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FEDERAL RESERVE BANK OF NEW YORK C ir c u la r N o . 8 6 4 4 I_ S e p te m b e r 2 8 , 1 9 7 9 J NEW REG U LA TIO N S R eim bursem ent to F inancial Institutions for A ssem bling or P rovid in g Financial Records To A ll M em ber B a n ks, a n d Others Concerned, in the Second F ederal Reserve D istrict: The Board of Governors of the Federal Reserve System has announced the adoption of rules under the Right to Financial Privacy Act of 1978 for reim bursing financial institutions that provide customers’ financial records to the Federal government. The Board of Governors’ new Regulation S is effective October 1, 1979. Following is the text of the Board’s announcement: The Act, and the Board’s Regulation S implementing it, become effective October 1, 1979. The Board adopted Regulation S following consideration of comment received after publication of proposed rules in August. The Act- places restrictions on Federal government access to the financial records of individuals maintained by financial institutions by requiring that, with certain exceptions, Federal authorities seeking such information must follow prescribed procedures. The Act also authorizes, with a number of exceptions, reimbursement to financial institutions for costs associated with providing such records and directs the Federal Reserve Board to establish regulatory rules for reimbursement. Regulations S provides: —Financial institutions are entitled to payment for the reasonably necessary costs directly incurred in assembling or providing required, requested or authorized customer financial records. The Federal financial supervisory agencies are exempt from the Act’s restrictions in the exercise of their supervisory, regulatory or monetary functions. —Only financial institutions are entitled to such reimbursement. This includes credit card issuers. Corporations and partnerships comprised of more than five individuals are not affected. —The rate of reimbursement for personnel time is $10 an hour or $2.50 per quarter hour. Reimbursement is limited to the total amount of personnel time spent in locating, retrieving, reproducing, packaging and preparing documents or information for shipment at the request or requirement of the Federal government. —The rate of reimbursement for reproduction costs is 15 cents a page. —Reimbursement for transportation costs are limited to actual costs. \J T it le X I o f th e F in a n c ia l I n s t itu t io n s R e g u la to r y a n d I n t e r e s t R a te C o n tr o l A c t o f 1 9 7 8 . (Over) The August proposal suggested that reimbursement for personnel costs be at a rate of $5 an hour or fraction thereof, and that reproduction costs be reimbursed at 10 cents a page. These were the principal changes in the rules as adopted from those proposed. The Board also made a number of technical changes. Regulation S notes exceptions to the reimbursement requirements of the Act as well as the requirements and exceptions to the requirements for the government to give financial institutions a Certificate of Compliance when personal records are supplied. Enclosed—for member banks in this D istrict—is a copy of the official notice containing the text of the new Regulation S. The notice will be published in the F e d e r a l R e g is te r , and the regulation will also be sent in pamphlet form to member banks and others concerned when available. Questions regarding the regulation may be directed to our Regulations Division (Tel. No. 212-791-5914). T homas M. T im len , F i r s t V ic e P r e s id e n t. - ■ — ■ TITLE 12—BANKS AND BANKING CHAPTER 11— FEDERAL RESERVE SYSTEM SUBCHAPTER A—30ARD OF GOVERNORS O TH FEDERAL RESERVE SYSTEM F E [12 C.F.R. Part 219] [DOCKET NO. R-0243] NOTICE OF FINAL RULEM AKING REGULATION S REIM BURSEM ENT TO FINANCIAL INSTITUTIONS FO R ASSEMBLING O PROVIDING FINANCIAL RECORDS R AGENCY: Board o f Governors of the Federal Reserve System. ACTION: F inal r