House Bill 940

AN ACT TO AUTHORIZE A FINANCIAL INSTITUTION TO DELAY THE COMPLETION OF A FINANCIAL TRANSACTION, IF THE INSTITUTION BELIEVES IN GOOD FAITH THAT A REQUESTED TRANSACTION MAY RESULT IN, OR BE THE RESULT OF, EXPLOITATION OF AN ELIGIBLE PERSON; TO PROVIDE THAT A TRANSACTION DELAY WILL EXPIRE UPON EITHER A GOOD-FAITH DETERMINATION BY THE FINANCIAL INSTITUTION THAT THE TRANSACTION WILL NOT RESULT IN EXPLOITATION, OR 15 BUSINESS DAYS, UNLESS THE DEPARTMENT OF HUMAN SERVICES OR A LAW ENFORCEMENT AUTHORITY REQUESTS THAT THE FINANCIAL INSTITUTION EXTEND THE DELAY; TO REQUIRE THE FINANCIAL INSTITUTION TO NOTIFY THE DEPARTMENT OF HUMAN SERVICES AND AUTHORIZE THE FINANCIAL INSTITUTION TO NOTIFY OTHER CERTAIN INDIVIDUALS IF A TRANSACTION IS DELAYED; TO LIMIT THE LIABILITY OF A FINANCIAL INSTITUTION THAT EITHER DELAYS A TRANSACTION OR DOES NOT DELAY A TRANSACTION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) As used in this section, the following terms shall have the following meanings, unless the context clearly requires otherwise:

(a) "Eligible person" means a vulnerable person, or any person age sixty-five (65) years or older.

(b) "Exploitation" of an eligible person has the same meaning as set forth in Section 43-47-5.

(c) "Financial institution" means a bank, trust company, mutual savings bank, savings and loan association or credit union authorized to do business and accept deposits in this state under state or federal law.

(d) "Good faith" means honesty in fact.

(e) "Vulnerable person" has the same meaning as set forth in Section 43-47-5.

(2) If a financial institution believes in good faith that a requested transaction of any kind may result in, or be the result of, exploitation of an eligible person, the institution may delay the completion or execution of the transaction for a period of time not to exceed fifteen (15) business days, unless extended, as otherwise provided in this section.

(3) Any delay of a financial transaction as authorized by this section will expire upon either:

(a) A good-faith determination by the financial institution that the transaction will not result in, or is not the result of, exploitation of the eligible person; or

(b) Fifteen (15) business days, unless the Department of Human Services or a law enforcement authority requests that the financial institution extend the delay, in which case the delay shall be extended for an additional period of up to ten (10) business days unless otherwise extended or terminated by court order. The Department of Human Services, any law enforcement authority or any interested person may petition a court of competent jurisdiction to enter an order extending or terminating the delay of a transaction.

(4) If a transaction is delayed, the financial institution shall promptly notify the Department of Human Services, and at its option may notify any federal, state or local law enforcement authority, any other person who is authorized to have access to or transact business on any account of the eligible person with the financial institution, any person reasonably associated with the eligible person, or any other person permitted by state or federal laws or regulations or by customer agreement. The financial institution may disclose in connection with such notification information about the transaction, the reason for the delay, and any information that may be included in a report of abuse, neglect or exploitation as provided in Section 43-47-7.

(5) A financial institution and its officers, directors, employees, agents and representatives shall have no duty to act pursuant to this section. Nothing in this section shall change any contractual or other lawful right or authority a financial institution may have to refuse or delay a transaction.

(6) A financial institution and its officers, directors, employees, agents and representatives shall be immune from any administrative, civil, or criminal liability that might otherwise arise for taking action or not taking action pursuant to this section and for making any disclosure or delaying any transaction permitted by this section. The immunity provided for in this subsection shall not apply to any individual who is a perpetrator of exploitation of the eligible person.

SECTION 2. This act shall take effect and be in force from and after July 1, 2020.