Bill Text: NY A03427 | 2013-2014 | 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 (Democrat 1-0)

Status: (Introduced - Dead) 2014-01-08 - referred to banks [A03427 Detail]

Download: New_York-2013-A03427-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3427
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 25, 2013
                                      ___________
       Introduced by M. of A. TITONE -- read once and referred 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-v
    2  and 9-w to read as follows:
    3    S 9-V. 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.
                                                                  LBD03846-01-3
       A. 3427                             2
    1    S 9-W. 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    S 2. This act shall take effect immediately.