Full text of Federal Reserve Bank of New York Circulars : 7698. Privacy Act of 1974

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FEDERAL RESERVE BANK
O F NEW YO RK
rC ircu la r No. 7 6 9 8 *1
Septem ber 2 ,1 9 7 5 J

PRIVACY ACT OF 1974
Proposed Amendments to Rules Regarding Availability of Information
To All Member Banks, and Others Concerned,
in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System proposes to amend its “Rules Regarding
Availability of Information” by adding a new part — 261a — to implement the requirements of the
Privacy Act of 1974.
Printed below is the text of the proposal. Comments thereon should be submitted by September
12, 1975, and may be sent to our Legal Department.
P aul

A.

V olcker,

President.
[12 C F R Part 261a]
P R I V A C Y A C T O F 1974
Proposed Promulgation of Board Rules
Pursuant to its authority under the Privacy Act of
1974 (the “
Act”), 5 U.S.C. §552a, the Board of Gov­
ernors of the Federal Reserve System proposes to
amend Title 12 of the Code of Federal Regulations
by adding a new Part 261 which is intended to
implement the requirements of section (f) of the Act.
Generally, the objective of the Act is the protection
of the personal privacy of individuals identified in
information systems maintained by Federal agencies
subject to the Act. In support of this objective, sec­
tion (f) of the Act requires that each agency sub­
ject to the Act promulgate rules by which an indi­
vidual upon request may be notified of the existence
of a record in a “
system of records”pertaining to
him, gain access to that record, request amendment
to that record, and appeal an initial adverse deter­
mination with respect to a request for amendment of
that record.
The purpose of proposed Part 261a is to provide
for the procedures under which the requirements of
section (f) of the Act will be met. Further, proposed
Part 261a: (1) indicates the restrictions on the dis­
closure of certain information to persons other than
to w h o m it pertains, (2) specifies the fees for the
photocopying or preparation of certain records, (3)
recites the penalty for unauthorized access to certain
records and (4) indicates the authority under which
certain portions of Board information may be ex­
empted from certain requirements of the Act.
To aid in the consideration of this matter by the
Board, interested persons are invited to submit rele­
vant data, views, comments, or arguments. Any such




material should be submitted in writing to the Secre­
tary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551, to be received not
later than September 12, 1975.
Notice is given that it is proposed to make Part
261a effective, after consideration of comments re­
ceived by the Board, on September 27, 1975, the
effective date of the Act.
Proposed Part 261a would read as follows:
RULES R E G A R D I N G ACCESS T O A N D R E V I E W
O F P E R S O N A L I N F O R M A T I O N IN S Y S T E M S
O F R E C O R D S (12 C F R 261a)

Sec.
261a.1
261a.2
261a.3
261a.4
261a.5
261a.6
261a.7
261a.8
261a.9

Purpose and Scope
Definitions
Procedures for Requests Pertaining to
Individual Records in a Record System
Requirements for Identification of
Individuals Making Requests
Disclosure of Requested Information to
Individuals
Special Procedures — Medical Records
Request for Correction or Amendment to
Record
Agency Review of Request for Amendment
of Record
Appeal of Initial Adverse Determination on
Correction or Amendment

261a.lO Disclosure of Record to Person Other Than
Individual to W h o m it Pertains
261a.ll Fees
261a. 12 Penalties
261a. 13 Exemptions
Authority: 5 U.S.C. §552a; 5 U.S.C. §553;
5 U.S.C. §552

request should identify the designated system of
records in which the requested record is to be found,
should reasonably describe the information requested
and, except as provided in section 261a.4, should in­
clude a notarized statement attesting to the identity
of the requestor.
(b) Requests made pursuant to paragraph (a) of
this section shall be addressed to the Director of the
Division of Personnel, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551, in
the case of records relating to employment with the
Board. Requests for other records should be ad­
dressed to the Secretary of the Board, Board of Gov­
ernors of the Federal Reserve System, Washington,
D.C. 20551. Requests for information pursuant to
paragraph (a) of this section may also be made in
person during regular business hours at the offices of
the Board of Governors of the Federal Reserve Sys­
tem, Federal Reserve Building, 20th and Constitution
Avenue, N.W., Washington, D.C. 20551.
(c) Every request made pursuant to this section
will be acknowledged or, where practicable, substan­
tially responded to within 10 business days from
receipt.

