SD HB1238

Financial institutions may delay or refuse transactions, withdrawals, ownership changes, or beneficiary designations when they reasonably believe financial exploitation of a senior adult (age 65+), vulnerable adult (age 18+ with substantial impairment or under guardianship), or consenting adult is occurring or being attempted.

Institutions may notify third parties reasonably associated with the adult—including family members, authorized contacts, co-owners, fiduciaries, or attorneys—unless the third party is suspected of involvement in the exploitation or law enforcement requests otherwise.

The authority to delay or refuse transactions expires after 30 business days, when the institution determines no exploitation will occur, or upon court order, though institutions may extend the hold if exploitation concerns persist.

Financial institutions, their holding companies, employees, agents, officers, and directors receive immunity from civil, criminal, and administrative liability for actions taken or not taken under this chapter.

Refusing a transaction under this chapter does not constitute wrongful dishonor of an item under South Dakota's commercial code (§ 57A-4-402).