Gramm-Leach-Bliley
Act
15 USC, Subchapter I, Sec. 6801-6809
Disclosure of Nonpublic Personal Information
Sec. |
|
6801. |
Protection
of nonpublic personal information. |
|
(a) Privacy obligation
policy.
(b) Financial institutions safeguards.
|
6802. |
Obligations
with respect to disclosures of personal information. |
|
(a) Notice requirements.
(b) Opt out.
(c) Limits on reuse of information.
(d) Limitations on the sharing of account number information
for marketing purposes.
(e) General exceptions.
|
6803. |
Disclosure
of institution privacy policy. |
|
(a) Disclosure required.
(b) Information to be included.
|
6804. |
Rulemaking. |
|
(a) Regulatory authority.
(b) Authority to grant exceptions.
|
6805. |
Enforcement. |
|
(a) In general.
(b) Enforcement of section 6801.
(c) Absence of State action.
(d) Definitions.
|
6806. |
Relation
to other provisions. |
6807. |
Relation
to State laws. |
|
(a) In general.
(b) Greater protection under State law.
|
6808. |
Study
of information sharing among financial affiliates. |
|
(a) In general.
(b) Consultation.
(c) Report.
|
6809. |
Definitions. |
Sec. 6801.
Protection of nonpublic personal information
(a) Privacy obligation policy
It is the policy of the Congress
that each financial institution has an affirmative and continuing
obligation to respect the privacy of its customers and to protect
the security and confidentiality of those customers' nonpublic
personal information.
(b) Financial institutions safeguards
In furtherance of the policy in
subsection (a) of this section, each agency or authority described
in section 6805(a) of this title shall establish appropriate
standards for the financial institutions subject to their jurisdiction
relating to administrative, technical, and physical safeguards
-
(1) to insure the security and
confidentiality of customer records and information;
(2) to protect against any anticipated
threats or hazards to the security or integrity of such records;
and
(3) to protect against unauthorized
access to or use of such records or information which could
result in substantial harm or inconvenience to any customer.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections
6803, 6805 of this title.
NOTE: Pub.
L. 106-102, title V, Sec. 510, Nov. 12, 1999, 113 Stat. 1445,
provided that: ''This subtitle (subtitle A (Sec. 501-510) of
title V of Pub. L. 106-102, enacting this subchapter and amending
section 1681s of this title) shall take effect 6 months after
the date on which rules are required to be prescribed under
section 504(a)(3) (15 U.S.C. 6804(a)(3)), except -
''(1) to the extent that a later
date is specified in the rules prescribed under section 504;
and
''(2) that sections 504 (15 U.S.C.
6804) and 506 (enacting section 6806 of this title and amending
section 1681s of this title) shall be effective upon enactment
(Nov. 12, 1999).''
Sec. 6802.
Obligations with respect to disclosures of personal information
(a) Notice requirements
Except as otherwise provided in
this subchapter, a financial institution may not, directly
or through any affiliate, disclose to a nonaffiliated third
party any nonpublic personal information, unless such financial
institution provides or has provided to the consumer a notice
that complies with section 6803 of this title.
(b) Opt out
(1) In general
A financial institution may not
disclose nonpublic personal information to a nonaffiliated
third party unless -
(A) such financial institution
clearly and conspicuously discloses to the consumer, in
writing or in electronic form or other form permitted by
the regulations prescribed under section 6804 of this title,
that such information may be disclosed to such third party;
(B) the consumer is given the
opportunity, before the time that such information is initially
disclosed, to direct that such information not be disclosed
to such third party; and
(C) the consumer is given an
explanation of how the consumer can exercise that nondisclosure
option.
(2) Exception
This subsection shall not prevent
a financial institution from providing nonpublic personal
information to a nonaffiliated third party to perform services
for or functions on behalf of the financial institution,
including marketing of the financial institution's own products
or services, or financial products or services offered pursuant
to joint agreements between two or more financial institutions
that comply with the requirements imposed by the regulations
prescribed under section 6804 of this title, if the financial
institution fully discloses the providing of such information
and enters into a contractual agreement with the third party
that requires the third party to maintain the confidentiality
of such information.
