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12 U.S.C. § 3405 — Administrative subpena and summons
Federal law — U.S. Code and appendices · legal_authorities
A Government authority may obtain financial records under [section 3402(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3402/2&num=0&edition=prelim) pursuant to an administrative subpena or summons otherwise authorized by law only if—
(1) there is reason to believe that the records sought are relevant to a legitimate law enforcement inquiry;
(2) a copy of the subpena or summons has been served upon the customer or mailed to his last known address on or before the date on which the subpena or summons was served on the financial institution together with the following notice which shall state with reasonable specificity the nature of the law enforcement inquiry:“Records or information concerning your transactions held by the financial institution named in the attached subpena or summons are being sought by this (agency or department) in accordance with the Right to Financial Privacy Act of 1978 [[12 U.S.C. 3401](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3401&num=0&edition=prelim) et seq.] for the following purpose: If you desire that such records or information not be made available, you must: “1. Fill out the accompanying motion paper and sworn statement or write one of your own, stating that you are the customer whose records are being requested by the Government and either giving the reasons you believe that the records are not relevant to the legitimate law enforcement inquiry stated in this notice or any other legal basis for objecting to the release of the records. “2. File the motion and statement by mailing or delivering them to the clerk of any one of the following United States district courts: . “3. Serve the Government authority requesting the records by mailing or delivering a
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Source file: Laws/federal/codes/united-states-code/title-12/section-3405-administrative-subpena-and-summons--5b44db58bf.md
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Source location: Title 12, Chapter 35, § 3405; chapter-035-right-to-financial-privacy.md
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A Government authority may obtain financial records under [section 3402(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3402/2&num=0&edition=prelim) pursuant to an administrative subpena or summons otherwise authorized by law only if—
(1) there is reason to believe that the records sought are relevant to a legitimate law enforcement inquiry;
(2) a copy of the subpena or summons has been served upon the customer or mailed to his last known address on or before the date on which the subpena or summons was served on the financial institution together with the following notice which shall state with reasonable specificity the nature of the law enforcement inquiry:“Records or information concerning your transactions held by the financial institution named in the attached subpena or summons are being sought by this (agency or department) in accordance with the Right to Financial Privacy Act of 1978 [[12 U.S.C. 3401](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3401&num=0&edition=prelim) et seq.] for the following purpose: If you desire that such records or information not be made available, you must: “1. Fill out the accompanying motion paper and sworn statement or write one of your own, stating that you are the customer whose records are being requested by the Government and either giving the reasons you believe that the records are not relevant to the legitimate law enforcement inquiry stated in this notice or any other legal basis for objecting to the release of the records. “2. File the motion and statement by mailing or delivering them to the clerk of any one of the following United States district courts: . “3. Serve the Government authority requesting the records by mailing or delivering a copy of your motion and statement to . “4. Be prepared to come to court and present your position in further detail. “5. You do not need to have a lawyer, although you may wish to employ one to represent you and protect your rights. If you do not follow the above procedures, upon the expiration of ten days from the date of service or fourteen days from the date of mailing of this notice, the records or information requested therein will be made available. These records may be transferred to other Government authorities for legitimate law enforcement inquiries, in which event you will be notified after the transfer.”; and
(3) ten days have expired from the date of service of the notice or fourteen days have expired from the date of mailing the notice to the customer and within such time period the customer has not filed a sworn statement and motion to quash in an appropriate court, or the customer challenge provisions of [section 3410 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3410&num=0&edition=prelim) have been complied with.
