Terms of Use - First Trust and Savings Bank

First Trust and Savings Bank
Privacy Policy

PURPOSE

This policy reaffirms our bank’s realization of and respect for the privacy expectations and rights of our customers regarding financial information and other related information which the bank has or gathers in the normal course of business. It is intended to provide guidance to bank personnel as well as assurance to our customers. We will also, of course, act in compliance with all applicable laws and regulations

DEFINITIONS

Employee. As used in this policy, “employee” includes all directors, officers and employees of the bank as well as any attorneys, agents or outside vendors who become privy to customer information.

Consumer. A natural person, firm, partnership, corporation or other form of for-profit or not-for-profit enterprise, or its legal representative, that obtains or has obtained a financial product or service from the bank, but that has not necessarily established a continuing relationship with the bank. An example of a consumer would be a loan applicant. A consumer is not necessarily a customer.

Customer. A natural person, firm partnership, corporation of other form of for-profit or not-for-profit enterprise that has established a continuing relationship with our bank. An example of a customer would be an approved loan applicant who has signed a note.

Nonpublic personal information. “Nonpublic personal information” or “financial records.” For purposes of this policy, “nonpublic personal information” and “financial records” refer to personally identifiable information relating to a consumer or customer, except when there is a reasonable belief that the information is publicly available. For example, the fact of a customer relationship with the bank would presumably be nonpublic personal information. Personally identifiable information relating to a consumer or customer is excluded from nonpublic personal information only if the information is publicly available and was not prepared or composed using information from bank records that are not publicly available.

Publicly available information. Any information that a bank has a reasonable basis to believe is lawfully made available to the general public from federal, state or local government records; widely distributed media; or disclosures to the general public that are requited to be made by federal, state or local law. For example, a published telephone directory or the public record of real estate transactions.

RESPONSIBILITY

The board of directors has the ultimate responsibility to appropriately establish and maintain this policy and assure that it is being observed in the daily operation or the bank. The Chairman is responsible for carrying out this policy and making recommendations to the board of directors as to necessary or desirable changes to the policy.

PRIVACY PRINCIPLES

The bank recognizes the following elements of its privacy policy, which have become standard within the banking industry:

Recognition of customer’s expectation of privacy
Use, collection and retention of customer information
Maintenance of accurate information
Limiting employee access to information
Protection of information via established security procedures
Restrictions on the disclosure of consumer information
Maintaining customer privacy in business relationships with third parties
Disclosure of privacy principles to customers

Recognition of Customer’s Expectation of Privacy

Customers of the bank are entitled to the absolute assurance that the information concerning their financial circumstances and personal lives, which the bank has obtained through various means, will be treated with highest degree of confidentiality and respect. Certain expectations of privacy also contain legal rights of customers which are either granted or confirmed to them through various federal and state laws and regulations. All employees are directed by this policy to assure customers of the bank’s commitment to preserving the privacy of their information.

Use, Collection and Retention of Consumer Information

It is the policy and practice of the bank to collect, retain and use information about consumers and customers (both individual and corporate) only where the bank reasonably believes the gathering of such information would be useful and allowed by law to administer the bank’s business and/or to provide products, services or opportunities to its customers.

Maintenance of Accurate Information

Executive management is directed to establish procedures to ensure that, to the extent practicable, all customer financial information is accurate, current and complete in accordance with reasonable commercial standards. The bank will respond promptly and affirmatively to any legitimate customer request to correct inaccurate information, including forwarding of corrected information to any third party who have received the inaccurate information. The bank will further undertake to record that such corrective action was requested by the customer and follow up with any third parties to ensure that they have processed the correction.

Limitation on Employee Access to Information

Executive management will take all steps necessary to ensure that only employees with a legitimate business reason for knowing personally identifiable customer information shall have access to areas in which sensitive customer information is retained. Employees will be informed at the time of their initial employment of these standards and periodically reminded of these standards during training sessions at least once during each calendar year. Willful violation of this element of this policy will result in disciplinary action against the offending individual. Inadvertent violations will be dealt with in a manner to ensure such violations will not be repeated.

Protection of Information via Established Security Procedures

The bank will maintain appropriate security standards and procedures to prevent unauthorized access to customer information. Such procedures should prevent access by not only unauthorized employees, but others as well. Such others include but are not limited to all non-employees with otherwise legitimate reasons for being on bank premises, computer “hackers” and all intruders on bank premises.

Restrictions on the Disclosure of Customer Information

The bank will not, except in cases allowed under the law, reveal specific information about customer accounts or other nonpublic personal information to any nonaffiliated third parties unless the customer has been provided with the required privacy notices, has authorized the disclosure and has not exercised the right to revoke such authorization (including revocation by the exercise of opt out rights after receiving notice and a reasonable opportunity to opt out of such disclosures.)

Maintaining Customer Privacy in Business Relationships with Third Parties

If the bank is requested to provide personally identifiable information to a third party and that request is in all respects consistent with other elements of this policy, the bank will accede to the request only if the third party agrees to adhere to similar privacy principles no less stringent than set forth in this policy, that provide for keeping such information confidential.