(c) Limits on reuse of information
Except as otherwise provided in
this subchapter, a nonaffiliated third party that receives
from a financial institution nonpublic personal information
under this section shall not, directly or through an affiliate
of such receiving third party, disclose such information to
any other person that is a nonaffiliated third party of both
the financial institution and such receiving third party, unless
such disclosure would be lawful if made directly to such other
person by the financial institution.
(d) Limitations on the sharing of
account number information for marketing purposes
A financial institution shall not
disclose, other than to a consumer reporting agency, an account
number or similar form of access number or access code for
a credit card account, deposit account, or transaction account
of a consumer to any nonaffiliated third party for use in telemarketing,
direct mail marketing, or other marketing through electronic
mail to the consumer.
(e) General exceptions
Subsections (a) and (b) of this
section shall not prohibit the disclosure of nonpublic personal
information -
(1) as necessary to effect, administer,
or enforce a transaction requested or authorized by the consumer,
or in connection with -
(A) servicing or processing
a financial product or service requested or authorized
by the consumer;
(B) maintaining or servicing
the consumer's account with the financial institution,
or with another entity as part of a private label credit
card program or other extension of credit on behalf of
such entity; or
(C) a proposed or actual securitization,
secondary market sale (including sales of servicing rights),
or similar transaction related to a transaction of the
consumer;
(2) with the consent or at the
direction of the consumer;
(3)(A) to protect the confidentiality
or security of the financial institution's records pertaining
to the consumer, the service or product, or the transaction
therein; (B) to protect against or prevent actual or potential
fraud, unauthorized transactions, claims, or other liability;
(C) for required institutional risk control, or for resolving
customer disputes or inquiries; (D) to persons holding a
legal or beneficial interest relating to the consumer; or
(E) to persons acting in a fiduciary or representative capacity
on behalf of the consumer;
(4) to provide information to
insurance rate advisory organizations, guaranty funds or
agencies, applicable rating agencies of the financial institution,
persons assessing the institution's compliance with industry
standards, and the institution's attorneys, accountants,
and auditors;
(5) to the extent specifically
permitted or required under other provisions of law and in
accordance with the Right to Financial Privacy Act of 1978
(12 U.S.C. 3401 et seq.), to law enforcement agencies (including
a Federal functional regulator, the Secretary of the Treasury
with respect to subchapter II of chapter 53 of title 31,
and chapter 2 of title I of Public Law 91-508 (12 U.S.C.
1951-1959), a State insurance authority, or the Federal Trade
Commission), self-regulatory organizations, or for an investigation
on a matter related to public safety;
(6)(A) to a consumer reporting
agency in accordance with the Fair Credit Reporting Act (15
U.S.C. 1681 et seq.), or (B) from a consumer report reported
by a consumer reporting agency;
(7) in connection with a proposed
or actual sale, merger, transfer, or exchange of all or a
portion of a business or operating unit if the disclosure
of nonpublic personal information concerns solely consumers
of such business or unit; or
(8) to comply with Federal, State,
or local laws, rules, and other applicable legal requirements;
to comply with a properly authorized civil, criminal, or
regulatory investigation or subpoena or summons by Federal,
State, or local authorities; or to respond to judicial process
or government regulatory authorities having jurisdiction
over the financial institution for examination, compliance,
or other purposes as authorized by law.
(Pub. L. 106-102, title V, Sec.
502, Nov. 12, 1999, 113 Stat. 1437.)
REFERENCES IN TEXT
This subchapter, referred to in
subsecs. (a) and (c), was in the original ''this subtitle'',
meaning subtitle A (Sec. 501 et seq.) of title V of Pub. L.
106-102, Nov. 12, 1999, 113 Stat. 1436, which enacted this
subchapter and amended section 1681s of this title.
For complete classification of subtitle
A to the Code, see Tables.
The Right to Financial Privacy Act
of 1978, referred to in subsec. (e)(5), is title XI of Pub.
L. 95-630, Nov. 10, 1978, 92 Stat. 3697, as amended, which
is classified generally to chapter 35 (Sec. 3401 et seq.) of
Title 12, Banks and Banking. For complete classification of
this Act to the Code, see Short Title note set out under section
3401 of Title 12 and Tables.
