N.D. Cent. Code § 10-04-08.5

10-04-08.5. Financial exploitation - Vulnerable adult

1. As used in this section:

a. "Eligible adult" means an adult who is at least sixty-five years old or a vulnerable

adult as defined in section 50-25.2-01.

b. "Financial exploitation" means:

(1) The wrongful or unauthorized taking, withholding, appropriation, or use of

money, assets, or property of an eligible adult; or

(2) Any act or omission taken by a person, including through the use of a power

of attorney, guardianship, or conservatorship of an eligible adult, to:

(a) Obtain control, through deception, intimidation, or undue influence,

over the eligible adult's money, assets, or property, to deprive the

eligible adult of the ownership, use, benefit, or possession of the

eligible adult's money, assets, or property; or

(b) Convert money, assets, or property of the eligible adult to deprive the

eligible adult of the ownership, use, benefit, or possession of the

eligible adult's money, assets, or property.

c. "Qualified individual" means any agent, investment adviser representative, or

person who serves in a supervisory, compliance, or legal capacity for a broker-

dealer or investment adviser.

2. If a qualified individual reasonably believes financial exploitation of an eligible adult

may have occurred, may have been attempted, or is being attempted, the qualified

individual shall notify the department of health and human services and the

commissioner.

3. If a qualified individual reasonably believes financial exploitation of an eligible adult

may have occurred, may have been attempted, or is being attempted, a qualified

individual may notify a third party reasonably associated with the eligible adult or any

other person permitted under state or federal law or rule, rules of a self-regulating

organization, or customer agreement. Disclosure may not be made to a designated

third party who is suspected of financial exploitation or other abuse of the eligible

adult.

4. A qualified individual who in good faith and exercising reasonable care discloses

information under this section is immune from administrative or civil liability that might

otherwise result from disclosure or for any failure to notify the customer of the

disclosure.

5. a. A broker-dealer or investment adviser may delay a transaction or disbursement of

funds or securities from an account of an eligible adult or an account on which an

eligible adult is a beneficiary if:

(1) The broker-dealer or investment adviser reasonably believes the requested

transaction or disbursement may result in financial exploitation of an eligible

adult after initiating an internal review of the requested transaction or

disbursement and the suspected financial exploitation; and

(2) The broker-dealer or investment adviser:

(a) Provides written notification of the delay and the reason for the delay

to all parties authorized to transact business on the account, unless a

party is reasonably believed to have engaged in suspected or

attempted financial exploitation of the eligible adult, within two days

after the requested transaction or disbursement;

(b) Notifies the department of health and human services and the

commissioner within two days after the requested transaction or

disbursement; and
parties authorized to transact business on the account, unless a

party is reasonably believed to have engaged in suspected or

attempted financial exploitation of the eligible adult, within two days

after the requested transaction or disbursement;

(b) Notifies the department of health and human services and the

commissioner within two days after the requested transaction or

disbursement; and

(c) Continues its internal review of the suspected or attempted financial

exploitation of the eligible adult as necessary.

b. Any delay of a transaction or disbursement authorized by this section expires

upon the earlier of:

(1) A determination by the broker-dealer or investment adviser that the

transaction or disbursement will not result in financial exploitation of the

eligible adult; or

(2) Fifteen business days after the date on which the broker-dealer or

investment adviser first delayed the transaction or disbursement of the funds

or securities, unless the department of health and human services or the

commissioner requests the broker-dealer or investment adviser extend the

delay, in which case the delay expires within twenty-five business days after

the date the broker-dealer or investment adviser first delayed the transaction

or disbursement of the funds or securities unless the delay is terminated by

either of the agencies or an order of a court of competent jurisdiction.

c. A court of competent jurisdiction or the commissioner may enter an order

extending the delay of the transaction or disbursement of funds or securities or

may order other protective relief based on the broker-dealer, investment adviser,

or other interested party's petition that initiated the delay under this section.

6. A broker-dealer or investment adviser who in good faith and exercising reasonable

care complies with this section is immune from any administrative or civil liability that

may otherwise arise from a delay in the transaction or disbursement in accordance

with this section.

7. A broker-dealer or investment adviser shall provide access to or copies of records that

are relevant to the suspected or attempted financial exploitation of an eligible adult to

the department of health and human services and to law enforcement, either as part of

a referral to the department or to law enforcement, or upon request of the department

or law enforcement pursuant to an investigation. The records may include historical

records and records relating to the most recent transaction that may comprise financial

exploitation of an eligible adult. Any record provided to the department of health and

human services or law enforcement under this section is an exempt record under

chapter 44-04. This section does not limit or otherwise impede the authority of the

commissioner to access or examine the books and records of a broker-dealer or

investment adviser as otherwise provided by law.