N.Y. Comp. Codes R. & Regs. Tit. 11 § 420.13 - Exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing
(a) General rule.
(1) The opt out requirements in sections
420.7
and
420.10
of this Part do not apply when a licensee provides nonpublic personal financial
information to a nonaffiliated third party to perform services for the licensee
or functions on the licensee 's behalf, if the licensee :
(i) provides the initial notice in accordance
with section
420.4
of this Part; and
(ii) enters into
a contractual agreement with the third party that prohibits the third party
from disclosing or using the information other than to carry out the purposes
for which the licensee disclosed the information, including use under an
exception in section
420.14
or
420.15
of this Part in the ordinary course of business to carry out those
purposes.
(2) Example.
If the licensee discloses nonpublic personal financial information under this
section to a financial institution with which the licensee performs joint
marketing, the licensee's contractual agreement with that institution meets the
requirements of subparagraph (1)(ii) of this subdivision if it prohibits the
institution from disclosing or using the nonpublic personal financial
information except as necessary to carry out the joint marketing or under an
exception in section
420.14
or
420.15
of this Part in the ordinary course of business to carry out that joint
marketing.
(b) Service
may include joint marketing. The services a nonaffiliated third party performs
for a licensee under subdivision (a) of this section may include marketing of
the licensee's own products or services or marketing of financial products or
services offered pursuant to joint agreements between the licensee and one or
more financial institutions.
(c)
Definition of joint agreement. For purposes of this section, joint agreement
means a written contract pursuant to which a licensee and one or more financial
institutions jointly offer, endorse or sponsor a financial product or
service.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.