§ 11-51-1005 — Delaying disbursements - immunity

(1) A broker-dealer or
investment adviser may delay a disbursement from an account of an eligible adult,
or an account on which an eligible adult is a beneficiary, if:

(a) The broker-dealer or investment adviser, reasonably believes, after
initiating an internal review of the requested disbursement and the suspected
financial exploitation, that the requested disbursement may result in financial
exploitation of an eligible adult; and

(b) The broker-dealer or investment adviser:

(I) Immediately, but in no event more than two business days after the
requested disbursement, provides written notification of the delay and the reason
for the delay to all parties authorized to transact business on the account, unless
any such party is reasonably believed to have engaged in suspected or attempted
financial exploitation of the eligible adult;

(II) Immediately, but in no event more than two business days after the
requested disbursement, notifies the reporting agencies; and

(III) Continues its internal review of the suspected or attempted financial
exploitation of the eligible adult, as necessary, and reports the review's results to
the commissioner within seven business days after the requested disbursement.

(2) Any delay of a disbursement as authorized by this section expires upon
the sooner of:

(a) A determination by the broker-dealer or investment adviser that the
disbursement will not result in financial exploitation of the eligible adult; or

(b) Fifteen business days after the date on which the broker-dealer or
investment adviser first delayed disbursement of the funds, unless the
commissioner requests that the broker-dealer or investment adviser extend the
delay. If a delay is requested, the delay expires no more than twenty-five business
days after the date on which the broker-dealer or investment adviser first delayed
disbursement of the funds unless sooner terminated or extended by the
commissioner or an order of a court of competent jurisdiction.

(3) A court of competent jurisdiction may also enter an order extending the
delay of the disbursement of funds or may order other protective relief based on
the petition of the commissioner of securities, protective services for eligible
adults, the broker-dealer or investment adviser that initiated the delay under this
section, or other interested party.

(4) A broker-dealer or investment adviser who, in good faith and exercising
reasonable care, complies with this section is immune from any administrative or
civil liability that might otherwise arise from the delay in a disbursement in
accordance with this section.

Legislative History

Source: L. 2017: Entire part added, (HB 17-1253), ch. 289, p. 1606, � 2, effective July 1.