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Can you summarize Tex. Fin. Chapter 31, Subchapter D?
GENERAL PROVISIONS > CONFIDENTIALITY OF INFORMATION
Short Summary
The document governs the confidentiality of information obtained by the banking commissioner or an employee of the department in relation to the financial condition or business affairs of financial institutions, shareholders, officers, directors, affiliates, and third-party service providers. It prohibits the disclosure of such information, except for information in a published statement or in the public portion of a call report or profit and loss statement. Information obtained from a federal or state regulatory agency that is confidential under federal or state law may only be disclosed as provided by federal or state law. Any disclosure or permission to access such information in violation of this document is considered an offense, punishable as a Class A misdemeanor. The banking commissioner may disclose to a state bank information about an affiliate or third-party service provider of the state bank. Confidential information may not be disclosed to a member of the finance commission, and a member of the commission may not be given access to the files and records of the department except that the banking commissioner may disclose to the commission information, files, and records pertinent to a hearing or matter pending before the commission. Confidential information that is provided to a financial institution, affiliate, or service provider of a financial institution, whether in the form of a report of examination or otherwise, is the confidential property of the department. The information may not be made public or disclosed by the recipient or by an officer, director, manager, employee, or agent of the recipient to a person not officially connected to the recipient as officer, director, employee, attorney, auditor, or independent auditor except as authorized by rules adopted under this subtitle. A person commits an offense if the person discloses or uses information in violation of this section. An offense under this section is punishable as if it were an offense under Section 37.10, Penal Code. Civil discovery of confidential information from a person subject to Section 31.304 under subpoena or other legal process must comply with rules adopted under this subtitle and other applicable law. The rules may restrict release of confidential information to the portion directly relevant to the legal dispute at issue and require that a protective order, in form and under circumstances specified by the rules, be issued by a court before release of the confidential information. Notwithstanding any other law, the banking commissioner may refuse to release information or records in the custody of the department if, in the opinion of the commissioner, release of the information or records might jeopardize an ongoing investigation of potentially unlawful activities. A person may provide employment information concerning the known or suspected involvement of a present or former employee, officer, or director of a financial institution in a violation of a state or federal law, rule, or regulation that has been reported to appropriate state or federal authorities to the financial institution or a person providing employment information to the financial institution. A person may not be held liable for providing information under Subsection (a) unless the information provided is false and the person provided the information with disregard for the truth. A shareholder of a state bank may not examine a report of examination or other confidential property of the department that is in the possession of the state bank or a book or record of the state bank that directly or indirectly pertains to financial or other information maintained by the bank on behalf of its customers, including a specific item in the minutes of the board or a committee of the board regarding loan review and approval or a loan delinquency report that would tend to identify the bank’s customer. This section does not affect a right of a shareholder of a state bank acting in another capacity.
Whom does it apply to?
Banking commissioner, employees of the department, financial institutions, shareholders, officers, directors, affiliates, and third-party service providers
What does it govern?
Confidentiality of information obtained by the banking commissioner or an employee of the department in relation to the financial condition or business affairs of financial institutions, shareholders, officers, directors, affiliates, and third-party service providers
What are exemptions?
Information in a published statement or in the public portion of a call report or profit and loss statement can be disclosed. Information obtained from a federal or state regulatory agency that is confidential under federal or state law may only be disclosed as provided by federal or state law.
What are the Penalties?
Violation of this document is considered an offense, punishable as a Class A misdemeanor.
Jurisdiction
Texas