Bill Text: NY A05630 | 2019-2020 | General Assembly | Amended
Bill Title: Reforms the statutory short form and other powers of attorney for purposes of financial and estate planning.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2020-12-15 - approval memo.32 [A05630 Detail]
Download: New_York-2019-A05630-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5630--A Cal. No. 216 2019-2020 Regular Sessions IN ASSEMBLY February 14, 2019 ___________ Introduced by M. of A. WEINSTEIN, LUPARDO, ZEBROWSKI, TAYLOR, BRONSON -- read once and referred to the Committee on Judiciary -- ordered to a third reading, amended and ordered reprinted, retaining its place on the order of third reading AN ACT to amend the general obligations law, in relation to reforming the statutory short form and other powers of attorney for purposes of financial and estate planning; and to repeal certain provisions of such law relating to statutory gift riders The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (j) of subdivision 2 of section 5-1501 of the 2 general obligations law, as amended by chapter 340 of the laws of 2010, 3 is amended to read as follows: 4 (j) "Power of attorney" means a written document, other than a docu- 5 ment referred to in section 5-1501C of this title, by which a principal 6 with capacity designates an agent to act on his or her behalf and 7 includes both a statutory short form power of attorney and a non-statu- 8 tory power of attorney. 9 § 2. Paragraph (n) of subdivision 2 of section 5-1501 of the general 10 obligations law is REPEALED, and paragraphs (o), (p) and (q) are relet- 11 tered paragraphs (n), (o) and (p). 12 § 3. Paragraph (n) of subdivision 2 of section 5-1501 of the general 13 obligations law, as amended by chapter 340 of the laws of 2010 and as 14 relettered by section two of this act, is amended to read as follows: 15 (n) "Statutory short form power of attorney" means a power of attorney 16 that meets the requirements of paragraphs (a), (b) and (c) of subdivi- 17 sion one of section 5-1501B of this title, and that [contains the exact] 18 substantially conforms to the wording of the form set forth in section 19 5-1513 of this title; provided however, that any section indicated as 20 "Optional" that is not used may be omitted and replaced by the words 21 "Intentionally Omitted". [A mistake in wording, such as in spelling,EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00875-02-0A. 5630--A 2 1punctuation or formatting, or the use of bold or italic type, shall not2prevent a] A given power of attorney [from being deemed a statutory3short form power of attorney, but the wording of the form] substantially 4 conforms to the form required pursuant to section 5-1513 of this title 5 notwithstanding that the form contains (i) an insignificant mistake in 6 wording, spelling, punctuation or formatting, or the use of bold or 7 italic type; or (ii) uses language that is essentially the same as, but 8 is not identical to, the statutory form, including utilizing language 9 from a previous statute. The determination of whether there is substan- 10 tial conformity with the form set forth in section 5-1513 of this title 11 [shall govern] shall not depend on the presence or absence of a partic- 12 ular clause. Failing to include clauses that are not relevant to a 13 given power of attorney shall not in itself cause such power of attorney 14 to be found to not substantially conform with the requirements of such 15 form. The use of the form set forth in section 5-1513 of this title is 16 lawful and when used, it shall be construed as a statutory short form 17 power of attorney. A statutory short form power of attorney may be used 18 to grant authority provided in sections 5-1502A through 5-1502N of this 19 title. A "statutory short form power of attorney" may contain modifica- 20 tions or additions as provided in section 5-1503 of this title[, but in21no event may it be modified to grant any authority provided in section225-1514 of this title. If the authority (SGR) on the statutory short form23is initialed by the principal, the statutory short form power of attor-24ney must be executed in the manner provided in section 5-1501B of this25title, simultaneously with the statutory gifts rider. A statutory short26form power of attorney and a statutory gifts rider which supplements it27must be read together as a single instrument]. 28 § 4. Subdivisions 1 and 2 of section 5-1501B of the general obli- 29 gations law, as added by chapter 644 of the laws of 2008, the opening 30 paragraph and paragraphs (b) and (c) of subdivision 1, and the opening 31 paragraph and paragraph (a) of subdivision 2 as amended by chapter 340 32 of the laws of 2010, are amended to read as follows: 33 1. To be valid, except as otherwise provided in section 5-1512 of this 34 title, a statutory short form power of attorney, or a non-statutory 35 power of attorney, executed in this state by a principal, must: 36 (a) Be typed or printed using letters which are legible or of clear 37 type no less than twelve point in size, or, if in writing, a reasonable 38 equivalent thereof. 39 (b) Be signed, initialed and dated by a principal with capacity, or in 40 the name of such principal by another person, other than a person desig- 41 nated as the principal's agent or successor agent, in the principal's 42 presence and at the principal's direction, in either case with the 43 signature of the [principal] person signing duly acknowledged in the 44 manner prescribed for the acknowledgment of a conveyance of real proper- 45 ty in the presence of the principal. When a person signs at the direc- 46 tion of a principal he or she shall sign by writing or printing the 47 principal's name, and printing and signing his or her own name. 48 (c) Be signed and dated by any agent acting on behalf of the principal 49 with the signature of the agent duly acknowledged in the manner 50 prescribed for the acknowledgment of a conveyance of real property. A 51 power of attorney executed pursuant to this section is not invalid sole- 52 ly because there has been a lapse of time between the date of acknowl- 53 edgment of the signature of the principal and the date or dates of 54 acknowledgment of the signature or signatures of any agent or agents or 55 successor agent or successor agents authorized to act on behalf of theA. 5630--A 3 1 principal or because the principal became incapacitated during any such 2 lapse of time. 3 (d) [Contain the exact] Substantially conform to the wording of the: 4 (1) "Caution to the Principal" in paragraph (a) of subdivision one of 5 section 5-1513 of this title; and 6 (2) "Important Information for the Agent" in paragraph (n) of subdivi- 7 sion one of section 5-1513 of this title. 