[Federal Register Volume 60, Number 129 (Thursday, July 6, 1995)]
[Proposed Rules]
[Pages 35148-35158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16329]



 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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 

  Federal Register / Vol. 60, No. 129 / Thursday, July 6, 1995 / 
Proposed Rules  


[[Page 35148]]


FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 309

RIN 3064-AA06


Disclosure of Information

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Proposed rule.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC or 
Corporation) is proposing to revise its rule which sets forth the 
procedures to be used by members of the public in requesting records 
maintained by the FDIC, the amount of fees charged by the Corporation 
for responding to requests, the procedures to be used when appealing a 
decision to deny access to records or for a waiver of fees, 
circumstances and procedures under which exempt records might be 
disclosed, and the method by which a party can serve legal process on 
the Corporation in order to obtain information. The revisions in the 
proposed rule are designed to accommodate changes in the organizational 
structure of the Corporation, provide clearer guidance to requesters on 
how to obtain records under the Freedom of Information Act (FOIA) as 
amended by the Freedom of Information Reform Act (FOIRA), and allow the 
Corporation to charge appropriate fees as required under the FOIRA and 
the guidelines established by the United States Office of Management 
and Budget.

DATES: Comments must be received on before September 5, 1995.

ADDRESSES: Send comments to Jerry L. Langley, Executive Secretary, 
FDIC, 550 17th Street, NW, Washington, DC 20429. Comments may be hand-
delivered to room 400, 1776 F Street, NW, Washington, DC 20429 on 
business days between 8:30 a.m. and 5 p.m. [FAX number: (202) 898-3604; 
Internet: [email protected]]. Comments will be available for inspection 
and photocopying at the FDIC's Reading Room, room 7118, 550 17th 
Street, NW, Washington, DC 20429, between 9:00 a.m. and 4:30 p.m. on 
business days.

FOR FURTHER INFORMATION CONTACT: Paul A. Jeddeloh, Senior Program 
Attorney, Office of the Executive Secretary, telephone (202) 898-7161; 
Z. Scott Birdwell, Senior Attorney, Corporate and Special Litigation 
Section, Legal Division, telephone (202) 736-0536; or Dirck A. 
Hargraves, Attorney, Regulation and Legislation Section, Legal 
Division, telephone (202) 898-7049, FDIC, 550 17th Street, NW, 
Washington, DC 20429.

SUPPLEMENTARY INFORMATION:

I. Background

    This proposed rule is intended to revise the Corporation's rule 
governing the release of records maintained by the Corporation and sets 
forth the procedures to be used by members of the public when 
requesting such records from the FDIC, the method used by the 
Corporation in determining the amount of fees to be charged to various 
categories of requesters, the procedures to be used when appealing a 
decision to deny access to records or for a waiver of fees, 
circumstances and procedures under which exempt records might be 
disclosed, and the method by which a party can serve legal process on 
the Corporation in order to obtain information.

II. Amendments to Part 309

    1. Purpose and Scope. No changes have been proposed in Sec. 309.1.
    2. Definitions. Section 309.2 provides definitions that are used 
throughout part 309. Proposed Sec. 309.2(f) recognizes that the FDIC 
conducts joint examinations with other federal financial institutions 
regulators and clarifies that compliance examination reports are 
included within the definition of ``report of examination''. A new 
Sec. 309.2(i) has been proposed in order to define the term ``Director 
of Division having primary authority'' as including the heads of FDIC 
offices which create, maintain custody, or otherwise have primary 
responsibility for the handling of FDIC records or information.
    3. Federal Register publication. No changes have been proposed in 
Sec. 309.3.
    4. Publicly available records. Proposed Sec. 309.4 sets forth the 
procedure to be followed by requesters who seek publicly available FDIC 
records. The FDIC has established a worldwide server on the Internet 
whereby users may access information. The address is set forth in the 
regulation. Paragraphs (a)(3) through (a)(6) of Sec. 309.4 have been 
added to advise requesters that the public portion of Community 
Reinvestment Act (CRA) Evaluations, records regarding final compliance 
and enforcement actions, Summaries of Deposit Reports, and Annual 
Reports of Trust Assets can be obtained from the FDIC's Office of 
Corporate Communications.
    Proposed Sec. 309.4(b) has been amended by adding the term 
``administrative'' to the term ``cases'' in order to clarify the type 
of final opinions and orders available through the FDIC's Office of the 
Executive Secretary.
    Paragraphs (c)(3), (c)(4), and (c)(5) of Sec. 309.4 have been added 
to advise requesters that they may obtain from the FDIC's Division of 
Supervision the Manual of Trust Examination Policies, the Federal 
Financial Institutions Examination Council Information Systems Handbook 
and, in the FDIC's discretion, the Consolidated Reports of Income and 
Consolidated Reports of Condition.
    No changes have been proposed for Sec. 309.4(d).
    In proposed Sec. 309.4(e), an updated listing of the manuals 
available from the Division of Depositor and Asset Services has been 
provided.
    Proposed Sec. 309.4(f) has been added to accommodate the creation 
of the FDIC's Division of Compliance and Consumer Affairs and its role 
as the contact for the Compliance Examination Manual.
    Paragraph Sec. 309.4(g) of the current rule has been deleted in the 
proposed rule since the information has been consolidated in 
Sec. 309.4(e) of the proposed rule.
    5. Procedures for requesting records. Proposed Sec. 309.5 
implements the procedural provisions of the FOIA, as amended by the 
FOIRA, and sets forth the procedures to be followed by members of the 
public when requesting records maintained by the Corporation, the 
method by which the Corporation would determine and charge fees for 
responding to such requests, a delineation of the various categories of 
requesters for the purpose of determining the application of fees, and 