e g u la tio n . SUM ARY: The Board of Governors of the Federal Reserve System has adopted M a new r eg u la tio n required by s e c tio n 1115 of the Right to F in a n cia l Privacy Act (12 U.S.C. § 3415) th at provides r a te s and co n d itio n s for reimbursement o f reasonably necessary c o s t s , d i r e c t l y incurred by f in a n c ia l i n s t i t u t i o n s in assembling or providing customer f in a n c ia l records to a fe d e r a l government a u th o r ity . DATE: This reg u la tio n is e f f e c t i v e October 1, 1979. FOR FURTHER INFORMATION, CONTACT: MaryEllen A. Brown, Senior Counsel, Legal D iv is io n , Board of Governors of the Federal Reserve System, Washington D.C. 20551 (202/452-3608). SUPPLEM ENTARY INFORMATION: On August 8, 1979, the Board of Governors o f the Federal Reserve System proposed a r e g u la tio n (to be known as Regulation S) for reimbursement of reasonably necessary c o s t s d i r e c t l y incurred by f in a n c ia l i n s t i t u t i o n s , to search fo r , reproduce, and transport f in a n c ia l records sought by a fe d e r a l a u th o r ity , and in v ite d p u b lic comments on t h i s proposal (44 Fed. Reg. 46475) . Comments were in v ite d p a r t ic u l a r ly about how the reimbursement should be s e t and how i t could be permitted to vary over time. As background inform ation, the Right to F in a n cia l Privacy Act of 1978 (the "Act") r e s t r i c t s fe d e r a l government a ccess to in d iv id u a l customers' f in a n c ia l records maintained by f in a n c ia l i n s t i t u t i o n s , and requires th a t, with c e r ta in e x c e p tio n s , fe d e r a l a u t h o r it ie s seeking — -2 - d is c lo s u r e of these records must fo llo w prescribed procedures. Access to or d is c lo s u r e of th ese f in a n c ia l records must g e n e r a lly be pursuant to one o f the fo llo w in g procedures authorized by the Act: (1) v a lid w r itte n customer a u th o riza tio n ; (2) a d m in istr a tiv e summons or subpoena; (3) v a lid search warrant; (4) j u d i c i a l subpoena; or (5) formal w ritten r eq u e st. However, emergency a ccess i s a ls o authorized in c e r ta in s it u a t i o n s , as i s a ccess pursuant to a grand jury subpoena or for Secret S ervice or fo reig n i n t e l l i g e n c e a c t i v i t i e s . The Act a ls o r e s t r i c t s transfer o f f i n a n c i a l information obtained under the Act from one fe d e r a l agency to another. The Act does not cover f in a n c ia l records o f corporations or o f partn erships comprised of more than f i v e in d iv id u a ls . Except where a ccess i s sought pursuant to a search warrant or a grand jury subpoena, or in an emergency, or for Secret Service or fo r e ig n i n t e l l i g e n c e purposes, the bank customer i s a ls o given advance n o t ic e o f h is or her r ig h ts to ch a llen g e the fe d e r a l government's a c c e s s, and advice about how to e f f e c t u a t e these c h a llen g e r ig h t s . A f in a n c ia l i n s t i t u t i o n i s a ls o g e n e r a lly pro h ib ited from r e le a s in g a custom er's f in a n c ia l records u n t i l the fe d e r a l agency seeking the records c e r t i f i e s in w r itin g to the f in a n c ia l i n s t i t u t i o n th at i t has f u l l y complied with the Act. Various e x cep tio n s to the A c t's requirements are provided, in clu d in g one th at exempts the Board and other fe d e r a l f in a n c ia l supervisory a g e n c ies from th ese r e s t r i c t i o n s in the e x e r c is e of th e ir supervisory, r e g u la to r y , or monetary fu n c tio n s . C iv il p e n a l t i e s , in ju n c tiv e r e l i e f , and employee d is c ip lin a r y proceedings are authorized as remedies for v i o l a t i o n s of the Act. The comment period for proposed Regulation S was announced as c lo s i n g September 10, 1979. Because of recent delays in mail d e l i v e r i e s , t h i s period was extended inform ally to the