8 2. [In addition to the requirements of subdivision one of this9section, to be valid for the purpose of authorizing the agent to make10certain gift transactions described in section 5-1514 of this title:11(a) a statutory short form power of attorney must contain the authori-12ty (SGR) initialed by the principal and be accompanied by a valid statu-13tory gifts rider; and14(b) a non-statutory power of attorney must be executed pursuant to the15requirements of paragraph (b) of subdivision nine of section 5-1514 of16this title.] Insubstantial variation in the wording of the "Caution to 17 the Principal" of paragraph (a) of subdivision one of section 5-1513 of 18 this title or of the "Important Information for the Agent" of paragraph 19 (n) of subdivision one of section 5-1513 of this title shall not prevent 20 a power of attorney from being deemed a statutory short form power of 21 attorney or a non-statutory power of attorney. 22 § 5. Subdivisions 2 and 9 of section 5-1502A of the general obli- 23 gations law, as amended by chapter 340 of the laws of 2010, are amended 24 to read as follows: 25 2. To sell, to exchange, to convey either with or without covenants, 26 to quit-claim, to release, to surrender, to mortgage, to incumber, to 27 partition or to consent to the partitioning, to create, modify or revoke 28 a trust [unless such creation, modification or revocation is a gift29transaction governed by section 5-1514 of this title,] to grant options 30 concerning, to lease or to sublet, or otherwise to dispose of, any 31 estate or interest in land; 32 9. To execute, to acknowledge, to seal and to deliver any deed, 33 creation, modification or revocation of a trust [unless such creation,34modification or revocation is a gift transaction governed by section355-1514 of this title], mortgage, lease, notice, check or other instru- 36 ment which the agent may think useful for the accomplishment of any of 37 the purposes enumerated in this section; 38 § 6. Subdivisions 2 and 7 of section 5-1502B of the general obli- 39 gations law, as amended by chapter 340 of the laws of 2010, are amended 40 to read as follows: 41 2. To sell, to exchange, to convey either with or without covenants, 42 to release, to surrender, to mortgage, to incumber, to pledge, to 43 hypothecate, to pawn, to create, modify or revoke a trust [unless such44creation, modification or revocation is a gift transaction governed by45section 5-1514 of this title] to grant options concerning, to lease or 46 to sublet to others, or otherwise to dispose of any chattel or goods or 47 any interest in any chattel or goods; 48 7. To execute, to acknowledge, to seal and to deliver any conveyance, 49 mortgage, lease, creation, revocation or modification of a trust [unless50such creation, modification or revocation is a gift transaction governed51by section 5-1514 of this title], notice, check or other instrument 52 which the agent may think useful for the accomplishment of any of the 53 purposes enumerated in this section; 54 § 7. Subdivisions 2 and 9 of section 5-1502C of the general obli- 55 gations law, as amended by chapter 340 of the laws of 2010, are amended 56 to read as follows:A. 5630--A 4 1 2. To sell (including short sales), to exchange, to transfer either 2 with or without a guaranty, to release, to surrender, to hypothecate, to 3 pledge, to create, modify or revoke a trust [unless such creation,4modification or revocation is a gift transaction governed by section55-1514 of this title,] to grant options concerning, to loan, to trade 6 in, or otherwise to dispose of any bond, share, instrument of similar 7 character, commodity interest or any instrument with respect thereto; 8 9. To execute, to acknowledge, to seal and to deliver any consent, 9 agreement, authorization, creation, modification or revocation of a 10 trust [unless such creation, declaration, modification or revocation is11a gift transaction governed by section 5-1514 of this title], assign- 12 ment, notice, waiver of notice, check, or other instrument which the 13 agent may think useful for the accomplishment of any of the purposes 14 enumerated in this section; 15 § 8. Subdivision 1 of section 5-1502D of the general obligations law, 16 as amended by chapter 644 of the laws of 2008, paragraphs (a) and (b) as 17 amended by chapter 340 of the laws of 2010, is amended to read as 18 follows: 19 1. To continue, to modify, to terminate and to make deposits to and 20 withdrawals from any deposit account, including any joint account with 21 the agent or totten trust for the benefit of the agent, or other banking 22 arrangement made by or on behalf of the principal prior to the creation 23 of the agency, provided, however, that: 24 (a) with respect to joint accounts existing at the creation of the 25 agency, the authority granted hereby shall not include the power to 26 change the title of the account by the addition of a new joint tenant or 27 the deletion of an existing joint tenant, unless the authority to make 28 such changes is [conveyed in a statutory gifts rider to] expressly stat- 29 ed otherwise in the "Modifications" section of a statutory short form 30 power of attorney or in a non-statutory power of attorney signed and 31 dated by the principal with the signature of the principal duly acknowl- 32 edged in the manner prescribed for the acknowledgement of a conveyance 33 of real property, and which is executed pursuant to the requirements of 34 [paragraph (b) of subdivision nine of] section [5-1514] 5-1501B of this 35 title, and 36 (b) with respect to totten trust accounts existing at the creation of 37 the agency, the authority granted hereby shall not include the power to 38 add, delete, or otherwise change the designation of beneficiaries in 39 effect for any such accounts, unless the authority to make such addi- 40 tions, deletions or changes is [conveyed in a statutory gifts rider to] 41 expressly stated otherwise in the "Modifications" section of a statutory 42 short form power of attorney or in a non-statutory power of attorney 43 signed and dated by the principal with the signature of the principal 44 duly acknowledged in the manner prescribed for the acknowledgment of a 45 conveyance of real property, and which is executed pursuant to the 46 requirements of [paragraph (b) of subdivision nine of] section [5-1514] 47 5-1501B of this title. 