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Federal law — U.S. Code and appendices · legal_authorities
For the purpose of this chapter, the term—
(1) “financial institution”, except as provided in [section 3414 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3414&num=0&edition=prelim), means any office of a bank, savings bank, card issuer as defined in section 1602(n) 11 See References in Text note below. of title 15, industrial loan company, trust company, savings association, building and loan, or homestead association (including cooperative banks), credit union, or consumer finance institution, located in any State or territory of the United States, the District of Columbia, Puerto Rico, Guam, American Samoa, or the Virgin Islands;
(2) “financial record” means an original of, a copy of, or information known to have been derived from, any record held by a financial institution pertaining to a customer’s relationship with the financial institution;
(3) “Government authority” means any agency or department of the United States, or any officer, employee, or agent thereof;
(4) “person” means an individual or a partnership of five or fewer individuals;
(5) “customer” means any person or authorized representative of that person who utilized or is utilizing any service of a financial institution, or for whom a financial institution is acting or has acted as a fiduciary, in relation to an account maintained in the person’s name;
(6) “holding company” means—
(A) any bank holding company (as defined in [section 1841 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1841&num=0&edition=prelim)); and
(B) any company described in [section 1843(f)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1843/f/1&num=0&edition=prelim);
(7) “supervisory
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 3401
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Filing of motion to quash or application to enjoin; proper court; contents** Within ten days of service or within fourteen days of mailing of a subpena, summons, or formal written request, a customer may file a motion to quash an administrative summons or judicial subpena, or an application to enjoin a Government authority from obtaining financial records pursuant to a formal written request, with copies served upon the Government authority. A motion to quash a judicial subpena shall be filed in the court which issued the subpena. A motion to quash an administrative summons or an application to enjoin a Government authority from obtaining records pursuant to a formal written request shall be filed in the appropriate United States district court. Such motion or application shall contain an affidavit or sworn statement—
(1) stating that the applicant is a customer of the financial institution from which financial records pertaining to him have been sought; and
(2) stating the applicant’s reasons for believing that the financial records sought are not relevant to the legitimate law enforcement inquiry stated by the Government authority in its notice, or that there has not been substantial compliance with the provisions of this chapter.
Service shall be made under this section upon a Government authority by delivering or mailing by registered or certified mail a copy of the papers to the person, office, or department specified in the notice which the customer has received pursuant to this chapter. For the purposes of this section, “delivery” has the meaning stated in rule 5(b) of the Federal Rules of Civil Procedure.
**(b) Filing of response; additional proceedings** If the court finds that the customer has complied with subsection (a), it shall order the Governmen
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 3410
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Federal law — U.S. Code and appendices · legal_authorities
(1) **In general** — No member bank may extend credit to any of its executive officers, directors, or principal shareholders, or to any related interest of such a person, except to the extent permitted under paragraphs (2), (3), (4), (5), and (6).
(2) **Preferential terms prohibited**
(A) *In general* — A member bank may extend credit to its executive officers, directors, or principal shareholders, or to any related interest of such a person, only if the extension of credit—
(i) is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank;
(ii) does not involve more than the normal risk of repayment or present other unfavorable features; and
(iii) the bank follows credit underwriting procedures that are not less stringent than those applicable to comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank.
(B) *Exception* — Nothing in this paragraph shall prohibit any extension of credit made pursuant to a benefit or compensation program—
(i) that is widely available to employees of the member bank; and
(ii) that does not give preference to any officer, director, or principal shareholder of the member bank, or to any related interest of such person, over other employees of the member bank.
(3) **Prior approval required** — A member bank may extend credit to a person described in paragraph (1) in an amount that, when aggregated with the amount of all other outstanding extensions of credit by that bank to each such person and that person’s related interests, would e
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 375b
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Federal law — U.S. Code and appendices · legal_authorities
Except as provided by section 3403(c) or (d), 3413, or 3414 of this title, no Government authority may have access to or obtain copies of, or the information contained in the financial records of any customer from a financial institution unless the financial records are reasonably described and—
(1) such customer has authorized such disclosure in accordance with [section 3404 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3404&num=0&edition=prelim);
(2) such financial records are disclosed in response to an administrative subpena or summons which meets the requirements of [section 3405 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3405&num=0&edition=prelim);
(3) such financial records are disclosed in response to a search warrant which meets the requirements of [section 3406 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3406&num=0&edition=prelim);
(4) such financial records are disclosed in response to a judicial subpena which meets the requirements of [section 3407 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3407&num=0&edition=prelim); or
(5) such financial records are disclosed in response to a formal written request which meets the requirements of [section 3408 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3408&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 3402
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority and discretion of Commission to investigate violations**
(1) The Commission may, in its discretion, make such investigations as it deems necessary to determine whether any person has violated, is violating, or is about to violate any provision of this chapter, the rules or regulations thereunder, the rules of a national securities exchange or registered securities association of which such person is a member or a person associated, or, as to any act or practice, or omission to act, while associated with a member, formerly associated with a member, the rules of a registered clearing agency in which such person is a participant, or, as to any act or practice, or omission to act, while a participant, was a participant, the rules of the Public Company Accounting Oversight Board, of which such person is a registered public accounting firm, a person associated with such a firm, or, as to any act, practice, or omission to act, while associated with such firm, a person formerly associated with such a firm, or the rules of the Municipal Securities Rulemaking Board, and may require or permit any person to file with it a statement in writing, under oath or otherwise as the Commission shall determine, as to all the facts and circumstances concerning the matter to be investigated. The Commission is authorized in its discretion, to publish information concerning any such violations, and to investigate any facts, conditions, practices, or matters which it may deem necessary or proper to aid in the enforcement of such provisions, in the prescribing of rules and regulations under this chapter, or in securing information to serve as a basis for recommending further legislation concerning the matters to which this chapter relates.
