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Offshore Outsourcing of Data Services by Insured Institutions and Associated Consumer Privacy Risks

Appendix B—Subcontracting Language from a Typical Data Vendor Contract

The following is an example of subcontracting language (emphasis added) from a data vendor contract.

3. Conditions and Licenses

3.1 Performance by Subcontractors. Customer understands and agrees that the actual performance of the Services may be made by (Data Vendor), one or more Affiliates of (Data Vendor), or subcontractors of any of the foregoing Entities (collectively, the 'Eligible providers'). For purposes of this Agreement, performance of the Services by any Eligible Provider shall be deemed performance by (Data Vendor) itself. (Data Vendor) shall remain fully responsible for the performance or non-performance of the Services by any Eligible Provider, to the same extent as if (Data Vendor) itself performed or failed to perform such services. Customer agrees to look solely to (Data Vendor), and not to any Eligible Provider, for satisfaction of any claims, Customer may have arising out of this Agreement or the performance or nonperformance of Services. However, in the event that Customer contracts directly with a Third Party for any products or services, (Data Vendor) shall have no liability to Customer for such Third Party's products or services, even if such products or services are necessary for Customer to access or receive the Services hereunder.

 



Last Updated 6/08/04 insurance-research@fdic.gov