48 § 8-a. Section 5-1502D of the general obligations law is amended by 49 adding a new subdivision 18 to read as follows: 50 18. If a power of attorney requires that two or more agents act 51 together as co-agents, one or more agents may delegate to the co-agent 52 the authority to conduct banking transactions if the principal initialed 53 subject (o) in the grant of authority provisions of paragraph (f) of the 54 statutory short form set forth in section 15-1513 of this title.A. 5630--A 5 1 § 9. Subdivisions 1 and 3 of section 5-1502F of the general obli- 2 gations law, as amended by chapter 340 of the laws of 2010, are amended 3 to read as follows: 4 1. To continue, to pay the premium or assessment on, to modify, to 5 rescind, to release or to terminate any contract of life, accident, 6 health, disability or liability insurance or any combination of such 7 insurance procured by or on behalf of the principal prior to the 8 creation of the agency which insures either the principal or any other 9 person, without regard to whether the principal is or is not a benefici- 10 ary thereunder; provided, however, with respect to life insurance 11 contracts existing at the creation of the agency, the authority granted 12 hereby shall not include the power to add, delete or otherwise change 13 the designation of beneficiaries in effect for any such contract, unless 14 the authority to make such additions, deletions or changes is [conveyed15in a statutory gifts rider to] stated otherwise in the "Modifications" 16 section of a statutory short form power of attorney or in a non-statuto- 17 ry power of attorney signed and dated by the principal with the signa- 18 ture of the principal duly acknowledged in the manner prescribed for the 19 acknowledgment of a conveyance of real property, and which is executed 20 pursuant to the requirements of [paragraph (b) of subdivision nine of] 21 section [5-1514] 5-1501B of this title; 22 3. To apply for and to receive any available loan on the security of 23 the contract of insurance, whether for the payment of a premium or for 24 the procuring of cash, to surrender and thereupon to receive the cash 25 surrender value, to exercise an election as to beneficiary or mode of 26 payment, to change the manner of paying premiums, and to change or to 27 convert the type of insurance contract, with respect to any contract of 28 life, accident, health, disability or liability insurance as to which 29 the principal has, or claims to have, any one or more of the powers 30 described in this section; provided, however, that the authority granted 31 hereby shall not include the power to add, delete or otherwise change 32 the designation of beneficiaries in effect for any such contract, unless 33 the authority to make such additions, deletions or changes is [conveyed34in a statutory gifts rider to] expressly stated otherwise in the 35 "Modifications" section of a statutory short form power of attorney or 36 in a non-statutory power of attorney signed and dated by the principal 37 with the signature of the principal duly acknowledged in the manner 38 prescribed for the acknowledgment of a conveyance of real property, and 39 which is executed pursuant to the requirements of [paragraph (b) of40subdivision nine of] section [5-1514] 5-1501B of this title; 41 § 10. Subdivision 14 of section 5-1502I of the general obligations 42 law, as amended by chapter 340 of the laws of 2010, is amended to read 43 as follows: 44 14. To continue gifts that the principal customarily made to individ- 45 uals and charitable organizations prior to the creation of the agency, 46 provided that in any one calendar year all such gifts shall not exceed 47 five [hundred] thousand dollars in the aggregate; and 48 § 11. The section heading, opening paragraph and subdivision 1 of 49 section 5-1502K of the general obligations law, as amended by chapter 50 644 of the laws of 2008, are amended to read as follows: 51 Construction--matters related to health care [billing and payment52matters; records, reports and statements]. In a statutory short form 53 power of attorney, the language conferring general authority with 54 respect to "matters related to health care [billing and payment matters;55records, reports and statements]," or in a statutory short form power of 56 attorney properly executed in accordance with the laws in effect at theA. 5630--A 6 1 time of its execution, the language conferring authority with respect to 2 "records, reports and statements," must be construed to mean that the 3 principal authorizes the agent: 4 1. [To access records relating to the provision of health care and to5make decisions relating to the past, present or future payment for the6provision of health care consented to by or on behalf of the principal7or the principal's health care agent authorized under state law. In so8doing the agent is acting as the principal's personal representative9pursuant to sections 1171 through 1179 of the Social Security Act, as10added by sections 262 and 264 of Public Law 104-191, and applicable11regulations. This authority shall not include authorization for the12agent to make other medical or health care decisions for the principal] 13 To be responsible for matters relating to the principal's health care, 14 including, but not limited to, benefit entitlements and payment obli- 15 gations, and in so doing, notwithstanding any law to the contrary, to 16 receive from "health care providers" and "health plans," information, 17 including, but not limited to, "protected health information" as defined 18 in federal and state law, rules and regulations, in order to ascertain 19 the benefits to which the principal is entitled and to determine the 20 legitimacy and accuracy of charges for health care provided to the prin- 21 cipal; to obtain for the principal the health care benefits to which the 22 principal is entitled; to meet the principal's financial obligations, 23 and pay bills due and owing, for health care provided to the principal; 24 and to represent the principal, and to act as the principal's personal 25 representative, with respect to matters pertaining to the principal's 26 health care. The authority granted by this subdivision is limited to 27 health care financial matters and shall not include authorization for 28 the agent to make health care decisions for the principal; 29 § 12. Subdivisions 2 and 4 of section 5-1502L of the general obli- 30 gations law, as amended by chapter 340 of the laws of 2010, are amended 31 to read as follows: 32 2. To make investment directions, to select and change payment 33 options, and to exercise any other election for the principal with 34 regard to any retirement benefit or plan in which the principal has an 35 interest, provided, however, that the authority granted hereby shall not 36 include the authority to add, delete, or otherwise change the desig- 37 nation of beneficiaries in effect for any such retirement benefit or 38 plan, unless the authority to make such additions, deletions or changes 39 is [conveyed in a statutory gifts rider to] expressly stated otherwise 40 in the "Modifications" section of a statutory short form power of attor- 41 ney or in a non-statutory power of attorney signed and dated by the 42 principal with the signature of the principal duly acknowledged in the 43 manner prescribed for the acknowledgment of a conveyance of real proper- 44 ty, and which is executed pursuant to the requirements of [paragraph (b)45of subdivision nine of] section [5-1514] 5-1501B of this title; 46 4. To prepare, execute and deliver any application, agreement, trust 47 agreement [unless such trust agreement is a gift transaction governed by48section 5-1514 of this title], authorization, check or other instrument 49 or document which may be required under the terms of any retirement 50 benefit or plan in which the principal has an interest or by the admin- 51 istrator thereof, or which the agent deems useful for the accomplishment 52 of any of the purposes enumerated in this section; 53 § 13. Section 5-1503 of the general obligations law, as amended by 54 chapter 340 of the laws of 2010, is amended to read as follows: 55 § 5-1503. Modifications of the statutory short form power of attorney 56 [and of the statutory gifts rider]. A power of attorney which satisfiesA. 