taining to irregularities discovered in banks which are believed to constitute violations of any federal or state civil or criminal law, or unsafe or unsound banking practices, Provided, That whenever copies of exempt records are disclosed to federal prosecuting or investigatory authorities that are customer financial records, notice and certification as set out in paragraph (c)(4)(iv)(B) of this section are made.

(iii) Subject to the restrictions contained in paragraph (c)(4)(iv) of this section pertaining to disclosure of customer financial records to federal agencies, the Director of the Corporation's Division of Bank Supervision, or anyone designated by him in writing, may disclose to any authorized officer or employee of any Federal or State agency or authority, for good cause shown, reports of any examination of a bank or other exempt records. Such records shall be disclosed only in response to a written request which: (A) Is signed by an authorized official of the agency making the request; (B) identifies the record or records to which access is requested; and (C) gives the reasons for the request.

(iv) The Director of the Corporation's Division of Bank Supervision, or anyone he designates in writing, may 'disclose information known to have been derived from customer financial records to any Federal agency: Provided, That (A) the General Counsel, or anyone he designates in writing, has determined that disclosure is required by law; or (B) disclosure is pursuant to a written request that indicates the information is relevant to a legitimate law enforcement inquiry within the jurisdiction of the requesting agency and: (1) The Director of the Division of Bank Supervision, or anyone designated by him in writing, certifies pursuant to section 1112(a) of the Right

8 The form of certification generally is as follows. Additional information may be added.

Pursuant to section 1112(a) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3412), I, [name and appropriate title] hereby certify that the financial records described below were transferred to (agency or department) in the belief that they were relevant to a legiti

to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) that the records are believed relevant to a legitimate law enforcement inquiry within the jurisdiction of the receiving agency and (2) a copy of such certification and the notice required by section 1112(b)9 of the Right to Financial Privacy Act of 1978 is sent within fourteen days of the disclosure to the customer whose records are disclosed 10 or (C) the information derived from bank customer financial records is deleted or rendered unidentifiable with any particular customer; or (D) the information is sought by the General Accounting Office in connection with an investigation, examination, or audit directed at a Federal agency; or (E) the request falls within section 1113(g) or section 1113(h)(1)(B) of the Right to Financial Privacy Act. Notwithstanding the language of paragraph (c)(4)(iv)(B) of this section, a written request is not required for the Director of the Division of Bank Supervision, or anyone he designates in writing, to disclose records pursuant to paragraph (c)(4)(iv)(B) of this section so long as certification and notice as required by that subsection are made.

(5) Evaluations of bank data centers, bank service corporations and data centers-disclosure to servicers and to serviced institutions. The Director of the Corporation's Division of Bank Supervision, or anyone designated by

Copies of, or information contained in, your financial records lawfully in the possession of the Federal Deposit Insurance Corporation have been furnished to (agency or department) pursuant to the Right to Financial Privacy Act of 1978 for the following purpose: If you believe that this transfer has not been made to further a legitimate law enforcement inquiry, you may have legal rights under the Right to Financial Privacy Act of 1978 or the Privacy Act of 1974.

10 Whenever a federal agency has obtained a court-ordered delay of the customer notice, the notice shall be sent immediately upon the expiration of the court-ordered delay.

him in writing, may disclose copies of any Corporation examination report of a bank data center, a bank service corporation or any other data center that provides data processing or related services to an insured institution (hereinafter referred to as "data center") to: (i) The examined data center; (ii) any insured institution that receives data processing or related services from the examined data center; (iii) any State agency or authority which exercises general supervision over an institution serviced by the examined data center; and (iv) any Federal financial institution supervisory agency which exercises general supervision over an institution serviced by the examined data center. The Federal supervisory agency may disclose any such examination report received from the Corporation to an insured institution over which it exercises general supervision and which is serviced by the examined data center.