Chapter 2 of title I of Public Law
91-508, referred to in subsec. (e)(5), is chapter 2 (Sec. 121-129)
of title I of Pub. L. 91-508, Oct. 26, 1970, 84 Stat. 1116,
which is classified generally to chapter 21 (Sec. 1951 et seq.)
of Title 12, Banks and Banking. For complete classification
of chapter 2 to the Code, see Tables.
The Fair Credit Reporting Act, referred
to in subsec. (e)(6)(A), is title VI of Pub. L. 90-321, as
added by Pub. L. 91-508, title VI, Sec. 601, Oct. 26, 1970,
84 Stat. 1127, as amended, which is classified generally to
subchapter III (Sec. 1681 et seq.) of chapter 41 of this title.
For complete classification of this Act to the Code, see Short
Title note set out under section 1601 of this title and Tables.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections
6803, 6804, 6809 of this title.
Sec. 6803.
Disclosure of institution privacy policy
(a) Disclosure required
At the time of establishing a customer
relationship with a consumer and not less than annually during
the continuation of such relationship, a financial institution
shall provide a clear and conspicuous disclosure to such consumer,
in writing or in electronic form or other form permitted by
the regulations prescribed under section 6804 of this title,
of such financial institution's policies and practices with
respect to -
(1) disclosing nonpublic personal
information to affiliates and nonaffiliated third parties,
consistent with section 6802 of this title, including the
categories of information that may be disclosed;
(2) disclosing nonpublic personal
information of persons who have ceased to be customers of
the financial institution; and
(3) protecting the nonpublic personal
information of consumers.
Such disclosures shall be made
in accordance with the regulations prescribed under section
6804 of this title.
(b) Information to be included
The disclosure required by subsection
(a) of this section shall include -
(1) the policies and practices
of the institution with respect to disclosing nonpublic personal
information to nonaffiliated third parties, other than agents
of the institution, consistent with section 6802 of this
title, and including -
(A) the categories of persons
to whom the information is or may be disclosed, other than
the persons to whom the information may be provided pursuant
to section 6802(e) of this title; and
(B) the policies and practices
of the institution with respect to disclosing of nonpublic
personal information of persons who have ceased to be customers
of the financial institution;
(2) the categories of nonpublic
personal information that are collected by the financial
institution;
(3) the policies that the institution
maintains to protect the confidentiality and security of
nonpublic personal information in accordance with section
6801 of this title; and
(4) the disclosures required,
if any, under section 1681a(d)(2)(A)(iii) of this title.
(Pub. L. 106-102, title V, Sec.
503, Nov. 12, 1999, 113 Stat. 1439.)
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section
6802 of this title.
Sec. 6804.
Rulemaking
(a) Regulatory authority
(1) Rulemaking
The Federal banking agencies,
the National Credit Union Administration, the Secretary of
the Treasury, the Securities and Exchange Commission, and
the Federal Trade Commission shall each prescribe, after
consultation as appropriate with representatives of State
insurance authorities designated by the National Association
of Insurance Commissioners, such regulations as may
be necessary to carry out the purposes of this subchapter
with respect to the financial institutions subject to their
jurisdiction under section 6805 of this title.
(2) Coordination, consistency,
and comparability
Each of the agencies and authorities
required under paragraph (1) to prescribe regulations shall
consult and coordinate with the other such agencies and authorities
for the purposes of assuring, to the extent possible, that
the regulations prescribed by each such agency and authority
are consistent and comparable with the regulations prescribed
by the other such agencies and authorities.
(3) Procedures and deadline
Such regulations shall be prescribed
in accordance with applicable requirements of title 5 and
shall be issued in final form not later than 6 months after
November 12, 1999.
(b) Authority to grant exceptions
The regulations prescribed under
subsection (a) of this section may include such additional
exceptions to subsections (a) through (d) of section 6802 of
this title as are deemed consistent with the purposes of this
subchapter.
(Pub. L. 106-102, title V, Sec.
504, Nov. 12, 1999, 113 Stat.1439.)
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections
6802, 6803, 6809 of this title.
Sec. 6805.
