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§ 3413. —  Exceptions.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC3413]

 
                       TITLE 12--BANKS AND BANKING
 
                 CHAPTER 35--RIGHT TO FINANCIAL PRIVACY
 
Sec. 3413. Exceptions


(a) Disclosure of financial records not identified with particular 
        customers

    Nothing in this chapter prohibits the disclosure of any financial 
records or information which is not identified with or identifiable as 
being derived from the financial records of a particular customer.

(b) Disclosure to, or examination by, supervisory agency pursuant to 
        exercise of supervisory, regulatory, or monetary functions with 
        respect to financial institutions, holding companies, 
        subsidiaries, institution-affiliated parties, or other persons

    This chapter shall not apply to the examination by or disclosure to 
any supervisory agency of financial records or information in the 
exercise of its supervisory, regulatory, or monetary functions, 
including conservatorship or receivership functions, with respect to any 
financial institution, holding company, subsidiary of a financial 
institution or holding company, institution-affiliated party (within the 
meaning of section 1813(u) of this title) with respect to a financial 
institution, holding company, or subsidiary, or other person 
participating in the conduct of the affairs thereof.

(c) Disclosure pursuant to title 26

    Nothing in this chapter prohibits the disclosure of financial 
records in accordance with procedures authorized by title 26.

(d) Disclosure pursuant to Federal statute or rule promulgated 
        thereunder

    Nothing in this chapter shall authorize the withholding of financial 
records or information required to be reported in accordance with any 
Federal statute or rule promulgated thereunder.

(e) Disclosure pursuant to Federal Rules of Criminal Procedure or 
        comparable rules of other courts

    Nothing in this chapter shall apply when financial records are 
sought by a Government authority under the Federal Rules of Civil or 
Criminal Procedure or comparable rules of other courts in connection 
with litigation to which the Government authority and the customer are 
parties.

(f) Disclosure pursuant to administrative subpena issued by 
        administrative law judge

    Nothing in this chapter shall apply when financial records are 
sought by a Government authority pursuant to an administrative subpena 
issued by an administrative law judge in an adjudicatory proceeding 
subject to section 554 of title 5 and to which the Government authority 
and the customer are parties.

(g) Disclosure pursuant to legitimate law enforcement inquiry respecting 
        name, address, account number, and type of account of particular 
        customers

    The notice requirements of this chapter and sections 3410 and 3412 
of this title shall not apply when a Government authority by a means 
described in section 3402 of this title and for a legitimate law 
enforcement inquiry is seeking only the name, address, account number, 
and type of account of any customer or ascertainable group of customers 
associated (1) with a financial transaction or class of financial 
transactions, or (2) with a foreign country or subdivision thereof in 
the case of a Government authority exercising financial controls over 
foreign accounts in the United States under section 5(b) of the Trading 
with the Enemy Act [12 U.S.C. 95a, 50 App. U.S.C. 5(b)]; the 
International Emergency Economic Powers Act (title II, Public Law 95-
223) [50 U.S.C. 1701 et seq.]; or section 287c of title 22.

(h) Disclosure pursuant to lawful proceeding, investigation, etc., 
        directed at financial institution or legal entity or 
        consideration or administration respecting Government loans, 
        loan guarantees, etc.

    (1) Nothing in this chapter (except sections 3403, 3417 and 3418 of 
this title) shall apply when financial records are sought by a 
Government authority--
        (A) in connection with a lawful proceeding, investigation, 
    examination, or inspection directed at a financial institution 
    (whether or not such proceeding, investigation, examination, or 
    inspection is also directed at a customer) or at a legal entity 
    which is not a customer; or
        (B) in connection with the authority's consideration or 
    administration of assistance to the customer in the form of a 
    Government loan, loan guaranty, or loan insurance program.

