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Can you summarize NDAC Chapter 13-02-21?
Banking and Savings and Loan Associations > Disclosure of Customer Information by Financial Institutions
Short Summary
The provided legal document governs the disclosure of customer information by financial institutions. It applies to financial institutions that have not received a customer’s express consent or opt-in election. The document outlines various circumstances under which customer information can be disclosed to third parties, including transactions requested or authorized by the customer, servicing or processing of financial products or services, securitization or secondary market sales, protection of confidentiality or security, fraud prevention, risk control, resolving disputes or inquiries, and more. The document also permits disclosure to certain individuals or entities with legal or beneficial interests, fiduciaries or representatives, insurance rate advisory organizations, regulatory agencies, and for compliance with applicable laws and regulations. The document emphasizes compliance with federal and state laws, as well as the Right to Financial Privacy Act of 1978. It also allows financial institutions to disclose necessary customer information even if the customer has advised against it. A financial institution may not disclose customer information to a nonaffiliated third party under a ‘joint marketing agreement’ as defined by the federal Financial Services Modernization Act of 1999 unless the financial institution has first obtained its customer’s written consent for the disclosure. However, a customer’s written consent is not required for marketing undertaken by a financial institution on its own behalf or in conjunction with a nonaffiliated party where the financial institution does not share customer information with a nonaffiliated party. A financial institution that has received a customer’s ‘opt-in’ election after notifying the customer of its information sharing practices and policies as required by the federal Financial Services Modernization Act of 1999 has obtained the customer’s direction to share customer information in accordance with and as limited by the customer’s opt-in election. This section does not limit the means by which a financial institution may obtain a customer’s direction to share customer information with a third party.
Whom does it apply to?
Financial institutions that have not received a customer's express consent or opt-in election
What does it govern?
Disclosure of customer information by financial institutions
What are exemptions?
No specific exemptions are mentioned in these documents.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
North Dakota