Enforcement
(a) In general
This subchapter and the regulations
prescribed thereunder shall be enforced by the Federal functional
regulators, the State insurance authorities, and the Federal
Trade Commission with respect to financial institutions and
other persons subject to their jurisdiction under applicable
law, as follows:
(1) Under section 1818 of title
12, in the case of -
(A) national banks, Federal
branches and Federal agencies of foreign banks, and any
subsidiaries of such entities (except brokers, dealers,
persons providing insurance, investment companies, and
investment advisers), by the Office of the Comptroller
of the Currency;
(B) member banks of the Federal
Reserve System (other than national banks), branches and
agencies of foreign banks (other than Federal branches,
Federal agencies, and insured State branches of foreign
banks), commercial lending companies owned or controlled
by foreign banks, organizations operating under section
25 or 25A of the Federal Reserve Act (12 U.S.C. 601 et
seq., 611 et seq.), and bank holding companies and their
nonbank subsidiaries or affiliates (except brokers, dealers,
persons providing insurance, investment companies, and
investment advisers), by the Board of Governors of the
Federal Reserve System;
(C) banks insured by the Federal
Deposit Insurance Corporation (other than members of the
Federal Reserve System), insured State branches of foreign
banks, and any subsidiaries of such entities (except brokers,
dealers, persons providing insurance, investment companies,
and investment advisers), by the Board of Directors of
the Federal Deposit Insurance Corporation; and
(D) savings associations the
deposits of which are insured by the Federal Deposit Insurance
Corporation, and any subsidiaries of such savings associations
(except brokers, dealers, persons providing insurance,
investment companies, and investment advisers), by the
Director of the Office of Thrift Supervision.
(2) Under the Federal Credit Union
Act (12 U.S.C. 1751 et seq.), by the Board of the National
Credit Union Administration with respect to any federally
insured credit union, and any subsidiaries of such an entity.
(3) Under the Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.), by the Securities and
Exchange Commission with respect to any broker or dealer.
(4) Under the Investment Company
Act of 1940 (15 U.S.C. 80a-1 et seq.), by the Securities
and Exchange Commission with respect to investment companies.
(5) Under the Investment Advisers
Act of 1940 (15 U.S.C. 80b-1
et seq.), by the Securities and
Exchange Commission with respect to investment advisers registered
with the Commission under such Act.
(6) Under State insurance law,
in the case of any person engaged in providing insurance,
by the applicable State insurance authority of the State
in which the person is domiciled, subject to section 6701
of this title.
(7) Under the Federal Trade Commission
Act (15 U.S.C. 41 et seq.), by the Federal Trade Commission
for any other financial institution or other person that
is not subject to the jurisdiction of any agency or authority
under paragraphs (1) through (6) of this subsection.
(b) Enforcement of section 6801
(1) In general
Except as provided in paragraph
(2), the agencies and authorities described in subsection
(a) of this section shall implement the standards prescribed
under section 6801(b) of this title in the same manner, to
the extent practicable, as standards prescribed pursuant
to section 1831p-1(a) of title 12 are implemented pursuant
to such section.
(2) Exception
The agencies and authorities described
in paragraphs (3), (4), (5), (6), and (7) of subsection (a)
of this section shall implement the standards prescribed
under section 6801(b) of this title by rule with respect
to the financial institutions and other persons subject to
their respective jurisdictions under subsection (a) of this
section.
(c) Absence of State action
If a State insurance authority fails
to adopt regulations to carry out this subchapter, such State
shall not be eligible to override, pursuant to section 1831x(g)(2)(B)(iii)
of title 12, the insurance customer protection regulations
prescribed by a Federal banking agency under section 1831x(a)
of title 12.
(d) Definitions
The terms used in subsection (a)(1)
of this section that are not defined in this subchapter or
otherwise defined in section 1813(s) of title 12 shall have
the same meaning as given in section 3101 of title 12.
(Pub. L. 106-102, title V, Sec.
505, Nov. 12, 1999, 113 Stat. 1440.)
REFERENCES IN TEXT
Section 25 of the Federal Reserve
Act, referred to in subsec. (a)(1)(B), is classified to subchapter
I (Sec. 601 et seq.) of chapter 6 of Title 12, Banks and Banking.
