Page:United States Statutes at Large Volume 94 Part 2.djvu/580

 94 STAT. 1858 Records, transfer. 12 USC 3412. Disclosure restrictions, customer notification.

12 USC 3401 note. Procedures and penalties.

Financial institution's records. Records requests, challenges. Defined terms.

PUBLIC LAW 96-433—OCT. 10, 1980

"(B) The Commission may, without notice to the customer pursuant to section 1112 of the Right to Financial Privacy Act of 1978, transfer financial records or the information contained therein to a State securities agency or to the Department of Justice. Financial records or information transferred by the Commission to the Department of Justice or to a State securities agency pursuant to the provisions of this subparagraph may be disclosed or used only in an administrative, civil, or crimuaal action or inv^tigation by the Department of Justice or the State securities agency which arises out of or relates to the acts, practices, or courses of conduct investigated by the Commission, except that if the Department of Justice or the State securities agency determines that the information should be disclosed or used for any other purpose, it may do so if it notifies the customer, except as otherwise provided in the Right to Financial Privacy Act of 1978, within 30 days of its determination, or complies with the requirements of section 1109 of such Act r^arding delay of notice. "(10) Any government authority violating paragraph (9) shall be subject to the procedures and penalties apphcable to the Commission under paragraph (7KA) with respect to a violation by the Commission in obtainingfinancialrecords. "(11) Notwithstanding the provisions of this subsection, the Commission may obtain financial records from a financial institution or transfer such records in accordance with provisions of the Right to Financial Privacy Act of 1978. "(12) Nothing m this subsection shall enlarge or restrict any rights of a financial institution to challenge requests for records made by the Commission under existing law. Nothing in this subsection shall entitle a customer to assert an;^ rights of a financial institution. "(13) Unless the context otherwise requires, all terms defined in the Right to Financial Privacy Act of 1978 which are common to this subsection shall have the same meaning as in such Act.". CONFORMING AMENDMENT

SEC. 4. The second sentence of section 21(g) of the Securities Exchange Act of 1934 (15 U.S.C. 78u^)) is amended by inserting "and in subsection (h)" after "as used herein". EFFECTIVE DATES

15 USC 78u note.

SEC. 5. (a) The amendments made by section 1 of this Act shall take effect on the date of enactment of this Act. (b) The amendments made by sections 2,3, and 4 of this Act shall take effect on November 10,19s0. Nothing in this Act or in the Right to Financial Privacy Act of 1978 shall apply to any Securities and Exchange Commission subpena issued prior to such date. Approved October 10, 1980.

LEGISLATIVE HISTORY: HOUSE REPORT No. 96-1321, Pt. I (Comm. on Intersta«fe and Foreign eommerce). CONGRESSIONAL RECORD, Vol. 126 (1980): Sept. 22, 23, considered and passed House. Sept. 25, considered and passed Senate.

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