In reviewing our confidentiality agreements with service providers, I have had two questions brought up to me that I wasn't sure about.

1. If you are getting an agreement from a CPA firm, can one person sign for the whole firm or does each CPA in the firm need to sign one? How about secretaries and other personnel. Same thing would go for attorneys offices, repo companies, appraisal companies, etc. This had not occurred to me when I originally requested these agreements last year.

2. For properties and assets held in trust with the Bank as Trustee, would these agreements be necessary? For example if the Trust is selling a property, would we need a confidentiality agreement with the real estate agent, appraiser, property insurance company, etc. I don't think the trust would be considered a customer under the reg's definition, but would like a second opinion.

I am interested in knowing how other banks are handling this.

Thanks in advance for your input.

C'mon, somebody take a stab. Andy, MaryBeth?

Okay, I'll bite.

In order to have an enforceable agreement with an entity, it must be signed by someone who has the authority to enter into such agreements. (A partner can sign on behalf of the partnership, an officer authorized in the corporated bylaws can sign on behalf of a corporation, etc.) An authorized person can bind the entity. It would help to have language in the agreement that requires them to communicate the terms of the agreement to all relevant people on their staff -- people who don't even know the agreement exists can hardly be expected to comply.

Where the bank is acting as trustee of a trust, the trust itself is the customer and the GLB privacy regs say that since the trust is not an individual, it is not considered a consumer or customer for purposes of the privacy regs.

Thanks MaryBeth!!!!I knew you would have a good answer!