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‘‘(i) NOTICE
REQUIRED.—Subpara-
graph (B) shall not apply to any company 
described in subparagraph (B)(i)(II) which 
engages, directly or indirectly, in any activ-
ity other than activities described in 
clauses (i) and (ii) of subparagraph (A), 
unless— 
‘‘(I) in addition to an application 
to the Director under this section to 
become a savings and loan holding 
company, the company submits a no-
tice to the Board of Governors of the 
Federal Reserve System of such non-
financial activities in the same man-
ner as a notice of nonbanking activi-
ties is filed with the Board under sec-
tion 4(j) of the Bank Holding Com-
pany Act of 1956; and 
‘‘(II) before the end of the appli-
cable period under such section 4(j), 
the Board either approves or does not 
disapprove of the continuation of such 
activities by such company, directly or 
indirectly, after becoming a savings 
and loan holding company. 
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HR 10 PCS 
‘‘(ii) PROCEDURE.—Section 4(j) of 
the Bank Holding Company Act of 1956, 
including the standards for review, shall 
apply to any notice filed with the Board 
under this subparagraph in the same man-
ner as it applies to notices filed under such 
section.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
Section 10(c)(3) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(c)(3)) is amended by striking ‘‘Notwith-
standing’’ and inserting ‘‘Except as provided in paragraph 
(9) and notwithstanding’’. 
(c) CONFORMING AMENDMENT.—Section 10(o)(5) of 
the Home Owners’ Loan Act (12 U.S.C. 1467a(o)(5)) is 
amended— 
(1) in subparagraph (E), by striking ‘‘, except 
subparagraph (B)’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(F) In the case of a mutual holding com-
pany which is a savings and loan holding com-
pany described in subsection (c)(3), engaging in 
the activities permitted for financial holding 
companies under section 6(c) of the Bank Hold-
ing Company Act of 1956.’’. 
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HR 10 PCS 
SEC. 402. RETENTION OF ‘‘FEDERAL’’ IN NAME OF CON-
VERTED FEDERAL SAVINGS ASSOCIATION. 
Section 2 of the Act entitled ‘‘An Act to enable na-
tional banking associations to increase their capital stock 
and to change their names or locations’’, approved May 
1, 1886 (12 U.S.C. 30), is amended by adding at the end 
the following new subsection: 
‘‘(d) RETENTION OF ‘FEDERAL’ IN NAME OF CON-
VERTED FEDERAL SAVINGS ASSOCIATION.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(a) or any other provision of law, any depository in-
stitution the charter of which is converted from that 
of a Federal savings association to a national bank 
or a State bank after the date of the enactment of 
the Financial Services Act of 1999 may retain the 
term ‘Federal’ in the name of such institution if 
such depository institution remains an insured de-
pository institution. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section, the terms ‘depository institution’, ‘insured 
depository institution’, ‘national bank’, and ‘State 
bank’ have the same meanings as in section 3 of the 
Federal Deposit Insurance Act.’’. 
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TITLE V—PRIVACY 
Subtitle A—Disclosure of 
Nonpublic Personal Information 
SEC. 501. PROTECTION OF NONPUBLIC PERSONAL INFOR-
MATION. 
(a) PRIVACY OBLIGATION POLICY.—It is the policy 
of the Congress that each financial institution has an af-
firmative and continuing obligation to respect the privacy 
of its customers and to protect the security and confiden-
tiality of those customers’ nonpublic personal information. 
(b) FINANCIAL INSTITUTIONS SAFEGUARDS.—In fur-
therance of the policy in subsection (a), each agency or 
authority described in section 505(a) shall establish appro-
priate standards for the financial institutions subject to 
their jurisdiction relating to administrative, technical, and 
physical safeguards— 
(1) to insure the security and confidentiality of 
customer records and information; 
(2) to protect against any anticipated threats or 
hazards to the security or integrity of such records; 
and 
(3) to protect against unauthorized access to or 
use of such records or information which could re-
sult in substantial harm or inconvenience to any cus-
tomer. 
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HR 10 PCS 
SEC. 502. OBLIGATIONS WITH RESPECT TO DISCLOSURES 
OF PERSONAL INFORMATION. 
(a) NOTICE REQUIREMENTS.—Except as otherwise 
provided in this subtitle, a financial institution may not, 
directly or through any affiliate, disclose to a nonaffiliated 
third party any nonpublic personal information, unless 
such financial institution provides or has provided to the 
consumer a notice that complies with section 503(b). 
(b) OPT OUT.— 
(1) IN GENERAL.—A financial institution may 
not disclose nonpublic personal information to non-
affiliated third parties unless— 
(A) such financial institution clearly and 
conspicuously discloses to the consumer, in 
writing or in electronic form (or other form per-
mitted by the regulations prescribed under sec-
tion 504), that such information may be dis-
closed to such third parties; 
(B) the consumer is given the opportunity, 
before the time that such information is initially 
disclosed, to direct that such information not be 
disclosed to such third parties; and 
(C) the consumer is given an explanation 
of how the consumer can exercise that non-
disclosure option. 
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(2) EXCEPTION.—This subsection shall not pre-
vent a financial institution from providing nonpublic 
personal information to a nonaffiliated third party to 
perform services or functions on behalf of the finan-
cial institution, including marketing of the financial 
institution’s own products or services or financial 
products or services offered pursuant to joint agree-
ments between two or more financial institutions 
that comply with the requirements imposed by the 
regulations prescribed under section 504, if the fi-
nancial institution fully discloses the providing of 
such information and enters into a contractual 
agreement with the third party that requires the 
third party to maintain the confidentiality of such 
information. 