Section 25A of the Federal Reserve Act is classified to subchapter
II (Sec. 611 et seq.) of chapter 6 of Title 12.
The Federal Credit Union Act, referred
to in subsec. (a)(2), is act June 26, 1934, ch. 750, 48 Stat.
1216, as amended, which is classified generally to chapter
14 (Sec. 1751 et seq.) of Title 12, Banks and Banking. For
complete classification of this Act to the Code, see section
1751 of Title 12 and Tables.
The Securities Exchange Act of 1934,
referred to in subsec. (a)(3), is act June 6, 1934, ch. 404,
48 Stat. 881, as amended, which is classified principally to
chapter 2B (Sec. 78a et seq.) of this title. For complete classification
of this Act to the Code, see section 78a of this title and
Tables.
The Investment Company Act of 1940,
referred to in subsec. (a)(4), is title I of act Aug. 22, 1940,
ch. 686, 54 Stat. 789, as amended, which is classified generally
to subchapter I (Sec. 80a-1 et seq.) of chapter 2D of this
title. For complete classification of this Act to the Code,
see section 80a-51 of this title and Tables.
The Investment Advisers Act of 1940,
referred to in subsec. (a)(5), is title II of act Aug. 22,
1940, ch. 686, 54 Stat. 847, as amended, which is classified
generally to subchapter II (Sec. 80b-1 et seq.) of chapter
2D of this title. For complete classification of this Act to
the Code, see section 80b-20 of this title and Tables.
The Federal Trade Commission Act,
referred to in subsec. (a)(7), is act Sept. 26, 1914, ch. 311,
38 Stat. 717, as amended, which is classified generally to
subchapter I (Sec. 41 et seq.) of chapter 2 of this title.
For complete classification of this Act to the Code, see section
58 of this title and Tables.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections
6801, 6804, 6807 of this title.
Sec. 6806.
Relation to other provisions
Except for the amendments made by
subsections (a) and (b), nothing in this chapter shall be construed
to modify, limit, or supersede the operation of the Fair Credit
Reporting Act (15 U.S.C. 1681 et seq.), and no inference shall
be drawn on the basis of the provisions of this chapter regarding
whether information is transaction or experience information
under section 603 of such Act (15 U.S.C. 1681a).
(Pub. L. 106-102, title V, Sec.
506(c), Nov. 12, 1999, 113 Stat. 1442.)
REFERENCES IN TEXT
Amendments made by subsections (a)
and (b), referred to in text, means amendments made by section
506(a) and (b) of Pub. L. 106-102, which amended section 1681s
of this title.
This chapter, referred to in text,
was in the original ''this title'', meaning title V of Pub.
L. 106-102, Nov. 12, 1999, 113 Stat. 1436, as amended, which
enacted this chapter and amended section 1681s of this title.
For complete classification of title V to the Code, see Tables.
The Fair Credit Reporting Act, referred
to in text, is title VI of Pub. L. 90-321, as added by Pub.
L. 91-508, title VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1127,
as amended, which is classified generally to subchapter III
(Sec. 1681 et seq.) of chapter 41 of this title. For complete
classification of this Act to the Code, see Short Title note
set out under section 1601 of this title and Tables.
Sec. 6807.
Relation to State laws
(a) In general
This subchapter and the amendments
made by this subchapter shall not be construed as superseding,
altering, or affecting any statute, regulation, order, or interpretation
in effect in any State, except to the extent that such statute,
regulation, order, or interpretation is inconsistent with the
provisions of this subchapter, and then only to the extent
of the inconsistency.
(b) Greater protection under State
law
For purposes of this section, a
State statute, regulation, order, or interpretation is not
inconsistent with the provisions of this subchapter if the
protection such statute, regulation, order, or interpretation
affords any person is greater than the protection provided
under this subchapter and the amendments made by this subchapter,
as determined by the Federal Trade Commission, after
consultation with the agency or authority with jurisdiction
under section 6805(a) of this title of either the person that
initiated the complaint or that is the subject of the complaint,
on its own motion or upon the petition of any interested party.
