SB 617 — Banking and Financial Services Provider Protections for Eligible Adults from Financial Exploitation

of this code;

or (B) A person 18 years or older who:

(i) Has a substantial mental or functional impairment that significantly interferes with his or her ability to make financial decisions, or for whom a guardian has been appointed under state law;

and (ii) The depository institution has actual knowledge that the person has a substantial mental or functional impairment or that a guardian has been appointed under state law.

"Financial exploitation" means:

(A) The wrongful or unauthorized taking, withholding, appropriation, expenditure, or use of money, assets, or property owned by an eligible adult;

or (B) An act or omission taken by a person, including through the use of a power of attorney, guardianship, trustee, or conservatorship of an eligible adult, to:

(i) Obtain control, through deception, intimidation, or undue influence, over the eligible adult's money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adult's money, assets, or property;

or (ii) Convert money, assets, or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adult's money, assets, or property.

§31A-2C-4.

Government disclosures.

Any depository institution or its employees, or both, who believe that financial exploitation of an eligible adult has occurred, may have been attempted, or is being attempted, shall promptly notify a designated state agency.

Enr CS for CS for SB 617 §31A-2C-5.

Authority to delay, refuse, or prevent certain activities.

(a) When, based on personal observation or information received from a governmental agency or law-enforcement agency, a depository institution or its employees believe that financial exploitation of an eligible adult may have occurred, has been attempted, is occurring, or is being attempted, the depository institution or its employees may, but are not required to:

(1) Delay or refuse one or more transactions with or involving the eligible adult;

(2) Delay or refuse to permit the withdrawal or disbursement of funds contained in the eligible adult's account;

(3) Prevent a change in ownership of the eligible adult's account;

(4) Prevent a transfer of funds from the eligible adult's account to an account owned wholly or partially by another person;

(5) Refuse to comply with instructions given to the depository institution by an agent or a person acting for or with an agent under a power of attorney signed or purported to have been signed by the eligible adult;

or (6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for an eligible adult at death.

(b) A depository institution or its employees are not required to act under subsection (a) of this section when provided with information alleging that financial exploitation may have occurred, may have been attempted, is occurring, or is being attempted, but may use their sole discretion to determine whether or not to act under subsection (a) of this section based on the information available to them at the time.

(c) The authority to delay and/or refuse a transaction set forth in subsection (a) of this section expires upon the sooner of:

(1) Fifteen business days after the date on which the depository institution first acted under subsection (a) of this section, unless the designated state agency is conducting an investigation and requests an extension, in which case it may be extended for an additional 30 days;

Enr CS for CS for SB 617 (2) When the depository institution is satisfied in its sole discretion that the transaction or act will not likely result in financial exploitation of the eligible adult;

or (3) Upon an order of a court of competent jurisdiction directing the release of funds.

(d) Notwithstanding any other law to the contrary, the refusal to engage in a transaction as authorized under subsection (a) of this section may not constitute the wrongful dishonor of an item under §46-4-1 et seq.

of this code.

(e) A reasonable belief that payment of a check will facilitate the financial exploitation of an eligible adult constitutes reasonable grounds to doubt the collectability of the item for purposes of the federal Check Clearing for the 21st Century Act, 12 U.S.C.

§ 5001 et seq., the federal Expedited Funds Availability Act, 12 U.S.C.

§ 4001 et seq., and 12 C.F.R.

part 229.

Nothing herein, however, requires depository institutions or their employees to review the checks of eligible adults.

(f) A delay or refusal to complete a funds transfer request as authorized under subsection (a) of this section does not violate §46-4A-101 et seq.

of this code:

Provided, That if a transaction is delayed under subsection (a) of this section, the payment order is not considered as received until the hold is removed and the depository institution submits the payment order for processing.

Funds transfer and payment order have the same meanings as defined in §46-4A-101 et seq.

of this code.

(g) The depository institution shall maintain internal records of any delay and/or refusal of a transaction as set forth in subsection (a) of this section.

§31A-2C-6.

Third-party notifications.

(a) A depository institution or its employees may notify an associated third party, if any, if the depository institution or its employees believe that the financial exploitation of the eligible adult is occurring, has or may have occurred, is being attempted, or has been or may have been attempted.

Enr CS for CS for SB 617 (b) A depository institution or its employees may choose not to notify an associated third party as described in subsection (a) of this section if the depository institution or its employees believe that the third party is, may be, or may have been engaged in the financial exploitation of the eligible adult.

(c) When providing information under subsection (a) of this section, a depository institution or its employees may limit the information provided to disclose their suspicion that the eligible adult may be a victim or target of financial exploitation.

(d) Any disclosure under subsection (a) of this section is exempt from coverage by state privacy laws and requirements.

§31A-2C-7 Immunities.

If the determinations and actions of a depository institution or an employee of a depository institution are made in good faith and in accordance with the provisions of this article, then the depository institution or employee shall be immune from criminal, civil, or administrative liability for the following:

(1) A depository institution or its employees who makes, or chooses not to make a disclosure pursuant to §31A-2C-4 of this code, notify an associated third-party pursuant to §31A- 2C-6 of this code, or participate in a judicial proceeding, administrative proceeding, or investigation arising from a notification or report;

(2) A depository institution or its employees that delays, refuses, or prevents a transaction pursuant to §31A-2C-5 of this code, or decides not to delay, refuse, or prevent a transaction pursuant to §31A-2C-5 of this code;

or (3) A depository institution or its employees who accept from the eligible adult the designation of an associated third-party the information provided by the eligible adult regarding the associated third-party.

Enr CS for CS for SB 617 The Clerk of the Senate and the Clerk of the House of Delegates hereby certify that the foregoing bill is correctly enrolled.

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Clerk of the Senate ...............................................................

Clerk of the House of Delegates Originated in the Senate.

In effect 90 days from passage.

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President of the Senate ...............................................................

Speaker of the House of Delegates __________ The within is ................................................

this the...........................................

Day of ..........................................................................................................., 2026.

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Governor 7