This text of South Carolina § 43-35-87 (Financial exploitation; financial institution authority to decline transaction requests.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(A)For the purposes of this section, "financial institution" means any bank, credit union, wealth management institution, or other financial services company. This section excludes a "broker-dealer" as defined in Section 35-1-102(4) and an "investment adviser" as defined in Section 35-1-102(15).
(B)If a financial institution reasonably believes that the financial exploitation of a vulnerable adult has occurred or may occur, then the financial institution may, but is not required to, decline or place on hold any transaction involving:
(1)the account of the vulnerable adult;
(2)an account in which the vulnerable adult is a beneficiary, including a trust or guardianship account; or (3) the account of a person who is suspected of engaging in the financial exploitation of the vulnerable adu
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(A) For the purposes of this section, "financial institution" means any bank, credit union, wealth management institution, or other financial services company. This section excludes a "broker-dealer" as defined in Section 35-1-102(4) and an "investment adviser" as defined in Section 35-1-102(15). (B) If a financial institution reasonably believes that the financial exploitation of a vulnerable adult has occurred or may occur, then the financial institution may, but is not required to, decline or place on hold any transaction involving: (1) the account of the vulnerable adult; (2) an account in which the vulnerable adult is a beneficiary, including a trust or guardianship account; or (3) the account of a person who is suspected of engaging in the financial exploitation of the vulnerable adult. (C) A financial institution may also decline or place on hold any transaction pursuant to this section if an investigative entity or law enforcement agency provides information to the financial institution demonstrating that it is reasonable to believe that the financial exploitation of a vulnerable adult has occurred or may occur. (D) A financial institution is not required to decline or place on hold a transaction pursuant to this section. Such a decision is in the financial institution's discretion, based on the information available to the financial institution. (E)(1) Any financial institution that declines or places on hold a transaction pursuant to this section shall: (a) make a reasonable effort to provide notice, orally or in writing, to all parties authorized to transact business on the account from which the transfer or disbursement was declined or placed on hold; and (b) report the incident to the appropriate investigative entity in accordance with Section 43-35-25. (2) Notwithstanding the provisions of this subsection, a financial institution has no duty to notify any party that is suspected of financial exploitation pursuant to this section. (F) Any decline or hold of a disbursement or transaction as authorized by this section will expire upon the sooner of: (1) a determination by the financial institution that allowing the transaction will not result in the financial exploitation of a vulnerable adult; (2) thirty business days after the date on which the financial institution first declined or placed on hold the transaction, unless an appropriate investigative entity as set forth in Section 43-35-10(5) requests that the financial institution extend the delay, in which case the delay shall expire no more than fifty-five business days after the date on which the financial institution first declined or placed on hold the transaction; or (3) the order of a court of competent jurisdiction. (G) A financial institution may provide access to or copies of records relevant to the suspected financial exploitation of a vulnerable adult to law enforcement agencies or investigative entities responsible for administering the provisions of this article. Such records may include relevant historical records and recent transactions relating to suspected financial exploitation. (H) If the determinations and actions of a financial institution or an employee of a financial institution are made in good faith and in accordance with the provisions of this section, then the financial institution or employee shall be immune from criminal, civil, or administrative liability for declining transactions to disburse monies pursuant to this section, and for taking actions in furtherance of a determination, including making a report or providing access to or copies of relevant records to an investigative entity or law enforcement agency. Nothing in this section is intended to nor does it limit or shield in any manner a financial institution from civil liability against any claim, including reasonable attorneys' fees, costs, and litigation expenses, for participating in or materially aiding the financial exploitation of a vulnerable adult. Any such claims shall be asserted by the vulnerable adult, or on his behalf by an appropriate guardian or representative who is not involved in or otherwise suspected of participating in the financial exploitation of the vulnerable adult, by filing a civil action in circuit court.