DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 500 Original 2016 Regular Session Shadoin
Abstract: Creates a privilege in favor of financial institutions for the purpose of preventing the
disclosure of certain records.
Within the La. Code of Civil Procedure, proposed law establishes that, in civil proceedings, all
documents and records prepared by or for a financial institution, which is insured by the Federal
Deposit Insurance Corporation, its holding company, affiliates, or subsidiaries authorized to do
business in this state, in connection with its evaluation, analysis, or review of any loan, extension
of credit, collateral security therefor, or reserve therefor shall be subject to a privilege in favor of the
financial institution and shall not be subject to discovery by a customer of the financial institution
or any other person.
Proposed law defines "financial institution" within the La. Code of Evidence. Proposed law states
that a financial institution who is a party to a civil proceeding has a privilege to refuse to disclose
and to prevent another person from disclosing all documents and records prepared by or for a
financial institution in connection with its evaluation, analysis, or review of any loan, extension of
credit, collateral security therefor, or reserve therefor.
Proposed law defines "financial institution" for the purposes of proposed law (R.S.6:339). Proposed
law provides that, notwithstanding any law to the contrary, all documents and records prepared by
or for a financial institution, in connection with its evaluation, analysis, or review of any loan,
extension of credit, collateral security therefor, or reserve therefor shall be deemed the sole and
exclusive property of the financial institution and subject to a privilege in favor of the financial
institution.
Proposed law states that the documents described in proposed law shall not be subject to any of the
following except when the financial institution has consented:
(1) Discovery by a customer of the financial institution or any other person in a civil action.
(2) Evidentiary requirements otherwise making them admissible as evidence in any civil action,
including any action to which a customer is a party.
Proposed law declares that no financial institution or any of its employees or agents shall be required
or compelled, either directly or indirectly, to disclose the existence or content of any such documents
or records referred to in proposed law by way of discovery, subpoena, summons, order, notice of
deposition, interrogatories, request for production of documents, request, request for admissions, any other discovery request, or any other method.
(Adds C.C.P. Art. 1422.2, C.E. Art. 520, and R.S. 6:339; Repeals R.S. 6:333(I)(2))