NY S06451

Banking institutions may refuse to disburse funds from accounts of vulnerable adults, accounts where vulnerable adults are beneficiaries, or accounts of suspected financial exploiters if the institution reasonably believes financial exploitation has occurred or may occur.

"Vulnerable adult" is defined as an individual unable to manage their own resources or protect themselves from financial exploitation due to mental or physical impairment.

Banks that refuse disbursement must make reasonable efforts to notify all parties authorized on the account and report the incident to the social services official administering adult protective services.

The refusal to disburse funds terminates when the bank is satisfied no exploitation will result or when a court orders the disbursement.

Banking institutions and their employees are granted immunity from criminal, civil, or administrative liability for refusing or disbursing funds under this provision if actions were taken in good faith in accordance with the law.