Arizona Laws 46-473. Delaying disbursements or transactions; immunity
A. A broker-dealer or investment adviser may delay a disbursement or transaction from an account of an eligible adult or an account on which an eligible adult is a beneficiary if both:
Terms Used In Arizona Laws 46-473
- Adult: means a person who has attained eighteen years of age. See Arizona Laws 1-215
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Eligible adult: means either of the following:
(a) A person who is sixty-five years of age or older. See Arizona Laws 46-471
- Exploitation: means the illegal or improper use of a vulnerable adult or the vulnerable adult's resources for another's profit or advantage. See Arizona Laws 46-451
- Financial exploitation: means either of the following:
(a) The wrongful or unauthorized taking, withholding, appropriating or use of money, assets or property of an eligible adult. See Arizona Laws 46-471
- Investment adviser: means a person who is licensed or exempt from licensure as an investment advisor pursuant to Title 44, Chapter 13. See Arizona Laws 46-471
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Protective services: means a program of identifiable and specialized social services that may offer social services appropriate to resolve problems of abuse, exploitation or neglect of a vulnerable adult. See Arizona Laws 46-451
- Qualified individual: means a broker-dealer, investment adviser or person who serves in a supervisory, compliance, legal or senior investor protection capacity for a broker-dealer or investment adviser. See Arizona Laws 46-471
- Services: includes social casework, rehabilitation counseling and similar services rendered to a person or persons in need as provided for in this title. See Arizona Laws 46-101
1. The broker-dealer, investment adviser or qualified individual reasonably believes, after initiating an internal review of the requested disbursement or transaction and the suspected financial exploitation, that the requested disbursement or transaction may result in financial exploitation of an eligible adult.
2. The broker-dealer or investment adviser does all of the following:
(a) Immediately, but not more than two business days after the delayed disbursement or transaction, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, unless any party is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult.
(b) Immediately, but not more than two business days after the delayed disbursement or transaction, notifies adult protective services and the corporation commission.
(c) Continues its internal review of the suspected or attempted financial exploitation of the eligible adult, as necessary, and reports the investigation’s results to adult protective services and the corporation commission on request.
B. A delayed disbursement or transaction expires on the earlier of:
1. A determination by the broker-dealer or investment adviser that the disbursement or transaction will not result in financial exploitation of the eligible adult.
2. Fifteen business days after the date on which the broker-dealer or investment adviser first delayed disbursement or transaction of the monies, unless either adult protective services or the corporation commission requests that the broker-dealer or investment adviser extend the delay, in which case the delay shall expire not more than twenty-five business days after the date on which the broker-dealer or investment adviser first delayed disbursement or transaction of the monies unless otherwise terminated or further extended by either adult protective services or the corporation commission or an order of a court of competent jurisdiction.
C. A court of competent jurisdiction may enter an order extending the delay of the disbursement or transaction of monies or may order other protective relief based on the petition of the corporation commission, adult protective services, the broker-dealer or the investment adviser that initiated the delay or another interested party.
D. A broker-dealer or investment adviser who in good faith and exercising reasonable care delays a disbursement or transaction is immune from administrative or civil liability that might otherwise arise from a delay in a disbursement or transaction in accordance with this section.