(2) On request from a foreign securities
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 78u
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Federal law — U.S. Code and appendices · legal_authorities
Page 1534
TITLE 12—BANKS AND BANKING
§ 3401
1 See References in Text note below.
section 1026.35(b)(2)(iv)(A) of title 12, Code of
Federal Regulations;
(2) not later than 3 days after the date on
which the Closing Disclosure Form, made in
accordance with the final rule of the Bureau of
Consumer Financial Protection entitled ‘‘Inte-
grated Mortgage Disclosures Under the Real
Estate Settlement Procedures Act (Regulation
X) and the Truth in Lending Act (Regulation
Z)’’ (78 Fed. Reg. 79730 (December 31, 2013)), re-
lating to the federally related transaction is
given to the consumer, the mortgage origi-
nator or its agent, directly or indirectly—
(A) has contacted not fewer than 3 State
certified appraisers or State licensed ap-
praisers, as applicable, on the mortgage
originator’s approved appraiser list in the
market area in accordance with part 226 of
title 12, Code of Federal Regulations; and
(B) has documented that no State certified
appraiser or State licensed appraiser, as ap-
plicable, was available within 5 business
days beyond customary and reasonable fee
and timeliness standards for comparable ap-
praisal assignments, as documented by the
mortgage originator or its agent;
(3) the transaction value is less than $400,000;
and
(4) the mortgage originator is subject to
oversight by a Federal financial institutions
regulatory agency.
(c) Sale, assignment, or transfer
A mortgage originator that makes a loan
without an appraisal under the terms of sub-
section (b) shall not sell, assign, or otherwise
transfer legal title to the loan unless—
(1) the loan is sold, assigned, or otherwise
transferred to another person by reason of the
bankruptcy or failure of the mortgage origi-
nator;
(2) the loan is sold, assigned, or otherwise
transferred t
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 3401
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Federal law — U.S. Code and appendices · legal_authorities
Page 1537
TITLE 12—BANKS AND BANKING
§ 3406
identity of the Government authority to which
such disclosure is made.
(Pub. L. 95–630, title XI, § 1104, Nov. 10, 1978, 92
Stat. 3698; Pub. L. 96–3, Mar. 7, 1979, 93 Stat. 5.)
Editorial Notes
AMENDMENTS
1979—Subsec. (d). Pub. L. 96–3 struck out subsec. (d)
which had directed that all financial institutions
promptly notify all of their customers of their rights
under this chapter, that the Board of Governors of the
Federal Reserve System prepare a statement of cus-
tomers’ rights under this chapter, and that the sup-
plying of such a statement to their customers by the fi-
nancial institutions be deemed compliance with the no-
tification requirement.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective upon the expiration of 120 days after
Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out
as a note under section 375b of this title.
§ 3405. Administrative subpena and summons
A Government authority may obtain financial
records under section 3402(2) of this title pursu-
ant to an administrative subpena or summons
otherwise authorized by law only if—
(1) there is reason to believe that the records
sought are relevant to a legitimate law en-
forcement inquiry;
(2) a copy of the subpena or summons has
been served upon the customer or mailed to
his last known address on or before the date
on which the subpena or summons was served
on the financial institution together with the
following notice which shall state with reason-
able specificity the nature of the law enforce-
ment inquiry:
‘‘Records or information concerning your
transactions held by the financial institution
named in the attached subpena or summons
are being sought by this (agency or depart-
ment) in accordance wit
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 3405
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.