[[Page 35149]]
the procedures to be followed by requesters when appealing a 
determination by the Corporation not to grant a waiver of fees or 
release of records.
    The FOIA established the statutory framework under which federal 
agencies were required to provide nonexempt records to members of the 
public upon request and were permitted to recover costs incurred in 
responding to such requests. The FOIRA significantly amended the fee 
provisions of the FOIA by establishing classes of FOIA requesters and 
providing the framework under which fees could be charged to the 
individual categories of requesters. The FOIRA also charged the United 
States Office of Management and Budget (OMB) with responsibility for 
issuing guidelines to be followed by federal agencies in determining 
the fees to be charged to requesters. OMB published its guidelines on 
March 27, 1987 at 52 FR 10012 and in those guidelines elaborated on the 
categories of requesters and stated that the fees to be charged for 
processing requests under FOIA should recoup the full allowable direct 
costs incurred in the search, review, and duplication of documents. The 
proposed changes to Sec. 309.5 are intended to clarify the provisions 
relating to the method by which the Corporation charges fees for 
responding to requests under the FOIA and how requesters can obtain a 
list of such fees, to permit appeals of denials of waiver requests, 
conform the provisions of the section to the OMB guidelines, and delete 
an obsolete provision.
    Section 309.5 has been reorganized and renumbered. The definitions 
applicable to Sec. 309.5 were moved to Sec. 309.5(a) in the proposed 
rule and were expanded to more fully utilize the definitions 
established by the OMB guidelines. For example, the last sentence in 
the definition of ``commercial use request'' was added to clarify the 
method by which the Corporation would determine whether a request falls 
under such category and to match the definition of ``commercial use 
request'' as set forth in the OMB guidelines. Likewise, the definition 
of ``direct costs'' was taken from the OMB guidelines and added to the 
proposed rule since the proposed fee provision found at Sec. 309.5(c) 
utilizes such term in arriving at the fees to be charged. The remaining 
definitions were also expanded in conformity with the OMB guidelines.
    Proposed Sec. 309.5(b)(1) was modified, consistent with the OMB 
guidelines, to provide that the Corporation would not require the 
payment of fees by a requester when the cost of responding to a request 
is less than the Corporation's cost of processing the requester's 
remittance.
    The provisions of Sec. 309.5(b)(2) and Sec. 309.5(b)(3) were not 
changed except for renumbering within the provisions.
    Proposed Sec. 309.5(c)(1) was modified to clarify that fees would 
not be assessed under circumstances where the total costs involved with 
responding to a request for records amount to less than the 
Corporation's cost of processing the requester's remittance; that 
requests made to the Corporation are for ``records'' maintained by the 
Corporation; that an aggregation of requests will be made for purposes 
of determining fees when the same ``group of requesters'' submits 
multiple requests for similar or related records; that a requester must 
agree in writing to pay costs prior to the initiation of a search; that 
advance payment might be required when a requester has previously 
failed to pay fees assessed within 30 days following mailing of the 
invoice; that a requester who has an outstanding fee balance may be 
required to pay all amounts outstanding prior to the initiation of any 
additional records search; that the time in which the Corporation must 
respond to a request for records would be extended until the written 
agreement, advance payment, or outstanding charge issues are resolved; 
that the Corporation may assess interest on outstanding bills beginning 
on the 31st day after mailing of the invoice and which interest 
assessment would relate back to the date of the invoice; and appeals of 
determinations not to grant a waiver or reduction of fees under 
Sec. 309.5(c)(1)(ix) may be appealed to the FDIC's General Counsel.
    Proposed Sec. 309.5(c)(2)(iii) was revised to limit the charging of 
fees to ``the full reasonable direct cost of search and duplication'' 
as consistent with the OMB guidelines.
    At 12 CFR 309.5(c)(3), the FDIC distinguishes among the various 
categories of requesters consistent with the requirements of the FOIRA 
and the OMB guidelines. However, the FDIC's fee schedule, as set forth 
at Sec. 309.5(b)(4) of the current rule, no longer complies with the 
guidelines since it does not provide for the recovery by the 
Corporation of its direct costs associated with searches for records as 
required. Proposed 309.5(c)(3) would replace the fee schedule set forth 
in the current rule and would establish the method by which the 
Corporation would determine the fees to be charged requesters for 
search, review, and duplication of records. As provided in the proposed 
rule, a list of fees would be generated annually by the Corporation's 
Division of Finance and would be made available to all requesters at no 
charge through the Office of the Executive Secretary. The proposed 
changes to the rule would also establish the method by which the 
Corporation would charge the various categories of requesters for 
services to be provided thereby providing for continuing conformity 
with the FOIRA and the OMB guidelines.
    In proposed Sec. 309.5(d), a technical correction was made by the 
elimination of the parenthetical expression contained in 
Sec. 309.5(d)(3).
    Paragraph 309.5(h) of the current rule contains obsolete procedures 
and information and was deleted from the proposed rule.
    6. Disclosure of exempt records (Sec. 309.6). In order to clarify 
the exempt record disclosure provisions and eliminate a redundancy, 
paragraph 309.6(a) as set forth in the current rule was deleted in the 
proposed rule and the paragraphs renumbered accordingly.
    In proposed Sec. 309.6(a), the second sentence was added to clarify 
that FDIC exempt records remain the property of the FDIC regardless of 
custody and that disclosure would be prohibited without the written 
permission of the Director of the FDIC's Division which holds primary 
authority over such records. A similar provision appears at 
Sec. 309.6(b) of the current rule.
    In proposed Sec. 309.6(b), a revision was made to the current 
Sec. 309.6(c) to reflect changes in the FDIC's organizational structure 
and the person to whom authority to disclose or authorize disclosure of 
exempt records would be delegated. Additionally, much of current 
Sec. 309.6(c) has been removed in the proposed rule, because the 
provision unnecessarily repeats provisions set forth in other sections 
of the rule.
    Proposed Sec. 309.6(b)(1) has been modified to provide that exempt 
records pertaining to a depository institution may be disclosed to that 
depository institution by the FDIC Division Director having primary 
authority over those records. Similarly, proposed Sec. 309.6(b)(2) has 
been modified to provide that exempt records pertaining to a state-
chartered depository institution may be disclosed to the state banking 
authority that supervises that institution by the FDIC Division 
Director having primary authority over that record. Other exempt 
records may also be disclosed if requested in writing for a legitimate 
supervisory or regulatory purpose.
    Under the current rule, Sec. 309.6(c)(3) permits certain FDIC 
officials to disclose exempt records to other supervisory agencies. 
Proposed Sec. 309.6(b)(3) 