5630--A 7 1 the requirements of paragraphs (a), (b) and (c) of subdivision one of 2 section 5-1501B and section 5-1513 of this title is not prevented from 3 being a "statutory short form power of attorney", [and a document which4satisfies the requirements of section 5-1514 of this title is not5prevented from being a "statutory gifts rider" as either of these terms6is used in the sections of this title,] by the fact that it also 7 contains additional language at the section labeled "modifications" 8 which: 9 1. Eliminates from the statutory short form power of attorney [or from10the statutory gifts rider] one or more of the powers enumerated in one 11 or more of the constructional sections of this title with respect to a 12 subdivision of the statutory short form power of attorney [or of the13statutory gifts rider], affirmatively chosen by the principal; or 14 2. Supplements one or more of the powers enumerated in one or more of 15 the constructional sections in this title with respect to a subdivision 16 of the statutory short form power of attorney [or of the statutory gifts17rider], affirmatively chosen by the principal, by specifically listing 18 additional powers of the agent; or 19 3. Makes some additional provision which is not inconsistent with the 20 other provisions of the statutory short form power of attorney [or of21the statutory gifts rider], including a provision revoking one or more 22 powers of attorney previously executed by the principal. 23 § 14. Section 5-1504 of the general obligations law, as amended by 24 chapter 644 of the laws of 2008, the opening paragraph, subparagraphs 1 25 and 9 of paragraph (a) and paragraph (b) of subdivision 1, subdivisions 26 2, 3 and 5 as amended and subdivision 7 as added by chapter 340 of the 27 laws of 2010, is amended to read as follows: 28 § 5-1504. Acceptance of and reliance upon acknowledged statutory short 29 form power of attorney. 1. (a) For purposes of this section, "acknowl- 30 edged" means purportedly verified before a notary public or other indi- 31 vidual authorized to take acknowledgements. 32 (b) A person that in good faith accepts an acknowledged power of 33 attorney without actual knowledge that the signature is not genuine may 34 rely upon the presumption that the signature is genuine. 35 (c) A person that in good faith accepts an acknowledged power of 36 attorney without actual knowledge that the power of attorney is void, 37 invalid, or terminated, that the purported agent's authority is void, 38 invalid, or terminated, or that the agent is exceeding or improperly 39 exercising the agent's authority may rely upon the power of attorney as 40 if the power of attorney were genuine, valid and still in effect, the 41 agent's authority were genuine, valid and still in effect, and the agent 42 had not exceeded and had properly exercised the authority. 43 (d) A person that is asked to accept an acknowledged power of attorney 44 may request, and rely upon, without further investigation: 45 (1) an agent's certification under penalty of perjury of any factual 46 matter concerning the principal, agent or power of attorney; and 47 (2) an opinion of counsel as to any matter of law concerning the power 48 of attorney if the person making the request provides in a writing or 49 other record the reason for the request. 50 (e) An opinion of counsel requested under this section must be 51 provided at the principal's expense unless the request is made more than 52 ten business days after the power of attorney is presented for accept- 53 ance. 54 (f) For purposes of this section, a person that conducts activities 55 through employees is without actual knowledge of a fact relating to a 56 power of attorney, a principal, or an agent if the employee conductingA. 5630--A 8 1 the transaction involving the power of attorney is without actual know- 2 ledge of the fact after making reasonable inquiry with respect thereto. 3 2. No third party located or doing business in this state shall 4 refuse, without reasonable cause, to honor a statutory short form power 5 of attorney properly executed in accordance with section 5-1501B of this 6 title, [including a statutory short form power of attorney which is7supplemented by a statutory gifts rider,] or a statutory short form 8 power of attorney properly executed in accordance with the laws in 9 effect at the time of its execution. 10 (a) Reasonable cause under this subdivision shall include, but not be 11 limited to: 12 (1) the refusal by the agent to provide an original power of attorney 13 or a copy certified by an attorney pursuant to section twenty-one 14 hundred five of the civil practice law and rules, or by a court or other 15 government entity; 16 (2) the third party's good faith referral of the principal and the 17 agent or a person acting for or with the agent to the local adult 18 protective services unit; 19 (3) actual knowledge of a report having been made by any person to the 20 local adult protective services unit alleging physical or financial 21 abuse, neglect, exploitation or abandonment of the principal by the 22 agent or a person acting for or with the agent; 23 (4) actual knowledge of the principal's death or a reasonable basis 24 for believing the principal has died; 25 (5) actual knowledge of the incapacity of the principal or a reason- 26 able basis for believing that the principal is incapacitated where the 27 power of attorney tendered is a nondurable power of attorney; 28 (6) actual knowledge or a reasonable basis for believing that the 29 principal was incapacitated at the time the power of attorney was 30 executed; 31 (7) actual knowledge or a reasonable basis for believing that the 32 power of attorney was procured through fraud, duress or undue influence; 33 (8) actual notice, pursuant to subdivision [three] five of this 34 section, of the termination or revocation of the power of attorney; [or] 35 (9) the refusal by a title insurance company to underwrite title 36 insurance for a gift of real property made pursuant to a statutory 37 [gifts rider] short form power of attorney or non-statutory power of 38 attorney that does not contain express instructions or purposes of the 39 principal with respect to gifts in the modifications section of the 40 statutory short form power of attorney or in the non-statutory power of 41 attorney; or 42 (10) the refusal of a request for a certification or an opinion of 43 counsel under paragraph (d) of subdivision one of this section. 