[Title 17 CFR 142]
[Code of Federal Regulations (annual edition) - April 1, 2003 Edition]
[Title 17 - COMMODITY AND SECURITIES EXCHANGES]
[Chapter I - COMMODITY FUTURES TRADING COMMISSION]
[Part 142 - INDEMNIFICATION OF CFTC EMPLOYEES]
[From the U.S. Government Printing Office]
17COMMODITY AND SECURITIES EXCHANGES12003-04-012003-04-01falseINDEMNIFICATION OF CFTC EMPLOYEES142PART 142COMMODITY AND SECURITIES EXCHANGESCOMMODITY FUTURES TRADING COMMISSION
PART 142--INDEMNIFICATION OF CFTC EMPLOYEES--Table of Contents
Sec.
142.1 Purpose and scope.
142.2 Policy.
Authority: 7 U.S.C. 4a(j).
Source: 54 FR 25234, June 14, 1989, unless otherwise noted.
Sec. 142.1 Purpose and scope.
This part sets forth the policy and procedure with respect to the
indemnification of Commission employees who are sued in their individual
capacities and suffer an adverse judgment as a result of conduct taken
within the scope of employment. (For purposes of this part the term
Commission employees includes all present and former Commissioners and
employees of the Commission). This part is intended to provide
indemnification for adverse judgments for constitutional and federal
statutory torts excepted from the Federal Tort Claims Act exclusive
remedy provision 28 U.S.C. 2679(b) (as amended by the Federal Employees
Liability Reform and Tort Compensation Act of 1988 (Pub. L. 100-694)).
In any lawsuit which is filed against the employee alleging a common law
tort occurring within the scope of employment, the United States may be
substituted for the individual employee and any liability which may be
found will be assessed against the government, pursuant to the Federal
Employees Liability Reform and Tort Compensation Act of 1988.
Sec. 142.2 Policy.
(a) The Commission may indemnify its employees by the payment of
available funds, in whole, or in part, for any verdict, judgment or
other monetary award which is rendered against any employee, provided
that the conduct giving rise to the verdict, judgment or award was taken
within the scope of his or her employment with the Commission and that
such indemnification is in the interest of the United States, as
determined by the Commission.
(b) The Commission may settle or compromise a personal damage claim
against its employee by the payment of available funds, at any time,
provided the alleged conduct giving rise to the personal damage claim
was taken within the scope of employment and that such settlement is in
the interest of the United States as determined by the Commission in its
discretion.
(c) Absent exceptional circumstances, as determined by the
Commission, the Commission will not entertain a request either to agree
to indemnify or to settle a personal damage claim before entry of an
adverse verdict, judgment or monetary award.
(d) When an employee of the Commission becomes aware that an action
may be or has been filed against the employee in his or her individual
capacity as a result of conduct taken within the scope of his or her
employment, the employee should immediately notify the Commission's
Office of General Counsel that such an action is pending or threatened.
(e) The employee may thereafter request either (1) indemnification
to satisfy a verdict, judgment or award entered against the employee or
(2) payment to satisfy the requirements of a settlement proposal. The
employee shall submit a written request, with documentation including
copies of the verdict, judgment, award or settlement proposal, as
appropriate, to the head of his or her division or office, who thereupon
shall submit to the General Counsel, in a timely manner, a recommended
disposition of the request. The General Counsel shall also seek the
views of the Department of Justice. The General Counsel shall forward
the request, the division or office's recommendation and the General
Counsel's recommendation to the Commission for decision.
(f) Any payment under this section either to indemnify a Commodity
Futures Trading Commission employee or to settle a personal damage claim
shall be contingent upon the availability of appropriated funds of the
Commodity Futures Trading Commission.
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