Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Rule 14 -- Exceptions to Notice and Opt Out Requirements for Processing and Servicing Transactions

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1. Exceptions for processing and servicing transactions at consumer's request. The requirements for initial notice in Rule 4(a)(2), for the opt out in Rule 7 and Rule 10, and for initial notice in Rule 13 in connection with service providers and joint marketing, do not apply if you disclose nonpublic personal information as necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, or in connection with:
   
   
   1. Processing or servicing a financial product or service that a consumer requests or authorizes;
      
      
   2. Maintaining or servicing the consumer's account with you, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity; or
      
      
   3. A proposed or actual securitization, secondary market sale (including sales of servicing rights), or similar transaction related to a transaction of the consumer.
      
      
2. Necessary to effect, administer, or enforce a transaction means that the disclosure is:
   
   
   1. Required, or is one of the lawful or appropriate methods, to enforce your rights or the rights of other persons engaged in carrying out the financial transaction or providing the product or service; or
      
      
   2. Required, or is a usual, appropriate, or acceptable method:
      
      
      1. To carry out the transaction or the product or service business of which the transaction is a part, and record, service, or maintain the consumer's account in the ordinary course of providing the financial service or financial product;
         
         
      2. To administer or service benefits or claims relating to the transaction or the product or service business of which it is a part;
         
         
      3. To provide a confirmation, statement, or other record of the transaction, or information on the status or value of the financial service or financial product to the consumer or the consumer's agent or broker;
         
         
      4. To accrue or recognize incentives or bonuses associated with the transaction that are provided by you or any other party;
         
         
      5. To underwrite insurance at the consumer's request or for reinsurance purposes, or for any of the following purposes as they relate to a consumer's insurance: Account administration, reporting, investigating, or preventing fraud or material misrepresentation, processing premium payments, processing insurance claims, administering insurance benefits (including utilization review activities), participating in research projects, or as otherwise required or specifically permitted by federal or State law; or
         
         
      6. In connection with:
         
         
         1. The authorization, settlement, billing, processing, clearing, transferring, reconciling or collection of amounts charged, debited, or otherwise paid using a debit, credit, or other payment card, check, or account number, or by other payment means;
            
            
         2. The transfer of receivables, accounts, or interests therein; or
            
            
         3. The audit of debit, credit, or other payment information.
            
            

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