(a)  A qualified individual may refuse a request for disbursement from the account of a qualified adult, or an account on which a qualified adult is a beneficiary or beneficial owner, if:

(1)  The qualified individual reasonably believes that the requested disbursement will result in financial exploitation of the qualified adult; and

(2)  The broker-dealer or qualified individual:

(i)  Within two (2) business days makes a reasonable effort to notify all parties authorized to transact business on the account orally or in writing, unless the parties are reasonably believed to have engaged in suspected or attempted financial exploitation of the qualified adult; and

(ii)  Complies with the notification requirements set forth in § 7-11.2-3.

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Terms Used In Rhode Island General Laws 7-11.2-4

  • 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 Rhode Island General Laws 7-11.2-2
  • Financial exploitation: means the wrongful or unauthorized taking, withholding, appropriation, or use of money, real property, or personal property of a qualified adult. See Rhode Island General Laws 7-11.2-2
  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • 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.
  • Qualified adult: means :

    (i)  A person sixty (60) years of age or older; or

    (ii)  A person who:

    (A)  Has a mental or physical impairment that substantially limits one or more major life activities, whether the impairment is congenital or acquired by accident, injury, or disease, where the impairment is verified by medical findings; and

    (B)  Is between the ages of eighteen (18) and fifty-nine (59). See Rhode Island General Laws 7-11.2-2

  • Qualified individual: means a person associated with a broker-dealer who serves in a supervisory, compliance, or legal capacity as part of his or her job. See Rhode Island General Laws 7-11.2-2

(b)  Any refusal of a disbursement as authorized by this section shall expire upon the sooner of:

(1)  The time when the broker-dealer or qualified individual reasonably believes that the disbursement will not result in financial exploitation of the qualified adult; or

(2)  Ten (10) business days after the initial refusal of disbursement by the qualified individual.

(c)  A court of competent jurisdiction may enter an order extending the refusal of a disbursement or any other protective relief.

History of Section.
P.L. 2019, ch. 225, § 1; P.L. 2019, ch. 231, § 1.