c lo s e of bu sin ess September 12, 1979. A t o t a l of 108 l e t t e r s of comment concerning the proposed regu la t i o n were receiv ed by that d e a d lin e . The Board considered the proposed r e g u la tio n in l i g h t o f the comments received and, in sev e r a l in s ta n c e s , changed the proposal in response to comments rec e iv ed . Aspects of the f i n a l reg u la tio n th at d i f f e r s i g n i f i c a n t l y from the proposed reg u la tio n are summarized below: Rate o f reimbursement for search and p rocessing time i s increased to $10 per hour per person, computed on the b a s is of $2.50 per quarter hour, lim ite d to the t o t a l amount of personnel time spent in l o c a t in g , r e t r ie v in g , reproducing, packaging, and preparing for shipment documents or information required or requested by the government a u th o r ity . ' Reimbursement for reproduction of documents i s increased to $0.15 per page. — — — - -3 The response to the Board's p a r tic u la r request about a v a r ia b le rate e l i c i t e d 28 favorable comments out of the 108 t o t a l respon ses. An a d d itio n a l 11 comments suggested p e r io d ic or annual review of the r a te s s e t . Another 3 comments suggested a s l id in g s c a l e , a form of v a r ia b le r a t e , to vary with the time l i m i t and scope of the work required. Thus, in a l l , some 42 comments favored e ith e r p e r io d ic review of r a te s or some form o f a v a r ia b le r a te . Certain te c h n ic a l changes were a ls o made in t h is f i n a l r eg u la tio n . F in a n cia l i n s t i t u t i o n s are reminded to keep an accurate record o f personnel tim e, computer c o s t s , number of reproductions made, and tra n sp o r ta tio n c o s t s , by each req u est, and to include on the itemized b i l l or in v o ice the name of the customer to whom i t r e l a t e s . After a f in a n c ia l i n s t i t u t i o n r e c e iv e s a C e r t i f ic a t e of Compliance with the Act from the government a uthority seeking a ccess to f in a n c ia l records, the f in a n c ia l i n s t i t u t i o n may then submit an itemized b i l l or invoice to th at fe d e r a l a u th o r ity . I f the f in a n c ia l i n s t i t u t i o n does not r e c e iv e a C e r t i f i c a t e of Compliance because the fe d e r a l agency has withdrawn i t s request for d is c lo s u r e or a customer has revoked h is or her authori z a t io n , or because a customer has s u c c e s s f u lly challenged d is c lo s u r e to the fe d e r a l agency, the fin a n c ia l i n s t i t u t i o n may submit an item ized b i l l or in v o ice for reasonably necessary c o s t s d i r e c t l y incurred in assembling f in a n c ia l records prior to the time that the fe d e r a l agency n o t i f i e s i t that i t s request i s withdrawn or d e fe a te d . F inancial i n s t i t u t i o n s are a ls o reminded that the s ta tu te provides elev e n types of exceptions from c o s t reimbursement which are incorporated in to t h i s r e g u la tio n . Reimbursement for f in a n c ia l records sought pursuant to any of these exceptions i s , a c co rd in g ly , a ls o excepted from t h i s r e g u la tio n . F in a n cia l i n s t i t u t i o n s should a ls o be aware th at j u s t as the Act provides c e r ta in ex cep tio n s to i t s reimbursement requirement, i t a ls o provides excep tion s to the C e r t i f i c a t e of Compliance requirement. Thus, f in a n c ia l i n s t i t u t i o n s w i l l not r ec e iv e a C e r t i f ic a t e of Compliance when f in a n c ia l records are sought by a f in a n c ia l supervisory agency (12 U.S.C. § 3413(b); or for fe d e r a l l i t i g a t i o n (12 U.3.C. § 3 4 1 3 (e )); or for agency a d ju d ic a tiv e proceedings (12 U.S.C. § 3 4 1 3 (f); or pursuant to a grand jury subpoena or court order (12 U.S.C. § 3413( i ) ) ; or by the Secret Service or for foreign i n t e l l i g e n c e a c t i v i t i e s (12 U.S.C. § 3414(a)). Regulation S does not address the is su e of in te r n a l procedures for fe d e r a l agencies because t h is issu e i s expected to be resolved by a g e n c ies' in te r n a l audit procedures. Comments were received urging th at a g en cies provide a uniform time l i m i t for the submission of in v o ic e s and for prompt payment of in v o ic e s ; and that agencies seek to develop and u t i l i z e a uniform in v o ice for payment. However, the Board regards i t as beyond the scope of i t s r e s p o n s i b i l i t y to prescrib e d e ta ile d in te r n a l procedures for other fed era l agencies to fo llo w , except where such procedures have been developed through common agreement with and by other fe d e r a l a g e n c ies. -4 - This r e g u la tio n i s issu ed pursuant to 5 U.S.C. § 553, 12 CFR § 262.2 and in accordance with the Board's Statement of P o lic y Regarding Expanded Rulemaking Procedures (44 Fed. Reg. 3957). Since the regu lation w i l l reduce c o s t burdens to f in a n c ia l i n s t i t u t i o n s by reimbursing them for searching for and reproducing customers' f in a n c ia l records as required or requested by the fe d e r a l government or as authorized by the customer, and in view o f the f a c t th at the reg u la tio n must be adopted by October 1, 1979, expedited rulemaking procedures were followed in is su in g t h is r e g u la tio n , in accordance with the Board's P o lic y Statement. Since the Right to F in a n c ia l Privacy Act requires the Board to e s t a b l i s h , by r e g u la tio n , the r a te s and co n d itio n s o f c o s t reimbursement, nonregulatory a l t e r n a t i v e s were not considered during planning o f these r e g u la tio n s . Under the a u th o r ity of s e c tio n 1115 of the Right to F in a n cia l Privacy Act o f 1978, 12 U.S.C. § 3415, the Board amends T i t l e 12 of the Code o f Federal Regulations by adding a new Part 219 (to be known as R egulation S) to read as fo llo w s: REGULATION S PART 2 1 9 --REIM BURSEM ENT TO FINANCIAL INSTITUTIONS FOR ASSEMBLING O PROVIDING FINANCIAL RECORDS R Sec. 219.1 219.2 219.3 219.4 219.5 219.6 219.7 A uthority, Purpose and Scope D e fin it io n s Cost Reimbursement Exceptions Conditions for Payment Payment Procedures E f f e c t iv e Date § 219.1 AUTHORITY, PURPOSE This Part i s issued by the 3oard of Governors o f the Federal Reserve System under s e c tio n 1115 of the Right to F in a n cia l Privacy Act of 1978 (the "Act") (12 U.S.C. § 3415). I t e s t a b lis h e s the rates and c o n d itio n s for reimbursement of reasonably necessary c o s t s d ir e c t ly incurred by f i n a n c i a l i n s t i t u t i o n s in assembling or providing customer f i n a n c i a l records to a government a u th o r ity . — — ------------------------ — -5- § 219.2 DEFINITIONS For the purposes of t h i s Part, the fo llo w in g d e f i n i t i o n s s h a ll apply: (a) "Financial in s tit u tio n " means any o f f i c e of a bank, savings bank, card issu er as defined in s e c tio n 103 o f the Consumers C redit P ro tectio n Act (15 U.S.C. 1 6 0 2 (n )), in d u s t r ia l loan company, t r u s t company, savings and lo a n , building and loan, or homestead a s s o c ia t io n (in cludin g cooperative banks), c r e d it union, or consumer finance i n s t i t u t i o n , lo ca ted in any s t a t e or t e r r it o r y of the United S t a t e s , the D i s t r i c t o f Columbia, Puerto Rico, Guam, American Samoa, or the V irgin Isla n d s . (b) "Financial record" means an o r ig in a l o f , a copy o f , or information known to have been derived from, any record held by a f in a n c ia l i n s t i t u t i o n p erta in in g to a customer's r e la t io n s h ip with the f in a n c ia l in stitu tio n . (c) "Government authority" means any agency or department o f the United S t a t e s , or any o f f i c e r , employee or agent th e r e o f. (d) "Person" means an in d iv id u a l or a partnership