[[Page 35150]]
provides that the FDIC Division Director having primary authority over 
exempt records may disclose those records to other federal supervisory 
agencies and certain non-supervisory federal agencies for any 
legitimate purpose. The proposed rule refers the reader to the Right to 
Financial Privacy Act of 1978 (RFPA) for a complete list of supervisory 
agencies and the RFPA further provides that no notice of the disclosure 
of exempt records would be required to be given to customers as a 
condition of such disclosure. The proposed rule was also amended to 
provide for the disclosure of information obtained in the course of the 
FDIC's exercising supervisory or examination authority to any foreign 
bank regulatory or supervisory authority per the conditions and 
limitations contained in Sec. 206 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991.
    The current rule set forth at Sec. 309.6(c)(4) has been 
substantially rewritten for clarity. The listing of the contents of 
criminal referrals has been deleted due to the standardization of 
referral forms. In Sec. 309.6(b)(4) of the proposed rule, criminal 
referrals may be made to either state or federal authorities without 
the provision of notice to customers, as provided in the RFPA. 
Additionally, exempt records may be disclosed to appropriate state or 
federal authorities by the Director of the Corporation's Division 
having primary authority over those records when there is a belief that 
there are federal or state civil or criminal law violations. The 
listing of exceptions for when notice of a disclosure of records must 
be provided to the customer have been deleted and a reference to 
applicable provisions of the RFPA has been provided.
    In proposed Sec. 309.6(b)(5), modifications were made to provide 
that exempt records pertaining to a depository institution may be 
disclosed to the servicers of such institution by the FDIC Division 
Director having primary authority over those records.
    Proposed Sec. 309.6(b)(6) sets forth the conditions under which 
exempt records may be disclosed to third parties and was modified to 
provide that exempt records may be disclosed to third parties by the 
FDIC Division Director with primary authority over such records for 
good cause, but only pursuant to a written request, and only after 
requiring such conditions as are necessary to protect the 
confidentiality of the records. Extraneous language was also deleted 
from the provision.
    Proposed Sec. 309.6(b)(7) sets forth the conditions under which 
depository institutions or other third parties in possession of FDIC 
exempt records may be authorized to disclose the records. This 
paragraph has been modified to provide that third parties may be 
authorized by the FDIC Division Director with primary authority over 
those records to disclose any exempt records, but only pursuant to a 
written request, and only after requiring such conditions as are 
necessary to protect the confidentiality of the records.
    Proposed Sec. 309.6(b)(8) permits the General Counsel (or designee) 
to disclose or authorize disclosure of exempt records or information 
(including testimony) in litigation in response to a subpoena or 
otherwise for good cause and in the interests of justice. The 
amendments would also clarify the FDIC's current position that the 
General Counsel's authority extends to records or information held by 
former FDIC employees or officials when the records were obtained in 
course of the former employee's employment with the FDIC. 
Significantly, the amendments are intended to clarify that, in 
situations where the FDIC has not been made a party to litigation, 
prior to serving a subpoena or other legal process on the FDIC, a 
requester must first exhaust their administrative procedures by seeking 
disclosure of FDIC records pursuant to the procedures set forth 
Sec. 309.5. Such requirement provides the FDIC with the opportunity to 
exercise its discretion regarding whether an exempt record should be 
disclosed. The lengthy list of the exceptions for when notice to the 
customer must be provided has been deleted and replaced by a simple 
citation to the exceptions provided by the RFPA.
    Paragraph Sec. 309.6(c)(9) of the current rule was deleted from the 
proposed rule since other amendments to the rule clarified the 
authority of Division Directors involving records over which they have 
primary authority.
    Under proposed Sec. 309.6(b)(9), the Chairman would be able to 
authorize the disclosure or withholding of exempt records or 
information whenever the public interest is served by such action. The 
provision extends the Chairman's authority to former employees or 
officials and governs testimony as well as records.
    Proposed Sec. 309.6(b)(10) clarifies that any disclosure of exempt 
records by the FDIC would be discretionary, that FDIC officials have 
authority to condition disclosure, that all steps must be taken to 
protect the confidentiality of exempt information, and that should 
exempt records be disclosed, such disclosure should be pursuant to 
appropriate protective orders or confidentiality agreements and with 
appropriate redaction.
    7. Service of process. Section 309.7 in the proposed rule provides 
notice of the appropriate means of serving process on the FDIC, that 
persons in possession of FDIC exempt records who receive a subpoena 
must notify the FDIC, and that persons in possession of FDIC exempt 
records must appear as required and refuse to produce such records or 
testify thereon in the absence of authorization from the FDIC. If the 
FDIC is named as a party, service of process must conform to Federal 
Rules of Civil Procedure. The amendments clarify that former FDIC 
employees or officials in possession of FDIC records must notify the 
FDIC of any subpoena or legal process served on them which relates to 
exempt records or information, and must not disclose such records or 
information without the General Counsel's authorization.
    8. Generally. The term ``records'' has replaced the terms 
``information'' and ``documents'' in appropriate places throughout the 
regulation in order to clarify that, in most instances, requests made 
under the rule would involve requests for disclosure of records 
maintained by the Corporation. The term ``information'' was retained in 
various places in the rule in recognition of the limited circumstances 
where more than records might be sought.
    Certain references to ``Reports of Examination'' have been deleted 
to make clear that the regulation governs all exempt records.
    Certain references to ``Division of Supervision'' have been deleted 
and/or replaced with other office designations to make clear that other 
Divisions may have primary authority over an exempt record.
    References to ``or anyone he designates in writing'' has been 
replaced by ``or designee'' to provide simplicity and a gender neutral 
term.

III. Matters of Regulatory Procedure

Administrative Procedure Act

    This proposed rulemaking is in compliance with the Administrative 
Procedure Act (5 U.S.C. 553) and allows for a 60-day comment period.

Authority

    These amendments are promulgated under the FDIC's general authority 
to prescribe, through its Board of Directors, such rules and 
regulations as it may deem necessary to carry out the provisions of the 
Federal Deposit Insurance Act or any other law which the FDIC has the 
responsibility of administering or enforcing (except to the extent that 
authority to issue such 

[[Page 35151]]
rules and regulations has been expressly and exclusively granted to any 
other regulatory agency). 12 U.S.C. 1819 ``Seventh'' and ``Tenth''; 5 
U.S.C. 552.

Regulatory Flexibility Act

    The Board of Directors has concluded that the proposed rule will 
not impose a significant economic hardship on small institutions. 
Therefore, the Board of Directors hereby certifies pursuant to section 
605 of the Regulatory Flexibility Act (5 U.S.C. 605) that the proposed 
rule will not have a significant economic impact on a substantial 
number of small business entities within the meaning of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.).

Paperwork Reduction Act

    The Board of Directors has determined that this proposed regulation 
does not contain any information collection requirements that require 
the approval of the Office of Management and Budget pursuant to the 
Paperwork Reduction Act (44 U.S.C. 3501 et. seq.).

List of Subjects in 12 CFR Part 309

    Banks, banking, Credit, Freedom of information, Privacy.

    For the reasons set forth in the preamble, the Federal Deposit 
Insurance Corporation is proposing to revise Part 309 of Chapter III of 
title 12, of the Code of Federal Regulations to read as follows:

PART 309--DISCLOSURE OF INFORMATION
Sec.
309.1  Purpose and scope.
309.2  Definitions.
309.3  Federal Register publication.
309.4  Publicly available records.
309.5  Procedures for requesting records.
309.6  Disclosure of exempt records.
309.7  Service of process.

    Authority: 5 U.S.C. 552; 12 U.S.C. 1819 ``Seventh'' and 
``Tenth''.


Sec. 309.1  Purpose and scope.

    This part sets forth the basic policies of the Federal Deposit 
Insurance Corporation regarding information it maintains and the 
procedures for obtaining access to such information.


Sec. 309.2  Definitions.

    For purposes of this part:
    (a) The term depository institution, as used in Sec. 309.6, 
includes depository institutions that have applied to the Corporation 
for federal deposit insurance, closed depository institutions, 
presently operating federally insured depository institutions, foreign 
banks, branches of foreign banks, and all affiliates of any of the 
foregoing.
    (b) The terms Corporation or FDIC mean the Federal Deposit 
Insurance Corporation.
    (c) The words disclose or disclosure, as used in Sec. 309.6, mean 
to give access to a record, whether by producing the written record or 
by oral discussion of its contents. Where the Corporation employee 
authorized to release Corporation documents makes a determination that 
furnishing copies of the documents is necessary, the words disclose or 
disclosure include the furnishing of copies of documents or records. In 
addition, disclose or disclosure as used in Sec. 309.6 is synonymous 
with the term transfer as used in the Right to Financial Privacy Act of 
1978 (12 U.S.C. 3401 et seq.).
    (d) The term examination includes, but is not limited to, formal 
and informal investigations of irregularities involving suspected 
violations of federal or state civil or criminal laws, or unsafe and 
unsound practices as well as such other investigations as may be 
conducted pursuant to law.
    (e) The term record includes records, files, documents, reports, 
correspondence, books, and accounts, or any portion thereof.
    (f) The term report of examination includes, but is not limited to, 
examination reports resulting from examinations of depository 
institutions conducted jointly by Corporation examiners and state 
banking authority examiners or other federal financial institution 
examiners, as well as reports resulting from examinations conducted 
solely by Corporation examiners. The term also includes compliance 
examination reports.
    (g) The term customer financial records, as used in Sec. 309.6, 
means an original of, a copy of, or information known to have been 
derived from, any record held by a depository institution pertaining to 
a customer's relationship with the depository institution but does not 
include any record that contains information not identified with or 
identifiable as being derived from the financial records of a 
particular customer. The term customer as used in Sec. 309.6 refers to 
individuals or partnerships of five or fewer persons.
    (h) The term Director of the Division having primary authority 
includes Deputies to the Chairman and directors of FDIC Divisions and 
Offices that create, maintain custody, or otherwise have primary 
responsibility for the handling of FDIC records or information.


Sec. 309.3  Federal Register publication.

