Skip to main content

Primary tabs

Criminal Resource Manual

436. Exception For Financial Records Pertinent To Federally Insured Or Guaranteed Loans

Those agencies responsible for federal loan, loan insurance, or loan guaranty programs where customers are the recipients of government assistance are excepted by 12 U.S.C. § 3413(h)(1) from customer notice in connection with access to financial records to be used for loan administration and collection functions. Records obtained pursuant to this exception may only be used for these purposes, however, unless customer notice and opportunity to challenge are afforded.

Federal agencies responsible for administering loan programs must advise borrowers of the agencies' access rights and must certify to the bank their compliance with the Act. Financial institutions must keep a record, open to inspection by the customer, of all instances in which access is granted pursuant to this exception.