December 16, 1997
Charles P. Bowles, Chairman
EasCorp
300 Unicorn Park Drive
P.O. Box 2366
Woburn, MA 01888-2366
Dear Mr. Bowles:
This is in response to your letter in which you asked
about the general rules protecting confidential trade documents
produced by credit unions to NCUA in the course of an examination.
You also asked that we explain the process used by the Office
of Corporate Credit Unions to protect and safeguard the documents
and proprietary information of corporate credit unions.
There are several laws and regulations which combine
to offer substantial protection for confidential information obtained
from credit unions during an examination. NCUA's regulations
prohibit the unauthorized disclosure, by both NCUA and credit
union employees, of records which are exempt from disclosure under
the Freedom of Information Act (FOIA). 12 C.F.R. �2.4.
As you may be aware, information contained in, or related to,
a report of examination falls squarely within the application
of an exemption to FOIA. 5 U.S.C. 552(b)(8). Records which contain
trade secrets, or commercial or financial information which is
privileged or confidential, are also protected from disclosure
by an exemption to FOIA. 5 U.S.C. 552(b)(4). Furthermore, the
Trade Secrets Act establishes criminal penalties for any federal
employee who makes an unauthorized disclosure of information such
as trade secrets, confidential statistical data, or financial
information obtained in the course of federal employment. 18
U.S.C. �05.
Finally, all records provided by corporate credit
unions to NCUA examiners are in the legal custody and control
of NCUA. Records obtained by corporate credit union examiners
to conduct an examination are agency records, notwithstanding
the location where they may be maintained. Examiners may not
retain possession of such materials beyond the time frame in which
they are relevant to their assignments. Upon resignation or termination,
examiners must return all agency records to NCUA.
I hope you find the above information to be helpful.
Sincerely,
Sheila A. Albin
Associate General Counsel
OGC/DMS:bhs
SSIC 5010 / 97-1044