    The FDIC publishes the following information in the Federal 
Register for the guidance of the public:
    (a) Descriptions of its central and field organization and the 
established places at which, the officers from whom, and the methods 
whereby, the public may secure information, make submittals or 
requests, or obtain decisions;
    (b) Statements of the general course and method by which its 
functions are channeled and determined, including the nature and 
requirements of all formal and informal procedures available;
    (c) Rules of procedure, descriptions of forms available or the 
places at which forms may be obtained, and instructions as to the scope 
and contents of all papers, reports or examinations;
    (d) Substantive rules of general applicability adopted as 
authorized by law, and statements of general policy or interpretations 
of general applicability formulated and adopted by the FDIC;
    (e) Every amendment, revision or repeal of the foregoing; and
    (f) General notices of proposed rule-making.


Sec. 309.4  Publicly available records.

    The following records are available upon request or, as noted, 
available for public inspection during normal business hours, at the 
listed offices. Certain records are also available on the Internet at 
the following address: http://www.fdic.gov. To the extent permitted by 
law, the FDIC may delete identifying details when it makes available or 
publishes a final opinion, final order, statement of policy, 
interpretation or staff manual or instruction. Fees for furnishing 
records under this section are as set forth in Sec. 309.5(c).
    (a) At the Office of Corporate Communications, Federal Deposit 
Insurance Corporation, 550-17th Street, N.W., Washington, D.C. 20429, 
(202) 898-6996:
    (1) Documents, including press releases, financial institution 
letters and proposed and adopted regulations, published by the FDIC and 
pertaining to its operations and those of insured depository 
institutions that it supervises.
    (2) Reports on the competitive factors involved in merger 
transactions and the bases for approval of merger transactions as 
required by sections 18(c)(4) and 18(c)(9) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)(4) and (9)).
    (3) Community Reinvestment Act (CRA) Public Evaluations. 

[[Page 35152]]

    (4) Final decisions and orders concerning compliance, enforcement, 
and other related administrative actions.
    (5) At the FDIC's discretion, Summary of Deposits filed by insured 
depository institutions, except that information on the size and number 
of accounts filed before June, 1982 is not available.1

    \1\ Summary of Deposits reports are described at 12 CFR 304.5.
---------------------------------------------------------------------------

    (6) Annual Report of Trust Assets for commercial banks and state 
savings banks.2

    \2\ Annual Report of Trust Assets, FFIEC Form 001.
---------------------------------------------------------------------------

    (b) At the Office of the Executive Secretary, Federal Deposit 
Insurance Corporation, 550-17th Street, N.W., Washington, D.C. 20429, 
which information is available for public inspection:
    (1) All final opinions (including concurring and dissenting 
opinions) and all final orders made in the adjudication of 
administrative cases.
    (2) Statements of policy and interpretations which have been 
adopted by the FDIC but have not been published in the Federal 
Register.
    (3) A current index of matters covered by paragraphs (b)(1) and 
(b)(2) of this section that were issued, adopted or promulgated after 
July 4, 1967. Copies of the index will be provided at the direct cost 
of duplication as set forth in Sec. 309.5(b).
    (c) At the Division of Supervision, Federal Deposit Insurance 
Corporation, 550-17th Street, N.W., Washington, D.C. 20429:
    (1) Filings and reports required under the provisions of 12 CFR 
Part 335 and the Securities and Exchange Act of 1934, as amended (15 
U.S.C. 78a), by insured nonmember banks the securities of which are 
registered with the FDIC pursuant to section 12 of that Act (15 U.S.C. 
78l). These filings and reports are available for public inspection as 
detailed in 12 CFR 335.702.
    (2) Manual of Examination Policies.
    (3) Manual of Trust Examination Policies.
    (4) Federal Financial Institutions Examination Council (FFIEC) 
Information Systems Examination Handbook.
    (5) In the FDIC's discretion, the Consolidated Reports of Condition 
and Income filed by insured nonmember banks (and certain nonfederally 
insured depository institutions in the case of reports of condition), 
except that select sensitive financial information may be 
withheld.3

    \3\ Reports of income and of condition are described at 12 CFR 
304.4.
---------------------------------------------------------------------------

    (d) At the regional office of the FDIC for the region in which the 
applicant or subject depository institution is located (A list of 
FDIC's regional offices is available from the Office of Corporate 
Communications, Federal Deposit Insurance Corporation, 550-17th Street, 
N.W., Washington, DC 20429, (202) 898-6996):
    (1) In the FDIC's discretion, non-confidential portions of 
application files as provided in 12 CFR 303.6(g), including 
applications for deposit insurance, to establish branches, to relocate 
offices and to merge.
    (2)(i) After acceptance by the FDIC of a notice filed pursuant to 
the Change in Bank Control Act of 1978 (12 U.S.C. 1817(j)) (other than 
a notice filed in contemplation of a public tender offer subject to the 
Securities Exchange Act of 1934 (15 U.S.C. 78m and 78n) and the FDIC's 
tender offer regulations (12 CFR 335.501-335.530), the appropriate FDIC 
regional office will make available, on request, the following 
information: The name of the depository institution whose stock is to 
be acquired; the date the notice was accepted; the identity of the 
acquiring person(s); the number of shares to be acquired; and the 
number of outstanding shares of stock in the depository institution. 
(The mere filing of a notice does not automatically constitute 
``acceptance'' by the FDIC; a notice is ``accepted'' when the regional 
office determines that the notice contains all the information required 
by 12 U.S.C. 1817(j)(6)).
    (ii) In the case of a notice filed in contemplation of a public 
tender offer that is subject to the Securities Exchange Act of 1934 (15 
U.S.C. 78m and 78n) and the FDIC's tender offer regulations (12 CFR 
335.501-335.530), when public disclosure is determined under 
Sec. 303.4(b)(4) of the FDIC's regulations (12 CFR 303.4(b)(4)) to be 
appropriate, the appropriate FDIC regional office will make available, 
on request, the information described in paragraph (d)(2)(i) of this 
section.
    (iii) After a transaction subject to the Change in Bank Control Act 
of 1978 has been consummated, the appropriate FDIC regional office will 
make available, on request, the following information, in addition to 
the information described in paragraph (d)(2)(i) of this section: The 
date the shares were acquired; the names of the sellers (or 
transferors); and the total number of shares owned by the purchasers 
(or acquirors).
    (e) At the Division of Depositor and Asset Services, Federal 
Deposit Insurance Corporation, 550-17th Street, N.W., Washington, D.C., 
20429:
    (1) Credit Manual;
    (2) Agriculture Manual;
    (3) Claims Manual;
    (4) Operations Manual;
    (5) Closing Manual;
    (6) Environmental Guidelines Manual;
    (7) Deposit Insurance Manual;
    (8) Settlement Manual.
    (f) At the Division of Compliance and Consumer Affairs, Federal 
Deposit Insurance Corporation, 550-17th Street, N.W., Washington, D.C. 
20429: Compliance Examination Manual.


Sec. 309.5  Procedures for requesting records.

