28 Tex. Admin. Code § 22.17 - Exception to Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information for Service Providers and Joint Marketing
(a) The opt out requirements in §
22.11 of this title (relating to
Form of Opt Out Notice to Consumers and Opt Out Methods) and §
22.14 of this title (relating to
Limits on Disclosure of Nonpublic Personal Financial Information to
Nonaffiliated Third Parties) do not apply when a covered entity provides
nonpublic personal financial information to a nonaffiliated third party to
perform services for the covered entity or functions on the covered entity's
behalf, if the covered entity:
(1) provides
the initial notice in accordance with §
22.8 of this title (relating to
Initial Privacy Notice); and
(2)
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 covered entity disclosed the information, including
use under an exception in §
22.18 of this title (relating to
Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic
Personal Financial Information for Processing and Servicing Transactions) and §
22.19 of this title (relating to
Other Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic
Personal Financial Information) in the ordinary course of business to carry out
those purposes.
(b) If a
covered entity discloses nonpublic personal financial information under this
section to a financial institution with which the covered entity performs joint
marketing, the covered entity's contractual agreement with that institution
meets the requirements of subsection (a)(2) of this section 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 set forth in §
22.18 and §
22.19 of this title in the
ordinary course of business to carry out that joint marketing.
(c) The services a nonaffiliated third party
performs for a covered entity under subsection (a) of this section may include
marketing of the covered entity's own products or services or marketing of
financial products or services offered pursuant to joint agreements between the
covered entity and one or more financial institutions.
(d) For purposes of this section, "joint
agreement" means a written contract pursuant to which a covered entity and one
or more financial institutions jointly offer, endorse or sponsor a financial
product or service.
Notes
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