85-4

February 21, 1985

Dear Mr. ________:

This is in reply to your letter of February 8, 1985, which was received on February 15, 1985.

The California right to Financial Privacy Act (Government Code Sections 7460 et seq.) by its terms applies to banks, and no provision of the Act provides that the escrow business of banks is not subject to the Act. Moreover, we do not find in the memorandum which was enclosed with your letter any persuasive basis for reading into the Act an exemption for the escrow business of banks. On the contrary, the quotation from ________ set forth in pages 4 and 5 of the memorandum indicates that the principle of the decision logically extends beyond deposit account statements to “all papers which the customer has supplied to the bank to facilitate the conduct of his financial affairs upon the reasonable assumption that the information would remain confidential.” Accordingly, we cannot agree with your view that the Act does not apply to the escrow business of banks.

We regret that we are not in a position to be of assistance in this matter.

Very truly yours,

LOUIS CARTER
Superintendent of Banks

By

JAMES F. CARRIG
Chief Counsel