§ 26-2136B — EXAMINATION REPORTS AND SPECIFIED OTHER INFORMATION CONFIDENTIAL — EXCEPTIONS — PENALTY

Idaho § 26-2136B

• Jurisdiction: Idaho
• Title 26: BANKS AND BANKING
• Ch. 21: IDAHO CREDIT UNION ACT

Text

(1) The following shall be confidential and privileged and not subject to public disclosure under chapter 1, title 74, Idaho Code, and shall be subject to the provisions of section 26-1111, Idaho Code:
(a) Examination reports and information obtained by the department of finance in conducting examinations and investigations under this chapter;
(b) All written communications between the department of finance and any credit union that relate in any manner to the examination or condition of the credit union;
(c) Examination reports and related information from other financial institution regulators obtained by the department of finance;
(d) Reports or parts of reports accepted in lieu of an examination under section 26-2136A, Idaho Code; and
(e) Business plans and other proprietary information obtained by the department of finance in connection with a credit union’s application or notice to the department.
(2)(a) The director, any federal or other financial institution regulatory or supervisory agency, a private insurer authorized pursuant to section 26-2153, Idaho Code, and any credit union incorporated or chartered under title 26, Idaho Code, or under federal law or the law of any state and doing business in the state of Idaho shall each have a privilege to refuse to disclose and to prevent any other person from disclosing confidential communications, and the contents of any documents relating to any confidential communications, between the credit union and the department of finance or federal financial institution regulatory or supervisory agency or private insurer made during the regulatory relationship.
(b) A communication is confidential if it is made during the regulatory relationship between the department of finance or the federal financial institution regulatory or supervisory agency or private insurer and any such credit union, and if the communication is not designed or intended for disclosure to any other parties.
(c) The privilege may be claimed by the credit union or by the department of finance or the federal financial institution regulatory or supervisory agency, or by the lawyer for either. The privilege may be waived only in accordance with this section and section 26-1111, Idaho Code.
(d) The director or the appropriate officer or employee of the federal financial institution regulatory or supervisory agency or private insurer may disclose confidential communications between the department of finance or agency or private insurer and credit union to the court, in camera, in a civil action. Such disclosure shall also be a privileged communication and the privilege may be claimed by the director, officer, or employee, or his lawyer.
(e) No sanction may be imposed upon any credit union as a result of the claim of a privilege by the credit union or the director or the officer or employee of the federal supervisory agency under this section.
(3) Notwithstanding subsection (1) of this section, the director may furnish examination reports, work papers, final orders, or other information obtained in the conduct of an examination or investigation prepared by the director to:
(a) Federal agencies empowered to examine credit unions or other financial institutions;
(b) Officials empowered to investigate criminal charges. The director may furnish only that part of the report that is necessary and pertinent to the investigation, and only after notifying the affected credit union and members of the credit union who are named in that part of the examination report, or other person examined, that the report is being furnished to the officials, unless the officials requesting the report obtain a waiver of the notice requirement for good cause from a court of competent jurisdiction;
(c) The examined credit union or other person examined, solely for its confidential use or for the confidential use of the credit union’s attorney, auditor, accountant, independent attorney, independent auditor, or independent accountant;
(d) The attorney general in his role as legal advisor to the director;
(e) Prospective merger partners or conservators, receivers, or liquidating agents of a troubled credit union;
(f) Credit union regulators in other states or foreign jurisdictions regarding an out-of-state or foreign credit union conducting business in this state under this chapter, or regarding a credit union conducting business in the other state or jurisdiction;
(g) A person officially connected with the credit union or other person examined, as officer, director, supervisory committee member, attorney, auditor, accountant, independent attorney, independent auditor, or independent accountant;
(h) Organizations that have bonded the credit union to the extent that information is relevant to the renewal of the bond coverage or to a claim under the bond coverage;
(i) Organizations insuring or guaranteeing the shares of, or deposits in, the credit union;
(j) The federal home loan bank of which the credit union is a member or to which the credit union has applied for membership; or
(k) Other persons as the director may determine necessary to protect the public interest and confidence.
(4) Examination reports, work papers, temporary and final orders, consent orders, other information obtained in the conduct of an examination or investigation furnished under subsection (3) of this section, and all written communication between the department of finance and any credit union that relate in any manner to the condition of the credit union remain the property of the director and, if acquired by any person, shall be returned to the department of finance upon written demand. No person to whom reports are furnished or any officer, director, or employee thereof may disclose or make public the reports or information contained in the reports except in published statistical information that does not disclose the affairs of a person, except that nothing prevents the use in a criminal prosecution of reports furnished under subsection (3)(b) of this section.
(5) In a civil action in which the reports or information are sought to be discovered or used as evidence, they may be disclosed only in accordance with subsection (2) of this section and section 26-1111, Idaho Code. After in-camera review of the reports or information in accordance with subsection (2) of this section and section 26-1111 (3)(d), Idaho Code, the court may permit discovery and introduction of only those portions of the report or information that are relevant and otherwise unobtainable by the requesting party. To the extent the court permits discovery and introduction of relevant portions of the report or information, the court shall attach any limitations and restrictions necessary to ensure that the portions of the report or information discovered and introduced shall not be disclosed to the public. This subsection does not apply to an action brought or defended by the director.
(6) Any person who knowingly violates a provision of this section shall be guilty of a misdemeanor.

Legislative History

[26-2136B, added 2020, ch. 214, sec. 3, p. 628.]