408.692. Law not applicable to government authority, when--procedure.
Law not applicable to government authority, when--procedure.
408.692. 1. Except for sections 408.680 and 408.700,nothing in sections 408.675 to 408.700 shall apply when financialrecords are sought by a government authority:
(1) In connection with a lawful proceeding, investigation,examination, or inspection directed at the financial institutionin possession of such records or at a legal entity which is not acustomer; or
(2) In connection with the authority's consideration oradministration of assistance to the customer in the form of agovernment loan, loan guaranty, or loan insurance program.
2. When financial records are sought pursuant to thissection, the government authority shall submit to the financialinstitution the notice required by subsection 2 of section408.680. For access pursuant to subdivision (2) of subsection 1of this section, no further certification shall be required forthe subsequent access by the applicable government authorityduring the term of the loan, loan guaranty, or loan insuranceagreement.
3. After August 28, 1989, whenever a customer applies forparticipation in a government loan, loan guaranty, or loaninsurance program, the government authority administering suchprogram shall give the customer written notice of the authority'saccess rights under this subsection. No further notificationshall be required for subsequent access by that authority duringthe term of the loan, loan guaranty, or loan insurance agreement.
4. Financial records obtained pursuant to this section maybe used only for the purpose for which they were originallyobtained, and may be transferred to another agency or departmentonly when the transfer is to facilitate a lawful proceeding,investigation, examination, or inspection directed at thefinancial institution in possession of such records, or at alegal entity which is not a customer, except that:
(1) Nothing in sections 408.675 to 408.700 prohibits theuse or transfer of a customer's financial records needed bycounsel representing a government authority in a civil actionarising from a government loan, loan guaranty, or loan insuranceagreement;
(2) Nothing in sections 408.675 to 408.700 prohibits agovernment authority providing assistance to a customer in theform of a loan, loan guaranty, or loan insurance agreement fromusing or transferring financial records necessary to process,service or foreclose a loan, or to collect on an indebtedness tothe government resulting from a customer's default.
5. Notification that financial records obtained pursuant tothis section which may relate to a potential civil, criminal, orregulatory violation by a customer may be given to an agency ordepartment with jurisdiction over that violation, and such agencyor department may then seek access to the records pursuant to theprovisions of sections 408.675 to 408.700.
6. Each financial institution shall keep a notation of eachdisclosure made pursuant to subdivision (2) of subsection 1 ofthis section, including the date of such disclosure and thegovernment authority to which it was made. The customer shall beentitled to inspect this information. Except for sections408.696 and 408.700, nothing in sections 408.675 to 408.700 shallapply to any subpoena or court order issued in connection withproceedings before a grand jury.
7. Nothing in sections 408.675 to 408.700 shall prohibit agovernment authority from obtaining financial records from afinancial institution if the government authority determines thatdelay in obtaining access to such records would create imminentdanger of:
(1) Physical injury to any person;
(2) Serious property damage; or
(3) Flight to avoid prosecution.
Within five days of obtaining access to financial records underthis subsection the government authority shall file with theappropriate court a signed, sworn statement of a supervisoryofficial of a rank designated by the head of the governmentauthority setting forth the grounds for the emergency access. Thegovernment authority shall thereafter comply with the noticeprovisions of subsection 5 of section 408.685. The governmentauthority shall compile an annual tabulation of the occasions inwhich this subsection was used.
(L. 1989 H.B. 82 § 12)