| (a) If a covered entity receives nonpublic personal financial
information from a nonaffiliated financial institution 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), the covered entity's disclosure and use of
that information is limited as follows:
(1) the covered entity may disclose the information to the
affiliates of the financial institution from which the covered entity received
the information;
(2) the covered entity may disclose the information to its
affiliates, but the covered entity's affiliates may, in turn, disclose and
use the information only to the extent that the covered entity may disclose
and use the information; and
(3) the covered entity may disclose and use the information
pursuant to an exception in §22.18 and §22.19 of this title in the
ordinary course of business to carry out the activity covered by the exception
under which the covered entity received the information.
(b) If a covered entity receives information from a nonaffiliated
financial institution for claims settlement purposes, the covered entity may
disclose the information for fraud prevention, or in response to a properly
authorized subpoena. The covered entity may not disclose that information
to a third party for marketing purposes or use that information for its own
marketing purposes.
(c) If a covered entity receives nonpublic personal financial
information from a nonaffiliated financial institution other than under an
exception in §22.18 and §22.19 of this title, the covered entity
may disclose the information only:
(1) to the affiliates of the financial institution from which
the covered entity received the information;
(2) to its affiliates, but its affiliates may, in turn, disclose
the information only to the extent that the covered entity may disclose the
information; and
(3) to any other person, if the disclosure would be lawful
if made directly to that person by the financial institution from which the
covered entity received the information.
(d) If a covered entity obtains a customer list from a nonaffiliated
financial institution outside of the exceptions in §22.18 and §22.19
of this title:
(1) the covered entity may use that list for its own purposes;
and
(2) the covered entity may disclose that list to another nonaffiliated
third party only if the financial institution from which the covered entity
purchased the list could have lawfully disclosed the list to that third party.
That is, the covered entity may disclose the list in accordance with the privacy
policy of the financial institution from which the covered entity received
the list, as limited by the opt out direction of each consumer whose nonpublic
personal financial information the covered entity intends to disclose, and
the covered entity may disclose the list in accordance with an exception in §22.18
and §22.19 of this title, such as to the covered entity's attorneys or
accountants.
(e) If a covered entity discloses nonpublic personal financial
information to a nonaffiliated third party under an exception in §22.18
and §22.19 of this title, the third party may disclose and use that information
only as follows:
(1) the third party may disclose the information to the covered
entity's affiliates;
(2) the third party may disclose the information to its affiliates,
but its affiliates may, in turn, disclose and use the information only to
the extent that the third party may disclose and use the information; and
(3) the third party may disclose and use the information pursuant
to an exception in §22.18 or §22.19 of this title in the ordinary
course of business to carry out the activity covered by the exception under
which it received the information.
(f) If a covered entity discloses nonpublic personal financial
information to a nonaffiliated third party other than under an exception in §22.18
and §22.19 of this title, the third party may disclose the information
only:
(1) to the covered entity's affiliates;
(2) to the third party's affiliates, but the third party's
affiliates, in turn, may disclose the information only to the extent the third
party can disclose the information; and
(3) to any other person, if the disclosure would be lawful
if the covered entity made it directly to that person.
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