    (2) When financial records are sought pursuant to this subsection, 
the Government authority shall submit to the financial institution the 
certificate required by section 3403(b) of this title. For access 
pursuant to paragraph (1)(B), no further certification shall be required 
for subsequent access by the certifying Government authority during the 
term of the loan, loan guaranty, or loan insurance agreement.
    (3) After the effective date of this chapter, whenever a customer 
applies for participation in a Government loan, loan guaranty, or loan 
insurance program, the Government authority administering such program 
shall give the customer written notice of the authority's access rights 
under this subsection. No further notification shall be required for 
subsequent access by that authority during the term of the loan, loan 
guaranty, or loan insurance agreement.
    (4) Financial records obtained pursuant to this subsection may be 
used only for the purpose for which they were originally obtained, and 
may be transferred to another agency or department only when the 
transfer is to facilitate a lawful proceeding, investigation, 
examination, or inspection directed at a financial institution (whether 
or not such proceeding, investigation, examination, or inspection is 
also directed at a customer), or at a legal entity which is not a 
customer, except that--
        (A) nothing in this paragraph prohibits the use or transfer of a 
    customer's financial records needed by counsel representing a 
    Government authority in a civil action arising from a Government 
    loan, loan guaranty, or loan insurance agreement; and
        (B) nothing in this paragraph prohibits a Government authority 
    providing assistance to a customer in the form of a loan, loan 
    guaranty, or loan insurance agreement from using or transferring 
    financial records necessary to process, service or foreclose a loan, 
    or to collect on an indebtedness to the Government resulting from a 
    customer's default.

    (5) Notification that financial records obtained pursuant to this 
subsection may relate to a potential civil, criminal, or regulatory 
violation by a customer may be given to an agency or department with 
jurisdiction over that violation, and such agency or department may then 
seek access to the records pursuant to the provisions of this chapter.
    (6) Each financial institution shall keep a notation of each 
disclosure made pursuant to paragraph (1)(B) of this subsection, 
including the date of such disclosure and the Government authority to 
which it was made. The customer shall be entitled to inspect this 
information.

(i) Disclosure pursuant to issuance of subpena or court order respecting 
        grand jury proceeding

    Nothing in this chapter (except sections 3415 and 3420 of this 
title) shall apply to any subpena or court order issued in connection 
with proceedings before a grand jury, except that a court shall have 
authority to order a financial institution, on which a grand jury 
subpoena for customer records has been served, not to notify the 
customer of the existence of the subpoena or information that has been 
furnished to the grand jury, under the circumstances and for the period 
specified and pursuant to the procedures established in section 3409 of 
this title.

(j) Disclosure pursuant to proceeding, investigation, etc., instituted 
        by General Accounting Office and directed at a government 
        authority

    This chapter shall not apply when financial records are sought by 
the General Accounting Office pursuant to an authorized proceeding, 
investigation, examination or audit directed at a government authority.

(k) Disclosure necessary for proper administration of programs of 
        withholding taxes on nonresident aliens, Federal Old-Age, 
        Survivors, and Disability Insurance Benefits, and Railroad 
        Retirement Act Benefits

    (1) Nothing in this chapter shall apply to the disclosure by the 
financial institution of the name and address of any customer to the 
Department of the Treasury, the Social Security Administration, or the 
Railroad Retirement Board, where the disclosure of such information is 
necessary to, and such information is used solely for the purpose of, 
the proper administration of section 1441 of title 26, title II of the 
Social Security Act [42 U.S.C. 401 et seq.], or the Railroad Retirement 
Act of 1974 [45 U.S.C. 231 et seq.].
    (2) Notwithstanding any other provision of law, any request 
authorized by paragraph (1) (and the information contained therein) may 
be used by the financial institution or its agents solely for the 
purpose of providing the customer's name and address to the Department 
of the Treasury, the Social Security Administration, or the Railroad 
Retirement Board and shall be barred from redisclosure by the financial 
institution or its agents.

(l) Crimes against financial institutions by insiders

    Nothing in this chapter shall apply when any financial institution 
or supervisory agency provides any financial record of any officer, 
director, employee, or controlling shareholder (within the meaning of 
subparagraph (A) or (B) of section 1841(a)(2) of this title or 
subparagraph (A) or (B) of section 1730a(a)(2) of this title) of such 
institution, or of any major borrower from such institution who there is 
reason to believe may be acting in concert with any such officer, 
director, employee, or controlling shareholder, to the Attorney General 
of the United States, to a State law enforcement agency, or, in the case 
of a possible violation of subchapter II of chapter 53 of title 31, to 
the Secretary of the Treasury if there is reason to believe that such 
record is relevant to a possible violation by such person of--
        (1) any law relating to crimes against financial institutions or 
    supervisory agencies by directors, officers, employees, or 
    controlling shareholders of, or by borrowers from, financial 
    institutions; or
        (2) any provision of subchapter II of chapter 53 of title 31 or 
    of section 1956 or 1957 of title 18.