and

(6) Reports of examination other exempt records--disclosure to third parties. Except as otherwise provided in paragraphs (c) (1) through (5) of this section, the Director of the Corporation's Division of Bank Supervision, or anyone designated by him in writing, may disclose copies of any report of examination of a bank or data center or other exempt records to any third party where requested to do so in writing. Any such written request shall: (i) Specify the record or records to which access is requested; and (ii) give the reasons for the request. Any Corporation employee authorized to disclose exempt Corporation records to third parties may disclose the records only upon determining that good cause exists for the disclosure. Either prior to or at the time of any disclosure, the Corporation employee shall impose such terms and conditions as he deems necessary to protect the confidential nature of the record, the financial integrity of any bank to which the record relates, and the legitimate privacy interests of any individual named in such records.

(7) Reports of examination and other exempt records-disclosure by banks or other third parties. (i) The Director of the Corporation's Division of Bank Supervision may authorize

any director, officer, employee, or agent of a bank to disclose copies of any report of examination or other exempt record in his custody to anyone who is not a director, officer or employee of the bank. Such authorization may be given only in response to a written request from the party seeking the record or from management of the bank to which the report or record pertains. Any such request shall speci fy the record sought, the party's inter est therein and the party's relation ship to the bank to which the record relates.

(ii) The Director of the Corpora tion's Division of Bank Supervision may authorize any third party, includ ing Federal or State agencies, that has received a copy of a Corporation report of examination or other exempt record to disclose such report or exempt record to another party or agency. such authorization may be given only in response to a written request from the party that has custody of the copy of the Corporation report or record. Any such request shall specify the report or record sought to be disclosed and the reasons why dis closure is necessary.

(iii) Any subsidiary bank of a bank holding company may reproduce and furnish a copy of any report of examination of the subsidiary bank to the parent holding company without prior approval by the Director of the Division of Bank Supervision and any bank may reproduce and furnish a copy of any report of examination of the disclosing bank to a majority shareholder if the following conditions are met:

(A) The parent holding company or shareholder owns in excess of 50% of the voting stock of the bank or subsidiary bank;

(B) The board of directors of the bank or subsidiary bank at least annu ally by resolution authorizes the reproduction and furnishing of reports of examination (the resolution shall (1) specifically name the shareholder or parent holding company, (2) the address to which the reports are to be sent, (3) indicate that all reports fur nished pursuant to the resolution remain the property of the Federal Deposit Insurance Corporation and

re not to be disclosed or made public n any manner without the prior writen approval of the Director of the Diision of Bank Supervision as provided n paragraph (c)(7)(ii) of the Corporaion's regulations);

(C) A copy of the resolution authorzing disclosure of the reports is sent o the shareholder or parent holding ompany; and

(D) The minutes of the board of diectors of the bank or subsidiary bank or the meeting immediately following lisclosure of a report contain a notaion that (1) disclosure was made, (2) he date of the report which was dislosed, (3) to whom the report was ent, and (4) the date the report was isclosed.

(iv) With respect to any disclosure hat is authorized under paragraph c)(7) of this section, the Director of he Corporation's Division of Bank Supervision shall only permit disclosure of records upon determining that good cause exists. If the report of examinaion or other exempt record contains nformation derived from bank cuscomer financial records, disclosure is to be authorized only upon the condition that the requesting party and the party releasing the records comply with any applicable provision of the Right to Financial Privacy Act of 1978. Before authorizing the disclosure, the Director of the Corporation's Division of Bank Supervision may require that both the party having custody of a copy of a Corporation report of examination or record and the party seeking access to the report or record agree to such limitations as the Director of the Corporation's Division of Bank Super

ision deems necessary to protect the confidential nature of the record, the financial integrity of any bank to which the record relates and the legitimate privacy interests of any individual named in such report or record.

