[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: 12CFR40.9]

[Page 368]
 
                       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 A--Privacy and Opt Out Notices
 
Sec. 40.9  Delivering privacy and opt out notices.

    (a) How to provide notices. A bank must provide any privacy notices 
and opt out notices, including short-form initial notices, that this 
part requires so that each consumer can reasonably be expected to 
receive actual notice in writing or, if the consumer agrees, 
electronically.
    (b) (1) Examples of reasonable expectation of actual notice. A bank 
may reasonably expect that a consumer will receive actual notice if the 
bank:
    (i) Hand-delivers a printed copy of the notice to the consumer;
    (ii) Mails a printed copy of the notice to the last known address of 
the consumer;
    (iii) For the consumer who conducts transactions electronically, 
posts the notice on the electronic site and requires the consumer to 
acknowledge receipt of the notice as a necessary step to obtaining a 
particular financial product or service;
    (iv) For an isolated transaction with the consumer, such as an ATM 
transaction, posts the notice on the ATM screen and requires the 
consumer to acknowledge receipt of the notice as a necessary step to 
obtaining the particular financial product or service.
    (2) Examples of unreasonable expectation of actual notice. A bank 
may not, however, reasonably expect that a consumer will receive actual 
notice of its privacy policies and practices if it:
    (i) Only posts a sign in its branch or office or generally publish 
advertisements of its privacy policies and practices;
    (ii) Sends the notice via electronic mail to a consumer who does not 
obtain a financial product or service from the bank electronically.
    (c) Annual notices only. A bank may reasonably expect that a 
customer will receive actual notice of the bank's annual privacy notice 
if:
    (1) The customer uses the bank's web site to access financial 
products and services electronically and agrees to receive notices at 
the web site and the bank posts its current privacy notice continuously 
in a clear and conspicuous manner on the web site; or
    (2) The customer has requested that the bank refrain from sending 
any information regarding the customer relationship, and the bank's 
current privacy notice remains available to the customer upon request.
    (d) Oral description of notice insufficient. A bank may not provide 
any notice required by this part solely by orally explaining the notice, 
either in person or over the telephone.
    (e) Retention or accessibility of notices for customers. (1) For 
customers only, a bank must provide the initial notice required by Sec. 
40.4(a)(1), the annual notice required by Sec. 40.5(a), and the revised 
notice required by Sec. 40.8 so that the customer can retain them or 
obtain them later in writing or, if the customer agrees, electronically.
    (2) Examples of retention or accessibility. A bank provides a 
privacy notice to the customer so that the customer can retain it or 
obtain it later if the bank:
    (i) Hand-delivers a printed copy of the notice to the customer;
    (ii) Mails a printed copy of the notice to the last known address of 
the customer; or
    (iii) Makes its current privacy notice available on a web site (or a 
link to another web site) for the customer who obtains a financial 
product or service electronically and agrees to receive the notice at 
the web site.
    (f) Joint notice with other financial institutions. A bank may 
provide a joint notice from it and one or more of its affiliates or 
other financial institutions, as identified in the notice, as long as 
the notice is accurate with respect to the bank and the other 
institutions.
    (g) Joint relationships. If two or more consumers jointly obtain a 
financial product or service from a bank, the bank may satisfy the 
initial, annual, and revised notice requirements of Sec. Sec. 40.4(a), 
40.5(a), and 40.8(a), respectively, by providing one notice to those 
consumers jointly.

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