Code of Alabama as maintained by the Alabama Legislative Information System Online (ALISON).

Section 8-6-190  Short title.

This article shall be known and may be cited as the Elderly and Vulnerable Adult Financial Protection Act of 2021.

(Act 2021-78, §1.)

Section 8-6-191  Legislative findings.

The Legislature finds that instances of financial exploitation are on the rise in Alabama and elsewhere, particularly among elderly and vulnerable adults. The Legislature recognizes that while financial institutions are uniquely positioned to potentially uncover instances of financial exploitation, they are also subject to duties imposed by contract and law to conduct financial transactions in accordance with their customers' instructions. While all instances of financial exploitation cannot be exposed, delayed, or thwarted, it is the intent of the Legislature that this article furnish financial institutions with additional tools to protect elderly and vulnerable adults from financial exploitation.

(Act 2021-78, §2.)

Section 8-6-192  Definitions.

As used in this article, unless the context requires otherwise, the following terms have the following meanings:

(1) ACCOUNT. Funds or assets held by a financial service provider, including, but not limited to, a deposit account, checking account, money market account, savings account, share account, certificate of deposit, trust account, individual retirement account or other type of retirement account, guardianship or conservatorship account, investment or securities account, loan, credit card, or any extension of credit, including a home equity line of credit.

(2) ELDERLY ADULT. An individual 65 years of age or older.

(3) FINANCIAL EXPLOITATION. Any of the following:

a. The wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of an elderly or vulnerable adult, including incurring debt in the name of an elderly or vulnerable adult for the benefit of a third party.

b. Any act or omission taken by a person, including through the use of a power of attorney, guardianship, or conservatorship of an elderly or vulnerable adult, to do either of the following:

1. Obtain control through deception, intimidation, or undue influence over the elderly or vulnerable adult's money, assets, or property to deprive the elderly or vulnerable adult of the ownership, use, benefit, or possession of his or her money, assets, or property.

2. Convert money, assets, or property of the elderly or vulnerable adult to deprive the elderly or vulnerable adult of the ownership, use, benefit, or possession of his or her money, assets, or property.

(4) FINANCIAL SERVICE PROVIDER. Any entity, including its employees and officers, regulated by the Alabama Credit Union Administration or the State Banking Department, or similar federal regulatory agency, engaged in or transacting business in this state, including, but not limited to, a state or national bank or trust company; a state or federal savings and loan association; a state or federal credit union; an industrial loan and thrift company; a mortgage loan lender, broker, originator, or servicer; a title pledge lender; a deferred presentment services provider; a pawnbroker; or a small loan lender.

(5) FINANCIAL TRANSACTION. Any of the following:

a. A transfer or request to transfer or disburse funds or assets in an account.

b. A request to initiate a wire transfer, initiate an automated clearing house transfer, or issue a money order, cashier's check, or official check.

c. A request to negotiate a check or other negotiable instrument.

d. A request to change the ownership of an account.

e. A request for a loan, extension of credit, or draw on a line of credit.

f. A request to transfer the title to any real property or the title of any motor vehicle or mobile home, or to encumber such real property, motor vehicle, or mobile home.

(6) LAW ENFORCEMENT AGENCY. Any municipal, county, state, or federal agency the personnel of which have the power to arrest and to perform law enforcement functions, including prosecutorial entities.

(7) VULNERABLE ADULT. An individual 18 years of age or older who, because of mental or physical impairment, is unable to fully manage his or her own resources, carry out all or a portion of the activities of daily living, or is unable to fully protect against neglect, exploitation, or hazardous or abusive situations without assistance from others.

(Act 2021-78, §3.)

Section 8-6-193  Authority to refuse or delay execution of a financial transaction.

(a)(1) If a financial service provider has reasonable cause to suspect that financial exploitation may have occurred, may have been attempted, or is being attempted, the financial service provider may, but is not required to, refuse or delay the execution of a financial transaction on an account of an elderly or vulnerable adult; on an account on which the elderly or vulnerable adult is a beneficiary, including a trust, guardianship, or conservatorship account; or on an account of a person suspected of perpetrating the financial exploitation.