No supervisory agency which transfers any such record under this 
subsection shall be deemed to have waived any privilege applicable to 
that record under law.

(m) Disclosure to, or examination by, employees or agents of Board of 
        Governors of Federal Reserve System or Federal Reserve Bank

    This chapter shall not apply to the examination by or disclosure to 
employees or agents of the Board of Governors of the Federal Reserve 
System or any Federal Reserve Bank of financial records or information 
in the exercise of the Federal Reserve System's authority to extend 
credit to the financial institutions or others.

(n) Disclosure to, or examination by, Resolution Trust Corporation or 
        its employees or agents

    This chapter shall not apply to the examination by or disclosure to 
the Resolution Trust Corporation or its employees or agents of financial 
records or information in the exercise of its conservatorship, 
receivership, or liquidation functions with respect to a financial 
institution.

(o) Disclosure to, or examination by, Federal Housing Finance Board or 
        Federal home loan banks

    This chapter shall not apply to the examination by or disclosure to 
the Federal Housing Finance Board or any of the Federal home loan banks 
of financial records or information in the exercise of the Federal 
Housing Finance Board's authority to extend credit (either directly or 
through a Federal home loan bank) to financial institutions or others.

(p) Access to information necessary for administration of certain 
        veteran benefits laws

    (1) Nothing in this chapter shall apply to the disclosure by the 
financial institution of the name and address of any customer to the 
Department of Veterans Affairs where the disclosure of such information 
is necessary to, and such information is used solely for the purposes 
of, the proper administration of benefits programs under laws 
administered by the Secretary.
    (2) Notwithstanding any other provision of law, any request 
authorized by paragraph (1) (and the information contained therein) may 
be used by the financial institution or its agents solely for the 
purpose of providing the customer's name and address to the Department 
of Veterans Affairs and shall be barred from redisclosure by the 
financial institution or its agents.

(q) Disclosure pursuant to Federal contractor-issued travel charge card

    Nothing in this chapter shall apply to the disclosure of any 
financial record or information to a Government authority in conjunction 
with a Federal contractor-issued travel charge card issued for official 
Government travel.

(Pub. L. 95-630, title XI, Sec. 1113, Nov. 10, 1978, 92 Stat. 3706; Pub. 
L. 98-21, title I, Sec. 121(c)(3)(C), Apr. 20, 1983, 97 Stat. 83; Pub. 
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99-570, title 
I, Sec. 1353(b), Oct. 27, 1986, 100 Stat. 3207-22; Pub. L. 100-690, 
title VI, Sec. 6186(c), Nov. 18, 1988, 102 Stat. 4358; Pub. L. 101-73, 
title IX, Sec. 942, Aug. 9, 1989, 103 Stat. 497; Pub. L. 101-647, title 
I, Sec. 104, Nov. 29, 1990, 104 Stat. 4791; Pub. L. 102-242, title IV, 
Sec. 411(2)-(4), Dec. 19, 1991, 105 Stat. 2375; Pub. L. 102-568, title 
VI, Sec. 603(a), Oct. 29, 1992, 106 Stat. 4342; Pub. L. 105-264, 
Sec. 2(c)(1), Oct. 19, 1998, 112 Stat. 2351.)