44 (b) It shall be deemed unreasonable for a third party to refuse to 45 honor a statutory short form power of attorney[, including a statutory46short form power of attorney which is supplemented by a statutory gifts47rider,] properly executed in accordance with section 5-1501B of this 48 title or a statutory short form power of attorney properly executed in 49 accordance with the laws in effect at the time of its execution, if the 50 only reason for the refusal is any of the following: 51 (1) the power of attorney is not on a form prescribed by the third 52 party to whom the power of attorney is presented. 53 (2) there has been a lapse of time since the execution of the power of 54 attorney. 55 (3) on the face of the statutory short form power of attorney, there 56 is a lapse of time between the date of acknowledgment of the signatureA. 5630--A 9 1 of the principal and the date of acknowledgment of the signature of any 2 agent. 3 [2.] 3. (a) Not later than the tenth business day after presentation 4 of an original or attorney certified copy of a statutory short form 5 power of attorney properly executed in accordance with section 5-1501B 6 of this title or in accordance with the laws in effect at the time of 7 its execution to a third party for acceptance, such third party shall 8 either (a) honor the statutory short form power of attorney, or (b) 9 reject the statutory short form power of attorney in a writing that sets 10 forth the reasons for such rejection, which writing shall be sent to the 11 principal and the agent at the addresses on the power of attorney and 12 such other addresses as provided by the principal or the agent, or (c) 13 request the agent to execute an acknowledged affidavit pursuant to 14 subdivision seven of this section stating that the power of attorney is 15 in full force and effect if the statutory short form power of attorney 16 was not submitted for acceptance together with such an acknowledged 17 affidavit. Such reasons for rejection may include, but not be limited to 18 non-conforming form, missing or wrong signature, invalid notarization, 19 or unacceptable identification. In the event that the statutory short 20 form power of attorney presented is not an original or attorney certi- 21 fied copy, as part of the initial rejection, such short form power of 22 attorney may be rejected for such reason, provided, however, in explain- 23 ing the reason for rejecting the short form power of attorney, the third 24 party shall also identify such other provisions of the short form power 25 of attorney, if any, that would otherwise constitute cause for rejection 26 of the statutory short form power of attorney. If the third party 27 initially rejects the statutory short form power of attorney in a writ- 28 ing that sets forth the reasons for such rejection, the third party 29 shall within seven business days after receipt of a writing in response 30 to the reasons for such rejection (i) honor the statutory short form 31 power of attorney, or (ii) finally reject the statutory short form power 32 of attorney in a writing that sets forth the reasons for such rejection. 33 Such writing shall be sent to the address provided on the power of 34 attorney, to the address of the agent, if any, and may also be sent to 35 such other address as shall be provided on the account documents, or to 36 the address of the attorney as provided in an opinion of counsel pursu- 37 ant to this section. If the third party requests the agent to execute 38 such an acknowledged affidavit, the third party shall honor such statu- 39 tory short form power of attorney within seven business days after 40 receipt by the third party of an acknowledged affidavit which complies 41 with the provisions of subdivision seven of this section, stating that 42 the power of attorney is in full force and effect unless reasonable 43 cause exists as described in paragraph (a) of subdivision two of this 44 section. For the purposes of this subdivision, notice shall be consid- 45 ered delivered at the time such notice is mailed and the time require- 46 ments in which to honor or reject the statutory short form power of 47 attorney or request the agent to execute an acknowledged affidavit shall 48 not apply to the department of audit and control or a public retirement 49 system of the state as defined in subdivision six of section one hundred 50 fifty-two of the retirement and social security law. 51 (b) Notice to the agent as required by paragraph (a) of this subdivi- 52 sion shall not be sent until after a determination is made by adult 53 protective services if the reason for rejection is a reason set forth in 54 subdivision two of this section and is otherwise prohibited by law or 55 regulation.A. 5630--A 10 1 4. (a) Once reasonably accepted, if a third party conducts a trans- 2 action in reliance on a properly executed statutory short form power of 3 attorney, the third party shall be held harmless from liability for the 4 transaction. 5 (b) Except as provided in subdivision [three] five of this section, it 6 shall be deemed unlawful for a third party to unreasonably refuse to 7 honor a properly executed statutory short form power of attorney[,8including a statutory short form power of attorney which is supplemented9by a statutory gifts rider,] executed in accordance with section 5-1501B 10 of this title or a statutory short form power of attorney properly 11 executed in accordance with the laws in effect at the time of its 12 execution. [A] If a special proceeding as authorized by section 5-1510 13 of this title is brought to compel the third party to honor the statuto- 14 ry short form power of attorney, the court may award damages, including 15 reasonable attorney's fees and costs, if the court finds that the third 16 party acted unreasonably in refusing to honor the agent's authority 17 under the statutory short form power of attorney. Such special proceed- 18 ing shall be the exclusive remedy for a violation of this section. 19 [3.] 