Privacy Act of 1974; Proposed New System of Records

FEDERAL DEPOSIT INSURANCE CORPORATION

Privacy Act of 1974; Proposed New System of Records

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice of proposed new system of records--``Unclaimed Deposits

Reporting System''.

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SUMMARY: In accordance with the Privacy Act of 1974, 5 U.S.C. 552a, the

FDIC gives notice of the proposed establishment of a new system of

records entitled ``Unclaimed Deposits Reporting System''.

DATES: Comments on the establishment of the system must be submitted by

March 20, 1995. The system will become effective April 3, 1995, unless

a superseding notice to the contrary is published before that date.

ADDRESSES: Comments should be addressed to Robert E. Feldman, Acting

Executive Secretary, Federal Deposit Insurance Corporation, 550-17th

Street, NW., Washington, DC 20429, or hand-delivered to Room F-400 at

1776 F Street, NW., Washington, DC, Monday through Friday, between the

hours of 9 a.m. and 5 p.m.

FOR FURTHER INFORMATION CONTACT: Frederick N. Ottie, Attorney, Office

of the Executive Secretary, FDIC, 550-17th Street, NW., Washington, DC

20429, (202) 898-6679.

SUPPLEMENTARY INFORMATION: The FDIC is proposing to establish a new

system of records pursuant to the Privacy Act of 1974, 5 U.S.C. 552a,

entitled ``Unclaimed Deposits Reporting System''. This new system of

records will be used by the FDIC in providing expanded protections to

insured depositors under the Unclaimed Deposits Amendments Act of 1993,

Pub. L. No. 103-44, 107 Stat. 220 (1993), which amends section 12(e) of

the Federal Deposit Insurance Act (12 U.S.C. 1822(e)).

The Unclaimed Deposits Amendments Act extends the period during

which insured depositors may claim their deposit insurance, and

[[Page 7199]] permits the involvement of state abandoned property

systems to locate the owners of unclaimed deposit insurance. Under

prior law, depositors were required to claim their deposit insurance

within eighteen months of the closing of an insured depository

institution. The new law, which applies to insured depository

institutions for which the FDIC is appointed receiver after the

enactment date of the Act, June 28, 1993, permits state governments to

accept custody of any deposits which remain unclaimed at the end of

eighteen months and attempt to locate the depositors for ten years, at

which time any remaining deposits are to be returned to the FDIC. As to

any accounts which are not accepted by the state, those depositors have

until the termination of the receivership to claim their insurance from

the FDIC. Congress also included a retroactive provision applicable to

any insured depository institution for which the FDIC was appointed

receiver after January 1, 1989. For these institutions, the states are

not permitted to take custody of unclaimed deposits, but the depositors

themselves may claim them directly from the FDIC at any time up to the

termination of the receivership.

The FDIC will use the information maintained in the system to

respond to requests for research and/or delivery of deposit insurance

to a claimant. The system will consist of records relating to unclaimed

insured or transferred deposits from closed insured depository

institutions for which the FDIC was appointed receiver after January 1,

1989.

Accordingly, the Board of Directors of the FDIC proposes to

establish the system to read as follows:

FDIC 30-64-0024

Unclaimed Deposits Reporting System.

Designated FDIC service centers and consolidated field offices. A

list of the designated locations is available from the Chief of Policy

& Planning, Operations Branch, Division of Depositor and Asset

Services, FDIC, 550-17th Street, NW, Washington, DC 20429.

Owners of unclaimed insured or transferred deposits from closed

insured depository institutions for which the FDIC was appointed

receiver after January 1, 1989.

Records relating to unclaimed insured or transferred deposits from

closed insured depository institutions for which the FDIC was appointed

receiver after January 1, 1989.

Sections 9, 11, and 12 of the Federal Deposit Insurance Act (12

U.S.C. 1819, 1821, and 1822).

Information in this system of records may be disclosed:

(1) To the appropriate state accepting custody of unclaimed

deposits as specified in section 12(e)(2)-(3) of the Federal Deposit

Insurance Act (12 U.S.C. 1822(e)(2)-(3));

(2) To a congressional office in response to an inquiry made at the

request of the individual to whom the record pertains; and

(3) To the appropriate federal, state or local agency or authority

responsible for investigating or prosecuting a violation of, or for

enforcing or implementing a statute, rule, regulation, or order, when

the information indicates a violation or potential violation of law,

whether civil, criminal, or regulatory in nature, and whether arising

by general statute or particular program statute, or by regulation,

rule or order issued pursuant thereto; and

(4) To a court, magistrate, or administrative tribunal in the

course of presenting evidence, including disclosures to counsel or

witnesses in the course of civil discovery, litigation, or settlement

negotiations or in connection with criminal proceedings.

Information is maintained on local area network specified file

servers, computer disks, tapes or hard copy printouts stored in secured

areas which limits access to authorized personnel only.

Indexed by depository institution name, depository institution

number, depositor name, depositor social security number, depositor tax

identification number, or account/check number.

Information is encrypted and accessed only by authorized FDIC

personnel. Hard copy data is stored in secured areas which limits

access to authorized personnel only.

If the appropriate state has accepted ten-year custody of unclaimed

deposits, a record of the deposits will be retained by the FDIC during

the custody period, pending return of any deposits not claimed from the

state during the ten-year custody period. Such records will

subsequently be destroyed in accordance with the FDIC's records

retention policy in effect at the time of return of any deposits to the

FDIC from the state. If the appropriate state has declined to accept

custody of unclaimed deposits, upon termination of the receivership of

the closed insured depository institution, records of all deposit

insurance claims paid are destroyed in accordance with the FDIC's

current records retention policy.

Chief of Policy & Planning, Operations Branch, Division of

Depositor and Asset Services, FDIC, 550-17th Street, NW., Washington,

DC 20429.

Requests must be made in writing and addressed to the Office of the

Executive Secretary, FDIC, 550-17th Street, NW., Washington, DC 20429.

Same as ``Notification'' above.

Same as ``Notification'' above.

Information originates from deposit records of closed insured

depository institutions. Records of unclaimed transferred deposits are

provided to the FDIC from insured depository institutions to which the

FDIC transferred deposits upon closing of the former institution.

None.

By direction of the Board of Directors.

Dated at Washington, DC, this 31st day of January, 1995.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Acting Executive Secretary.

[FR Doc. 95-2959 Filed 2-6-95; 8:45 am]

BILLING CODE 6714-01-P