Vermont Statutes Title 8 Sec. 10204
Terms Used In Vermont Statutes Title 8 Sec. 10204
- Account verification service: means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of:
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Credit reporting agency: means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of reporting to third parties on the credit rating or creditworthiness of any consumer. See
- Customer: means , for purposes of this subchapter, any person who deposits, borrows, or invests with a financial institution, including a surety or a guarantor on a loan. See
- Fair Credit Reporting Act: A federal law, established in 1971 and revised in 1997, that gives consumers the right to see their credit records and correct any mistakes. Source: OCC
- Financial information: means an original or copy of, or information derived from:
- Financial institution: means a financial institution as defined in subdivision 11101(32) of this title, and a credit union, financial institution subsidiary, licensed lender, mortgage broker, or sales finance company organized or regulated under the laws of this State, the United States, or any other state or territory. See
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Mercantile agency: means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating business credit information or other information on businesses for the purpose of reporting to third parties on the credit rating or creditworthiness of any business. See
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
- Subpoena: A command to a witness to appear and give testimony.
- Summons: Another word for subpoena used by the criminal justice system.
- Trustee: A person or institution holding and administering property in trust.
§ 10204. Exceptions
This subchapter does not prohibit any of the activities listed in this section. This section shall not be construed to require any financial institution to make any disclosure not otherwise required by law. This section shall not be construed to require or encourage any financial institution to alter any procedures or practices not inconsistent with this subchapter. This section shall not be construed to expand or create any authority in any person or entity other than a financial institution.
(1) Disclosure of information to the customer after proper identification.
(2) Disclosure authorized by the customer, provided the disclosure is limited to the scope and purpose that the customer authorizes.
(3) Disclosure of information sought by the Office of Child Support Services pursuant to its authority and obligations under 33 V.S.A. § 115 and 33 Vt. Stat. Ann. chapter 41, or by an agency of similar function of another state, pursuant to similar authority.
(4) Disclosure of information sought by the Department for Children and Families pursuant to its authority and obligations under 33 V.S.A. § 112.
(5) Disclosure sought by the Vermont Student Assistance Corporation pursuant to its authority and obligations under 16 Vt. Stat. Ann. chapter 87.
(6) The preparation, examination, handling, or maintenance of financial records by any officer, employee, or agent of a financial institution that has custody of the records.
(7) The examination of financial records by a certified public accountant while engaged by the financial institution to perform an independent audit.
(8) The disclosure of information to a collection agency, its employees or agents, or to any person engaged by the financial institution to assist in recovering an amount owed to the financial institution, if such disclosure is made in the furtherance of recovering such amount.
(9) The examination of financial records by, or the disclosure of financial records to, any officer, employee, or agent of a regulatory agency for use only in the exercise of that person’s duties as an officer, employee, or agent.
(10) The publication of information derived from financial records if the information cannot be identified to any particular customer, deposit, or account.
(11) The making of reports, disclosures, or returns required by federal or state law.
(12) The disclosure of any information permitted to be disclosed under the laws governing dishonor of negotiable instruments.
(13) The exchange, in the regular course of business, of credit information between a financial institution and a credit reporting agency, provided such exchange is in compliance with the Vermont Fair Credit Reporting Act, 9 Vt. Stat. Ann. chapter 63, subchapter 3, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.
(14) The exchange, in the regular course of business, of information between a financial institution and an account verification service, provided such exchange is in compliance with the Vermont Fair Credit Reporting Act, 9 Vt. Stat. Ann. chapter 63, subchapter 3, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.
(15) The exchange, in the regular course of business, of information between a financial institution and a mercantile agency, provided such exchange is solely for the purpose of reporting to third parties on the credit rating or creditworthiness of any business and is in compliance with the Vermont Fair Credit Reporting Act, 9 Vt. Stat. Ann. chapter 63, subchapter 3, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.
(16) The exchange of loan information that specifically affects a sale, foreclosure, or loan closing, provided such exchange is for the purpose of accomplishing such sale, foreclosure, or loan closing.
(17) The disclosure to civil or criminal law enforcement authorities for use in the exercise of such authority’s duties, or the sharing of information, within an industry network, of suspected criminal activities.
(18) Disclosures requested pursuant to a summons for trustee process under Rule 4.2 of the Vermont Rules of Civil Procedure.
(19) Disclosure requested pursuant to subpoena, provided that no disclosure shall be made until 14 days after the financial institution has notified the customer that financial information has been requested by subpoena. Such notice shall be served by first-class mail to the customer at the most recent address known to the financial institution. The provisions of this subdivision shall not apply where the subpoena is issued by or on behalf of a regulatory, criminal, or civil law enforcement agency.
(20) Disclosure required by order of court.
(21) Disclosure of customer financial information among directors, officers, employees, or agents of affiliated financial institutions, provided that such disclosure is limited to information necessary or appropriate to the fulfillment of any such persons’ duties and responsibilities to the financial institution or institutions, and provided further that such disclosure is made in compliance with the Vermont Fair Credit Reporting Act, 9 Vt. Stat. Ann. chapter 63, subchapter 3, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.
(22) Disclosure of customer financial information of one financial institution to another financial institution in connection with a proposed merger, consolidation, acquisition, or other reorganization transaction involving such institution, provided that no further disclosure is made except in compliance with this subchapter, and provided further that such disclosure is made in compliance with the Vermont Fair Credit Reporting Act, 9 Vt. Stat. Ann. chapter 63, subchapter 3, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.
(23) Disclosure in accordance with rules adopted by the Commissioner, provided that the Commissioner may permit disclosure by temporary order, until such time as rules under this subdivision are adopted.
(24) Disclosure sought by the Department of Taxes of this State pursuant to its authority and obligations under Title 32.
(25) Reports or disclosure of financial or other information to the Department of Disabilities, Aging, and Independent Living, pursuant to 33 V.S.A. §§ 6903(b), 6904, and 6915.
(26) Disclosure of information sought by the Department of Vermont Health Access or its agents pursuant to the Department’s authority and obligations under 33 V.S.A. § 403. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2001, No. 115 (Adj. Sess.), § 3, eff. May 28, 2002; 2005, No. 174 (Adj. Sess.), § 12; 2015, No. 91 (Adj. Sess.), § 3, eff. May 16, 2016; 2017, No. 11, § 6; 2017, No. 210 (Adj. Sess.), § 10, eff. June 1, 2018.)