PART 1235—RECORD RETENTION FOR REGULATED ENTITIES AND OFFICE OF FINANCE Authority: 12 U.S.C. 4511(b), 4513(a), 4513b(a)(10) and (11), 4526. Source: 76 FR 33127, June 8, 2011, unless otherwise noted. § 1235.1 Purpose and scope. The purpose of this part is to set forth minimum requirements for a record retention program for each regulated entity and the Office of Finance. The requirements are intended to further prudent management as well as to ensure that complete and accurate records of each regulated entity and the Office of Finance are readily accessible to FHFA. § 1235.2 Definitions. For purposes of this part, the term— Electronic record E-mail Employee Record (1) Form or format, including hard copy documents ( e.g., e.g., (2) Where the information is stored or located, including network servers, desktop or laptop computers and handheld computers, other wireless devices with text messaging capabilities, and on-site or off-site at a storage facility; (3) Whether the information is maintained or used on regulated entity or Office of Finance equipment, or on personal or home computer systems of an employee; or (4) Whether the information is active or inactive. Record hold Record retention schedule Retention period [76 FR 33127, June 8, 2011, as amended at 78 FR 2324, Jan. 11, 2013] § 1235.3 Establishment and evaluation of a record retention program. (a) Establishment. (b) Evaluation. § 1235.4 Minimum requirements of a record retention program. (a) General minimum requirements. (1) Assure that retained records are complete and accurate; (2) Assure that the form of retained records and the retention period— (i) Are appropriate to support administrative, business, external and internal audit functions, and litigation of the regulated entity or the Office of Finance; and (ii) Comply with requirements of applicable laws and regulations, including this part; (3) Assign in writing the authorities and responsibilities for record retention activities for employees, including line managers and corporate management; (4) Include policies and procedures concerning record holds, consistent with § 1235.5, and, as appropriate, integrate them with policies and procedures throughout the organization; (5) Include an accurate, current, and comprehensive record retention schedule that lists records by major categories, subcategories, record type, and retention period, which retention period is appropriate to the specific record and consistent with applicable legal, regulatory, fiscal, operational, and business requirements; (6) Include appropriate security and internal controls to protect records from unauthorized access and data alteration; (7) Provide for appropriate back-up and recovery of electronic records to ensure the same accuracy as the primary records; (8) Provide for a periodic testing of the ability to access records; and (9) Provide for the proper disposition of records. (b) Minimum storage requirements for electronic records. (c) Communication and training (2) The record retention program shall: (i) Provide for communication throughout the organization on record retention policies, procedures, and record retention schedule updates; and (ii) Provide for training of and notice to all employees on a periodic basis on their record retention responsibilities, including instruction regarding penalties provided by law for the unlawful removal or destruction of records. The record retention program also shall provide for training for the agents or independent contractors of a regulated entity or the Office of Finance, as appropriate, consistent with their respective roles and responsibilities to the regulated entity or the Office of Finance. § 1235.5 Record hold. (a) Notification by FHFA. (b) Notification by a regulated entity or the Office of Finance. (1) Address how employees and, as appropriate, how agents or independent contractors consistent with their respective roles and responsibilities to the regulated entity or the Office of Finance, will receive prompt notification of a record hold; (2) Designate an individual to communicate specific requirements and instructions, including, when necessary, the instruction to cease immediately any otherwise permissible destruction of records; and (3) Provide that any employee and, as appropriate, any agent or independent contractor consistent with his or her respective role and responsibility to the regulated entity or Office of Finance, who has received notice of a potential investigation, enforcement proceeding, or litigation by FHFA involving the regulated entity or the Office of Finance or an employee, or otherwise has actual knowledge that an issue is subject to such an investigation, enforcement proceeding or litigation, shall notify immediately the legal department or the individual providing legal services as well as senior management of the regulated entity or the Office of Finance and shall retain any records that may be relevant in any way to such investigation, enforcement proceeding, or litigation. (c) Method of record retention during a record hold. (d) Access to and retrieval of records during a record hold. § 1235.6 Access to records. Each regulated entity and the Office of Finance shall make its records available promptly upon request by FHFA, at a location and in a form and manner acceptable to FHFA. § 1235.7 Supervisory action. (a) Supervisory action. (b) No limitation of authority.