Agreement · Privacy, Data Protection & Cyber
Service-provider safeguards addendum
A short contract addendum for a service provider that will hold customer information of a financial institution covered by the FTC Safeguards Rule. It follows 16 CFR § 314.4(f). It is not a HIPAA business-associate agreement.
- Kind
- Agreement. A contract between two or more parties.
- Where it applies
- United States
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the 2 authorities it cites, for United States.
- Version
- 1
- Source
- Written for this library
When to use it
Use when the customer may be a financial institution under 16 CFR § 314.1 and a vendor will handle customer information. If the lawyer decides part 314 does not apply, do not use this addendum. Do not use it as the only privacy schedule for a deal that is outside that rule.
Used for these tasks
- Build a vendor AI and subprocessors risk questionnaire
- Draft a data-processing agreement from the processing facts
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
AI may insert the vendor's legal name and the description of customer information the lawyer writes. The lawyer decides whether part 314 applies and what safeguards are appropriate.
AI may
- Insert the parties and the description of information from the lawyer's note
- Keep the safeguards as the phrase section 314.4(f) uses, unless the lawyer adds a specific control
- Flag any audit right, encryption standard, or notice period that is not in the rule and not written by the lawyer
AI must not
- Must not decide that the customer is a financial institution
- Must not add a security control or a notice deadline the lawyer did not write
- Must not present this addendum as a business-associate agreement
The lawyer checks
- Part 314 either applies, or this addendum is not used
- The information description matches what the vendor will actually hold
- No HIPAA business-associate clause has been pasted in
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
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The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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