(Pub. L. 106-102, title V, Sec.
507, Nov. 12, 1999, 113 Stat. 1442.)
REFERENCES IN TEXT
This subchapter, referred to in
text, was in the original ''this subtitle'', meaning subtitle
A (Sec. 501-510) of title V of Pub. L. 106-102, Nov. 12, 1999,
113 Stat. 1436, which enacted this subchapter and amended section
1681s of this title. For complete classification of subtitle
A to the Code, see Tables.
Sec. 6808.
Study of information sharing among financial affiliates
(a) In general
The Secretary of the Treasury, in
conjunction with the Federal functional regulators and the
Federal Trade Commission, shall conduct a study of information
sharing practices among financial institutions and their affiliates.
Such study shall include -
(1) the purposes for the sharing
of confidential customer information with affiliates or with
nonaffiliated third parties;
(2) the extent and adequacy of
security protections for such information;
(3) the potential risks for customer
privacy of such sharing of information;
(4) the potential benefits for
financial institutions and affiliates of such sharing of
information;
(5) the potential benefits for
customers of such sharing of information;
(6) the adequacy of existing laws
to protect customer privacy;
(7) the adequacy of financial
institution privacy policy and privacy rights disclosure
under existing law;
(8) the feasibility of different
approaches, including opt-out and opt-in, to permit customers
to direct that confidential information not be shared with
affiliates and nonaffiliated third parties; and
(9) the feasibility of restricting
sharing of information for specific uses or of permitting
customers to direct the uses for which information may be
shared.
(b) Consultation
The Secretary shall consult with
representatives of State insurance authorities designated by
the National Association of Insurance Commissioners, and also
with financial services industry, consumer organizations and
privacy groups, and other representatives of the general public,
in formulating and conducting the study required by subsection
(a) of this section.
(c) Report
On or before January 1, 2002, the
Secretary shall submit a report to the Congress containing
the findings and conclusions of the study required under subsection
(a) of this section, together with such recommendations for
legislative or administrative action as may be appropriate.
(Pub. L. 106-102, title V, Sec.
508, Nov. 12, 1999, 113 Stat.1442.)
Sec. 6809.
Definitions
As used in this subchapter:
(1) Federal banking agency
The term ''Federal banking agency''
has the same meaning as given in section 1813 of title 12.
(2) Federal functional regulator
The term ''Federal functional
regulator'' means -
(A) the Board of Governors of
the Federal Reserve System;
(B) the Office of the Comptroller
of the Currency;
(C) the Board of Directors of
the Federal Deposit Insurance Corporation;
(D) the Director of the Office
of Thrift Supervision;
(E) the National Credit Union
Administration Board; and
(F) the Securities and Exchange
Commission.
(3) Financial institution
(A) In general
The term ''financial institution''
means any institution the business of which is engaging
in financial activities as described in section 1843(k)
of title 12.
(B) Persons subject to CFTC
regulation
Notwithstanding subparagraph
(A), the term ''financial institution'' does not include
any person or entity with respect to any financial activity
that is subject to the jurisdiction of the Commodity Futures
Trading Commission under the Commodity Exchange Act (7
U.S.C. 1 et seq.).
(C) Farm credit institutions
Notwithstanding subparagraph
(A), the term ''financial institution'' does not include
the Federal Agricultural Mortgage Corporation or any entity
chartered and operating under the Farm Credit Act of 1971
(12 U.S.C. 2001 et seq.).
(D) Other secondary market institutions
Notwithstanding subparagraph
(A), the term ''financial institution'' does not include
institutions chartered by Congress specifically to engage
in transactions described in section 6802(e)(1)(C) of this
title, as long as such institutions do not sell or transfer
nonpublic personal information to a nonaffiliated third
party.
(4) Nonpublic personal information
(A) The term ''nonpublic personal
information'' means personally identifiable financial information
-
(i) provided by a consumer
to a financial institution;
(ii) resulting from any transaction
with the consumer or any service performed for the consumer;
or
(iii) otherwise obtained by
the financial institution.
(B) Such term does not include
publicly available information, as such term is defined
by the regulations prescribed under section 6804 of this
title.
