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Subcommittee okays updated financial-exploitation language to match securities code
Summary
Members approved S851 after testimony explaining the bill aligns the definition of financial exploitation with Title 35 (securities) and clarifies that transactions declined as fraud do not trigger a separate 'turn-back' requirement.
The subcommittee voted to advance S851 after hearing testimony that the bill's chief change is a statutory definition alignment intended to reduce legal ambiguity.
Neil Rashley told members the bill updates the definition of "financial exploitation" so it matches the definition already in Title 35 (securities law), and it removes a potential problem that could have required institutions to attempt to return funds within 30 days even when a transaction had been properly declined as fraudulent. Rashley said the change is a cleanup that makes the banking code consistent with the securities code.
The subcommittee approved the bill and will send it to the full committee for consideration.
