Title 19
Financial Institutions

Chapter 4
Regulatory Oversight

§ 19-4-3. Records of examinations and reports.

(a) The director, or the director’s designee, shall preserve a full record of each examination. The records and information contained in reports of the regulated institution may be provided by the director, or the director’s designee, to the regulated institution examined.

(b) Confidential treatment.

(1) Documents, materials, or other information in the possession or control of the division of banking that are obtained by or disclosed to the director, or the director’s designee, or any other person in the course of an examination or investigation made pursuant to this chapter shall be confidential by law and privileged, shall not be subject to chapter 2 of title 38, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the director is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the director’s official duties.

(2) Neither the director nor any person who received documents, materials, or other information while acting under the authority of the director, or with whom such documents, materials, or other information are shared pursuant to this section, shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to this section.

(3) In order to assist in the performance of the director’s duties, the director:

(i) May share documents, materials, or other information, including the confidential and privileged documents, materials or information subject to subsection (b) with other state, federal, and international regulatory agencies and federal deposit insuring agencies, with the Conference of State Banking Supervisors (CSBS), and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities, provided that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material, or other information, and has verified in writing the legal authority to maintain confidentiality;

(ii) May receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information from other state, federal, and international regulatory agencies and federal deposit insuring agencies, from the CSBS, and its affiliates and subsidiaries, and from state, federal, and international law enforcement authorities, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and

(iii) May enter into written agreements with other state, federal and international regulatory agencies and federal depositing insuring agencies, with the CSBS, and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities governing sharing and use of information provided pursuant to this section consistent with this section.

(4) The sharing of information by the director pursuant to this section shall not constitute a delegation of regulatory authority or rulemaking, and the director is solely responsible for the administration, execution, and enforcement of the provisions of this section.

(5) No waiver of any applicable privilege or claim of confidentiality in the document, materials, or information shall occur as a result of disclosure to the director under this section or as a result of sharing as authorized in subsection (b).

(6) Documents, materials, or other information filed in the possession or control of the CSBS pursuant to this section shall be confidential by law and privileged, shall not be subject to chapter 2 of title 38, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action.

(c) The imparting of this information by the director, or the director’s designee, other than according to the provisions of this chapter shall be sufficient cause for removal, and any such deputy, assistant, or officer, who, except in the discharge of his or her official duty and other than as set out above, imparts this information shall be liable for a fine of not exceeding one thousand dollars ($1,000) and this deputy or assistant may also be removed from office or employment by the director, or the director’s designee. These records, examinations, and reports are not subject to chapter 2 of title 38.