Pennsylvania Act 1996-92 — CREDIT - CONFIDENTIALITY OF CREDIT RECORDS AND CREDIT POLICY

Act text

CREDIT - CONFIDENTIALITY OF CREDIT RECORDS AND CREDIT POLICY
                  Act of Jul. 2, 1996, P.L. 533, No. 92               Cl. 07
                                  AN ACT

     Providing for the confidentiality of certain records relating to
        credit and the credit policy of depository institutions.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

     Section 1.  Definitions.
        The following words and phrases when used in this act shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Compliance review committee."  The term shall mean either of
     the following:
            (1)  An audit, loan review or compliance committee
        appointed by the board of directors of a depository
        institution.
            (2)  Any other person to the extent the person acts in an
        investigatory capacity at the direction of a compliance
        review committee.
        "Compliance review documents."  Documents prepared for or
     created by a compliance review committee.
        "Depository institution."  A federally chartered or State-
     chartered financial institution located in this Commonwealth
     that is authorized to maintain deposit or share accounts.
        "Loan review committee."  A person or group of persons who,
     on behalf of a depository institution, reviews loans held by the
     institution for the purpose of assessing the credit quality of
     the loans, compliance with the institution's loan policies and
     compliance with applicable laws and regulations.
        "Person."  An individual, group of individuals, board,
     committee, partnership, firm, association, corporation or other
     entity.
     Section 2.  Compliance review committee.
        This act applies to a compliance review committee whose
     functions are to evaluate and seek to improve one or more of the
     following:
            (1)  Loan underwriting standards.
            (2)  Asset quality.
            (3)  Financial reporting to Federal or State regulatory
        agencies.
            (4)  Compliance with Federal or State statutory or
        regulatory requirements.
     Section 3.  Documents confidential.
        (a)  General rule.--Except as provided in subsection (b):
            (1)  compliance review documents are confidential and are
        not discoverable or admissible in evidence in any civil
        action arising out of matters evaluated by the compliance
        review committee; and
            (2)  compliance review documents delivered to a Federal
        or State governmental agency remain confidential and are not
        discoverable or admissible in evidence in any civil action
        arising out of matters evaluated by the compliance review
        committee.
        (b)  Exception.--This section does not apply to any
     information required by statute or regulation to be maintained
     by or provided to a governmental agency while the information is
     in the possession of the governmental agency to the extent
     applicable law expressly authorizes its disclosure.
     Section 4.  Construction.
        This act shall not be construed to limit the discovery or
     admissibility in any civil action of any documents that are not
     compliance review documents.
     Section 5.  Effective date.
        This act shall take effect in 60 days.