(8) Production of exempt records and testimony of Corporation personnel. (i) The Corporation's General Counsel, or anyone designated by him in writing, may (A) produce or authorize the production of any exempt record in response to a valid judicial subpoena, court order, or other legal process, and (B) authorize any officer, employee, or agent of the Corporation to

appear and testify regarding an exempt record at any administrative or judicial hearing or proceeding where he has been served with a valid subpoena, court order, or other legal process requiring him to testify. Customer financial records may not be disclosed to any Federal agency that is not a Federal financial supervisory agency pursuant to paragraph (c)(8)(i) of this section unless notice to the customer and certification as required by section 1112 (a) and (b) of the Right to Financial Privacy Act of 1978 have been given except where disclosure is in connection with a proceeding to which the Federal agency, employee, officer, or agent, and the customer are parties, or disclosure is in response to a grand jury subpoena, or disclosure is in accordance with procedures authorized by the Internal Revenue Code, or the records are sought pursuant to an administrative subpoena issued by an administrative law judge in an adjudicatory proceeding subject to 5 U.S.C. 554 to which the receiving federal agency, employee, officer, or agent, and the customer are parties.

(ii) The General Counsel, or anyone designated by him in writing, may produce or authorize the production of any exempt record sought in connection with any hearing or proceeding without the service of a judicial subpoena, or other legal process requiring production, if he determines that the records are relevant to the hearing or proceeding and that production is in the best interests of justice. In the case of customer financial records, disclosure to any Federal agency pursuant to paragraph (c)(8)(ii) of this section that is not a Federal financial supervisory agency may be made only when the records are sought under the Federal Rules of Civil or Criminal procedure or comparable rules of other courts and in connection with litigation to which the receiving Federal agency, employee, officer, or agent, and the customer are parties. Where the General Counsel authorizes the production of any exempt record or the testimony of any officer, employee, or agent of the Corporation relative thereto pursuant to paragraph (c)(8) of this section, he shall limit the authorization to so

much of the record or testimony as is relevant to the issues at the hearing or proceeding, and he shall give his authorization only upon fulfillment of such conditions as he deems necessary to protect the confidential nature of the record consistent with any requirement that it be produced and made a part of the record of the hearing or proceeding.

(9) Disclosures by division or office heads. Except as otherwise provided in paragraphs (c)(1) through (c)(8) of this section, each head (or designee) of a division or office may disclose any exempt record which is in the custody of and was created by or originated in the division or office. Any such disclosure shall be made only: (i) Upon receipt of a written request specifying the record sought and the reason why access to the record is necessary; and (ii) after the division or office head (or designee) determines that disclosure of record is in the public interest and not detrimental to any individual or concern.

(10) Authority of the chairman of the corporation's board of directors. Except where expressly prohibited by law, the Chairman of the Corporation's Board of Directors may authorize the disclosure of any Corporation records. Except where disclosure is required by law, the Chairman of the Corporation's Board of Directors may direct any officer, employee or agent of the Corporation to refuse to disclose any record if the Chairman determines that refusal to permit such disclosure is in the best interests of the Corporation and is not contrary to the public interest.

(11) Limitations on disclosure. Any disclosure permitted by this paragraph (c) of this section is discretionary and nothing in this paragraph (c) of this section shall be construed as requiring the disclosure of information. Further, nothing in this paragraph (c) of this section shall be construed as restricting, in any manner, the authority of the Board of Directors, the Chairman of the Board of Directors, the Director of the Corporation's Division of Bank Supervision or anyone designated by him in writing, the Corporation's General Counsel or anyone designated by him in writing, or any other Corpora

tion Division or Office head, in the discretion and in light of the facts ar circumstances attendant in any give case, to impose conditions upon and limit the form, manner, and extent any disclosure permitted hereunder. [42 FR 33715, July 1, 1977, as amended at FR 17804, Apr. 26, 1978; 45 FR 50551, Ju 30, 1980; 47 FR 22345, May 24, 1982; 471 39133, Sept. 7, 1982; 48 FR 24032, May 1983; 51 FR 47208, Dec. 31, 1986]

§ 309.7 Service of process.