                       References in Text

    The Federal Rules of Civil Procedure, referred to in subsec. (e), 
are set out in the Appendix to Title 28, Judiciary and Judicial 
Procedure.
    The Federal Rules of Criminal Procedure, referred to in subsec. (e), 
are set out in the Appendix to Title 18, Crimes and Criminal Procedure.
    The International Emergency Economic Powers Act, referred to in 
subsec. (g), is title II of Pub. L. 95-223, Dec. 28, 1977, 91 Stat. 
1626, which is classified generally to chapter 35 (Sec. 1701 et seq.) of 
Title 50, War and National Defense. For complete classification of this 
Act to the Code, see Short Title note set out under section 1701 of 
Title 50 and Tables.
    The effective date of this chapter, referred to in subsec. (h)(3), 
is the date upon the expiration of 120 days after Nov. 10, 1978. See 
section 2101 of Pub. L. 95-630, set out as an Effective Date note under 
section 375b of this title.
    The Social Security Act, referred to in subsec. (k)(1), is act Aug. 
14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of such Act is 
classified generally to subchapter II (Sec. 401 et seq.) of chapter 7 of 
Title 42, The Public Health and Welfare. For complete classification of 
this Act to the Code, see section 1305 of Title 42 and Tables.
    The Railroad Retirement Act of 1974, referred to in subsec. (k)(1), 
is act Aug. 29, 1935, ch. 812, as amended, generally by Pub. L. 93-445, 
title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305, which is classified 
generally to subchapter IV (Sec. 231 et seq.) of chapter 9 of Title 45, 
Railroads. For further details and complete classification of this Act 
to the Code, see Codification note set out preceding section 231 of 
Title 45, section 231t of Title 45, and Tables.


                               Amendments

    1998--Subsec. (q). Pub. L. 105-264 added subsec. (q).
    1992--Subsec. (p). Pub. L. 102-586 added subsec. (p).
    1991--Subsec. (h)(1)(A), (4). Pub. L. 102-242, Sec. 411(2), (3), 
substituted ``a financial institution (whether or not such proceeding, 
investigation, examination, or inspection is also directed at a 
customer)'' for ``the financial institution in possession of such 
records''.
    Subsec. (l). Pub. L. 102-242, Sec. 411(4), inserted at end ``No 
supervisory agency which transfers any such record under this subsection 
shall be deemed to have waived any privilege applicable to that record 
under law.''
    1990--Subsec. (l)(2). Pub. L. 101-647 inserted before period at end 
``or of section 1956 or 1957 of title 18''.
    1989--Subsec. (b). Pub. L. 101-73, Sec. 942(1), amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``Nothing in 
this chapter prohibits examination by or disclosure to any supervisory 
agency of financial records or information in the exercise of its 
supervisory, regulatory, or monetary functions with respect to a 
financial institution.''
    Subsecs. (m) to (o). Pub. L. 101-73, Sec. 942(2), added subsecs. (m) 
to (o).
    1988--Subsec. (l). Pub. L. 100-690 added subsec. (l).
    1986--Subsec. (c). Pub. L. 99-514 substituted ``Internal Revenue 
Code of 1986'' for ``Internal Revenue Code of 1954'', which for purposes 
of codification was translated as ``title 26'' thus requiring no change 
in text.
    Subsec. (i). Pub. L. 99-570 inserted ``, except that a court shall 
have authority to order a financial institution, on which a grand jury 
subpoena for customer records has been served, not to notify the 
customer of the existence of the subpoena or information that has been 
furnished to the grand jury, under the circumstances and for the period 
specified and pursuant to the procedures established in section 3409 of 
this title''.
    Subsec. (k)(1). Pub. L. 99-514 substituted ``Internal Revenue Code 
of 1986'' for ``Internal Revenue Code of 1954'', which for purposes of 
codification was translated as ``title 26'' thus requiring no change in 
text.
    1983--Subsec. (k). Pub. L. 98-21 added subsec. (k).


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-264 effective Oct. 1, 1983, and applicable 
to any records created pursuant to United States Travel and 
Transportation Payment and Expense Control System or any Federal 
contractor-issued travel charge card issued for official Government 
travel, see section 2(c)(2) of Pub. L. 105-264, set out as a Requiring 
Use of Travel Charge Card note under section 5701 of Title 5, Government 
Organization and Employees.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 98-21 applicable to benefits received after 
Dec. 31, 1983, in taxable years ending after such date, except for any 
portion of a lump-sum payment of social security benefits received after 
Dec. 31, 1983, if the generally applicable payment date for such portion 
was before Jan. 1, 1984, see section 121(g) of Pub. L. 98-21, set out as 
an Effective Date note under section 86 of Title 26, Internal Revenue 
Code.

                  Section Referred to in Other Sections

    This section is referred to in sections 3402, 3415 of this title; 
title 38 section 5319; title 42 section 652.



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