Financial institutions may or must place a hold on transactions involving a vulnerable adult’s account in suspected financial exploitation cases, and they must adopt internal hold procedures.
Sec. 281.004. TEMPORARY HOLD ON TRANSACTIONS IN CERTAIN CASES OF SUSPECTED FINANCIAL EXPLOITATION OF VULNERABLE ADULTS. (a) Notwithstanding any other law, a financial institution: (1) may place a hold on any transaction that involves an account of a vulnerable adult if the financial institution: (A) submits a report of suspected financial exploitation of the vulnerable adult to the department under Section 281.002(b); and (B) has cause to believe the transaction is related to the suspected financial exploitation alleged in the report; and (2) must place a hold on any transaction involving an account of a vulnerable adult if the hold is requested by the department or a law enforcement agency. (b) Subject to Subsection (c), a hold placed on any transaction under Subsection (a) expires on the 10th business day after the date the hold is placed. (c) The financial institution may extend a hold placed on any transaction under Subsection (a) for a period not to exceed 30 business days after the expiration of the period prescribed by Subsection (b) if requested by a state or federal agency or a law enforcement agency investigating the suspected financial exploitation. The financial institution may also petition a court to extend a hold placed on any transaction under Subsection (a) beyond the period prescribed by Subsection (b). A court may enter an order extending or shortening a hold or providing other relief. (d) Each financial institution shall adopt internal policies, programs, plans, or procedures for placing a hold on a transaction involving an account of a vulnerable adult under this section. Added by Acts 2017, 85th Leg., R.S., Ch. 376 (H.B. 3921), Sec. 1, eff. September 1, 2017. Redesignated from Finance Code, Chapter 280 by Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 21.001(19), eff. September 1, 2019. Amended by: Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 21.002(7), eff. September 1, 2019. Acts 2021, 87th Leg., R.S., Ch. 502 (H.B. 4477), Sec. 2, eff. September 1, 2021.