S E C T I O N 261a.l — P U R P O S E A N D S C O P E
The purpose of this Part is to establish regulations
implementing the provisions of the Privacy Act, 5
U.S.C. §552a, with regard to access to and review of
personal information in systems of records main­
tained by the Board of Governors of the Federal
Reserve System (“
Board”
).
S E C T I O N 261a.2 — D E F I N I TI ON S
For the purposes of this Part, the following defini­
tions shall apply:
(a) The term “
individual”means a natural person
who is either a citizen of the United States or an alien
lawfully admitted for permanent residence. The
term “
individual”includes the parent of any minor
or the legal guardian of any individual who has been
declared to be incompetent due to physical or mental
incapacity or age by a court of competent jurisdiction.
(b) The term “
maintain”also includes maintain,
collect, use, disseminate, or control.
(c) The term “
record”means any item, collection
or grouping of information about an individual main­
tained by the Board that contains the individual’
s
name, or the identifying number, symbol, or other
identifying particular assigned to the individual.
(d) The term “
system of records”means a group
of any records under the control of the Board from
which information is retrieved by the name of the
individual or some identifying number, symbol or
other identifying particular assigned to the individual.
(e) The term “
designated system of records”
means a system of records that has been listed in the
Federal Register pursuant to the requirements of
5 U.S.C. §552a(e).
(f) The term “
routine use”means, with respect to
disclosure of a record, the use of such record for a
purpose which is compatible with the purpose for
which it was collected.
(g) The term “
business days”means all days except
Saturdays, Sundays, and legal public holidays.

S E C T I O N 261a.4 — R E Q U I R E M E N T S F O R
IDENTIFICATION O F INDIVIDUALS
M A K I N G REQUESTS
(a ) Each request for information made pursuant to
section 261a.3 shall include a notarized statement
attesting to the identity of the requestor except in
the following instances:
(1) Where the information requested is other­
wise publicly available under the Freedom of
Information Act, 5 U.S.C. §552, and the Board’
s
Rules Regarding Availability of Information (12
C F R 261).
(2) Where the requestor makes written request
for information in person and presents a driver’
s
license, birth certificate, employment identification
card or other means of identification, sufficient to
establish his identity.

S E C T I O N 261a.3 — P R O C E D U R E S F O R R E ­
QUESTS PERTAINING T O INDIVIDUAL
R E C O R D S IN A R E C O R D S Y S T E M
(a)
Requests for access to personal information in
a designated system of records may be made by the
person to w h o m such information pertains. Every
such request shall be made in writing and shall spec­
ify that it is made pursuant to the Privacy Act. Each




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S E C T I O N 261a.5 — D I S C L O S U R E O F
REQUESTED INFORMATION TO
INDIVIDUALS
(a)
Information requested pursuant to section
261a.3, except for that compiled in reasonable antici­
pation of a civil action or proceeding or otherwise
exempted from disclosure as provided in section
261a.13, will be made available for inspection and
copying during regular business hours at the Board’
s
offices. However, where the requested information
can be disclosed only by providing a copy of the
record, because such record cannot reasonably be put
into a form for individual inspection (e.g., computer
tapes), or where the requestor may request that
copies of requested information be forwarded, such
information will be mailed to the requestor. Access
to or copies of requested information will be promptly
provided after the acknowledgment as provided in

(e)(1) and (e)(5) of the Privacy Act, 5 U.S.C.
§552a.

subsection 261a.3(c), unless good cause for delay
is communicated to the requestor.
(b) Fees for copying such records will be assessed
in accordance with subsection 261a.ll.
(c) The requestor of information may be accom­
panied in the inspection and discussion of that in­
formation by a person of the requestor’
s own choosing
upon the submission of a written and signed state­
ment authorizing the presence of such person.

(c) Upon completion of review of each request made
pursuant to section 261a.7, the Secretary of the Board
or the Director of the Division of Personnel shall
immediately inform the requestor of the determination
to grant or deny the requested amendment or correc­
tion.
(d) Where any request pursuant to section 261a.7
has been denied in whole or in part, the requestor
shall be advised of the reasons therefor, the procedure
for appeal of the determination and the name, title
and address of the official to w h o m such appeal should
be directed.

