2010 New York Code
GOB - General Obligations
Article 5 - CREATION, DEFINITION AND ENFORCEMENT OF CONTRACTUAL OBLIGATIONS
Title 15 - (5-1501 - 5-1514) STATUTORY SHORT FORM AND OTHER POWERS OF ATTORNEY FOR FINANCIAL AND ESTATE PLANNING
5-1504 - Acceptance of statutory short form power of attorney.

§ 5-1504. Acceptance of statutory short form power of attorney. 1.  No
  third  party  located  or  doing  business  in  this state shall refuse,
  without reasonable cause, to honor  a  statutory  short  form  power  of
  attorney  properly  executed  in accordance with section 5-1501B of this
  title, including a statutory short  form  power  of  attorney  which  is
  supplemented by a statutory gifts rider, or a statutory short form power
  of  attorney  properly executed in accordance with the laws in effect at
  the time of its execution.
    (a) Reasonable cause under this subdivision shall include, but not  be
  limited to:
    (1)  the refusal by the agent to provide an original power of attorney
  or a copy certified  by  an  attorney  pursuant  to  section  twenty-one
  hundred five of the civil practice law and rules, or by a court or other
  government entity;
    (2)  the  third  party's  good faith referral of the principal and the
  agent to the local adult protective services unit;
    (3) actual knowledge of a report having been made by any person to the
  local adult protective services  unit  alleging  physical  or  financial
  abuse,  neglect,  exploitation  or  abandonment  of the principal by the
  agent;
    (4) actual knowledge of the principal's death or  a  reasonable  basis
  for believing the principal has died;
    (5)  actual  knowledge  of  the  incapacity  of  the  principal  or  a
  reasonable basis for believing that the principal is incapacitated where
  the power of attorney tendered is a nondurable power of attorney;
    (6) actual knowledge or a reasonable  basis  for  believing  that  the
  principal  was  incapacitated  at  the  time  the  power of attorney was
  executed;
    (7) actual knowledge or a reasonable  basis  for  believing  that  the
  power of attorney was procured through fraud, duress or undue influence;
    (8)  actual  notice, pursuant to subdivision three of this section, of
  the termination or revocation of the power of attorney; or
    (9) the refusal by a  title  insurance  company  to  underwrite  title
  insurance for a gift of real property made pursuant to a statutory gifts
  rider  or  non-statutory power of attorney that does not contain express
  instructions or purposes of the principal.
    (b) It shall be deemed unreasonable for a third  party  to  refuse  to
  honor  a  statutory  short form power of attorney, including a statutory
  short form power of attorney which is supplemented by a statutory  gifts
  rider,  or a statutory short form power of attorney properly executed in
  accordance with the laws in effect at the time of its execution, if  the
  only reason for the refusal is any of the following:
    (1)  the  power  of  attorney is not on a form prescribed by the third
  party to whom the power of attorney is presented.
    (2) there has been a lapse of time since the execution of the power of
  attorney.
    (3) on the face of the statutory short form power of  attorney,  there
  is  a  lapse of time between the date of acknowledgment of the signature
  of the principal and the date of acknowledgment of the signature of  any
  agent.
    2.  Except  as provided in subdivision three of this section, it shall
  be deemed unlawful for a third party to unreasonably refuse to  honor  a
  properly  executed  statutory  short form power of attorney, including a
  statutory short form power  of  attorney  which  is  supplemented  by  a
  statutory  gifts  rider,  or  a  statutory  short form power of attorney
  properly executed in accordance with the laws in effect at the  time  of
  its  execution.  A special proceeding as authorized by section 5-1510 of

this title shall be  the  exclusive  remedy  for  a  violation  of  this
  section.
    3.  In  the  absence  of  actual  knowledge  that the principal lacked
  capacity to execute a statutory short form power of attorney or that the
  statutory short form power  of  attorney  was  procured  through  fraud,
  duress  or  undue  influence,  no  third party receiving and retaining a
  properly executed statutory short form power of  attorney,  including  a
  statutory  short  form  power  of  attorney  which  is supplemented by a
  statutory gifts rider or  a  statutory  short  form  power  of  attorney
  properly  executed  in accordance with the laws in effect at the time of
  its execution, or a complete photostatic copy of the  properly  executed
  original  thereof,  nor any officer, agent, attorney-in-fact or employee
  of such third party shall incur any liability by reason of  acting  upon
  the  authority thereof unless the third party shall have received actual
  notice of the revocation or termination of such power of attorney.
    If a principal maintains an account at a  financial  institution,  the
  financial institution is deemed to have actual notice after it has had a
  reasonable  opportunity  to act on a written notice of the revocation or
  termination following its receipt of the same at its office  where  such
  account is located.
    4.  If  the application of the provisions of subdivision one or two of
  this section shall be held invalid to any third party the application of
  such provisions to any third party other than those to which it is  held
  invalid, shall not be affected thereby.
    5.  When the power of attorney is presented to a third party, it shall
  not be deemed unreasonable for a third party to  require  the  agent  to
  execute  an  acknowledged affidavit pursuant to this subdivision stating
  that the power of  attorney  is  in  full  force  and  effect.  Such  an
  affidavit is conclusive proof to the third party relying on the power of
  attorney  that the power of attorney is valid and effective, and has not
  been terminated, revoked or modified, except as to any third  party  who
  had  actual  notice  that  the  power  of  attorney had terminated, been
  revoked or been modified prior to the execution of the  affidavit.  Such
  affidavit shall state that:
    (a)  the  agent  does not have, at the time of the transaction, actual
  notice of the termination or revocation of the  power  of  attorney,  or
  notice  of  any  facts  indicating  that  the power of attorney has been
  terminated or revoked;
    (b) the agent does not have, at the time of  the  transaction,  actual
  notice  that  the  power  of  attorney has been modified in any way that
  would affect the ability of the agent to  authorize  or  engage  in  the
  transaction,  or  notice  of  any  facts  indicating  that  the power of
  attorney has been so modified;
    (c) if the agent was named as a successor agent, the prior agent is no
  longer able or willing to serve; and
    (d) if the agent  has  been  the  principal's  spouse,  the  power  of
  attorney  expressly  provides  that  divorce  or annulment as defined in
  subparagraph two of paragraph (f)  of  section  5-1.4  of  the  estates,
  powers   and  trusts  law  does  not  terminate  the  agent's  authority
  thereunder, or the agent does not have actual notice that  the  marriage
  has  been  terminated by divorce or annulment as defined in subparagraph
  two of paragraph (f) of section 5-1.4 of the estates, powers and  trusts
  law at the time of the transaction.
    6. Nothing in this section shall require the acceptance of a form that
  is not a statutory short form power of attorney.
    7.  A  statutory short form power of attorney or a non-statutory power
  of attorney that meets the requirements of subdivision  one  of  section
  5-1501B  of this title shall be accepted for recording so long as it has

been signed  by  one  agent  named  therein  whose  signature  has  been
  acknowledged.  If  two  or more agents acting on behalf of the principal
  are required to act together, the power of attorney  shall  be  accepted
  for recording as long as their signatures have been acknowledged. When a
  successor or co-agent authorized to act separately from any other agents
  presents  a  certified  copy of a recorded statutory short form power of
  attorney or non-statutory power of attorney with the  agent's  signature
  acknowledged, the instrument shall be accepted for recording.

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