Connecticut General Statutes 36a-253 – (Note: This section is effective July 1, 2024.) Definitions. Designation of trusted contact person. Suspension of transaction or disbursement re financial exploitation. Immunity
(a) As used in this section:
Terms Used In Connecticut General Statutes 36a-253
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bank: means a Connecticut bank or a federal bank. See Connecticut General Statutes 36a-2
- banks: shall include all incorporated banks. See Connecticut General Statutes 1-1
- 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
- Commissioner: means the Banking Commissioner and, with respect to any function of the commissioner, includes any person authorized or designated by the commissioner to carry out that function. See Connecticut General Statutes 36a-2
- Connecticut credit union: means a cooperative, nonprofit financial institution that (A) is organized under chapter 667 and the membership of which is limited as provided in section 36a-438a, (B) operates for the benefit and general welfare of its members with the earnings, benefits or services offered being distributed to or retained for its members, and (C) is governed by a volunteer board of directors elected by and from its membership. See Connecticut General Statutes 36a-2
- Contract: A legal written agreement that becomes binding when signed.
- Control: has the meaning given to that term in 12 USC Section 1841(a), as amended from time to time. See Connecticut General Statutes 36a-2
- Customer: means any person using a service offered by a financial institution. See Connecticut General Statutes 36a-2
- Deposit: means funds deposited with a depository. See Connecticut General Statutes 36a-2
- Deposit account: means an account into which deposits may be made. See Connecticut General Statutes 36a-2
- Executor: A male person named in a will to carry out the decedent
- Federal credit union: means any institution chartered or organized as a federal credit union pursuant to the laws of the United States having its principal office in this state. See Connecticut General Statutes 36a-2
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: means a person undertaking to act alone or jointly with others primarily for the benefit of another or others in all matters connected with its undertaking and includes a person acting in the capacity of trustee, executor, administrator, guardian, assignee, receiver, conservator, agent, custodian under the Connecticut Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act, and acting in any other similar capacity. See Connecticut General Statutes 36a-2
- Financial institution: means any Connecticut bank, Connecticut credit union, or other person whose activities in this state are subject to the supervision of the commissioner, but does not include a person whose activities are subject to the supervision of the commissioner solely pursuant to chapter 672a, 672b or 672c or any combination thereof. See Connecticut General Statutes 36a-2
- Loan: includes any line of credit or other extension of credit. See Connecticut General Statutes 36a-2
- Out-of-state: includes any state other than Connecticut and any foreign country. See Connecticut General Statutes 36a-2
- Person: means an individual, company, including a company described in subparagraphs (A) and (B) of subdivision (12) of this section, or any other legal entity, including a federal, state or municipal government or agency or any political subdivision thereof. See Connecticut General Statutes 36a-2
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Probate: Proving a will
- State: means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the trust territory of the Pacific Islands, the Virgin Islands and the Northern Mariana Islands. See Connecticut General Statutes 36a-2
- Subsidiary: has the meaning given to that term in 12 USC Section 1841(d), as amended from time to time. See Connecticut General Statutes 36a-2
- Trustee: A person or institution holding and administering property in trust.
