Indiana Code 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
(1) owned by a financially vulnerable adult; or
Terms Used In Indiana Code 23-19-4.1-7
- 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
- Broker-dealer: means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. See Indiana Code 23-19-1-2
- Commissioner: means the securities commissioner appointed under IC 23-19-6-1(a). See Indiana Code 23-19-1-2
- financial exploitation: means the wrongful or unauthorized taking, withholding, appropriation, or use of money, real property, or personal property of a financially vulnerable adult. See Indiana Code 23-19-4.1-1
- financially vulnerable adult: means an individual to whom one (1) or more of the following apply:
Indiana Code 23-19-4.1-2.1
- in writing: include printing, lithographing, or other mode of representing words and letters. See Indiana Code 1-1-4-5
- Investment adviser: means a person that, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. See Indiana Code 23-19-1-2
- 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 agencies: refers to both of the following:
Indiana Code 23-19-4.1-4
- qualified individual: means an individual associated with a broker-dealer or investment adviser who serves in a supervisory, compliance, or legal capacity as part of the individual's job. See Indiana Code 23-19-4.1-5
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.
As added by P.L.39-2016, SEC.1. Amended by P.L.158-2017, SEC.10.