(2) A financial service provider may also refuse or delay the execution of a financial transaction under this section if the Department of Human Resources or a law enforcement agency provides information to the financial service provider demonstrating that it is reasonable to believe that financial exploitation may have occurred, may have been attempted, or is being attempted.

(b) Except as ordered by a court, a financial service provider is not required to refuse or delay the execution of a financial transaction under this section and may use its discretion to determine whether to refuse or delay the execution of a financial transaction based on the information available to the financial service provider.

(c) A financial service provider that refuses to execute a financial transaction or places a hold on a financial transaction based on reasonable cause to suspect that financial exploitation may have occurred, may have been attempted, or is being attempted shall do both of the following:

(1) Except with regard to an account administered by a bank or trust company in a fiduciary capacity, make a reasonable effort to notify one or more parties authorized to transact business on the account orally or in writing.

(2) If the incident involves financial exploitation, report the incident to the Department of Human Resources and the appropriate law enforcement agency.

(d) Notwithstanding subsection (c), notice to any party authorized to conduct business on the account is not required if the party is the suspected perpetrator of financial exploitation.

(e) A refusal by a financial service provider to execute a financial transaction or place a hold on a financial transaction as authorized by this section, based on the financial service provider's reasonable cause to suspect that financial exploitation may have occurred, may have been attempted, or is being attempted, expires when the financial service provider reasonably believes that the financial transaction will not result in financial exploitation unless earlier terminated by an order of a court of competent jurisdiction.

(f) A financial service provider or an officer or employee of a financial service provider, acting in a reasonable manner, is immune from all criminal, civil, and administrative liability for the following:

(1) Refusing or not refusing to execute a financial transaction, or holding or not holding a financial transaction under this section.

(2) Actions taken in furtherance of the determination made under subdivision (1) if the determination was based upon a reasonable belief.

(Act 2021-78, §4.)

Section 8-6-194  Financial service provider authorized to contact certain individuals or entities upon suspicion of financial exploitation; disclosure of information.

(a) A financial service provider may offer to a customer who is an elderly or vulnerable adult the opportunity to submit and periodically update a list of individuals or entities that the elderly or vulnerable adult authorizes the financial service provider to contact when the financial service provider has reasonable cause to suspect that the elderly or vulnerable adult is a victim or a target of financial exploitation.

(b) A financial service provider that has reasonable cause to suspect that an elderly or vulnerable adult is the victim or target of financial exploitation may convey the suspicion to one or more of the following, provided that the person is not the suspected perpetrator:

(1) An individual or entity on the list described in subsection (a), if a list has been provided by the elderly or vulnerable adult to the financial service provider.

(2) A co-owner, additional authorized signatory, or beneficiary on the elderly or vulnerable adult's account at the financial institution.

(3) A third party reasonably associated with the elderly or vulnerable adult.

(c) When providing information under this section, a financial service provider may limit the information and disclose only that the financial service provider has reasonable cause to suspect that the elderly or vulnerable adult may be a victim or target of financial exploitation without disclosing any other details or confidential personal information regarding the financial affairs of the elderly or vulnerable adult.

(d) A financial service provider may choose not to contact one or more individuals or entities on the list provided pursuant to subsection (a) if the financial service provider suspects that the person or persons are engaged in financial exploitation.

(e) A financial service provider may rely on information provided by the customer in compiling a list of contact persons.

(f) A financial service provider or an officer or employee of a financial service provider, acting in a reasonable manner, is immune from all criminal, civil, and administrative liability for contacting a person or electing not to contact a person under this section and for actions taken in furtherance of that determination.

(g) Any contact or disclosure of information made pursuant to this section is exempt from any applicable state customer consent and customer notice statutes or rules.

(Act 2021-78, §5.)

Section 8-6-195  Construction and application of article.

(a) All laws or parts of laws which conflict with this article are repealed. Notwithstanding the previous sentence, nothing in this article shall be construed as altering or amending Article 7, commencing with Section 8-6-170, of Chapter 6, the Protection of Vulnerable Adults from Financial Exploitation Act, which relates to broker-dealers and investment advisors protecting vulnerable adults from financial exploitation.

(b) Nothing in this article shall be construed as altering or amending a contract, including a deposit agreement, to which a financial service provider is a party.

(Act 2021-78, §6.)