S.900
Gramm-Leach-Bliley Act (Enrolled as Agreed to or Passed by Both House and Senate)
SEC. 509. DEFINITIONS.
As used in this subtitle:
(1) FEDERAL BANKING AGENCY- The term `Federal banking
agency' has the same meaning as given in section 3 of the Federal
Deposit Insurance Act.
(2) FEDERAL FUNCTIONAL REGULATOR- The term `Federal functional regulator' means--
(A) the Board of Governors of the Federal Reserve System;
(B) the Office of the Comptroller of the Currency;
(C) the Board of Directors of the Federal Deposit Insurance Corporation;
(D) the Director of the Office of Thrift Supervision;
(E) the National Credit Union Administration Board; and
(F) the Securities and Exchange Commission.
(3) FINANCIAL INSTITUTION-
(A) IN GENERAL- The term `financial institution'
means any institution the business of which is engaging in financial
activities as described in section 4(k) of the Bank Holding Company Act
of 1956.
(B) PERSONS SUBJECT TO CFTC REGULATION-
Notwithstanding subparagraph (A), the term `financial institution' does
not include any person or entity with respect to any financial activity
that is subject to the jurisdiction of the Commodity Futures Trading
Commission under the Commodity Exchange Act.
(C) FARM CREDIT INSTITUTIONS- Notwithstanding
subparagraph (A), the term `financial institution' does not include the
Federal Agricultural Mortgage Corporation or any entity chartered and
operating under the Farm Credit Act of 1971.
(D) OTHER SECONDARY MARKET INSTITUTIONS-
Notwithstanding subparagraph (A), the term `financial institution' does
not include institutions chartered by Congress specifically to engage
in transactions described in section 502(e)(1)(C), as long as such
institutions do not sell or transfer nonpublic personal information to
a nonaffiliated third party.
(4) NONPUBLIC PERSONAL INFORMATION-
(A) The term `nonpublic personal information' means personally identifiable financial information--
(i) provided by a consumer to a financial institution;
(ii) resulting from any transaction with the consumer or any service performed for the consumer; or
(iii) otherwise obtained by the financial institution.
(B) Such term does not include publicly available
information, as such term is defined by the regulations prescribed
under section 504.
(C) Notwithstanding subparagraph (B), such term--
(i) shall include any list, description, or
other grouping of consumers (and publicly available information
pertaining to them) that is derived using any nonpublic personal
information other than publicly available information; but
(ii) shall not include any list, description,
or other grouping of consumers (and publicly available information
pertaining to them) that is derived without using any nonpublic
personal information.
(5) NONAFFILIATED THIRD PARTY- The term `nonaffiliated
third party' means any entity that is not an affiliate of, or related
by common ownership or affiliated by corporate control with, the
financial institution, but does not include a joint employee of such
institution.
(6) AFFILIATE- The term `affiliate' means any company
that controls, is controlled by, or is under common control with
another company.
(7) NECESSARY TO EFFECT, ADMINISTER, OR ENFORCE- The
term `as necessary to effect, administer, or enforce the transaction'
means--
(A) the disclosure is required, or is a usual,
appropriate, or acceptable method, to carry out the transaction or the
product or service business of which the transaction is a part, and
record or service or maintain the consumer's account in the ordinary
course of providing the financial service or financial product, or to
administer or service benefits or claims relating to the transaction or
the product or service business of which it is a part, and includes--
(i) providing the consumer or the consumer's
agent or broker with a confirmation, statement, or other record of the
transaction, or information on the status or value of the financial
service or financial product; and
(ii) the accrual or recognition of incentives
or bonuses associated with the transaction that are provided by the
financial institution or any other party;
(B) the disclosure is required, or is one of the
lawful or appropriate methods, to enforce the rights of the financial
institution or of other persons engaged in carrying out the financial
transaction, or providing the product or service;
(C) the disclosure is required, or is a usual,
appropriate, or acceptable method, for insurance underwriting at the
consumer's request or for reinsurance purposes, or for any of the
following purposes as they relate to a consumer's insurance: Account
administration, reporting, investigating, or preventing fraud or
material misrepresentation, processing premium payments, processing
insurance claims, administering insurance benefits (including
utilization review activities), participating in research projects, or
as otherwise required or specifically permitted by Federal or State
law; or
(D) the disclosure is required, or is a usual, appropriate or acceptable method, in connection with--
(i) the authorization, settlement, billing,
processing, clearing, transferring, reconciling, or collection of
amounts charged, debited, or otherwise paid using a debit, credit or
other payment card, check, or account number, or by other payment means;
(ii) the transfer of receivables, accounts or interests therein; or
(iii) the audit of debit, credit or other payment information.
(8) STATE INSURANCE AUTHORITY- The term `State
insurance authority' means, in the case of any person engaged in
providing insurance, the State insurance authority of the State in
which the person is domiciled.
(9) CONSUMER- The term `consumer' means an individual
who obtains, from a financial institution, financial products or
services which are to be used primarily for personal, family, or
household purposes, and also means the legal representative of such an
individual.
(10) JOINT AGREEMENT- The term `joint agreement' means
a formal written contract pursuant to which two or more financial
institutions jointly offer, endorse, or sponsor a financial product or
service, and as may be further defined in the regulations prescribed
under section 504.
(11) CUSTOMER RELATIONSHIP- The term `time of
establishing a customer relationship' shall be defined by the
regulations prescribed under section 504, and shall, in the case of a
financial institution engaged in extending credit directly to consumers
to finance purchases of goods or services, mean the time of
establishing the credit relationship with the consumer.