§1374. Delaying financial transactions

A. A covered financial institution may, but is not required to, delay completion or execution of a financial transaction involving an account of an eligible adult, an account on which an eligible adult is a beneficiary, or an account of a person suspected of perpetrating financial exploitation if either of the following conditions apply:

(1) The covered financial institution reasonably believes that the requested financial transaction may result in financial exploitation of an eligible adult.

(2) A covered agency provides information demonstrating to the financial institution that it is reasonable to believe that financial exploitation is occurring, has or may have occurred, or is being attempted, or has been, or may have been attempted.

B. If a covered financial institution determines to delay a financial transaction pursuant to Subsection A of this Section, the covered financial institution shall, no later than two business days after the financial transaction is delayed, send written notification of the delay and the reason for the delay to all parties authorized to transact business on the account for which the covered financial institution has contact information, unless any such party is reasonably believed to have engaged in attempted financial exploitation of the eligible adult. The notification described in this Subsection may be provided by electronic means.

C. If a covered financial institution delays a financial transaction pursuant to Subsection A of this Section, the covered financial institution may provide notification of the delay, the reason for the delay, and any additional information about the financial transaction to any covered agency.

D. Except as ordered by a court, a covered financial institution is not required to delay a financial transaction when provided with information by a covered agency alleging that financial exploitation is occurring, has or may have occurred, or is being attempted, or has been, or may have been attempted, but may use its discretion to determine whether to delay a financial transaction based on the information available to the covered financial institution.

E. Except as provided in Subsection F of this Section, any delay of a financial transaction as authorized pursuant to this Section shall expire or be terminated when the earliest of any of the following circumstances occur:

(1) The covered financial institution reasonably determines that the financial transaction will not result in financial exploitation of the eligible adult.

(2) Fifteen business days pass from the date on which the covered financial institution first initiated the delay of the financial transaction.

F.(1) A covered financial institution may extend the delay provided for in Subsection E of this Section upon receiving a request to extend the delay from any covered agency, in which case the delay shall expire or be terminated no later than twenty-five business days from the date on which the covered financial institution first initiated the delay of the financial transaction.

(2) A court of competent jurisdiction may enter an order extending or shortening a delay, or providing other relief, based on the petition of the covered financial institution, any covered agency, or other interested party.

Acts 2018, No. 434, §1, eff. October 1, 2018.