[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR716.13]



[Page 554]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 716_PRIVACY OF CONSUMER FINANCIAL INFORMATION--Table of Contents

 

                          Subpart C_Exceptions

 

Sec. 716.13  Exception to opt out requirements for service providers 

and joint marketing.





    (a) General rule. (1) The opt out requirements in Sec. Sec. 716.7 

and 716.10 do not apply when you provide nonpublic personal information 

to a nonaffiliated third party to perform services for you or functions 

on your behalf, if you:

    (i) Provide the initial notice in accordance with Sec. 716.4; and

    (ii) Enter into a contractual agreement with the third party that 

prohibits the third party from disclosing or using the information other 

than to carry out the purposes for which you disclosed the information, 

including use under an exception in Sec. 716.14 or 716.15 in the 

ordinary course of business to carry out those purposes.

    (2) Example. If you disclose nonpublic personal information under 

this section to a financial institution with which you perform joint 

marketing, your contractual agreement with that institution meets the 

requirements of paragraph (a)(1)(ii) of this section if it prohibits the 

institution from disclosing or using the nonpublic personal information 

except as necessary to carry out the joint marketing or under an 

exception in Sec. 716.14 or 716.15 in the ordinary course of business 

to carry out that joint marketing.

    (b) Service may include joint marketing. The services that a 

nonaffiliated third party performs for you under paragraph (a) of this 

section may include marketing of your own products or services or 

marketing of financial products or services offered pursuant to joint 

agreements between you and one or more financial institutions.

    (c) Definition of joint agreement. For purposes of this section, 

joint agreement means a written contract pursuant to which you and one 

or more financial institutions jointly offer, endorse, or sponsor a 

financial product or service.



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