§ 24-11-6 — Responsibilities of Financial Institutions

(a) A financial institution shall be required to do the following:
(1) Create a new account for the first-time and second chance home buyer and designate the account as a “first-time and second chance home buyer’s savings account” on records and transactional statements related to the account.
(2) Provide the account holder with a detailed account statement relating to the first-time and second chance home buyer’s savings account on a yearly basis.
(b) A financial institution shall not be required to do any of the following:
(1) Track the use of money withdrawn from a first-time and second chance home buyer savings account.
(2) Allocate funds in a first-time and second chance home buyer savings account between joint account holders.
(3) Report any information not otherwise required by law to the Department of Revenue or any other governmental agency.
(c) A financial institution is not responsible or liable for the following:
(1) Determining or ensuring that an account satisfies the requirements to be a first-time and second chance home buyer savings account.
(2) Determining or ensuring that funds in a first-time and second chance home buyer savings account are used for eligible costs.
(3) Reporting or remitting taxes or penalties related to the use of a first-time and second chance home buyer savings account.
(d) Upon being furnished proof of the death of the account holder and any other information related to the death required by the financial institution or contract governing the first-time and second chance home buyer savings account, a financial institution shall distribute the principal and accumulated interest or other income in the account in accordance with the terms of the contract governing the account, or as otherwise required by law.

Legislative History

(Act 2018-467, §6.)