Pursuant to the Gramm-Leach-Bliley Act of 2009 ("GLBA"), banking institutions and mortgage companies must notify consumers of their information-sharing practices via Initial and Annual Privacy Notices and inform consumers of the right to opt out of having their nonpublic personal information shared with nonaffiliates of the lender.  Sample Clauses were published and used by companies to comply with these privacy notice and opt-out requirements. 
 
This week, federal agencies including the federal banking regulatory agencies and the Federal Trade Commission issued a Final Rule to allow use of new Financial Privacy Forms by the referenced regulated entities.  Proper use of the forms provides the banking institution or licensed mortgage lender with safe harbor protection, meaning that they are deemed to be in compliance with the GLBA privacy notice rules by properly using the privacy forms. 
 
There will be a transition period for compliance that begins 30 days after the federal agencies publish the Final Rule and continues to December 31, 2010, during which time use of the preexisting Sample Clauses or the new Privacy Notices is acceptable for compliance with the privacy rules.  Then the Sample Clauses are phased out as of January 1, 2011, leaving the new Privacy Forms as the safe harbor for compliance with the GLBA privacy rules. 
 
For more information, please contact please contact Keith Clark, Paul Adams, or Reginald Evans, at 717.763.1121, or Steve Lovejoy at 410.825.5223.  

 
Happy Thanksgiving from all of us at Shumaker Williams, P.C.!
 

 
For more information and legal advice, please contact:
 
Keith A. Clark
clark@shumakerwilliams.com

717-763-1121

 

Martin B. Ellis

 
Reginald S. Evans

717-763-1121