2023 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.