    (a) Definitions. For purposes of this section:
    (1) Commercial use request means a request from or on behalf of a 
requester who seeks records for a use or purpose that furthers the 
commercial, trade, or profit interests of the requester or the person 
on whose behalf the request is made. In determining whether a request 
falls within this category, the FDIC will determine the use to which a 
requester will put the records requested and seek additional 
information as it deems necessary.
    (2) Direct costs means those expenditures the FDIC actually incurs 
in searching for, duplicating, and, in the case of commercial 
requesters, reviewing records in response to a request for records.
    (3) Duplication means the process of making a copy of a record 
necessary to respond to a request for records or for inspection of 
original records that contain exempt material or that cannot otherwise 
be directly inspected. Such copies can take the form of paper copy, 
microfilm, audiovisual records, or machine readable records (e.g., 
magnetic tape or computer disk).
    (4) Educational institution means a preschool, a public or private 
elementary or secondary school, an institution of undergraduate or 
graduate higher education, an institution of professional education, 
and an institution of vocational education, which operates a program or 
programs of scholarly research.
    (5) Non-commercial scientific institution means an institution that 
is not operated on a commercial basis as that term is defined in 
paragraph (a)(1) of this section, and which is operated solely for the 
purpose of conducting scientific research, the results of which are not 
intended to promote any particular product or industry.
    (6) Representative of the news media means any person actively 
gathering news for, or a free-lance journalist who reasonably expects 
to have his or her work product published or broadcast by, an entity 
that is organized and operated to publish or broadcast news to the 
public. The term news means information that is about current events 

[[Page 35153]]
or that would be of current interest to the general public.
    (7) Review means the process of examining records located in 
response to a request for records to determine whether any portion of 
any record is permitted to be withheld as exempt information. It 
includes processing any record for disclosure, e.g., doing all that is 
necessary to excise them or otherwise prepare them for release.
    (8) Search includes all time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification of material within records. Searches may be done 
manually and/or by computer using existing programming.
    (b) Initial request. (1) Except as provided in paragraphs (d) and 
(h) of this section, the FDIC, upon request for any record in its 
possession, will make the record available to any person who agrees to 
pay the costs of searching, review and duplication as set forth in 
paragraph (c) of this section. The request must be in writing, provide 
information reasonably sufficient to enable the FDIC to identify the 
requested records and specify a dollar limit which the requester is 
willing to pay for the costs of searching, review and duplication, 
unless the costs are believed to be less than the FDIC's cost of 
processing the requester's remittance, which cost will be set forth in 
the ``Notice of Federal Deposit Insurance Corporation Records Fees'' as 
described in paragraph (c)(3) of this section. Requests under this 
paragraph (b) should be addressed to the Office of the Executive 
Secretary, FDIC, 550-17th Street, N.W., Washington, DC 20429.
    (2) The FDIC will transmit notice to the requester within 10 
business days after receipt of the initial request whether it is 
granted or denied. Denials of requests will be based on the exemptions 
provided for in paragraph (d) of this section.
    (3) Notification of a denial of an initial request will be in 
writing and will state:
    (i) If the denial is in part or in whole;
    (ii) The name and title of each person responsible for the denial 
(when other than the person signing the notification);
    (iii) The exemptions relied on for the denial; and
    (iv) The right of the requester to appeal the denial to the FDIC's 
General Counsel within 30 business days following receipt of the 
notification.
    (c) Fees--(1) General rules. (i) Persons requesting records of the 
FDIC shall be charged for the direct costs of search, duplication and 
review as set forth in paragraphs (c)(2) and (c)(3) of this section, 
unless such costs are less than the FDIC's cost of processing the 
requester's remittance.
    (ii) Requesters will be charged for search and review costs even if 
responsive records are not located and, if located, are determined to 
be exempt from disclosure.
    (iii) Multiple requests seeking similar or related records from the 
same requester or group of requesters will be aggregated for the 
purposes of this section.
    (iv) If the FDIC determines that the estimated costs of search, 
duplication or review of requested records will exceed the dollar 
amount specified in the request or if no dollar amount is specified, 
the FDIC will advise the requester of the estimated costs (if greater 
than the FDIC's cost of processing the requester's remittance). The 
requester must agree in writing to pay the costs of search, duplication 
and review prior to the FDIC initiating any records search.
    (v) If the FDIC estimates that its search, duplication and review 
costs will exceed $250.00, the requester must pay an amount equal to 20 
percent of the estimated costs prior to the FDIC initiating any records 
search.
    (vi) The FDIC may require any requester who has previously failed 
to pay the charges under this section within 30 days of mailing of the 
invoice to pay in advance the total estimated costs of search, 
duplication and review. The FDIC may also require a requester who has 
any charges outstanding in excess of 30 days following mailing of the 
invoice to pay the full amount due, or demonstrate that the fee has 
been paid in full, prior to the FDIC initiating any additional records 
search.
    (vii) The FDIC may begin assessing interest charges on unpaid bills 
on the 31st day following the day on which the notice was sent. 
Interest will be at the rate prescribed in section 3717 of Title 31 of 
the United States Code and will accrue from the date of the invoice.
    (viii) The time limit for FDIC to respond to a request will not 
begin to run until the FDIC has received the requester's written 
agreement under paragraph (c)(1)(iv) of this section, and advance 
payment under paragraph (c)(1)(v) or (vi) of this section, or 
outstanding charge under paragraph (c)(1)(vi) of this section.
    (ix) As part of the initial request, a requester may ask that the 
FDIC waive or reduce fees if disclosure of the records is in the public 
interest because it is likely to contribute significantly to public 
understanding of the operations or activities of the government and is 
not primarily in the commercial interest of the requester. 
Determinations as to a waiver or reduction of fees will be made by the 
Executive Secretary (or designee) and the requester will be notified in 
writing of his/her determination. A determination not to grant a 
request for a waiver or reduction of fees under this paragraph may be 
appealed to the FDIC's General Counsel (or designee) pursuant to the 
procedure set forth in paragraph (e) of this section.
    (2) Chargeable fees by category of requester. (i) Commercial use 
requesters shall be charged search, duplication and review costs.
    (ii) Educational institutions, non-commercial scientific 
institutions and news media representatives shall be charged 
duplication costs, except for the first 100 pages.
    (iii) Requesters not within the scope of paragraph (c)(2)(i) or 
(ii) of this section shall be charged the full reasonable direct cost 
of search and duplication, except for the first two hours of search 
time and first 100 pages of duplication.
    (3) Fee schedule. The dollar amount of fees which the FDIC may 
charge to records requesters will be established by the Chief Financial 
Officer of the FDIC (or designee), and will be set forth in the 
``Notice of Federal Deposit Insurance Corporation Records Fees'' issued 
in December of each year or in such ``Interim Notice of Federal Deposit 
Insurance Corporation Records Fees'' as may be issued. Copies of such 
notices may be obtained at no charge from the FDIC's Office of the 
Executive Secretary, FOIA Unit, 550 17th Street, N.W., Washington, D.C. 
20429. The fees implemented in the December or Interim Notice will be 
effective 30 days after issuance. The FDIC may charge fees that recoup 
the full allowable direct costs it incurs. The FDIC may contract with 
independent contractors to locate, reproduce, and/or disseminate 
records; provided however, that the FDIC has determined that the 
ultimate cost to the requester will be no greater than it would be if 
the FDIC performed these tasks itself. In no case will the FDIC 
contract out responsibilities which the Freedom of Information Act 
(FOIA) (5 U.S.C. 552) provides that the FDIC alone may discharge, such 
as determining the applicability of an exemption or whether to waive or 
reduce fees. Fees are subject to change as costs change.
    (i) Manual searches for records. The FDIC will charge for manual 
searches for records at the basic rate of pay of the employee making 
the search plus 16 percent to cover employee benefit costs. Where a 
single class of personnel (e.g., all clerical, all professional, or all 
executive) is used exclusively, the FDIC, 