S E C T I O N 261a.6 — SPECIAL P R O C E D U R E S —
MEDICAL RECORDS
Medical records requested pursuant to subsection
261a.3 will be disclosed to the requestor unless the
disclosure of such records directly to the requestor
could, in the judgment of the official deemed respons­
ible for such records, have an adverse effect upon the
requestor. In such instance, such information will be
transmitted to a licensed physician named by the
requestor.

S E C T I O N 261a.9 — A P P E A L O F INITIAL
ADVERSE DETERMINATION O N CORRECTION
OR A M E N D M E N T
(a ) A denial of a request made pursuant to section
261a.7 may be appealed to the Board of Governors or
any official designated by the Chairman of the Board
of Governors within 30 business days of issuance of
notification of denial. Every such appeal should be
made in writing to the official designated in the letter
of initial denial, should specify the previous back­
ground of the request and should provide reasons why
the initial determination should be reversed.

S E C T I O N 261a.7 — R E Q U E S T F O R C O R R E C T I O N
OR A M E N D M E N T TO RECORD
(a) Where an individual believes that any portion
of a record in a designated system of records used
in making a determination about such individual is
not accurate, relevant, timely or complete, that indi­
vidual may request that such record be amended or
corrected. Such request should be submitted in
writing to the appropriate officer as designated in
section 261a.3. Each request for amendment or cor­
rection of a record should identify the system of
records containing the record for which amendment
or correction is requested, specify the portion of that
record requested to be amended or corrected, and
describe the nature of and reasons for each requested
amendment or correction. Additionally, each request
must include a notarized statement attesting to the
identity of the requestor except where the request is
presented in person and the requestor’
s identity may
thereupon be verified.
(b) Nothing in paragraph (a) of this section shall
permit collateral attack upon that which has been
decided in a previous judicial, quasi-judicial or other
proceeding.

(b ) The Board of Governors or such official design
nated by the Chairman of the Board shall make a
determination with respect to the review of such appeal
not later than 30 business days from its receipt, unless
the reviewing official extends such period for good
cause shown.
(c) If the Board or designated official affirms the
initial denial of a request to amend or correct made
pursuant to section 261a.7, such determination shall be
communicated to the requestor together with a state­
ment of the reasons therefor and the requestor shall
be informed of the right of judicial review of the
determination. The requestor may then file a concise
statement setting forth disagreement with the affirma­
tion of denial within 30 days of notification of such
determination.

S E C T I O N 261a.8 — A G E N C Y R E V I E W O F
REQUEST FOR A M E N D M E N T OF RECORD
(a) As appropriate, the Secretary of the Board or
the Director of the Division of Personnel shall ac­
knowledge each request made pursuant to section
261a.7 within 10 business days of its receipt. Such
acknowledgment may request additional information
necessary for a determination of the request for
amendment or correction.
(b ) As appropriate, the Secretary of the Board or the
Director of the Division of Personnel shall promptly
review each request made pursuant to section 261a.7
in light of the criteria of accuracy, relevance, timeli­
ness, completeness and necessity set forth in subsections




S E C T I O N 261a.l0 — D I S C L O S U R E O F R E C O R D
T O P ERS ON O T H E R T H A N INDIVIDUAL
T O W H O M IT P E RT A I N S
(a) N o record contained in a designated system of
records shall be disclosed to any person or agency
without the prior written consent of the individual to
w h o m the record pertains unless the disclosure is
authorized by paragraph (b) of this section.
(b ) The restrictions on disclosure in paragraph (a )
do not apply to any disclosure — 1) to those officers
and employees of the Board who have a need for the
record in the performance of their duties; 2) that is
required under the Freedom of Information Act (5

