An amendment to the General Obligations Law in relation to Powers of Attorney is to take effect on March 1, 2009. However, a bill has been introduced to change the effective date to September 1, 2009. Several of the new/amended provisions include, but are not limited to, the following:
· Agent Signature Required - Agent is defined as a person granted authority to act as attorney-in-fact for the principal under a power of attorney. To be valid, a statutory short form power of attorney or a non-statutory power of attorney must be signed and dated by any agent acting on behalf of the principal with the signature of the agent duly acknowledged in the manner prescribed for the acknowledgment of a conveyance of real property. The principal must also sign the power of attorney with said signature of the principal being duly acknowledged in the manner prescribed for the acknowledgment of a conveyance of real property.
· Appointment of Monitor - A provision has been added whereby the principal can appoint a "Monitor" who has the authority to request/compel the agent to provide records as to receipts, disbursements and transactions entered into by the agent on behalf of the principal.
· Statutory Major Gifts Rider (SMGR) - A provision has been added by which the principal may supplement a statutory short form power of attorney to authorize major gift transactions and other transfers.
· No third party within the state shall refuse without reasonable cause - A provision has been added stating that no third party within the state shall refuse, without reasonable cause, to honor a statutory short form power of attorney properly executed. The provision also defines what "reasonable cause" shall include.
· Powers of Attorney executed in other jurisdictions - A provision is provided that a power of attorney executed in another state or jurisdiction in compliance with the laws of that state or jurisdiction or the law of this state is valid in this state regardless if the principal is a domiciliary of this state.
Additional details to the new provisions and changes are to follow. Prestige Title Agency will provide you with further details as the information becomes available and will advise as to when this new form will be available.
If you have any questions or would like further information regarding this newsflash, please contact Michael Alfieri, Esq. at (212) 651-1200 or malfieri@prestitle.com.
