§735. Delaying disbursements and immunity
A. A dealer or investment advisor may delay disbursement from an account of an
eligible adult or an account on which an eligible adult is a beneficiary, if all of the following
conditions are met:
(1)The dealer, investment advisor, or qualified individual 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.
(2)The dealer or investment advisor meets at least one of the following criteria:
(a)Immediately, but in no event more than two business days after the requested
disbursement, provide written notification of the delay and the reason for the delay to all
parties authorized to tra
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§735. Delaying disbursements and immunity
A. A dealer or investment advisor may delay disbursement from an account of an
eligible adult or an account on which an eligible adult is a beneficiary, if all of the following
conditions are met:
(1) The dealer, investment advisor, or qualified individual 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.
(2) The dealer or investment advisor meets at least one of the following criteria:
(a) Immediately, but in no event more than two business days after the requested
disbursement, provide 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.
(b) Immediately, but in no event more than two business days after the requested
disbursement, notify the adult protection agency and the commissioner of securities.
(c) Continue internal review of the suspected or attempted financial exploitation of
the eligible adult, as necessary, and report the investigation results to the adult protection
agency and the commissioner of securities within seven business days after the requested
disbursement.
B. Unless a court or the commissioner enters an order extending the refusal of
disbursement or providing any other applicable protective relief, any delay of a disbursement
as authorized by this Section will expire upon the sooner of the following:
(1) A determination by the dealer or investment advisor that the disbursement will
not result in financial exploitation of the eligible adult.
(2) Fifteen business days after the date on which the dealer or investment advisor
first delayed disbursement of the funds, unless either an adult protection agency or the
commissioner of securities requests that the dealer or investment advisor extend the delay
to no more than twenty-five business days after the date on which the dealer or investment
advisor first delayed disbursement of the funds, unless sooner termination by the dealer or
investment advisor or an order by a court of competent jurisdiction.
C. A court of competent jurisdiction may enter an order extending the delay of the
disbursement of funds or may order other protective measures based on the petition of the
commissioner of securities, adult protective services, the dealer, or other interested party.
D. A dealer, investment advisor, or qualified individual who, in good faith and
exercising reasonable care, complies with this Section shall be immune from any
administrative or civil liability that might otherwise arise from such delay in a disbursement.