Bill Text: NY S05983 | 2017-2018 | General Assembly | Introduced

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Bill Title: Requires all banking institutions in the state to accept a statutory short form power of attorney and powers of attorney which survive disability or incompetence; references existing provisions relating to powers of attorney in the general obligations law; holds banks harmless for such acceptance unless they have actual written notice of revocation or termination.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO BANKS [S05983 Detail]

Download: New_York-2017-S05983-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5983
                               2017-2018 Regular Sessions
                    IN SENATE
                                       May 9, 2017
                                       ___________
        Introduced  by  Sen. HELMING -- read twice and ordered printed, and when
          printed to be committed to the Committee on Banks
        AN ACT to amend the banking law, in relation to the  use  of  powers  of
          attorney in banking transactions
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The banking law is amended by adding two new  sections  9-x
     2  and 9-y to read as follows:
     3    §  9-x.  Acceptance  of statutory short form power of attorney.  1. No
     4  bank, trust company, national bank, savings bank, federal mutual savings
     5  bank located in  this  state,  savings  and  loan  association,  federal
     6  savings  and  loan  association, federal mutual savings and loan associ-
     7  ation, credit union or federal credit union or branch of a foreign bank-
     8  ing corporation or any other corporation authorized to  conduct  banking
     9  business  in  this  state  (each  of  the  foregoing referred to in this
    10  section as "banking institution") located in this state shall refuse  to
    11  honor  a  statutory  short  form  power of attorney properly executed in
    12  accordance with section 5-1501B of the general obligations law.
    13    2. The failure of a banking institution to honor a  properly  executed
    14  statutory short form power of attorney shall be deemed unlawful.
    15    3.  No  banking  institution receiving and retaining a statutory short
    16  form power of attorney presented to it as provided in subdivision one of
    17  this section nor any officer, agent  or  employee  of  such  institution
    18  shall incur any liability by reason of acting upon the authority thereof
    19  unless the institution shall have actually received, at the office where
    20  the  account is located, written notice of the revocation or termination
    21  of such power of attorney.
    22    4. If the application of the provisions of subdivision one or  two  of
    23  this  section  shall  be  held  invalid  to any banking institution, the
    24  application of such provisions to any other  banking  institution  other
    25  than those to which it is held invalid, shall not be affected thereby.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09172-01-7
        S. 5983                             2
     1    § 9-y. Powers of attorney which survive disability or incompetence. 1.
     2  The  subsequent  disability  or  incompetence  of  a principal shall not
     3  revoke or terminate the authority of an attorney-in-fact who acts  under
     4  a  power  of  attorney  in  a  writing  executed by such principal which
     5  contains  the words "This power of attorney shall not be affected by the
     6  subsequent disability or incompetence of the  principal,"  or  words  of
     7  similar  import  showing the intent of such principal that the authority
     8  conferred shall be exercisable notwithstanding his subsequent disability
     9  or incompetence.
    10    2. All acts done by an attorney-in-fact pursuant to  a  power  granted
    11  pursuant  to  subdivision one of this section during any period of disa-
    12  bility or incompetence shall have the same effect and inure to the bene-
    13  fit of and bind a principal and his distributees, devisees, legatees and
    14  personal representatives as if such principal  were  competent  and  not
    15  disabled.    If  a  committee or conservator thereafter is appointed for
    16  such principal, such attorney-in-fact, during  the  continuance  of  the
    17  appointment,  shall  account to the committee or conservator rather than
    18  to such principal.  The committee or conservator  shall  have  the  same
    19  power  such principal would have had if he were not disabled or incompe-
    20  tent to revoke, suspend or terminate all or any part of  such  power  of
    21  attorney.
    22    § 2. This act shall take effect immediately.