of f i v e or fewer in d iv id u a ls . (e) "Customer" means any person or authorized r ep re sen ta tiv e o f that person who u t i l i z e d or i s u t i l i z i n g any s e r v ic e of a fin a n c ia l i n s t i t u t i o n , or for whom a fin a n c ia l i n s t i t u t i o n i s actin g or has acted as a fid u c ia r y , in r e la t io n to an account maintained in the p erso n 's name. "Customer" does not include corporations or partnerships comprised o f more than f i v e persons. (f) " D irectly incurred costs" means c o s t s incurred s o l e l y and n e c e s s a r ily as a consequence of searching f o r , reproducing or trans porting books, papers, records, or other data, in order to comply with l e g a l process or a formal w r itte n request or a custom er's a u th o riza tio n to produce a custom er's f in a n c ia l records. The term does not include any a llo c a t io n of fix e d c o s t s (overhead, equipment, d e p r e c ia tio n , e t c . ) . I f a f in a n c ia l i n s t i t u t i o n has f in a n c ia l records that are stored at an independent storage f a c i l i t y that charges a fe e to search f o r , reproduce, or transport p a r tic u la r records requested, these c o s t s are considered to be d i r e c t l y incurred by the f in a n c ia l i n s t i t u t i o n . § 219.3 COST REIM BURSEM ENT Except as h e r ein a fte r provided, a government a u th o rity requiring or requesting a ccess to f in a n c ia l records p erta in in g to a customer s h a ll pay to the f in a n c ia l i n s t i t u t i o n that assembles or provides the f in a n c ia l records a fee for reimbursement of reasonably necessary c o s t s which have been d i r e c t l y incurred according to the fo llo w in g schedule: (a) Search and processing c o s t s . (1) Reimbursement o f search and p rocessing c o s t s s h a ll be the t o t a l amount of personnel d ir e c t time -6 - incurred in lo c a t in g and r e t r ie v in g , reproducing, packaging and pre paring f i n a n c i a l records for shipment. (2) The rate for search and p ro cessin g c o s t s i s $10 per hour per person, computed on the b a s is o f $2.50 per quarter hour or fr a c tio n th e r e o f, and i s lim ite d to the t o t a l amount o f personnel time spent in lo c a tin g and r e t r ie v in g docu ments or information or reproducing or packaging and preparing documents for shipment where required or requested by a government a u th o r ity . S p e c i f i c s a l a r i e s o f such persons s h a ll not be included in search c o s t s . In a d d itio n , search and p ro cessin g c o s t s do not include s a l a r i e s , f e e s , or sim ila r c o s t s for a n a ly s is of m aterial or for managerial or le g a l a d v ic e , e x p e r t i s e , research, or time spent for any o f th ese a c t i v i t i e s . I f item ized s e p a r a te ly , search and processing c o s t s may include the a c tu a l c o s t o f e x tr a c tin g information stored by computer in the format in which i t i s normally produced, based on computer time and necessary su p p lie s; however, personnel time for computer search may be paid for on ly at the rate s p e c if ie d in t h i s paragraph. (b) Reproduction c o s t s . (1) Reimbursement for reproduction c o s t s s h a l l be for c o s t s incurred in making c o p ies of documents required or requested. (2) The rate for reproduction c o s t s for making c o p ie s o f required or requested documents i s 15 c e n ts for each page, including co p ie s produced by rea d er /p r in ter reproduction p r o c e s s e s . Photographs, f i l m s , and other m a ter ia ls are reimbursed at a c tu a l c o s t . (c) Transportation c o s t s . Reimbursement for transportation c o s t s s h a l l be for (1) necessary c o s t s , d i r e c t l y incurred, to transport personnel to lo c a te and r e t r ie v e the information required or requested; and (2) necessary c o s t s , d i r e c t l y incurred s o l e l y by the