for any position shall be furnished upon request. The qualification standards effective for each position shall be applied uniformly to all applicants for such position. Under the standards established, it may be provided that certain factors will disqualify applicants for employment. These may include, among others, the following: (1) Dismissal from employment for delinquency or misconduct; (2) criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct; (3) intentional false statements as to any material fact, or deception or fraud in connection with an application; (4) habitual use of intoxicating beverages to excess; (5) reasonable doubt as to the loyalty of the person involved to the Government of the United States; (6) any legal disqualification for appointment; and (7) lack of United States citizenship.

(d) Rating. (1) The qualifications of all applicants for a position may be evaluated at any time prior to appointment being made to such position. Numerical ratings shall be assigned on a scale of 100 and all applicants rated 70 or more shall be eligible for appointment. In the case of persons rated 70 or more who are entitled to veterans' preference under § 7.2, 5 points shall be added if such persons are within paragraph (a) of § 7.2 and 10 points shall be added if such persons are within paragraph (b) (c), (d), or (e) of § 7.2. No numerical ratings need be assigned whenever all qualified applicants will be offered immediate employment. Whenever there is an excessive number of applicants, only a suf ficient number of the highest qualified applicants to meet the anticipated needs within a reasonable time need be given numerical ratings; in such cases procedures shall be followed which will insure consideration of all preference applicants in the order in which they would have been considered if all applicants had been assigned numerical ratings.

(2) For the positions of elevator operator, messenger, guard, and custodian, the application of a nonpreference applicant shall not be rated or given consideration unless there are no active applications on hand from qualified persons entitled to preference.

(3) Whenever experience is a factor in determining eligibility, an applicant

entitled to 5-point or 10-point preference shall be credited with time spent in the military or naval service of the United States when the position for which he is applying is similar to that he held immediately prior to his entrance into the military or naval service; credit shall also be given such applicant for all valuable experience, including experience gained in religious, civic, welfare, service, and organizational activities, regardless of whether any compensation was received therefor.

(e) Employment list. All applicants assigned eligible numerical ratings shall have their names entered on an employment list in accordance with their ratings, except that the names of applicants entitled to a 5- or 10-point preference shall be entered on such list in accordance with their respective augmented ratings, and the name of a preference applicant shall be entered ahead of all others having the same rating. An employment list may be considered inactive if and when no appointment has been made from it within 12 months and it is not expected that any appointment will be made from it in the near future.

(f) Selection and appointment—(1) Order of consideration. The names of all applicants on the employment list for a given position shall be considered in the order in which their names appear thereon but every effort shall be made to utilize a person entitled to veterans' preference before a nonpreference applicant is appointed.

(2) Passing over a preference applicant. Whenever in making a selection of a nonpreference applicant, the name of a preference applicant who is entitled to prior consideration in the order that his name appears on the employment list is passed over, the reasons for so doing shall be recorded in writing. A copy of such reasons shall upon request be sent to the preference applicant or his designated representative. When in making appointments to a position, the name of a preference applicant has been passed over on three occasions and the reasons for so doing have been recorded, consideration of his name for such position may thereafter be discontinued.

(g) General provisions-(1) Procedural modifications. In view of the circumstances and conditions surrounding employment in the following classes of positions, the appointment procedures in this section need not be followed as to such positions: (i) Intermittent posi