5. In the absence of actual knowledge that the principal lacked 20 capacity to execute a statutory short form power of attorney or that the 21 statutory short form power of attorney was procured through fraud, 22 duress or undue influence, no third party receiving and retaining a 23 [properly executed] statutory short form power of attorney properly 24 executed in accordance with section 5-1501B of this title, [including a25statutory short form power of attorney which is supplemented by a statu-26tory gifts rider] or a statutory short form power of attorney properly 27 executed in accordance with the laws in effect at the time of its 28 execution, or a complete photostatic copy of the properly executed 29 original thereof, nor any officer, agent, attorney-in-fact or employee 30 of such third party shall incur any liability by reason of acting upon 31 the authority thereof unless the third party shall have received actual 32 notice of the revocation or termination of such power of attorney. 33 If a principal maintains an account at a financial institution, the 34 financial institution is deemed to have actual notice after it has had a 35 reasonable opportunity to act on a written notice of the revocation or 36 termination following its receipt of the same at its office where such 37 account is located. 38 [4.] 6. If the application of the provisions of subdivision [one or] 39 two or four of this section shall be held invalid to any third party the 40 application of such provisions to any third party other than those to 41 which it is held invalid, shall not be affected thereby. 42 [5.] 7. When the power of attorney is presented to a third party, it 43 shall not be deemed unreasonable for a third party to require the agent 44 to execute an acknowledged affidavit pursuant to this subdivision stat- 45 ing that the power of attorney is in full force and effect. Such an 46 affidavit is conclusive proof to the third party relying on the power of 47 attorney that the power of attorney is valid and effective, and has not 48 been terminated, revoked or modified, except as to any third party who 49 had actual notice that the power of attorney had terminated, been 50 revoked or been modified prior to the execution of the affidavit. Such 51 affidavit shall state that: 52 (a) the agent does not have, at the time of the transaction, actual 53 notice of the termination or revocation of the power of attorney, or 54 notice of any facts indicating that the power of attorney has been 55 terminated or revoked;A. 5630--A 11 1 (b) the agent does not have, at the time of the transaction, actual 2 notice that the power of attorney has been modified in any way that 3 would affect the ability of the agent to authorize or engage in the 4 transaction, or notice of any facts indicating that the power of attor- 5 ney has been so modified; 6 (c) if the agent was named as a successor agent, the prior agent is no 7 longer able or willing to serve; and 8 (d) if the agent has been the principal's spouse, the power of attor- 9 ney expressly provides that divorce or annulment as defined in subpara- 10 graph two of paragraph (f) of section 5-1.4 of the estates, powers and 11 trusts law does not terminate the agent's authority thereunder, or the 12 agent does not have actual notice that the marriage has been terminated 13 by divorce or annulment as defined in subparagraph two of paragraph (f) 14 of section 5-1.4 of the estates, powers and trusts law at the time of 15 the transaction. 16 [6.] 8. Nothing in this section shall require the acceptance of a form 17 that is not a statutory short form power of attorney. 18 [7.] 9. A statutory short form power of attorney or a non-statutory 19 power of attorney that meets the requirements of subdivision one of 20 section 5-1501B of this title shall be accepted for recording so long as 21 it has been signed by one agent named therein whose signature has been 22 acknowledged. If two or more agents acting on behalf of the principal 23 are required to act together, the power of attorney shall be accepted 24 for recording as long as their signatures have been acknowledged. When a 25 successor or co-agent authorized to act separately from any other agents 26 presents a certified copy of a recorded statutory short form power of 27 attorney or non-statutory power of attorney with the agent's signature 28 acknowledged, the instrument shall be accepted for recording. 29 § 15. Subparagraph 2 of paragraph (a) of subdivision 2 of section 30 5-1505 of the general obligations law, as amended by chapter 340 of the 31 laws of 2010, is amended to read as follows: 32 (2) To keep the principal's property separate and distinct from any 33 other property owned or controlled by the agent, except for property 34 that is jointly owned by the principal and agent at the time of the 35 execution of the power of attorney, and property that becomes jointly 36 owned after the execution of the power of attorney as the result of the 37 agent's acquisition of an interest in the principal's property by reason 38 of the agent's exercise of authority granted in the modifications 39 section of a statutory [gifts rider] short form power of attorney or in 40 a non-statutory power of attorney [signed and dated by the principal41with the signature of the principal duly acknowledged in the manner42prescribed for the acknowledgment of a conveyance of real property, and43which is executed pursuant to the requirements of paragraph (b) of44subdivision nine of section 5-1514 of this title]. The agent may not 45 make gifts [to] of the principal's property to himself or herself with- 46 out specific authorization in a power of attorney. 47 § 16. Paragraphs (h) and (i) of subdivision 2 of section 5-1510 of the 48 general obligations law, as added by chapter 644 of the laws of 2008, 49 are amended to read as follows: 50 (h) to construe any provision of a power of attorney; or 51 (i) to compel acceptance of the power of attorney [in which event the52relief to be granted is limited to an order compelling acceptance]. 53 § 17. Section 5-1513 of the general obligations law, as amended by 54 chapter 340 of the laws of 2010, is amended to read as follows: 55 § 5-1513. Statutory short form power of attorney. [1.] The use of the 56 following form, or one which substantially conforms to the followingA. 5630--A 12 1 form, in the creation of a power of attorney is lawful, and, when used, 2 and executed in accordance with subdivision one of section 5-1501B of 3 this title, it shall be construed as a statutory short form power of 4 attorney in accordance with the provisions of this title; provided 5 however, that any section indicated as "Optional" which is not used may 6 be omitted and replaced by the words "Intentionally Omitted": 7 "POWER OF ATTORNEY 8 NEW YORK STATUTORY SHORT FORM 9 (a) CAUTION TO THE PRINCIPAL: Your Power of Attorney is an important 10 document. As the "principal," you give the person whom you choose (your 11 "agent") authority to spend your money and sell or dispose of your prop- 12 erty during your lifetime without telling you. You do not lose your 13 authority to act even though you have given your agent similar authori- 14 ty. 15 When your agent exercises this authority, he or she must act according 16 to any instructions you have provided or, where there are no specific 17 instructions, in your best interest. "Important Information for the 18 Agent" at the end of this document describes your agent's responsibil- 19 ities. 