(c) LIMITS ON REUSE OF INFORMATION.—Except as 
otherwise provided in this subtitle, a nonaffiliated third 
party that receives from a financial institution nonpublic 
personal information under this section shall not, directly 
or through an affiliate of such receiving third party, dis-
close such information to any other person that is a non-
affiliated third party of both the financial institution and 
such receiving third party, unless such disclosure would 
be lawful if made directly to such other person by the fi-
nancial institution. 
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HR 10 PCS 
(d) LIMITATIONS ON THE SHARING OF ACCOUNT 
NUMBER INFORMATION FOR MARKETING PURPOSES.—A 
financial institution shall not disclose an account number 
or similar form of access number or access code for a cred-
it card account, deposit account, or transaction account 
of a consumer to any nonaffiliated third party for use in 
telemarketing, direct mail marketing, or other marketing 
through electronic mail to the consumer. 
(e) GENERAL EXCEPTIONS.—Subsections (a) and (b) 
shall not prohibit the disclosure of nonpublic personal in-
formation— 
(1) as necessary to effect, administer, or en-
force a transaction requested or authorized by the 
consumer, or in connection with— 
(A) servicing or processing a financial 
product or service requested or authorized by 
the consumer; 
(B) maintaining or servicing the con-
sumer’s account with the financial institution; 
or 
(C) a proposed or actual securitization, 
secondary market sale (including sales of serv-
icing rights), or similar transaction related to a 
transaction of the consumer; 
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HR 10 PCS 
(2) with the consent or at the direction of the 
consumer; 
(3) to protect the confidentiality or security of 
its records pertaining to the consumer, the service or 
product, or the transaction therein, or to protect 
against or prevent actual or potential fraud, unau-
thorized transactions, claims, or other liability, for 
required institutional risk control, or for resolving 
customer disputes or inquiries, or to persons holding 
a beneficial interest relating to the consumer, or to 
persons acting in a fiduciary capacity on behalf of 
the consumer; 
(4) to provide information to insurance rate ad-
visory organizations, guaranty funds or agencies, ap-
plicable rating agencies of the financial institution, 
persons assessing the institution’s compliance with 
industry standards, and the institution’s attorneys, 
accountants, and auditors; 
(5) to the extent specifically permitted or re-
quired under other provisions of law and in accord-
ance with the Right to Financial Privacy Act of 
1978, to law enforcement agencies (including a Fed-
eral functional regulator, a State insurance author-
ity, or the Federal Trade Commission), self-regu-
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HR 10 PCS 
latory organizations, or for an investigation on a 
matter related to public safety; 
(6) to a consumer reporting agency in accord-
ance with the Fair Credit Reporting Act, or in ac-
cordance with interpretations of such Act by the 
Board of Governors of the Federal Reserve System 
or the Federal Trade Commission, including inter-
pretations published as commentary (16 CFR 601– 
622); 
(7) in connection with a proposed or actual 
sale, merger, transfer, or exchange of all or a por-
tion of a business or operating unit if the disclosure 
of nonpublic personal information concerns solely 
consumers of such business or unit; or 
(8) to comply with Federal, State, or local laws, 
rules, and other applicable legal requirements; to 
comply with a properly authorized civil, criminal, or 
regulatory investigation or subpoena by Federal, 
State, or local authorities; or to respond to judicial 
process or government regulatory authorities having 
jurisdiction over the financial institution for exam-
ination, compliance, or other purposes as authorized 
by law. 
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HR 10 PCS 
SEC. 503. DISCLOSURE OF INSTITUTION PRIVACY POLICY. 
(a) DISCLOSURE REQUIRED.—A financial institution 
shall clearly and conspicuously disclose to each consumer, 
at the time of establishing the customer relationship with 
the consumer and not less than annually, in writing or 
in electronic form (or other form permitted by the regula-
tions prescribed under section 504), its policies and prac-
tices with respect to protecting the nonpublic personal in-
formation of consumers in accordance with the rules pre-
scribed under section 504. 
(b) INFORMATION TO BE INCLUDED.—The disclosure 
required by subsection (a) shall include— 
(1) the policy and practices of the institution 
with respect to disclosing nonpublic personal infor-
mation to nonaffiliated third parties, other than 
agents of the institution, consistent with section 502 
of this subtitle, and including— 
(A) the categories of persons to whom the 
information is or may be disclosed, other than 
the persons to whom the information may be 
provided pursuant to section 502(e); and 
(B) the practices and policies of the insti-
tution with respect to disclosing of nonpublic 
personal information of persons who have 
ceased to be customers of the financial institu-
tion; 
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HR 10 PCS 
(2) the categories of nonpublic personal infor-
mation that are collected by the financial institution; 
(3) the policies that the institution maintains to 
protect the confidentiality and security of nonpublic 
personal information in accordance with section 501; 
and 
(4) the disclosures required, if any, under sec-
tion 603(d)(2)(A)(iii) of the Fair Credit Reporting 
Act. 
SEC. 504. RULEMAKING. 
(a) REGULATORY AUTHORITY.—The Federal bank-
ing agencies, the National Credit Union Association, the 
Secretary of the Treasury, and the Securities and Ex-
change Commission, shall jointly prescribe, after consulta-
tion with the Federal Trade Commission, and representa-
tives of State insurance authorities designated by the Na-
tional Association of Insurance Commissioners, such regu-
lations as may be necessary to carry out the purposes of 
this subtitle. Such regulations shall be prescribed in ac-
cordance with applicable requirements of the title 5, 
United States Code, and shall be issued in final form with-
in 6 months after the date of enactment of this Act. 
(b) AUTHORITY TO GRANT EXCEPTIONS.—The regu-
lations prescribed under subsection (a) may include such 
additional exceptions to subsections (a) and (b) of section 
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