(1) “Account” means a customer asset or liability account, including, but not limited to, a safe deposit box, that is established primarily for personal, family or household purposes and that a financial institution holds on behalf of an eligible adult;
(2) “Eligible adult” has the same meaning as provided in section 36b-14;
(3) “Financial agent” means an employee of a financial institution who, within the employee’s scope of employment, has direct contact with an eligible adult or reviews or approves an eligible adult’s financial documents, records or transactions;
(4) “Financial exploitation” means the use, control over or withholding of property, income, resources or trust funds of an eligible adult by any person or entity, including, but not limited to, an agent of such eligible adult pursuant to a power of attorney, for any such person’s or entity’s profit or advantage at the expense of such eligible adult’s property, income, resources or trust funds, including, but not limited to, an act constituting a breach of such person’s or entity’s fiduciary duty to such eligible adult, or forcing, compelling or exerting undue influence over such eligible adult to cause such eligible adult to engage in a transaction or disbursement;
(5) “Financial institution” means any Connecticut bank or Connecticut credit union, as those terms are defined in section 36a-2, any institution that engages in the business of banking or a credit union that is chartered out-of-state, and any subsidiary or affiliate of any such bank, credit union or institution;
(6) “Out-of-state” has the same meaning as provided in section 36a-2;
(7) “Suspected exploitation policy” means a written policy for any actions permitted by this section when financial exploitation of an eligible adult is suspected;
(8) “Transaction” includes, but is not limited to, providing access to (A) a safe deposit box, or (B) any nonpublic personal information of an eligible adult. For purposes of this subdivision, “nonpublic personal information” has the same meaning as provided in Subtitle A of Title V of the Gramm-Leach-Bliley Financial Modernization Act of 1999, 15 USC 6809, and the regulations promulgated thereunder, as amended from time to time; and
(9) “Trusted contact person” means an individual who is at least eighteen years of age who an eligible adult identifies and authorizes a financial institution to, at the financial institution’s option, contact and disclose information about the account to address possible financial exploitation, or to confirm the specifics of the account holder’s current contact information, health status or the identity of any conservator, executor, trustee or holder of a power of attorney.
(b) The provisions of this section applicable to financial institutions may be applied to national banking associations, federal savings banks, federal savings and loan associations, or institutions chartered or organized as a federal credit union under the laws of the United States, to the extent that such entities have voluntarily implemented the requirements of this section and provided any such provision is not expressly preempted by federal law, rule, regulation or order.
(c) A financial institution may permit any customer of the financial institution who is an eligible adult to designate, upon each account wholly or partly owned by such eligible adult, at least one trusted contact person other than a co-owner, beneficiary or fiduciary on the account. For each such designation, the eligible adult shall provide the trusted contact person’s name, mailing address and any other contact information that the financial institution may use to contact the trusted contact person. The financial institution shall maintain such information in a record associated with each account to which such designation applies. A financial institution may establish reasonable procedures to confirm the identity of the trusted contact person. A financial institution shall not require an individual designated as a trusted contact person to consent as a precondition of being recorded as a trusted contact person upon any account.
(d) (1) If a financial institution or financial agent has reasonable cause to believe that a transaction or disbursement involving an eligible adult’s account may involve, facilitate, result in or contribute to financial exploitation of such eligible adult, the financial institution or financial agent may suspend the transaction or disbursement for not more than seven business days. Thereafter, the eligible adult may renew or resume the transaction or disbursement request and the financial institution shall honor the request unless (A) the financial institution elects to extend the suspension for an additional forty-five business days for reasonable cause in accordance with this section, or (B) the financial institution cannot process the transaction or disbursement due to an applicable law, court order, regulatory requirement or private rule, to which the financial institution is subject, that governs the processing, clearing or payment of transactions or disbursements.
(2) If the financial institution receives a new request for the transaction or disbursement that is subject to a suspension under this subsection pursuant to a power of attorney purportedly executed by the eligible adult, the suspension shall extend to any longer period of time that may be allowed under sections 1-350r and 1-350s to receive additional information to determine the acceptability of such power of attorney. If the financial institution, upon the expiration of any such longer period of time or completion of a review of such additional information, does not accept the power of attorney, the suspension shall be continued for not longer than fifty calendar days following the date on which the power of attorney was received by the financial institution.
(3) If a financial institution or financial agent has reasonable cause to believe that such institution or agent may be subject to any penalty or liability under any law, regulation or governmental or private rule that governs the processing, clearing or payment of transactions or disbursements, as a result of a suspension of a transaction or disbursement pursuant to this subsection, such institution or agent may decline or return such transaction or disbursement.
(4) (A) A financial institution that has suspended, declined or returned a transaction or disbursement pursuant to this subsection shall notify all account holders of such action, unless the financial institution reasonably believes that an account holder is involved in the suspected financial exploitation or other abuse of the eligible adult.