20 Your agent can act on your behalf only after signing the Power of 21 Attorney before a notary public. 22 You can request information from your agent at any time. If you are 23 revoking a prior Power of Attorney, you should provide written notice of 24 the revocation to your prior agent(s) and to any third parties who may 25 have acted upon it, including the financial institutions where your 26 accounts are located. 27 You can revoke or terminate your Power of Attorney at any time for any 28 reason as long as you are of sound mind. If you are no longer of sound 29 mind, a court can remove an agent for acting improperly. 30 Your agent cannot make health care decisions for you. You may execute 31 a "Health Care Proxy" to do this. 32 The law governing Powers of Attorney is contained in the New York 33 General Obligations Law, Article 5, Title 15. This law is available at a 34 law library, or online through the New York State Senate or Assembly 35 websites, [www.senate.state.ny.us] www.nysenate.gov or 36 [www.assembly.state.ny.us] www.nyassembly.gov. 37 If there is anything about this document that you do not understand, 38 you should ask a lawyer of your own choosing to explain it to you. 39 (b) DESIGNATION OF AGENT(S): 40 I, _______________________________________________, hereby appoint: 41 name and address of principal 42 _____________________________________________________as my agent(s) 43 name(s) and address(es) of agent(s) 44 If you designate more than one agent above and you do not initial a 45 statement below, they must act together [unless you initial the state-46ment below]. 47 ( ) My agents must act TOGETHER. 48 ( ) My successor agents may act SEPARATELY. 49 (c) DESIGNATION OF SUCCESSOR AGENT(S): (OPTIONAL)A. 5630--A 13 1 If any agent designated above is unable or unwilling to serve, I 2 appoint as my successor agent(s): 3 _______________________________________________________________ 4 name(s) and address(es) of successor agent(s) 5 [Successor] If you do not initial a statement below, successor agents 6 designated above must act together [unless you initial the statement7below]. 8 ( ) My agents must act TOGETHER. 9 ( ) My successor agents may act SEPARATELY. 10 You may provide for specific succession rules in this section. Insert 11 specific succession provisions here: 12 (d) This POWER OF ATTORNEY shall not be affected by my subsequent inca- 13 pacity unless I have stated otherwise below, under "Modifications". 14 (e) This POWER OF ATTORNEY DOES NOT REVOKE any Powers of Attorney previ- 15 ously executed by me unless I have stated otherwise below, under 16 "Modifications." 17 [If you do NOT intend to revoke your prior Powers of Attorney, and if18you have granted the same authority in this Power of Attorney as you19granted to another agent in a prior Power of Attorney, each agent can20act separately unless you indicate under "Modifications" that the agents21with the same authority are to act together.] 22 (f) GRANT OF AUTHORITY: 23 To grant your agent some or all of the authority below, either 24 (1) Initial the bracket at each authority you grant, or 25 (2) Write or type the letters for each authority you grant on the 26 blank line at (P), and initial the bracket at (P). If you initial 27 (P), you do not need to initial the other lines. 28 I grant authority to my agent(s) with respect to the following 29 subjects as defined in sections 5-1502A through 5-1502N of the New York 30 General Obligations Law: 31 ( ) (A) real estate transactions; 32 ( ) (B) chattel and goods transactions; 33 ( ) (C) bond, share, and commodity transactions; 34 ( ) (D) banking transactions; 35 ( ) (E) business operating transactions; 36 ( ) (F) insurance transactions; 37 ( ) (G) estate transactions; 38 ( ) (H) claims and litigation; 39 ( ) (I) personal and family maintenance. If you grant your agent 40 this authority, it will allow the agent to make gifts 41 that you customarily have made to individuals, including 42 the agent, and charitable organizations. The total 43 amount of all such gifts in any one calendar year cannot 44 exceed five [hundred] thousand dollars; 45 ( ) (J) benefits from governmental programs or civil or military 46 service; 47 ( ) (K) financial matters related to health care [billing and48payment matters]; records, reports, and statements; 49 ( ) (L) retirement benefit transactions; 50 ( ) (M) tax matters; 51 ( ) (N) all other matters;A. 5630--A 14 1 ( ) (O) full and unqualified authority to my agent(s) to dele- 2 gate any or all of the foregoing powers to any person or 3 persons whom my agent(s) select; 4 ( ) (P) EACH of the matters identified by the following 5 letters______. 6 You need not initial the other lines if you initial line (P). 7 (g) [MODIFICATIONS: (OPTIONAL)8In this section, you may make additional provisions, including9language to limit or supplement authority granted to your agent.10However, you cannot use this Modifications section to grant your agent11authority to make gifts or changes to interests in your property. If12you wish to grant your agent such authority, you MUST complete the Stat-13utory Gifts Rider.14(h)] CERTAIN GIFT TRANSACTIONS: [STATUTORY GIFTS RIDER] (OPTIONAL) 15 In order to authorize your agent to make gifts in excess of an annual 16 total of [$500] $5,000 for all gifts described in (I) of the grant of 17 authority section of this document (under personal and family mainte- 18 nance), and/or to make changes to interest in your property, you must 19 [initial the statement below and execute a Statutory Gifts Rider at the20same time as this instrument. Initialing the statement below by itself21does not authorize your agent to make gifts. The preparation of the22Statutory Gifts Rider] expressly grant that authorization in the Modifi- 23 cations section below. If you wish to authorize your agent to make gifts 24 to himself or herself, you must expressly grant such authorization in 25 the Modifications section below. Granting such authority to your agent 26 gives your agent the authority to take actions which could significantly 27 reduce your property and/or change how your property is distributed at 28 your death. Your choice to grant such authority should be [supervised29by] discussed with a lawyer. 30 ( ) [(SGR)] I grant my agent authority to make gifts in accord- 31 ance with the terms and conditions of the [Statutory Gifts Rider] 32 Modifications that [supplements] supplement this Statutory Power of 33 Attorney. 