S T A T E   O F   N E W   Y O R K
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                                  2748

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2015
                               ___________

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:

  Section  1.  The banking law is amended by adding two new sections 9-w
and 9-x to read as follows:
  S 9-W. 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  ASSOCI-
ATION, CREDIT UNION OR FEDERAL CREDIT UNION OR BRANCH OF A FOREIGN BANK-
ING  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.
                                                           LBD03619-01-5
              

A. 2748                             2

  S 9-X. 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 DISA-
BILITY OR INCOMPETENCE SHALL HAVE THE SAME EFFECT AND INURE TO THE BENE-
FIT 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 INCOMPE-
TENT TO REVOKE, SUSPEND OR TERMINATE ALL OR ANY PART OF  SUCH  POWER  OF
ATTORNEY.
  S 2. This act shall take effect immediately.