(a) Service. Any subpoena or oth legal process to obtain informati maintained by the FDIC shall be du issued and served upon either the E ecutive Secretary, FDIC, 550 17 Street, NW., Washington, DC 20429 the regional director of the FDI region where the legal action fro which the subpoena or process w issued, is pending. A list of the FDIC regional offices is available from th Office of Information, FDIC, 550 17t Street, NW., Washington, DC 2042 (telephone 202-389-4221). Any servic of process on the FDIC as a part shall be made upon the Executive Se retary, FDIC, 550 17th Street NW Washington, DC 20429 or upon the agent designated to receive service process in the State, Territory, or ju risdiction in which any insured banki located. Identification of the designat ed agent in the State, Territory, or ju risdiction may be obtained from th Office of the Executive Secretary o from the Office of the General Cour sel, FDIC, 550 17th Street NW., Wash ington, DC 20429.

(b) Advice by person served. If an officer, director, or agent of the Co poration is served with a subpoena court order, or other process requirin that person's personal attendance as witness or the production of an exempt record of the Corporation such person shall promptly advise th Office of the Corporation's Genera Counsel of such service, of the test mony and records described in th subpoena, and of all relevant fact which may be of assistance to th General Counsel in determinin whether the individual in question should be authorized to testify or the records should be produced. Such

person should also inform the court or tribunal which issued the process and the attorney for the party upon whose application the process was issued, if known, of the substance of this section. If any person who is not an officer, employee, or agent of the Corporation and who has custody of exempt records belonging to the Corporation is served with a subpoena, court order, or other legal process directing that person to produce such records or to testify with respect thereto, such person should give the same notice to the General Counsel and to the court or tribunal.

(c) Appearance by person served. Absent the authorization of the Corporation's General Counsel (or anyone designated by him in writing) to disclose the requested information, any officer, employee, or agent of the Corporation (and any person having custody of exempt records of the Corporation who is not an officer, employee, or agent of the Corporation), who is required to respond to a subpoena, court order, or other legal process, shall attend at the time and place therein specified and respectfully decline to produce any such record or give any testimony with respect thereto, basing such refusal on this section. [42 FR 33715, July 1, 1977, as amended at 47 FR 39133, Sept. 7, 1982]

Sec.

PART 310-PRIVACY ACT REGULATIONS

310.1 Purpose and scope.

310.2 Definitions.

310.3 Procedures for requests pertaining to individual records in a system of records. 310.4 Times, places, and requirements for identification of individuals making requests.

310.5 Disclosure of requested information to individuals.

310.6 Special procedures: Medical records. 310.7 Request for amendment of record. 310.8 Agency review of request for amendment of record.

310.9 Appeal of adverse initial agency determination on access or amendment. 310.10 Disclosure of record to person other than the individual to whom it pertains. 310.11 Fees.

310.12 Penalties. 310.13 Exemptions.

For purposes of this part:

(a) The term "Corporation" means the Federal Deposit Insurance Corporation;

(b) The term "individual" means a natural person who is either a citizen of the United States or an alien lawfully admitted for permanent residence;

(c) The term "maintain" includes maintain, collect, use, disseminate, or control;

(d) The term "record" means any item, collection or grouping of information about an individual that contains his/her name, or the identifying number, symbol, or other identifying particular assigned to the individual;

(e) The term "system of records" means a group of any records under the control of the Corporation from which information is retrieved by the name of the individual or some identifying number, symbol or other identifying particular assigned to the individual;

(f) The term "designated system of records" means a system of records which has been listed and summarized in the FEDERAL Register pursuant to the requirements of 5 U.S.C. 552a(e);

(g) The term "routine use" means, with respect to disclosure of a record, the use of such record for a purpose which is compatible with the purpose for which it was created;

(h) The terms "amend" or "amendment" mean any correction, addition to or deletion from a record; and

(i) The term "system manager" means the agency official responsible for a designated system of records, as denominated in the FEDERAL REGISTER