NY Gen Oblig L § 5-1504 (2021)
2021 New York Laws GOB - General Obligations Article 5 - Creation, Definition and Enforcement of Contractual Obligations Title 15 - Statutory Short Form and Other Powers of Attorney for Financial and Estate Planning 5-1504 - Acceptance of and Reliance Upon Acknowledged and Witnessed Statutory Short Form Power of Attorney.

§  5-1504.  Acceptance of and reliance upon acknowledged and witnessed statutory short form power of attorney. 1.  (a)  For  purposes  of  this section,  "acknowledged"  means  purportedly  verified  before  a notary public or other individual  authorized  to  take  acknowledgements.  For purposes of this section, "witnessed" means purportedly witnessed by two persons  who are not named in the instrument as agents or as permissible recipients of gifts.  (b) A person that in good faith accepts an acknowledged and  witnessed power  of  attorney  without  actual knowledge that the signature is not genuine may rely upon the presumption that the signature is genuine.  (c) A person that in good faith accepts an acknowledged and  witnessed power of attorney without actual knowledge that the power of attorney is void,  invalid,  or  terminated, that the purported agent's authority is void, invalid,  or  terminated,  or  that  the  agent  is  exceeding  or improperly  exercising  the agent's authority may rely upon the power of attorney as if the power of attorney were genuine, valid  and  still  in effect,  the  agent's authority were genuine, valid and still in effect, and the agent had not exceeded and had properly exercised the authority.  (d) A person that is asked to accept  an  acknowledged  and  witnessed power   of   attorney  may  request,  and  rely  upon,  without  further investigation:  (1) an agent's certification under penalty of perjury of  any  factual matter concerning the principal, agent or power of attorney; and  (2) an opinion of counsel as to any matter of law concerning the power of  attorney  if  the person making the request provides in a writing or other record the reason for the request.  (e) An opinion  of  counsel  requested  under  this  section  must  be provided at the principal's expense unless the request is made more than ten  business  days  after  the  power  of  attorney  is  presented  for acceptance.  (f) For purposes of this section, a person  that  conducts  activities through  employees  is  without actual knowledge of a fact relating to a power of attorney, a principal, or an agent if the  employee  conducting the  transaction  involving  the  power  of  attorney  is without actual knowledge of the fact  after  making  reasonable  inquiry  with  respect thereto.   2.  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,  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 or a person acting for or  with  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 or a person acting for or with 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 five of  this  section,  of the termination or revocation of the power of attorney;  (9)  the  refusal  by  a  title  insurance company to underwrite title insurance for a gift of real property made pursuant to a statutory short form power of attorney or non-statutory power of attorney that does  not contain  express  instructions or purposes of the principal with respect to gifts in the modifications section of the statutory short form  power of attorney or in the non-statutory power of attorney; or  (10)  the  refusal  of  a request for a certification or an opinion of counsel under paragraph (d) of subdivision one of this section.  (b) It shall be deemed unreasonable for a third  party  to  refuse  to honor  a  statutory  short  form  power of attorney properly executed in accordance with section 5-1501B of this title 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.   3.  (a) Not later than the tenth business day after presentation of an original or attorney certified copy of a statutory short form  power  of attorney  properly  executed  in accordance with section 5-1501B of this title or in accordance with the laws  in  effect  at  the  time  of  its execution to a third party for acceptance, such third party shall either (a)  honor the statutory short form power of attorney, or (b) reject the statutory short form power of attorney in a writing that sets forth  the reasons for such rejection, which writing shall be sent to the principal and  the  agent at the addresses on the power of attorney and such other addresses as provided by the principal or the agent, or (c) request  the agent to execute an acknowledged affidavit pursuant to subdivision seven of  this section stating that the power of attorney is in full force and effect if the statutory short form power of attorney was  not  submitted for  acceptance  together  with  such  an  acknowledged  affidavit. Such reasons for rejection may include, but not be limited to  non-conforming form,  missing or wrong signature, invalid notarization, or unacceptable identification. In the event that the  statutory  short  form  power  of attorney  presented  is  not  an original or attorney certified copy, as part of the initial rejection, such short form power of attorney may  be rejected  for  such  reason, provided, however, in explaining the reason for rejecting the short form power of attorney, the  third  party  shall also identify such other provisions of the short form power of attorney, if  any,  that  would  otherwise  constitute  cause for rejection of the statutory short form power of attorney. If  the  third  party  initially rejects  the  statutory  short  form power of attorney in a writing that sets forth the reasons for such rejection, the third party shall  within  seven  business  days  after  receipt  of  a  writing in response to the reasons for such rejection (i) honor the statutory short form  power  of attorney,  or  (ii)  finally  reject  the  statutory short form power of attorney  in  a  writing that sets forth the reasons for such rejection. Such writing shall be sent to the  address  provided  on  the  power  of attorney,  to  the address of the agent, if any, and may also be sent to such other address as shall be provided on the account documents, or  to the  address  of  the  attorney  as  provided  in  an opinion of counsel pursuant to this section. If the  third  party  requests  the  agent  to execute such an acknowledged affidavit, the third party shall honor such statutory  short form power of attorney within seven business days after receipt by the third party of an acknowledged affidavit  which  complies with  the  provisions of subdivision seven of this section, stating that the power of attorney is in full  force  and  effect  unless  reasonable cause  exists  as  described in paragraph (a) of subdivision two of this section.  For  the  purposes  of  this  subdivision,  notice  shall   be considered  delivered  at  the  time  such notice is mailed and the time requirements in which to honor or reject the statutory short form  power of  attorney  or  request the agent to execute an acknowledged affidavit shall not apply to  the  department  of  audit  and  control,  a  public retirement  system of the state as defined in subdivision six of section one hundred fifty-two of the retirement and social security law, or  the department  of  health,  including  social  services  districts,  in the administration of the medical assistance "Medicaid" program pursuant  to title  XIX  of  the  federal  social security act or other public health insurance programs.  (b) Notice  to  the  agent  as  required  by  paragraph  (a)  of  this subdivision  shall  not  be  sent until after a determination is made by adult protective services if the reason for rejection is  a  reason  set forth  in subdivision two of this section and is otherwise prohibited by law or regulation.   4.  (a)  Once  reasonably  accepted,  if  a  third  party  conducts  a transaction  in  reliance  on  a  properly executed statutory short form power of attorney, the third party shall be held harmless from liability for the transaction.  (b) Except as provided in subdivision five 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  executed  in accordance  with section 5-1501B of this title or a statutory short form power of attorney properly executed  in  accordance  with  the  laws  in effect  at  the  time  of  its  execution.  If  a  special proceeding as authorized by section 5-1510 of this title  is  brought  to  compel  the third  party  to  honor  the statutory short form power of attorney, the court may award damages, including reasonable attorney's fees and costs, if the court finds that the third party acted unreasonably  in  refusing to  honor  the agent's authority under the statutory short form power of attorney. Such special proceeding shall be the exclusive  remedy  for  a violation of this section.   5.  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 statutory short form power of attorney properly executed  in  accordance with  section  5-1501B of this title, 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.   6. If the application of the provisions of subdivision two or four  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.   7. 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.   8. Nothing in this section shall require the acceptance of a form that is not a statutory short form power of attorney.   9. 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.