[Code of Federal Regulations]
[Title 12 Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR40.13]

[Page 371]
 
                       TITLE 12--BANKS AND BANKING
 
   CHAPTER I--COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY
 
PART 40--PRIVACY OF CONSUMER FINANCIAL INFORMATION--Table of Contents
 
                          Subpart C--Exceptions
 
Sec. 40.13  Exception to opt out requirements for service providers and joint marketing.


    (a) General rule. (1) The opt out requirements in Sec. Sec. 40.7 
and 40.10 do not apply when a bank provides nonpublic personal 
information to a nonaffiliated third party to perform services for the 
bank or functions on the bank's behalf, if the bank:
    (i) Provides the initial notice in accordance with Sec. 40.4; and
    (ii) Enters 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 the bank disclosed the 
information, including use under an exception in Sec. 40.14 or 40.15 in 
the ordinary course of business to carry out those purposes.
    (2) Example. If a bank discloses nonpublic personal information 
under this section to a financial institution with which the bank 
performs joint marketing, the bank's 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. Sec. 40.14 or 40.15 in 
the ordinary course of business to carry out that joint marketing.
    (b) Service may include joint marketing. The services a 
nonaffiliated third party performs for a bank under paragraph (a) of 
this section may include marketing of the bank's own products or 
services or marketing of financial products or services offered pursuant 
to joint agreements between the bank 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 a bank and 
one or more financial institutions jointly offer, endorse, or sponsor a 
financial product or service.