12 U.S.C. § 3401 — Definitions

Page 1534 TITLE 12—BANKS AND BANKING § 3401 1 See References in Text note below. section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations; (2) not later than 3 days after the date on which the Closing Disclosure Form, made in accordance with the final rule of the Bureau of Consumer Financial Protection entitled ‘‘Inte- grated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)’’ (78 Fed. Reg. 79730 (December 31, 2013)), re- lating to the federally related transaction is given to the consumer, the mortgage origi- nator or its agent, directly or indirectly— (A) has contacted not fewer than 3 State certified appraisers or State licensed ap- praisers, as applicable, on the mortgage originator’s approved appraiser list in the market area in accordance with part 226 of title 12, Code of Federal Regulations; and (B) has documented that no State certified appraiser or State licensed appraiser, as ap- plicable, was available within 5 business days beyond customary and reasonable fee and timeliness standards for comparable ap- praisal assignments, as documented by the mortgage originator or its agent; (3) the transaction value is less than $400,000; and (4) the mortgage originator is subject to oversight by a Federal financial institutions regulatory agency. (c) Sale, assignment, or transfer A mortgage originator that makes a loan without an appraisal under the terms of sub- section (b) shall not sell, assign, or otherwise transfer legal title to the loan unless— (1) the loan is sold, assigned, or otherwise transferred to another person by reason of the bankruptcy or failure of the mortgage origi- nator; (2) the loan is sold, assigned, or otherwise transferred to another person regulated by a Federal financial institutions regulatory agen- cy, so long as the loan is retained in portfolio by the person; (3) the sale, assignment, or transfer is pursu- ant to a merger of the mortgage originator with another person or the acquisition of the mortgage originator by another person or of another person by the mortgage originator; or (4) the sale, loan, or transfer is to a wholly owned subsidiary of the mortgage originator, provided that, after the sale, assignment, or transfer, the loan is considered to be an asset of the mortgage originator for regulatory ac- counting purposes. (d) Exception Subsection (b) shall not apply if— (1) a Federal financial institutions regu- latory agency requires an appraisal under sec- tion 225.63(c), 323.3(c), 34.43(c), or 722.3(e) of title 12, Code of Federal Regulations; or (2) the loan is a high-cost mortgage, as de- fined in section 1602 of title 15. (e) Anti-evasion Each Federal financial institutions regulatory agency shall ensure that any mortgage origi- nator that the Federal financial institutions regulatory agency oversees that makes a signifi- cant amount of loans under subsection (b) is complying with the requirements of subsection (b)(2) with respect to each loan. (Pub. L. 101–73, title XI, § 1127, as added Pub. L. 115–174, title I, § 103, May 24, 2018, 132 Stat. 1299.) CHAPTER 35—RIGHT TO FINANCIAL PRIVACY Sec. 3401. Definitions. 3402. Access to financial records by Government authorities prohibited; exceptions. 3403. Confidentiality of financial records. 3404. Customer authorizations. 3405. Administrative subpena and summons. 3406. Search warrants. 3407. Judicial subpena. 3408. Formal written request. 3409. Delayed notice. 3410. Customer challenges. 3411. Duty of financial institutions. 3412. Use of information. 3413. Exceptions. 3414. Special procedures. 3415. Cost reimbursement. 3416. Jurisdiction. 3417. Civil penalties. 3418. Injunctive relief. 3419. Suspension of limitations. 3420. Grand jury information; notification of cer- tain persons prohibited. 3421. Repealed. 3422. Applicability to Securities and Exchange Commission. 3423. Immunity from suit for disclosure of finan- cial exploitation of senior citizens. § 3401. Definitions For the purpose of this chapter, the term— (1) ‘‘financial institution’’, except as pro- vided in section 3414 of this title, means any office of a bank, savings bank, card issuer as defined in section 1602(n) 1 of title 15, indus- trial loan company, trust company, savings association, building and loan, or homestead association (including cooperative banks), credit union, or consumer finance institution, located in any State or territory of the United States, the District of Columbia, Puerto Rico, Guam, American Samoa, or the Virgin Islands; (2) ‘‘financial record’’ means an original of, a copy of, or information known to have been derived from, any record held by a financial institution pertaining to a customer’s rela- tionship with the financial institution; (3) ‘‘Government authority’’ means any agency or department of the United States, or any officer, employee, or agent thereof; (4) ‘‘person’’ means an individual or a part- nership of five or fewer individuals; (5) ‘‘customer’’ means any person or author- ized representative of that person who utilized or is utilizing any service of a financial insti- tution, or for whom a financial institution is acting or has acted as a fiduciary, in relation to an account maintained in the person’s name; (6) ‘‘holding company’’ means— (A) any bank holding company (as defined in section 1841 of this title); and (B) any company described in section 1843(f)(1) of this title; Page 1535 TITLE 12—BANKS AND BANKING § 3402 (7) ‘‘supervisory agency’’ means with respect to any particular financial institution, hold- ing company, or any subsidiary of a financial institution