What's happening
This bill requires New York banking institutions to honor statutory short form powers of attorney and clarifies their validity during a principal's disability or incompetence.
Why it matters
Guarantees access to banking for those who rely on powers of attorney (POA). By requiring financial institutions to honor statutory short form POAs, the bill helps ensure that people who have delegated authority—often due to age, illness, or incapacity—can still have their financial affairs managed without unnecessary barriers.
Reduces legal risk and confusion for banks and agents. The law protects banks and their employees from liability when they act on a valid POA, unless they've received written notice that the POA has been revoked or terminated, encouraging prompt and consistent acceptance.
Protects vulnerable individuals during periods of incapacity. By clarifying that a POA explicitly stating it survives disability or incompetence remains valid, the bill ensures ongoing financial management for those who become incapacitated, helping prevent financial neglect or exploitation.
Provides legal clarity and consistency. The amendments close gaps and ambiguities in existing law, making the obligations of banking institutions clearer and standardizing practices across the state, which benefits consumers and financial professionals alike.
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Who cares
Banks and credit unions
The bill would require them to honor properly executed statutory short form powers of attorney and protect them from liability for acting on that authority unless the account office has received written notice of revocation or termination.
Bank customers granting powers of attorney
The bill would make refusal to honor a properly executed statutory short form unlawful and preserve an agent’s authority through disability or incompetence when the document expresses that intent.
Agents acting under powers of attorney
The bill would allow their authorized acts during a principal’s disability or incompetence to bind the principal and require them to account to a subsequently appointed committee or conservator.
Court-appointed committees and conservators
The bill would give them the principal’s power to revoke, suspend or terminate all or part of a power of attorney.
Headline styles
Require Banks Honor Power of Attorney
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protect Power of Attorney Rights
In Senate Committee · Banks · Sponsor Pamela Helming
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6456
2017-2018 Regular Sessions
IN ASSEMBLY
March 7, 2017
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 Assembly, do enact as follows:
Section 1. The banking law is amended by adding two new sections 9-x and 9-y to read as follows:
§ 9-x. Acceptance of statutory short form power of attorney. 1. No bank, trust company, national bank, savings bank, federal mutual savings bank located in this state, savings and loan association, federal savings and loan association, federal mutual savings and loan association, credit union or federal credit union or branch of a foreign banking corporation or any other corporation authorized to conduct banking business in this state (each of the foregoing referred to in this section as "banking institution") located in this state shall refuse to honor a statutory short form power of attorney properly executed in accordance with section 5-1501B of the general obligations law.
2. The failure of a banking institution to honor a properly executed statutory short form power of attorney shall be deemed unlawful.
3. No banking institution receiving and retaining a statutory short form power of attorney presented to it as provided in subdivision one of this section nor any officer, agent or employee of such institution shall incur any liability by reason of acting upon the authority thereof unless the institution shall have actually received, at the office where the account is located, written notice of the revocation or termination of such power of attorney.
4. If the application of the provisions of subdivision one or two of this section shall be held invalid to any banking institution, the application of such provisions to any other banking institution other 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
A. 6456 2
§ 9-y. Powers of attorney which survive disability or incompetence. 1. The subsequent disability or incompetence of a principal shall not revoke or terminate the authority of an attorney-in-fact who acts under a power of attorney in a writing executed by such principal which contains the words "This power of attorney shall not be affected by the subsequent disability or incompetence of the principal," or words of similar import showing the intent of such principal that the authority conferred shall be exercisable notwithstanding his subsequent disability or incompetence.
2. All acts done by an attorney-in-fact pursuant to a power granted pursuant to subdivision one of this section during any period of disability or incompetence shall have the same effect and inure to the benefit of and bind a principal and his distributees, devisees, legatees and personal representatives as if such principal were competent and not disabled. If a committee or conservator thereafter is appointed for such principal, such attorney-in-fact, during the continuance of the appointment, shall account to the committee or conservator rather than to such principal. The committee or conservator shall have the same power such principal would have had if he were not disabled or incompetent to revoke, suspend or terminate all or any part of such power of attorney.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.