34 (h) MODIFICATIONS: (OPTIONAL) 35 In this section, you may make additional provisions, including, but 36 not limited to, language to limit or supplement authority granted to 37 your agent, language to grant your agent the specific authority to make 38 gifts to himself or herself, and/or language to grant your agent the 39 specific authority to make other gift transactions and/or changes to 40 interests in your property. Your agent is entitled to be reimbursed from 41 your assets for reasonable expenses incurred on your behalf. In this 42 section, you may make additional provisions if you ALSO wish your 43 agent(s) to be compensated from your assets for services rendered on 44 your behalf, and you may define "reasonable compensation." 45 (i) DESIGNATION OF MONITOR(S): (OPTIONAL) 46 If you wish to appoint monitor(s), initial and fill in the section 47 below: 48 ( ) I wish to designate ______________________, whose address(es) 49 is (are) ____________________________________________________________, 50 as monitor(s). Upon the request of the monitor(s), my agent(s) must 51 provide the monitor(s) with a copy of the power of attorney and a record 52 of all transactions done or made on my behalf. Third parties holdingA. 5630--A 15 1 records of such transactions shall provide the records to the monitor(s) 2 upon request. 3 (j) COMPENSATION OF AGENT(S): [(OPTIONAL)] 4 Your agent is entitled to be reimbursed from your assets for reason- 5 able expenses incurred on your behalf. If you ALSO wish your agent(s) to 6 be compensated from your assets for services rendered on your behalf, 7 [initial the statement below. If you] and/or you wish to define "reason- 8 able compensation", you may do so above, under "Modifications"[.9( ) My agent(s) shall be entitled to reasonable compensation for10services rendered.] 11 (k) ACCEPTANCE BY THIRD PARTIES: I agree to indemnify the third party 12 for any claims that may arise against the third party because of reli- 13 ance on this Power of Attorney. I understand that any termination of 14 this Power of Attorney, whether the result of my revocation of the Power 15 of Attorney or otherwise, is not effective as to a third party until the 16 third party has actual notice or knowledge of the termination. 17 (l) TERMINATION: This Power of Attorney continues until I revoke it or 18 it is terminated by my death or other event described in section 5-1511 19 of the General Obligations Law. 20 Section 5-1511 of the General Obligations Law describes the manner in 21 which you may revoke your Power of Attorney, and the events which termi- 22 nate the Power of Attorney. 23 (m) SIGNATURE AND ACKNOWLEDGMENT: 24 In Witness Whereof I have hereunto signed my name on ___________,20___. 25 PRINCIPAL signs here: ==>__________________________________________ 26 (acknowledgment) 27 (n) IMPORTANT INFORMATION FOR THE AGENT: 28 When you accept the authority granted under this Power of Attorney, a 29 special legal relationship is created between you and the principal. 30 This relationship imposes on you legal responsibilities that continue 31 until you resign or the Power of Attorney is terminated or revoked. You 32 must: 33 (1) act according to any instructions from the principal, or, where 34 there are no instructions, in the principal's best interest; 35 (2) avoid conflicts that would impair your ability to act in the prin- 36 cipal's best interest; 37 (3) keep the principal's property separate and distinct from any 38 assets you own or control, unless otherwise permitted by law; 39 (4) keep a record [or] of all [receipts, payments, and] transactions 40 conducted for the principal or keep all receipts of payments and trans- 41 actions conducted for the principal; and 42 (5) disclose your identity as an agent whenever you act for the prin- 43 cipal by writing or printing the principal's name and signing your own 44 name as "agent" in either of the following manners: (Principal's Name) 45 by (Your Signature) as Agent, or (your signature) as Agent for (Princi- 46 pal's Name). 47 You may not use the principal's assets to benefit yourself or anyone 48 else or make gifts to yourself or anyone else unless the principal has 49 specifically granted you that authority in the modifications section ofA. 5630--A 16 1 this document[, which is either a Statutory Gifts Rider attached to a2Statutory Short Form Power of Attorney] or a Non-Statutory Power of 3 Attorney. If you have that authority, you must act according to any 4 instructions of the principal or, where there are no such instructions, 5 in the principal's best interest. You may resign by giving written 6 notice to the principal and to any co-agent, successor agent, monitor if 7 one has been named in this document, or the principal's guardian if one 8 has been appointed. If there is anything about this document or your 9 responsibilities that you do not understand, you should seek legal 10 advice. 11 Liability of agent: 12 The meaning of the authority given to you is defined in New York's 13 General Obligations Law, Article 5, Title 15. If it is found that you 14 have violated the law or acted outside the authority granted to you in 15 the Power of Attorney, you may be liable under the law for your 16 violation. 17 (o) AGENT'S SIGNATURE AND ACKNOWLEDGMENT OF APPOINTMENT: 18 It is not required that the principal and the agent(s) sign at the 19 same time, nor that multiple agents sign at the same time. 20 I/we, ___________________________________________, have read the forego- 21 ing Power of Attorney. I am/we are the person(s) identified therein as 22 agent(s) for the principal named therein. 23 I/we acknowledge my/our legal responsibilities. 24 In Witness Whereof I have hereunto signed my name on ________________ 25 20_____. 26 Agent(s) sign(s) here:==>__________________________________________ 27 (acknowledgment(s)) 28 (p) SUCCESSOR AGENT'S SIGNATURE AND ACKNOWLEDGMENT OF APPOINTMENT: 29 It is not required that the principal and the SUCCESSOR agent(s), if 30 any, sign at the same time, nor that multiple SUCCESSOR agents sign at 31 the same time. Furthermore, successor agents can not use this power of 32 attorney unless the agent(s) designated above is/are unable or unwilling 33 to serve. 34 I/we, ___________________________________________, have read the forego- 35 ing Power of Attorney. I am/we are the person(s) identified therein as 36 SUCCESSOR agent(s) for the principal named therein. 37 In Witness Whereof I have hereunto signed my name on ________________ 38 20_____. 39 Successor Agent(s) sign(s) here:==>______________________________________ 40 (acknowledgment(s))" 41 § 18. Section 5-1514 of the general obligations law is REPEALED. 42 § 19. This act shall take effect on the one hundred eightieth day 43 after it shall have become a law, provided, that any statutory short 44 form power of attorney and any statutory gifts rider executed by a prin- 45 cipal and valid at the time executed by such principal shall remain 46 valid, as will any revocation of a prior power of attorney that was 47 delivered to an agent prior to the effective date of this act.