(B) A financial institution that elects to extend a suspension of a transaction or disbursement pursuant to subparagraph (A) of subdivision (1) of this subsection shall notify the eligible adult, each account holder, each signatory and each trusted contact person, in writing, of the extension, not later than three business days after the date when such extension begins, unless any of the foregoing are suspected of being involved in financial exploitation of the eligible adult. Such notice shall include, but need not be limited to, the following: (i) The name of the financial institution; (ii) the name and contact information of the employee or agent of the financial institution responsible for the suspension; (iii) a statement that the suspension of the transaction or disbursement has been extended based on suspected financial exploitation of the eligible adult; (iv) the latest date on which such extended suspension will expire; and (v) a statement that the eligible adult may petition the Probate Court for an order releasing the suspension pursuant to section 45a-664. Such notice may include, but need not be limited to, a disclosure of other remedies the eligible adult may pursue to release the suspension.
(e) (1) Except as provided in subsection (f) of this section, a financial agent shall be immune from any administrative or civil liability under the laws of this state for any action permitted by this section.
(2) Except as provided in subsection (f) of this section, a financial institution that takes any action permitted by this section in good faith shall be immune from any administrative or civil liability under the laws of this state that may otherwise arise from taking such action. For purposes of this subsection, “good faith” exists if:
(A) The financial agent who makes the decision to take such action has participated in (i) the mandatory training required by section 17b-463, (ii) training on the financial institution’s suspected exploitation policy, and (iii) training on the Connecticut Uniform Power of Attorney Act, sections 1-350 to 1-353b, inclusive, and how it relates to financial exploitation, to the extent such training is not included in the training required by section 17b-463;
(B) The financial institution has provided prior written or electronic notice, including as part of a deposit account contract or related disclosures, that the financial institution may, pursuant to subsection (d) of this section, suspend, decline or return transactions or disbursements involving an account of an eligible adult. Notice provided to any person who holds, or is otherwise authorized to have access to, the affected account shall constitute notice to all other persons who hold the affected account;
(C) The financial institution or financial agent reports the suspected financial exploitation pursuant to subsection (c) of section 17b-451, unless (i) any suspension is revoked by the financial institution not later than two business days after such suspension, or (ii) any transaction or disbursement declined or returned by the financial institution is reinitiated and processed by the financial institution not later than two business days after the transaction or disbursement is declined or returned by the financial institution;
(D) The financial institution or financial agent makes a reasonable effort to report, verbally or in writing, the suspected financial exploitation to each trusted contact person designated by the eligible adult, unless such financial institution or financial agent suspects that such trusted contact person is involved in such suspected financial exploitation;
(E) The financial institution has established a written suspected exploitation policy; and
(F) The financial institution retains a record of the suspected financial exploitation, including, but not limited to, any reports to social services, regulatory or law enforcement agencies and supporting documents. Such record shall be retained by the financial institution for a period of seven years.
(f) No immunity under subsection (e) of this section shall attach where the financial agent or any other employee of the financial institution was a participant in the suspected financial exploitation.
(g) Nothing in this section shall be construed to require a financial institution to disclose a copy of such institution’s suspected exploitation policy to any account holder.
(h) A financial institution’s or financial agent’s reasonable cause to believe that an act requested by an agent under a power of attorney with respect to an eligible adult involves financial exploitation of such eligible adult shall constitute a good faith belief under subdivision (5) of subsection (b) of section 1-350s that such agent does not have authority under such power of attorney to perform such act.
(i) Nothing in this section shall be construed to limit any immunities, causes of action or remedies provided under the Connecticut Uniform Power of Attorney Act, sections 1-350 to 1-353b, inclusive.
(j) If an eligible adult or a co-owner of an account of an eligible adult is an applicant for, or recipient of, means-tested benefits under chapters 319s to 319oo, inclusive, the Commissioner of Social Services shall consider any funds or securities subject to a suspension under subsection (d) of this section to be unavailable assets for each owner or co-owner of the account while such suspension is in effect.