NY S00639

Banking institutions may refuse to disburse funds from accounts of vulnerable adults, accounts where vulnerable adults are beneficiaries, or accounts of suspected exploiters if there is reasonable belief that 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 and/or physical impairment.

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

A refusal to disburse terminates when the bank is satisfied exploitation will not result from disbursement or when a court orders the funds released.

Banks and their employees are granted immunity from criminal, civil, or administrative liability for refusing or disbursing funds, making reports, or sharing records with law enforcement and social services officials when acting in good faith under this provision.