(C) Notwithstanding subparagraph
(B), such term -
(i) shall include any list,
description, or other grouping of consumers (and publicly
available information pertaining to them) that is derived
using any nonpublic personal information other than publicly
available information; but
(ii) shall not include any
list, description, or other grouping of consumers (and
publicly available information pertaining to them) that
is derived without using any nonpublic personal information.
(5) Nonaffiliated third party
The term ''nonaffiliated third
party'' means any entity that is not an affiliate of, or
related by common ownership or affiliated by corporate control
with, the financial institution, but does not include a joint
employee of such institution.
(6) Affiliate
The term ''affiliate'' means any
company that controls, is controlled by, or is under common
control with another company.
(7) Necessary to effect, administer,
or enforce
The term ''as necessary to effect,
administer, or enforce the transaction'' means -
(A) the disclosure is required,
or is a usual, appropriate, or acceptable method, to carry
out the transaction or the product or service business
of which the transaction is a part, and record or service
or maintain the consumer's account in the ordinary course
of providing the financial service or financial product,
or to administer or service benefits or claims relating
to the transaction or the product or service business of
which it is a part, and includes -
(i) providing the consumer
or the consumer's agent or broker with a confirmation,
statement, or other record of the transaction, or information
on the status or value of the financial service or financial
product; and
(ii) the accrual or recognition
of incentives or bonuses associated with the transaction
that are provided by the financial institution or any
other party;
(B) the disclosure is required,
or is one of the lawful or appropriate methods, to enforce
the rights of the financial institution or of other persons
engaged in carrying out the financial transaction, or providing
the product or service;
(C) the disclosure is required,
or is a usual, appropriate, or acceptable method, for insurance
underwriting at the consumer's request or for reinsurance
purposes, or for any of the following purposes as they
relate to a consumer's insurance: Account administration,
reporting, investigating, or preventing fraud or material
misrepresentation, processing premium payments, processing
insurance claims, administering insurance benefits (including
utilization review activities), participating in research
projects, or as otherwise required or specifically permitted
by Federal or State law; or
(D) the disclosure is required,
or is a usual, appropriate or acceptable method, in connection
with -
(i) the authorization, settlement,
billing, processing, clearing, transferring, reconciling,
or collection of amounts charged, debited, or otherwise
paid using a debit, credit or other payment card, check,
or account number, or by other payment means;
(ii) the transfer of receivables,
accounts or interests therein; or
(iii) the audit of debit,
credit or other payment information.
(8) State insurance authority
The term ''State insurance authority''
means, in the case of any person engaged in providing insurance,
the State insurance authority of the State in which the person
is domiciled.
(9) Consumer
The term ''consumer'' means an
individual who obtains, from a financial institution, financial
products or services which are to be used primarily for personal,
family, or household purposes, and also means the legal representative
of such an individual.
(10) Joint agreement
The term ''joint agreement'' means
a formal written contract pursuant to which two or more financial
institutions jointly offer, endorse, or sponsor a financial
product or service, and as may be further defined in the
regulations prescribed under section 6804 of this title.
(11) Customer relationship
The term ''time of establishing
a customer relationship'' shall be defined by the regulations
prescribed under section 6804 of this title, and shall, in
the case of a financial institution engaged in extending
credit directly to consumers to finance purchases of goods
or services, mean the time of establishing the credit relationship
with the consumer.
(Pub. L. 106-102, title V, Sec.
509, Nov. 12, 1999, 113 Stat. 1443.)
REFERENCES IN TEXT
The Commodity Exchange Act, referred
to in par. (3)(B), is act Sept. 21, 1922, ch. 369, 42 Stat.
998, as amended, which is classified generally to chapter 1
(Sec. 1 et seq.) of Title 7, Agriculture. For complete classification
of this Act to the Code, see section 1 of Title 7 and Tables.
The Farm Credit Act of 1971, referred
to in par. (3)(C), is Pub. L. 92-181, Dec. 10, 1971, 85 Stat.
583, as amended, which is classified generally to chapter 23
(Sec. 2001 et seq.) of Title 12, Banks and Banking. For complete
classification of this Act to the Code, see Short Title note
set out under section 2001 of Title 12 and Tables.
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