|Subject:||Implementation of the FCA Board Policy Statement on Borrower Privacy|
|Date of Memorandum:||11/22/1999|
|Expiration Date:|| |
|Signed By:||Martin, Marsha|
|FCA Contact Person:||Howard, Eric|
|List of Attachments:||Borrower Privacy|
November 22, 1999
To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit System Institutions
From: Marsha Pyle Martin
Chairman and Chief Executive Officer
Subject: Implementation of the FCA Board Policy Statement on Borrower Privacy
The FCA Board adopted a policy statement on November 10, 1999, which requires FCS institutions to formally inform borrowers that their nonpublic personal financial information is protected by regulation. More specifically, the policy statement requires you to inform new borrowers at loan closing of our regulations on releasing information and to address this issue in your Annual Reports to Shareholders.
The purpose of this memorandum is to provide you a copy of the attached policy statement. You also may wish to consider using the attached explanation entitled “Borrower Privacy” when disclosing the regulatory requirements on releasing information to your new borrowers. However, you may use other methods to ensure new borrowers are aware of these regulatory provisions. FCA examiners will evaluate compliance with the policy statement requirements during examinations of FCS institutions.
If you have any questions regarding this Informational Memorandum, please contact Eric Howard, Senior Policy Analyst, Regulation and Policy Division, Office of Policy and Analysis, at (703) 883-4498, or correspond on the Internet at e-mail address firstname.lastname@example.org.
Cc: Central Files/RPD Chron/RPD Subject/OPA Electronic Chron/Bd Secretary/Howard/DiMuzio:jak:11/19/99: Q:\Reg Development\Projects\IM – Borrower Policy Memo.doc
Your privacy is important to us. We want you to know that we hold your financial and other personal information in strict confidence. Since 1972, Farm Credit Administration regulations have forbidden the directors and employees of Farm Credit institutions from disclosing personal borrower information to others without your consent. We do not sell or trade our customers’ personal information to marketing companies or information brokers.
FCA rules allow us to disclose customer information to others only in these situations:
· We may give it to another Farm Credit institution that you do business with.
· We can be a credit reference for you with other lenders and provide information to a credit bureau or other consumer reporting agency.
· We can provide information in certain types of legal or law enforcement proceedings.
· FCA examiners may review loan files during regular examinations of our association.
· If one of our employees applies to become a licensed real estate appraiser, we may give copies of real estate appraisal reports to the State agency that licenses appraisers when required. We will first remove as much personal information from the appraisal report as possible.
As a member/owner of this institution, your privacy and the security of your personal information are vital to our continued ability to serve your ongoing credit needs.