DISCLOSURE OF PRIVACY PRINCIPLES TO CUSTOMERS

Disclosure of the privacy notice (appended as a part of this policy) shall be provided to customers initially and then annually thereafter. A notice of the right to opt out will accompany each privacy notice, unless our bank shares nonpublic personal information only within the three categories of exceptions, listed below. If our bank does share nonpublic personal information only within the last two categories of exceptions, a simplified privacy notice will be provided to customers.

The notice will be delivered by hand, by mail or electronically, as specified in the pertinent banking regulation. If the notice is provided electronically, the consumer must be required to acknowledge receipt as a necessary condition for obtaining a financial product or service.

EXCEPTIONS

Exceptions to the Opt Out Requirements for Service Providers and Joint Marketing

The requirements relating to customer authorization and opt out rights do not apply if our bank provides nonpublic personal information about a consumer to a nonaffiliated third party to perform services for the bank or functions on the banks’ behalf, if the bank provides the initial notice as required and enters into a contractual agreement with the third party that requires the third party to maintain the confidentiality of the information to at least the same extent that the bank must maintain the confidentiality and limits the third party’s use of the information solely to the purposes for which it is disclosed or as otherwise permitted.

Exceptions to the Opt Out Requirements for Processing and Servicing Transactions

The requirements for initial notice, customers authorization, opt out rights, and for service providers and joint marketing do not apply if the bank discloses nonpublic personal information -

As necessary to effect, administer or enforce a transaction requested or authorized by the consumer.
To service or process a financial product or service requested or authorized by the consumer.
To maintain or service the consumer’s account with the bank, or with another entity as part of a private label credit card program or extension of credit on behalf of such entity.
In connection with a proposed or actual securitization, secondary market sale (including sales or servicing rights), or similar transaction related to a transaction of the consumer.

Other Exceptions to Notice, Customer Authorization and Opt Out Requirements

There are additional exceptions to the requirements relating to customer authorization and opt out rights. The requirements for initial notice, customer authorization, opt out rights, and for service providers and joint marketing do not apply when the bank discloses nonpublic personal information in the following circumstances:

With consent or direction of the consumer, provided that the consumer has not revoked the consent or direction.
For the following protective or legal situations:
1. To protect the confidentiality or security of the bank’s records pertaining to the consumer, service, product or transaction
2. To protect against or prevent actual or potential fraud, unauthorized transactions, claims or other liability
3. For required institutional risk control or for resolving consumer disputes or inquiries
4. To persons holding a legal or beneficial interest relating to the consumer
5. To persons acting in a fiduciary or representative capacity on behalf of the consumer
To provide information to insurance advisory organizations, guaranty funds or agencies, agencies that are rating the bank, persons that are assessing the bank’s compliance with industry standards, and the bank attorneys, accountants and auditors.
To the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978 (12 USC 3401), to law enforcement agencies (including government regulators), self-regulatory organizations, or for an investigation on a matter related to public safety
To a consumer reporting agency in accordance with the Fair Credit Reporting Act (15 USC 1681) or from a consumer report reported by a consumer reporting agency
In connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal information concerns solely consumers of that business or unit
To comply with federal, state or local laws, rules, and other applicable legal requirements-specifically:

EMPLOYEE EDUCATION AND TRAINING

Executive management is directed to provide a copy of this policy to all bank employees and to obtain a receipt from each employee acknowledging that fact. After any amendments or modifications to this policy have been duly adopted, a copy of the amended policy will also be given to each employee, again acknowledged by receipt.

At least once during each calendar year the bank will conduct a meeting of all employees during which matters affecting customers’ rights to privacy will be discussed. Such meetings will include discussions on the following:

The proper use of customer information
Procedures for maintaining security of information
The importance of confidentiality and customer privacy
Any incidents, or patterns of behavior, which are covered under this policy.

RECORD KEEPING AND REPORTING

Executive management will maintain a separate file for the purpose of retaining any customer complaints that relate to this policy. The information regarding any complaint should include the exact nature of the complaint, describe the corrective actions taken and confirm that the corrective actions resolved the complaint.

Executive management will make an annual report to the board concerning customer complaints which shall include the frequency and nature of such complaints and corrective actions taken. Complaints of a nature sufficient to present a risk of regulatory enforcement action and/or civil money penalties are required to be reported if and when they occur.

REVIEW OF POLICY

The board of directors will make a review of this policy at least once each year and make any revisions and amendments it deems appropriate. The Chairman will be responsible for suggesting more frequent revisions as situations or changes in laws or regulations dictate.

This Privacy Policy approved at a regular meeting of the board of directors of First Trust and Savings Bank of Albany, Illinois, held on February 5, 2004 .

E.D. Hanson, Jr.
Chairman of the Board

Privacy Statement | Terms of Use | Security Policy

First Trust and Savings Bank
Albany - Erie - Hillsdale