need to convey the required or requested m aterial to the p lace of examination. § 219.4 EXCEPTIONS A f in a n c ia l i n s t i t u t i o n i s not e n t i t l e d to reimbursement under the Act for c o s t s incurred in assembling or providing the follow ing f i n a n c i a l records or information: (a) S e c u r ity i n t e r e s t s , bankruptcy cla im s, debt c o l l e c t i o n . Any f i n a n c i a l records provided as an in cid en t to p e r fe c tin g a s e c u r ity i n t e r e s t , proving a claim in bankruptcy, or otherw ise c o l l e c t i n g on a debt owing e ith e r to the f in a n c ia l i n s t i t u t i o n i t s e l f or in i t s ro le as a f id u c ia r y . (b) Government loan programs. F in a n cia l records provided in connection with a government a u t h o r ity 's co n sid e ra tio n or admini s t r a t io n of a s s is t a n c e to a customer in the form o f a government loan, loan guaranty, or loan insurance program; or as an in cid en t to processing -7 - an a p p lic a tio n for a s s is ta n c e to a customer in the form of a government lo a n , loan guaranty, or loan insurance agreement; or as an in cid en t to p ro cessin g a d e fa u lt on, or adm inistering, a government-guaranteed or insured loan, as necessary to permit a r esp o n sib le government a u th o r ity to carry out i t s r e s p o n s i b i l i t i e s under the lo a n , loan guaranty, or loan insurance agreement. (c) N o n id en tifia b le inform ation. F in a n cia l records that are not i d e n t i f i e d with or i d e n t i f i a b l e as being derived from the f in a n c ia l records of a p a r tic u la r customer. (d) F in a n cia l supervisory a g e n c ie s . F in a n cia l records d is c lo s e d to a f in a n c ia l supervisory agency in the e x e r c is e of i t s su p ervisory, r eg u la to r y , or monetary fu n ctio n s with r esp ect to a f in a n c ia l i n s t i t u t i o n . (e) Internal Revenue summons. F in a n cia l records d is c lo s e d in accordance with procedures authorized by the In tern a l Revenue Code. (f) F ederally required r e p o r ts . F in a n cia l records required to be reported in accordance with any fe d e r a l s ta tu t e or rule promulgated thereunder (such as the Bank Secrecy A c t). (g) Government c i v i l or crim inal l i t i g a t i o n . F in a n cia l records sought by a government au th o rity under the Federal Rules of C i v i l or Criminal Procedure or comparable ru le s of other courts in connection with l i t i g a t i o n to which the government a u th o rity and the customer are p a r t ie s . (h) A dm inistrative agency subpoenas. F in a n cia l records sought by a government a u th o rity pursuant to an a d m in istra tiv e subpoena issu ed by an adm in istra tiv e law judge in an adjudicatory proceeding su b jec t to s e c tio n 554 of T i t l e 5, United S ta te s Code, and to which the government a u th o r ity and the customer are p a r t ie s . (i) I d e n tity of accounts in lim ite d circum stances. F in a n cia l information sought by a government a u th o r ity , in accordance with the Right to F in a n c ia l Privacy Act procedures and for a le g it im a t e law enforcement inquiry, and lim ite d only to the name, address, account number and type of account of any customer or a s c e r ta in a b le group of customers a s s o c ia te d (1) with a f in a n c ia l tr a n sa c tio n or c l a s s of fin a n c ia l tr a n s a c tio n s , or (2) with a fo reig n country or su b d iv isio n th ereof in the case of a government a u th o rity e x e r c is in g f in a n c ia l c o n tr o ls over fo r e ig n accounts in the United S ta te s under s e c tio n 5(b) o f the Trading With the Enemy Act (50 U.S.C. App. 5 (b )); the I n te r n a tio n a l Emergency Economic Powers Act (T it le I I , Public Law 95-223); or s e c tio n 5 o f the United Nations P a r tic ip a tio n Act (22 U.S.C. 2 8 7 ( c ) ) . (j ) I n v e s tig a tio n o f a f in a n c ia l i n