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U.S.C. §552); 3) for a routine use listed with respect
to a designated system of records; 4) to the Bureau
of the Census for purposes of planning or carrying
out a census or survey or related activity pursuant to
the provisions of title 13 of the United States Code;
5) to a recipient who has provided the Board with
advance adequate written assurance that the record
will be used solely as a statistical research or reporting
record, and the record is to be transferred in a form
that is not individually identifiable; 6) to the National
Archives of the United States as a record that has
sufficient historical or other value to warrant its con­
tinued preservation by the United States Government,
or for evaluation by the Administrator of General
Services or his designee to determine whether the
record has such value; 7) to another agency or to an
instrumentality of any governmental jurisdiction with­
in or under the control of the United States for a civil
or criminal law enforcement activity if the activity is
authorized by law, and if the head of the agency or
instrumentality has made a written request to the
Board specifying the particular portion desired and
the law enforcement activity for which the record is
sought; 8) to a person pursuant to a showing of
compelling circumstances affecting the health or safety
of an individual if upon such disclosure notification is
transmitted to the last known address of such individ­
ual; 9) to either House of Congress, or, to the extent
of matter within its jurisdiction, any committee or
subcommittee thereof, any joint committee of Congress
or subcommittee of any such joint committee; 10) to
the Comptroller General, or any of his authorized
representatives, in the course of the performance of
the duties of the General Accounting Office; or 11)
pursuant to the order of a court of competent jurisdic­
tion.

(1) subject to the provisions of section 552 (b )(1)
of the Freedom of Information Act, 5 U.S.C. §552;
(2) investigatory material compiled for law en­
forcement purposes, other than material within the
scope of subsection (j)(2) of the Privacy Act, 5
U.S.C. §552a: Provided, however, That if any indi­
vidual is denied any right, privilege, or benefit that
he would otherwise be entitled by Federal law, or
for which he would otherwise be eligible, as a result
of the maintenance of such material, such material
shall be provided to such individual, except to
the extent that the disclosure of such material
would reveal the identity of a source who furnished
information to the Government under an express
promise that the identity of the source would be
held in confidence, or, prior to the effective date
of the Privacy Act, 5 U.S.C. §552a, under an implied
promise that the identity of the source would be
held in confidence;
(3) maintained in connection with providing
protective services to the President of the United
States or other individuals pursuant to section 3056
of title 18 of the United States Code;

(4) required by statute to be maintained and
used solely as statistical records;
(5) investigatory material compiled solely for
the purpose of determining suitability, eligibility,
or qualifications for Federal civilian employment,
military service, Federal contracts, or access to
classified information, but onlv to the extent that
the disclosure of such material would reveal the
identity of a source who furnished information to
the Government under an express promise that the
identity of the source would be held in confidence,
or, prior to the effective date of the Privacy Act,
5 U.S.C. §552a, under an implied promise that the
S E C T I O N 261a.ll — F E E S
identity of the source would be held in confidence;
(a)
Copies of records requested pursuant to section
(6) testing or examination material used solely
261a.3 will be provided at a cost of $.10 per page for
to determine individual qualifications for appoint­
photocopying or at a cost not to exceed the direct
ment or promotion in the Federal service the dis­
cost of printing, typing or otherwise preparing such
closure of which would compromise the objectivity
or fairness of the testing or examination process; or
copies.
(7) evaluation material used to determine poten­
tial for promotion in the armed services, but only to
S E C T I O N 261a.l2 — P E N A L T I E S
the extent that the disclosure of such material
(a)
The Privacy Act, 5 U.S.C. §522a(l)(3),
would reveal the identity of a source who furnished
provides:
information to the Government under an express
promise that the identity of the source would be
Any person who knowingly and willfully requests
held in confidence, or, prior to the effective date of
or obtains any record concerning an individual from
the Privacy Act, 5 U.S.C. §552a, under an implied
an agency under false pretense shall be guilty of
promise that the identity of the source would be
a misdemeanor and fined not more than $5,000.00.
held in confidence.
(b) Those designated systems of records which are
S E C T I O N 261a.l3 — E X E M P T I O N S
exempt from the requirements of this Part or any
(a) Pursuant to subsection (k) of the Privacy Act,
other requirements of the Privacy Act, 5 U.S.C. §552a,
will be indicated in the notice of designated systems
5 U.S.C. §552a, the Board may exempt certain por­
of records published by the Board.
tions of records within designated systems of records
from the requirements of the Privacy Act (including
(c) Nothing in this Part shall allow an individual
access to and review of such records pursuant to this
access to any information compiled in reasonable an­
ticipation of a civil action or proceeding.
Part), if such portions are:




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