or holding company, any of the fol- lowing which has statutory authority to ex- amine the financial condition, business oper- ations, or records or transactions of that insti- tution, holding company, or subsidiary— (A) the Federal Deposit Insurance Corpora- tion; (B) the Bureau of Consumer Financial Pro- tection; (C) the National Credit Union Administra- tion; (D) the Board of Governors of the Federal Reserve System; (E) the Comptroller of the Currency; (F) the Securities and Exchange Commis- sion; (G) the Commodity Futures Trading Com- mission; (H) the Secretary of the Treasury, with re- spect to the Bank Secrecy Act (Public Law 91–508, title I) [12 U.S.C. 1951 et seq.] and sub- chapter II of chapter 53 of title 31; or (I) any State banking or securities depart- ment or agency; and (8) ‘‘law enforcement inquiry’’ means a law- ful investigation or official proceeding inquir- ing into a violation of, or failure to comply with, any criminal or civil statute or any reg- ulation, rule, or order issued pursuant thereto. (Pub. L. 95–630, title XI, § 1101, Nov. 10, 1978, 92 Stat. 3697; Pub. L. 101–73, title VII, § 744(b), title IX, § 941, Aug. 9, 1989, 103 Stat. 438, 496; Pub. L. 101–647, title XXV, § 2596(c), Nov. 29, 1990, 104 Stat. 4908; Pub. L. 106–102, title VII, § 727(b)(1), Nov. 12, 1999, 113 Stat. 1475; Pub. L. 108–177, title III, § 374(b), Dec. 13, 2003, 117 Stat. 2628; Pub. L. 111–203, title X, § 1099(1), July 21, 2010, 124 Stat. 2105.) Editorial Notes REFERENCES IN TEXT Section 1602(n) of title 15, referred to in par. (1), was redesignated section 1602(o) of title 15 by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107. The Bank Secrecy Act, referred to in par. (7)(H), is title I of Pub. L. 91–508, Oct. 26, 1970, 84 Stat. 1114, which is classified principally to chapter 21 (§ 1951 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1951 of this title and Tables. CODIFICATION In par. (7)(H), ‘‘the Bank Secrecy Act (Public Law 91–508, title I) [12 U.S.C. 1951 et seq.] and subchapter II of chapter 53 of title 31’’ substituted for ‘‘the Bank Se- crecy Act [12 U.S.C. 1951 et seq.] and the Currency and Foreign Transactions Reporting Act [31 U.S.C. 1051 et seq.] (Public Law 91–508, title I and II)’’, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Fi- nance. AMENDMENTS 2010—Par. (6). Pub. L. 111–203, § 1099(1)(A), inserted ‘‘and’’ at end of subpar. (A), struck out ‘‘and’’ at end of subpar. (B), and struck out subpar. (C) which read as follows: ‘‘any savings and loan holding company (as de- fined in the Home Owners’ Loan Act);’’. Par. (7)(B). Pub. L. 111–203, § 1099(1)(B), added subpar. (B) and struck out former subpar. (B) which read as fol- lows: ‘‘Director, Office of Thrift Supervision;’’. 2003—Par. (1). Pub. L. 108–177 inserted ‘‘, except as provided in section 3414 of this title,’’ before ‘‘means any office’’. 1999—Par. (7)(G) to (I). Pub. L. 106–102 added subpar. (G) and redesignated former subpars. (G) and (H) as (H) and (I), respectively. 1990—Par. (6)(B). Pub. L. 101–647 substituted ‘‘section 1843(f)(1)’’ for ‘‘section 1842(f)(1)’’. 1989—Par. (1). Pub. L. 101–73, § 744(b)(1), substituted ‘‘savings association’’ for ‘‘savings and loan’’. Par. (6). Pub. L. 101–73, § 941(3), added par. (6). Former par. (6) redesignated (7). Par. (7). Pub. L. 101–73, § 941(1), (2), redesignated former par. (6) as (7) and substituted new introductory provisions for former introductory provisions which read as follows: ‘‘ ‘supervisory agency’ means, with re- spect to any particular financial institution any of the following which has statutory authority to examine the financial condition or business operations of that institution—’’. Former par. (7) redesignated (8). Pub. L. 101–73, § 744(b)(2), (3), redesignated subpars. (C) to (I) as (B) to (H), respectively, substituted ‘‘Director, Office of Thrift Supervision’’ for ‘‘the Federal Home Loan Bank Board’’ in subpar. (B), and struck out former subpar. (B) which read as follows: ‘‘the Federal Savings and Loan Insurance Corporation;’’. Par. (8). Pub. L. 101–73, § 941(1), redesignated par. (7) as (8). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective upon the expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as a note under section 375b of this title. SHORT TITLE Pub. L. 95–630, title XI, § 1100, Nov. 10, 1978, 92 Stat. 3697, provided that: ‘‘This title [enacting this chapter] may be cited as the ‘Right to Financial Privacy Act of 1978’.’’ § 3402. Access to financial records by Govern- ment authorities prohibited; exceptions Except as provided by section 3403(c) or (d), 3413, or 3414 of this title, no Government author- ity may have access to or obtain copies of, or the information contained in the financial records of any customer from a financial insti- tution unless the financial records are reason- ably described and— (1) such customer has authorized such disclo- sure in accordance with section 3404 of this title; (2) such financial records are disclosed in re- sponse to an administrative subpena or sum- mons which meets the requirements of section 3405 of this title; (3) such financial records are disclosed in re- sponse to a search warrant which meets the requirements of section 3406 of this title; (4) such financial records are disclosed in re- sponse to a judicial subpena which meets the requirements of section 3407 of this title; or (5) such financial records are disclosed in re- sponse to a formal written request which meets the requirements of section 3408 of this title. (Pub. L. 95–630, title XI, § 1102, Nov. 10, 1978, 92 Stat. 3697.)