s t i t u t i o n or i t s noncustomers. F in a n c ia l records sought by a government a u th o rity in connection with a law ful proceeding, in v e s t ig a t i o n , examination, or in sp e c tio n d ir e cted a t the f in a n c ia l i n s t i t u t i o n in p o s s e s sio n of such records or at a le g a l e n t i t y which i s not a customer. -8 - (k) General Accounting O ffic e r e q u e sts . F in a n cia l records sought by the General Accounting O ffic e pursuant to an authorized proceeding, in v e s t ig a t i o n , examination or audit d ir e c te d a t a government a u th o r ity . (l) S e c u r it ie s and Exchange Commission r e q u e sts . U n til November 10, 1980, f in a n c ia l records sought by the S e c u r it ie s and Exchange Commission. § 219.5 CONDITIONS FOR PAYM ENT (a) L im ita tio n s . Payment for reasonably n ecessa ry , d i r e c t l y incurred c o s t s to f in a n c ia l i n s t i t u t i o n s s h a ll be lim ite d to m aterial required or requested. (b) Separate co n sid era tio n of component c o s t s . Payment s h a ll be made only for c o s t s that are both d i r e c t l y incurred and reasonably n ecessa ry . In determining whether c o s t s are reasonably n ecessa ry , search and p r o c e ssin g , reproduction, and tra n sp o rta tio n c o s t s s h a ll be considered s e p a r a te ly . (c) Compliance with l e g a l p r o c ess, req u est, or a u th o r iz a tio n . No payment s h a ll be made u n t i l the fin a n c ia l i n s t i t u t i o n s a t i s f a c t o r i l y complies with the l e g a l process or formal w r itte n req u est, or customer a u th o r iz a tio n , except th a t in the case where the l e g a l process or formal w r itte n request i s withdrawn, or the customer a u th o riza tio n i s revoked, or where the customer s u c c e s s f u lly c h a lle n g e s a c c e ss by or d is c lo su r e to a government a u th o r ity , the f in a n c ia l i n s t i t u t i o n s h a l l be reimbursed for reasonably necessary c o s t s d i r e c t l y incurred in assembling fin a n c ia l records required or requested to be produced prior to the time that the government a u th o r ity n o t i f i e s the i n s t i t u t i o n th at the l e g a l process or request i s withdrawn or d e fe a te d , or th at the customer has revoked h is or her a u th o r iz a tio n . (d) Itemized b i l l or in v o ic e . No payment s h a ll be made u n less the f in a n c ia l i n s t i t u t i o n submits an item ized b i l l or in v o ice showing s p e c i f i c d e t a i l s concerning the search and p r o c e s s in g , reproduction, and tra n sp o r ta tio n c o s t s . § 219.6 PAYM ENT PROCEDURES (a) N otice to submit in v o ic e . Promptly fo llo w in g a government a u t h o r it y 's s e r v ic e of l e g a l process or req u est, the government authority s h a ll n o t if y the f in a n c ia l i n s t i t u t i o n th a t an item ized b i l l or invoice must be submitted for payment and s h a ll furnish an o f f i c e address for t h i s purpose. -9- (b) S p ecia l n o t i c e . I f a government a u th o rity withdraws the l e g a l process or formal w r itte n req u est, or i f the customer revokes h is or her a u th o r iz a tio n , or i f the l e g a l process or request has been s u c c e s s f u lly challenged by the customer, the government a u th o rity s h a ll promptly n o t if y the fin a n c ia l i n s t i t u t i o n of these f a c t s , and s h a ll a ls o n o t if y the f in a n c ia l i n s t i t u t i o n th at the item ized b i l l or in v o ice must be submitted for payment of c o s t s incurred prior to the time that the f in a n c ia l i n s t i t u t i o n r e c e iv e s t h is n o t ic e . § 219.7 EFFECTIVE DATE This r eg u la tio n s h a l l become e f f e c t i v e October 1, 1979. By order of the Board of Governors, e f f e c t i v e October 1, 1979. (Signed) Theodore E. A llis o n Theodore E. A llis o n Secretary of the Board [SEAL]
@FedFRASER