[[Page 35154]]
at its discretion, may establish and charge an average rate for the 
range of grades typically involved.
    (ii) Computer searches for records. The fee for searches of 
computerized records is the actual direct cost of the search, including 
computer time, computer runs, and the operator's time apportionable to 
the search. The fee for a computer printout is the actual cost. The 
fees for computer supplies are the actual costs. The FDIC may, at its 
discretion, establish and charge a fee for computer searches based upon 
a reasonable FDIC-wide average rate for central processing unit 
operating costs and the operator's basic rate of pay plus 16 percent to 
cover employee benefit costs.
    (iii) Duplication of records. (A) The per-page fee for paper copy 
reproduction of documents is the average FDIC-wide cost based upon the 
reasonable direct costs of making such copies.
    (B) For other methods of reproduction or duplication, the FDIC will 
charge the actual direct costs of reproducing or duplicating the 
documents.
    (iv) Review of records. The FDIC will charge commercial use 
requesters for the review of records at the time of processing the 
initial request to determine whether they are exempt from mandatory 
disclosure at the basic rate of pay of the employee making the search 
plus 16 percent to cover employee benefit costs. Where a single class 
of personnel (e.g., all clerical, all professional, or all executive) 
is used exclusively, the FDIC, at its discretion, may establish and 
charge an average rate for the range of grades typically involved. The 
FDIC will not charge at the administrative appeal level for review of 
an exemption already applied. When records or portions of records are 
withheld in full under an exemption which is subsequently determined 
not to apply, the FDIC may charge for a subsequent review to determine 
the applicability of other exemptions not previously considered.
    (v) Other services. Complying with requests for special services is 
at the FDIC's discretion. The FDIC may recover the full costs of 
providing such services to the extent it elects to provide them.
    (d) Exempt information. A request for records may be denied if the 
requested record contains information which falls into one or more of 
the following categories.4 If the requested record contains both 
exempt and nonexempt information, the nonexempt portions which may 
reasonably be segregated from the exempt portions will be released to 
the requester:

    \4\ Classification of a record as exempt from disclosure under 
the provisions of Sec. 309.5(d) shall not be construed as authority 
to withhold the record if it is otherwise subject to disclosure 
under the Privacy Act of 1974 (5 U.S.C. 552a) or other federal 
statute, any applicable regulation of FDIC or any other federal 
agency having jurisdiction thereof, or any directive or order of any 
court of competent jurisdiction.
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    (1) Records which are specifically authorized under criteria 
established by an Executive Order to be kept secret in the interest of 
national defense or foreign policy and are in fact properly classified 
pursuant to such Executive Order;
    (2) Records related solely to the internal personnel rules and 
practices of the FDIC;
    (3) Records specifically exempted from disclosure by statute, 
provided that such statute:
    (i) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue; or
    (ii) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained 
from a person that is privileged or confidential;
    (5) Interagency or intra-agency memoranda or letters which would 
not be available by law to a private party in litigation with the FDIC;
    (6) Personnel, medical, and similar files (including financial 
files) the disclosure of which would constitute a clearly unwarranted 
invasion of personal privacy;
    (7) Records compiled for law enforcement purposes, but only to the 
extent that the production of such law enforcement records:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a state, local, or foreign agency or 
authority or any private institution which furnished records on a 
confidential basis;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual;
    (8) Records that are contained in or related to examination, 
operating, or condition reports prepared by, on behalf of, or for the 
use of the FDIC or any agency responsible for the regulation or 
supervision of financial institutions; or
    (9) Geological and geophysical information and data, including 
maps, concerning wells.
    (e) Appeals. (1) A person whose initial request for records under 
paragraph (a) of this section, or whose request for a waiver of fees 
under paragraph (c)(1)(ix) of this section, has been denied, either in 
part or in whole, has the right to appeal the denial to FDIC's General 
Counsel (or designee) within 30 business days after receipt of 
notification of the denial. Appeals of denials of initial requests or 
for a waiver of fees must be in writing and include any additional 
information relevant to consideration of the appeal. Appeals should be 
addressed to the Office of the Executive Secretary, FDIC, 550-17th 
Street, N.W., Washington, DC 20429.
    (2) The FDIC will notify the appellant within 20 business days 
after receipt of the appeal whether it is granted or denied. Denials of 
appeals on initial requests for records will be based on the exemptions 
provided for in paragraph (c) of this section.
    (3) Notifications of a denial of an appeal will be in writing and 
will state:
    (i) Whether the denial is in part or in whole;
    (ii) The name and title of each person responsible for the denial 
(if other than the person signing the notification);
    (iii) The exemptions relied upon for the denial in the case of 
initial requests for records; and
    (iv) The right to judicial review of the denial under the FOIA.
    (f) Extension of time. (1) Under unusual circumstances the FDIC may 
require additional time, up to a maximum of 10 business days, to 
determine whether to grant or deny an initial request or to respond to 
an appeal of an initial denial. These circumstances would arise in 
cases where:
    (i) The records are in facilities, such as field offices or storage 
centers, that are not part of the FDIC's Washington office;
    (ii) The records requested are voluminous and are not in close 
proximity to one another; or
    (iii) There is a need to consult with another agency or among two 
or more components of the FDIC having a substantial interest in the 
determination. 

[[Page 35155]]

    (2) The FDIC will promptly give written notification to the person 
making the request of the estimated date it will make its determination 
and the reasons why additional time is required.
    (g) FDIC procedures. (1) Initial requests for records will be 
forwarded by the Executive Secretary to the head of the FDIC division 
or office which has primary authority over such records. Where it is 
determined that the requested records may be released, the appropriate 
division or office head will grant access to the records. A request for 
records may be denied only by the Executive Secretary (or designee), 
except that a request for records not responded to within 10 business 
days following its receipt by the Office of Executive Secretary--by 
notice to the requester either granting the request, denying the 
request, or extending the time for making a determination on the 
request--shall, if the requester chooses to treat such delay in 
response as a denial, be deemed to have been denied.
    (2) Appeals from a denial of an initial request will be forwarded 
by the Executive Secretary to the General Counsel (or designee) for a 
determination whether the appeal will be granted or denied. The General 
Counsel (or designee) may on his or her own motion refer an appeal to 
the Board of Directors for a determination or the Board of Directors 
may in its discretion consider such an appeal.
    (h) Records of another agency. If a requested record is the 
property of another federal agency or department, and that agency or 
department, either in writing or by regulation, expressly retains 
ownership of such record, upon receipt of a request for the record the 
FDIC will promptly inform the requester of this ownership and 
immediately shall forward the request to the proprietary agency or 
department either for processing in accordance with the latter's 
regulations or for guidance with respect to disposition.


Sec. 309.6  Disclosure of exempt records.

    (a) Disclosure prohibited. Except as provided in paragraph (b) of 
this section or by 12 CFR part 310 5, no person shall disclose or 
permit the disclosure of any exempt records, or information contained 
therein, to any persons other than those officers, directors, 
employees, or agents of the Corporation who have a need for such 
records in the performance of their official duties. In any instance in 
which any person has possession, custody or control of FDIC exempt 
records or information contained therein, all copies of such records 
shall remain the property of the Corporation and under no circumstances 
shall any person, entity or agency disclose or make public in any 
manner the exempt records or information without written authorization 
from the Director of the Corporation's Division having primary 
authority over the records or information as provided in this section.

