North Carolina HB 754: Financial Exploitation Prevention/Savings Bank Updates.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 754

Short Title: Fin. Exploit. Prevention/Savings Bank Updates. (Public)
Sponsors: Representatives Ross, Howard, N. Jackson, and Crawford (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Commerce and Economic Development, if favorable, Finance, if favorable, Rules,
Calendar, and Operations of the House
April 7, 2025
*H754-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROTECT DISABLED AND OLDER ADULTS FROM FINANCIAL 2
EXPLOITATION AND TO UPDATE THE SAVINGS BANK LAWS TO INCREASE 3
ALIGNMENT WITH THE COMMERCIAL BANKING LAWS. 4
The General Assembly of North Carolina enacts: 5
6
PART I. ENHANCEMENTS TO ARTICLE 6A OF CHAPTER 108A, "PROTECTION 7
OF DISABLED AND OLDER ADULTS FROM FINANCIAL EXPLOITATION" 8
SECTION 1.(a) G.S. 108A-112 reads as rewritten: 9
"§ 108A-112. Legislative intent and purpose. 10
(a) Determined to fight the growing problem of fraud and financial exploitation targeting 11
disabled adults and older adults in North Carolina, the General Assembly enacts this Article to 12
facilitate the collection of records needed to investigate and prosecute such these incidents. 13
(b) The General Assembly finds that older adults in this State are at a statistically higher 14
risk of being targeted for financial exploitation, regardless of diminished capacity or other 15
disability, because of their accumulation of substantial assets and wealth compared to younger 16
age groups. 17
(c) The General Assembly recognizes that financial institutions have duties imposed by 18
law and by contract to conduct customer-directed transactions in a timely manner and in 19
accordance with their customers' instructions. 20
(d) The General Assembly intends to provide financial institutions with the tools and 21
protections to take action based upon the reasonable belief that older adults or disabled adults 22
who have accounts with the financial institutions have been or are the subject of financial 23
exploitation and to provide financial institutions and their employees immunity from liability for 24
taking actions as authorized in this Article. 25
(e) The General Assembly intends to balance the rights of older adults and disabled adults 26
to direct and control their assets, funds, and investments and to exercise their constitutional rights 27
consistent with due process with the need to provide financial institutions the ability to place 28
narrow, 30-day limited restrictions on these rights in an effort to decrease older adults or disabled 29
adults' risk of loss due to abuse, neglect, or financial exploitation." 30
SECTION 1.(b) G.S. 108A-113 reads as rewritten: 31
"§ 108A-113. Definitions. 32
As used in this Article, the following definitions apply: 33

General Assembly Of North Carolina Session 2025
Page 2 House Bill 754-First Edition
(1) Customer. – A person who that is a present or former holder of an account 1
with a financial institution. 2
(2) Disabled adult. – An individual 18 years of age or older or a lawfully 3
emancipated minor who is present in the State of North Carolina this State and 4
who is physically or mentally incapacitated as defined in G.S. 108A-101(d). 5
(3) Financial exploitation. – The illegal or improper use of a disabled adult's or 6
older adult's money, assets, property, or other financial resources for another's 7
profit or pecuniary advantage.advantage, or any act or omission by a person, 8
including through the use of power of attorney, guardianship, or 9
conservatorship, to do either of the following: 10
a. Obtain control over the older adult's or disabled adult's money, assets, 11
or property through deception, intimidation, or undue influence to 12
deprive him or her of the ownership, use, benefit, or possession of the 13
money, assets, or property. 14
b. Divert the older adult's or disabled adult's money, assets, or property 15
to deprive him or her of the ownership, use, benefit, or possession of 16
the money, assets, or property. 17
(4) Financial institution. – A banking corporation, trust company, savings and 18
loan association, credit union, or other entity principally engaged in lending 19
money or receiving or soliciting money on deposit. 20
(5) Financial record. – An original of, a copy of, or information derived from a 21
record held by a financial institution pertaining to a customer's relationship 22
with the financial institution and identified with or identifiable with the 23
customer. 24
(6) Investigating entity. – A law enforcement agency investigating alleged 25
financial exploitation of a disabled adult or an older adult, or a county 26
department of social services investigating alleged financial exploitation of a 27
disabled adult. 28
(7) Law enforcement agency. – Any duly accredited State or local government 29
agency possessing authority to enforce the criminal statutes of North Carolina. 30
(8) Older adult. – An individual 65 years of ag