Texas Finance Code - Section 59.006. Discovery Of Customer Records
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§ 59.006. DISCOVERY OF CUSTOMER RECORDS. (a) This
section provides the exclusive method for compelled discovery of a
record of a financial institution relating to one or more customers
but does not create a right of privacy in a record. This section
does not apply to and does not require or authorize a financial
institution to give a customer notice of:
(1) a demand or inquiry from a state or federal
government agency authorized by law to conduct an examination of
the financial institution;
(2) a record request from a state or federal
government agency or instrumentality under statutory or
administrative authority that provides for, or is accompanied by, a
specific mechanism for discovery and protection of a customer
record of a financial institution, including a record request from
a federal agency subject to the Right to Financial Privacy Act of
1978 (12 U.S.C. Section 3401 et seq.), as amended, or from the
Internal Revenue Service under Section 1205, Internal Revenue Code
of 1986;
(3) a record request from or report to a government
agency arising out of the investigation or prosecution of a
criminal offense;
(4) a record request in connection with a garnishment
proceeding in which the financial institution is garnishee and the
customer is debtor;
(5) a record request by a duly appointed receiver for
the customer;
(6) an investigative demand or inquiry from a state
legislative investigating committee;
(7) an investigative demand or inquiry from the
attorney general of this state as authorized by law other than the
procedural law governing discovery in civil cases; or
(8) the voluntary use or disclosure of a record by a
financial institution subject to other applicable state or federal
law.
(b) A financial institution shall produce a record in
response to a record request only if:
(1) it is served with the record request not later than
the 24th day before the date that compliance with the record request
is required;
(2) before the financial institution complies with the
record request the requesting party pays the financial
institution's reasonable costs of complying with the record
request, including costs of reproduction, postage, research,
delivery, and attorney's fees, or posts a cost bond in an amount
estimated by the financial institution to cover those costs; and
(3) if the customer is not a party to the proceeding in
which the request was issued, the requesting party complies with
Subsections (c) and (d) and:
(A) the financial institution receives the
customer's written consent to release the record after a request
under Subsection (c)(3); or
(B) the tribunal takes further action based on
action initiated by the requesting party under Subsection (d).
(c) If the affected customer is not a party to the
proceeding in which the record request was issued, in addition to
serving the financial institution with a record request, the
requesting party shall:
(1) give notice stating the rights of the customer
under Subsection (e) and a copy of the request to each affected
customer in the manner and within the time provided by Rule 21a,
Texas Rules of Civil Procedure;
(2) file a certificate of service indicating that the
customer has been mailed or served with the notice and a copy of the
record request as required by this subsection with the tribunal and
the financial institution; and
(3) request the customer's written consent authorizing
the financial institution to comply with the request.
(d) If the customer that is not a party to the proceeding
does not execute the written consent requested under Subsection
(c)(3) on or before the date that compliance with the request is
required, the requesting party may by written motion seek an in
camera inspection of the requested record as its sole means of
obtaining access to the requested record. In response to a motion
for in camera inspection, the tribunal may inspect the requested
record to determine its relevance to the matter before the
tribunal. The tribunal may order redaction of portions of the
records that the tribunal determines should not be produced and
shall enter a protective order preventing the record that it orders
produced from being:
(1) disclosed to a person who is not a party to the
proceeding before the tribunal; and
(2) used by a person for any purpose other than
resolving the dispute before the tribunal.
(e) A customer that is a party to the proceeding bears the
burden of preventing or limiting the financial institution's
compliance with a record request subject to this section by seeking
an appropriate remedy, including filing a motion to quash the
record request or a motion for a protective order. Any motion filed
shall be served on the financial institution and the requesting
party before the date that compliance with the request is required.
A financial institution is not liable to its customer or another
person for disclosure of a record in compliance with this section.
(f) A financial institution may not be required to produce a
record under this section before the later of:
(1) the 24th day after the date of receipt of the
record request as provided by Subsection (b)(1);
(2) the 15th day after the date of receipt of a
customer consent to disclose a record as provided by Subsection
(b)(3); or
(3) the 15th day after the date a court orders
production of a record after an in camera inspection of a requested
record as provided by Subsection (d).
(g) An order to quash or for protection or other remedy
entered or denied by the tribunal under Subsection (d) or (e) is not
a final order and an interlocutory appeal may not be taken.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 344, § 2.016, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 528, § 15, eff. Sept. 1, 2001.
Section: 37.005 37.006 59.001 59.002 59.003 59.004 59.005 59.006 59.007 59.008 59.009 59.010 59.011 59.101 59.102
Last modified: August 10, 2007
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