    \5\ The procedures for disclosing records under the Privacy Act 
are separately set forth in 12 CFR part 310.
---------------------------------------------------------------------------

    (b) Disclosure authorized. Exempt records or information of the 
Corporation may be disclosed only in accordance with the conditions and 
requirements set forth in this paragraph (b). Requests for 
discretionary disclosure of exempt records or information pursuant to 
this paragraph (b) may be submitted directly to the Division having 
primary authority over the exempt records or information or to the 
Office of Executive Secretary for forwarding to the appropriate 
Division having primary authority over the records sought. Such 
administrative request must clearly state that it seeks discretionary 
disclosure of exempt records, clearly identify the records sought, 
provide sufficient information for the Corporation to evaluate whether 
there is good cause for disclosure, and meet all other conditions set 
forth in paragraphs (b)(1) through (10) of this section. Information 
regarding the appropriate FDIC Division having primary authority over a 
particular record or records may be obtained from the Office of 
Executive Secretary. Authority to disclose or authorize disclosure of 
exempt records of the Corporation is delegated as follows:
    (1) Disclosure to depository institutions. The Director of the 
Corporation's Division having primary authority over the exempt 
records, or designee, may disclose to any director or authorized 
officer, employee or agent of any depository institution, information 
contained in, or copies of, exempt records pertaining to that 
depository institution.
    (2) Disclosure to state banking agencies. The Director of the 
Corporation's Division having primary authority over the exempt 
records, or designee, may in his or her discretion and for good cause, 
disclose to any authorized officer or employee of any state banking or 
securities department or agency, copies of any exempt records to the 
extent the records pertain to a state-chartered depository institution 
supervised by the agency or authority, or where the exempt records are 
requested in writing for a legitimate depository institution 
supervisory or regulatory purpose.
    (3) Disclosure to federal financial institutions supervisory 
agencies and certain other agencies. The Director of the Corporation's 
Division having primary authority over the exempt records, or designee, 
may in his or her discretion and for good cause, disclose to any 
authorized officer or employee of any federal financial institution 
supervisory agency including the Comptroller of the Currency, the Board 
of Governors of the Federal Reserve System, the Office of Thrift 
Supervision, the Securities and Exchange Commission, the National 
Credit Union Administration, or any other agency included in section 
1101(7) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 
et. seq.) (RFPA), any exempt records for a legitimate depository 
institution supervisory or regulatory purpose. The Director, or 
designee, may in his or her discretion and for good cause, disclose 
exempt records, including customer financial records, to certain other 
federal agencies as referenced in section 1113 of the RFPA for the 
purposes and to the extent permitted therein, or to any foreign bank 
regulatory or supervisory authority as provided, and to the extent 
permitted, by section 206 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991.
    (4) Disclosure to prosecuting or investigatory agencies or 
authorities. (i) Reports of Apparent Crime pertaining to suspected 
violations of law, which may contain customer financial records, may be 
disclosed to federal or state prosecuting or investigatory authorities 
without giving notice to the customer, as permitted in the relevant 
exceptions of the RFPA.
    (ii) The Director of the Corporation's Division having primary 
authority over the exempt records, or designee, may disclose to the 
proper federal or state prosecuting or investigatory authorities, or to 
any authorized officer or employee of such authority, copies of exempt 
records pertaining to irregularities discovered in depository 
institutions which are believed to constitute violations of any federal 
or state civil or criminal law, or unsafe or unsound banking practices, 
provided that customer financial records may be disclosed without 
giving notice to the customer, only as permitted by the relevant 
exceptions of the RFPA. Unless such disclosure is initiated by the 
FDIC, customer financial 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 

[[Page 35156]]

    (C) Gives the reasons for the request.
    (iii) When notice to the customer is required to be given under the 
RFPA, the Director of the Corporation's Division having primary 
authority over the exempt records, or designee, may disclose customer 
financial records to any federal or state prosecuting or investigatory 
agency or authority, provided, that:
    (A) The General Counsel, or designee, has determined that 
disclosure is authorized or 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 Corporation's Division having primary 
authority over the exempt records, or designee, certifies pursuant to 
section 1112(a) 6 of the RFPA that the records are believed 
relevant to a legitimate law enforcement inquiry within the 
jurisdiction of the receiving agency; and

    \6\ 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 legitimate law enforcement inquiry, within the 
jurisdiction of the receiving agency.
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    (2) A copy of such certification and the notice required by section 
1112(b) 7 of the RFPA is sent within fourteen days of the 
disclosure to the customer whose records are disclosed.8

    \7\ The form of notice generally is as follows. Additional 
information may be added:
    Dear Mr./Mrs. __________:
    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.
    \8\ Whenever the Corporation is subject to a court-ordered delay 
of the customer notice, the notice shall be sent immediately upon 
the expiration of the court-ordered delay.
---------------------------------------------------------------------------

    (5) Disclosure to servicers and serviced institutions. The Director 
of the Corporation's Division having primary authority over the exempt 
records, or designee, may disclose copies of any exempt record related 
to a bank data center, a depository institution 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.
    (6) Disclosure to third parties. (i) Except as otherwise provided 
in paragraphs (c) (1) through (5) of this section, the Director of the 
Corporation's Division having primary authority over the exempt 
records, or designee, may in his or her discretion and for good cause, 
disclose copies of any exempt records to any third party where 
requested to do so in writing. Any such written request shall:
    (A) Specify, with reasonable particularity, the record or records 
to which access is requested; and
    (B) Give the reasons for the request.
    (ii) Either prior to or at the time of any disclosure, the Director 
or designee shall require such terms and conditions as he deems 
necessary to protect the confidential nature of the record, the 
financial integrity of any depository institution to which the record 
relates, and the legitimate privacy interests of any individual named 
in such records.
    (7) Authorization for disclosure by depository institutions or 
other third parties. (i) The Director of the Corporation's Division 
having primary authority over the exempt records, or designee, may, in 
his or her discretion and for good cause, authorize any director, 
officer, employee, or agent of a depository institution to disclose 
copies of any exempt record in his custody to anyone who is not a 
director, officer or employee of the depository institution. Such 
authorization must be in response to a written request from the party 
seeking the record or from management of the depository institution to 
which the report or record pertains. Any such request shall specify, 
with reasonable particularity, the record sought, the party's interest 
therein, and the party's relationship to the depository institution to 
which the record relates.
    (ii) The Director of the Corporation's Division having primary 
authority over the exempt records, or designee, may, in his or her 
discretion and for good cause, authorize any third party, including a 
federal or state agency, that has received a copy of a Corporation 
exempt record, to disclose such exempt record to another party or 
agency. Such authorization must be in response to a written request 
from the party that has custody of the copy of the exempt record. Any 
such request shall specify the record sought to be disclosed and the 
reasons why disclosure is necessary.
    (iii) Any subsidiary depository institution of a bank holding 
company or a savings and loan holding company may reproduce and furnish 
a copy of any report of examination of the subsidiary depository 
institution to the parent holding company without prior approval of the 
Director of the Division having primary authority over the exempt 
records and any depository institution may reproduce and furnish a copy 
of any report of examination of the disclosing depository institution 
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 depository institution or subsidiary 
depository institution;
    (B) The board of directors of the depository institution or 
subsidiary depository institution at least annually by resolution 
authorizes the reproduction and furnishing of reports of examination 
(the resolution shall specifically name the shareholder or parent 
holding company, state the address to which the reports are to be sent, 
and indicate that all reports furnished pursuant to the resolution 
remain the property of the Federal Deposit Insurance Corporation and 
are not to be disclosed or made public in any manner without the prior 
written approval of the Director of the Corporation's Division having 
primary authority over the exempt records as provided in paragraph (b) 
of this section);
    (C) A copy of the resolution authorizing disclosure of the reports 
is sent to the shareholder or parent holding company; and
    (D) The minutes of the board of directors of the depository 
institution or subsidiary depository institution for the meeting 
immediately following disclosure of a report state:
    (1) That disclosure was made;
    (2) The date of the report which was disclosed;
    (3) To whom the report was sent; and
    (4) The date the report was disclosed.
    (iv) With respect to any disclosure that is authorized under 
paragraph (b)(7) of this section, the Director of the Corporation's 
Division having primary authority over the exempt records, or designee, 
shall only permit disclosure of 

