§ 23-19-4.1-7 — Qualified individual's authority to refuse to disburse funds; notice to protective agencies and parties on account; expiration of refusal; court order extending refusal or providing protective relief

Indiana § 23-19-4.1-7

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 19: INDIANA UNIFORM SECURITIES ACT
• Ch. 4.1: Financially Vulnerable Adult

Text

(a) A qualified individual may refuse a
request for disbursement of funds from an account:
(1) owned by a financially vulnerable adult; or
(2) of which a financially vulnerable adult is a beneficiary or
beneficial owner;
if the qualified individual has reason to believe that the requested
disbursement may result in financial exploitation of the financially
vulnerable adult.
(b) If a qualified individual refuses a request for disbursement under
subsection (a), a broker-dealer or investment adviser involved in the
transaction or the qualified individual shall:
(1) subject to subsection (c), make a reasonable effort to notify all
parties authorized to transact business on the account:
(A) orally; or
(B) in writing by:
(i) electronic communication; or
(ii) mail postmarked;
not more than two (2) business days after the qualified individual
refuses the request for disbursement; and
(2) notify the protective agencies:
(A) orally; or
(B) in writing by:
(i) electronic communication; or
(ii) mail postmarked;
not more than three (3) business days after the qualified
individual refuses the request for disbursement.
(c) A broker-dealer, investment adviser, or the qualified individual
described in subsection (b) is not required to contact a party authorized
to transact business on the account if the broker-dealer, investment
adviser, or qualified individual has reason to believe that the party has
engaged in suspected or attempted financial exploitation of the
financially vulnerable adult.
(d) Unless a court or the commissioner enters an order extending the
refusal of disbursement or providing any other applicable protective
relief, any refusal of disbursement under this section expires upon the
earlier of the following:
(1) The date that the qualified individual has reason to believe
that the disbursement will not result in financial exploitation of
the financially vulnerable adult.
(2) Fifteen (15) business days after the date of the initial refusal
of disbursement by the qualified individual. However, if a
broker-dealer's or investment adviser's internal review of the facts
and circumstances supports the broker-dealer's or investment
adviser's reasonable belief that the financial exploitation of the
financially vulnerable adult has occurred, is occurring, has been
attempted, or will be attempted, the commissioner shall extend
the refusal of disbursement for an additional fifteen (15) business
days after the expiration date that would otherwise apply under
this subdivision.
(e) A court with jurisdiction may enter an order that:
(1) extends a refusal of disbursement; or
(2) provides for any other protective relief.
(f) After:
(1) a broker-dealer, investment adviser, or qualified individual
provides notice under subsection (b); and
(2) the refusal of disbursement has expired or a court or the
commissioner has entered an order as described in subsection (d)
or (e)(1);
the broker-dealer, investment adviser, or qualified individual shall
notify, in writing, the protective agencies of the expiration or the order,
as applicable.

Legislative History

As added by P.L.39-2016, SEC.1. Amended by P.L.158-2017, SEC.10.