The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 200 : Consumer Protection

Subchapter 008 : Protection from Financial Exploitation

• § 10803. Protective account action

  (a) If a covered entity reasonably believes that a customer is or has been the victim of financial exploitation or attempted financial exploitation, and such belief is based on information either individually observed or received from a State, local, or law enforcement agency, the covered entity may take one or more of the following measures to protect a customer’s account:

  (1) delay or refuse one or more transactions with or involving the customer;

  (2) delay or refuse to permit the withdrawal or disbursement of funds contained in the customer’s account;

  (3) prevent a change in ownership of the customer’s account;

  (4) prevent a transfer of funds from the customer’s account to an account owned wholly or partially by another person;

  (5) refuse to comply with instructions given to the covered entity by an agent or person acting for or with an agent under a power of attorney signed or purported to have been signed by the customer; or

  (6) prevent or change the designation of the beneficiaries to receive any property, benefit, or contract rights for the customer.

  (b) A covered entity is not required to take protective action under this section with regard to a customer’s account but may use its sole discretion to determine whether taking such action is warranted based on the information available to it at the time.

  (c)(1) The authority to delay a transaction under this section expires at the earlier of:

  (A) 15 business days after the date on which the covered entity initiated the delay;

  (B) when the covered entity is satisfied within its sole discretion that the transaction will not likely result in financial exploitation; or

  (C) upon a court order directing the release of funds.

  (2) Unless otherwise directed by a court order, the covered entity may extend the duration of the delay for up to an additional 15 days based on a reasonable belief that the financial exploitation or attempted financial exploitation of the customer may continue.

  (d) Any refusal, delay, or other protective action taken by a covered entity in good faith under this section to prevent the financial exploitation of a customer shall:

  (1) not constitute wrongful dishonor under 9A V.S.A. § 4—402;

  (2) constitute reasonable grounds under the federal Check Clearing for the 21st Century Act, 12 U.S.C. § 5001 et seq., the Expedited Funds Availability Act, 12 U.S.C. § 4001 et seq., or related regulations, without imposing a duty to review every deposit or check individually; and

  (3) not constitute a violation of 9A V.S.A. Article 4A (fund transfers) or related funds transfer laws, and any delayed payment order is deemed received only when the hold is removed and the covered entity submits the order for processing. (Added 2025, No. 106 (Adj. Sess.), § 4, eff. May 20, 2026.)