[[Page 35157]]
records upon determining that good cause exists. If the exempt record 
contains information derived from depository institution customer 
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 RFPA. Before authorizing 
the disclosure, the Director (or designee) may require that both the 
party having custody of a copy of a Corporation exempt record and the 
party seeking access to the record agree to such limitations as the 
Director (or designee) deems necessary to protect the confidential 
nature of the record, the financial integrity of any depository 
institution to which the record relates and the legitimate privacy 
interests of any persons named in such record.
    (8) Disclosure by General Counsel. (i) The Corporation's General 
Counsel, or designee, may disclose or authorize the disclosure of any 
exempt record in response to a valid judicial subpoena, court order, or 
other legal process, and authorize any current or former officer, 
director, employee, agent of the Corporation, or third party, to appear 
and testify regarding an exempt record or any information obtained in 
the performance of such person's official duties, at any administrative 
or judicial hearing or proceeding where such person has been served 
with a valid subpoena, court order, or other legal process requiring 
him or her to testify. The General Counsel shall consider the relevancy 
of such exempt records or testimony to the litigation, and the 
interests of justice, in determining whether to disclose such records 
or testimony. Third parties seeking disclosure of exempt records or 
testimony in litigation to which the FDIC is not a party shall submit a 
request for discretionary disclosure directly to the General 
Counsel.9 Such request shall specify the information sought with 
reasonable particularity and shall be accompanied by a statement with 
supporting documentation showing in detail the relevance of such exempt 
information to the litigation, justifying good cause for disclosure, 
and a commitment to be bound by a protective order. Failure to exhaust 
such administrative request prior to service of a subpoena, court order 
or other legal process may, in the General Counsel's discretion, serve 
as a basis for objection to such subpoena, court order or legal 
process. Customer financial records may not be disclosed to any federal 
agency that is not a federal financial supervisory agency pursuant to 
this paragraph unless notice to the customer and certification as 
required by the RFPA have been given except where disclosure is subject 
to the relevant exceptions set forth in the RFPA.

    \9\ This administrative requirement does not apply to subpoenas, 
court orders or other legal process issued for records of depository 
institutions held by the FDIC as Receiver or Conservator. Subpoenas, 
court orders or other legal process issued for such records will be 
processed in accordance with State and Federal law, regulations, 
rules and privileges applicable to FDIC as Receiver or Conservator.
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    (ii) The General Counsel, or designee, may in his or her discretion 
and for good cause, disclose or authorize disclosure of any exempt 
record or testimony by a current or former officer, director, employee, 
agent of the Corporation, or third party, sought in connection with any 
civil or criminal hearing, proceeding or investigation without the 
service of a judicial subpoena, or other legal process requiring such 
disclosure or testimony, if he or she determines that the records or 
testimony are relevant to the hearing, proceeding or investigation and 
that disclosure is in the best interests of justice. Customer financial 
records shall not be disclosed to any federal agency pursuant to this 
paragraph that is not a federal financial supervisory agency, unless 
the records are sought under the Federal Rules of Civil Procedure (28 
U.S.C. appendix) or the Federal Rules of Criminal Procedure (18 U.S.C. 
appendix) or comparable rules of other courts and in connection with 
litigation to which the receiving federal agency, employee, officer, 
director, or agent, and the customer are parties, or disclosure is 
otherwise subject to the relevant exceptions in the RFPA. Where the 
General Counsel or designee authorizes a current or former officer, 
director, employee or agent of the Corporation to testify or disclose 
exempt records pursuant to this paragraph (b)(8), he or she may, in his 
or her discretion, limit the authorization to so much of the record or 
testimony as is relevant to the issues at such hearing, proceeding or 
investigation, and he or she shall give authorization only upon 
fulfillment of such conditions as he or she deems necessary and 
practicable to protect the confidential nature of such records or 
testimony.
    (9) Authorization for disclosure by 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 in his or 
her discretion, authorize the disclosure of any Corporation records. 
Except where disclosure is required by law, the Chairman may direct any 
current or former officer, director, employee or agent of the 
Corporation to refuse to disclose any record or to give testimony if 
the Chairman determines, in his or her discretion, that refusal to 
permit such disclosure is in the public interest.
    (10) Limitations on disclosure. All steps practicable shall be 
taken to protect the confidentiality of exempt records and information. 
Any disclosure permitted by paragraph (b) of this section is 
discretionary and nothing in paragraph (b) of this section shall be 
construed as requiring the disclosure of information. Further, nothing 
in paragraph (b) 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 
having primary authority over the exempt records, the Corporation's 
General Counsel, or their designees, or any other Corporation Division 
or Office head, in their discretion and in light of the facts and 
circumstances attendant in any given case, to require conditions upon 
and to limit the form, manner, and extent of any disclosure permitted 
by this section. Wherever practicable, disclosure of exempt records 
shall be made pursuant to a protective order and redacted to exclude 
all irrelevant or non-responsive exempt information.
Sec. 309.7  Service of process.

    (a) Service. Any subpoena or other legal process to obtain 
information maintained by the FDIC shall be duly issued by a court 
having jurisdiction over the FDIC, and served upon either the Executive 
Secretary (or designee), FDIC, 550 17th Street, NW., Washington, DC 
20429, or the Regional Director or Regional Manager of the FDIC region 
where the legal action from which the subpoena or process was issued is 
pending. A list of the FDIC's regional offices is available from the 
Office of Corporate Communications, FDIC, 550 17th Street, NW., 
Washington, DC 20429 (telephone 202-898-6996). Where the FDIC is named 
as a party, service of process shall be made pursuant to the Federal 
Rules of Civil Procedure, and upon the Executive Secretary (or 
designee), FDIC, 550 17th Street NW., Washington, DC 20429, or upon the 
agent designated to receive service of process in the state, territory, 
or jurisdiction in which any insured depository institution is located. 
Identification of the designated agent in the state, territory, or 
jurisdiction may be obtained from the Office of the Executive Secretary 
or from the Office of the General Counsel, FDIC, 550 17th Street NW., 
Washington, DC 20429. The Executive Secretary (or designee), Regional 
Director or designated agent shall immediately forward any 

[[Page 35158]]
subpoena, court order or legal process to the General Counsel.
    (b) Notification by person served. If any current or former 
officer, director, employee or agent of the Corporation, or any other 
person who has custody of exempt records belonging to the FDIC, is 
served with a subpoena, court order, or other process requiring that 
person's attendance as a witness concerning any matter related to 
official duties, or the production of any exempt record of the 
Corporation, such person shall promptly advise the Office of the 
Corporation's General Counsel of such service, of the testimony and 
records described in the subpoena, and of all relevant facts which may 
be of assistance to the General Counsel in determining 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.
    (c) Appearance by person served. Absent the written authorization 
of the Corporation's General Counsel, or designee, to disclose the 
requested information, any current or former officer, director, 
employee, or agent of the Corporation, and any other person having 
custody of exempt records 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.

    By Order of the Board of Directors.

    Dated at Washington, DC this 27th day of June, 1995.

Federal Deposit Insurance Corporation.
Jerry L. Langley,
Executive Secretary.
[FR Doc. 95-16329 Filed 7-5-95; 8:45 am]
BILLING CODE 6714-01-P