Became a law August 13, 2010, with the approval of the Governor. Passed by a two-thirds vote.

Transcription

1 LAWS OF NEW YORK, 2010 CHAPTER 340 AN ACT to amend general obligations law, in relation to powers attorney for financial and estate planning; and directing law revision commission to study implementation such powers attorney Became a law August 13, 2010, with approval Governor. Passed by a two-thirds vote. The People State New York, represented in Senate and Assembly, do enact as follows: Section 1. The title heading title 15 article 5 general obligations law, as amended by chapter 644 laws 2008, is amended to read as follows: STATUTORY SHORT FORM AND OTHER POWERS OF ATTORNEY FOR FINANCIAL AND ESTATE PLANNING 2. Section general obligations law, as added by chapter 644 laws 2008, is amended to read as follows: [Definitions] Application and definitions. 1. This title shall apply to all powers attorney except powers attorney excluded from this title by section C this title. 2. As used in this title following terms shall have following meanings: [1.] (a) "Agent" means a person granted authority to act as attorneyin-fact for principal under a power attorney, and includes original agent and any co-agent or successor agent. Unless context indicates orwise, an "agent" designated in a power attorney shall mean "attorney-in-fact" for purposes this title. An agent acting under a power attorney has a fiduciary relationship with principal. [2.] (b) "Benefits from governmental programs or civil or military service" means any benefit, program or assistance provided under a statute or governmental regulation, including social security, medicare and

2 medicaid. [3.] (c) "Capacity" means ability to comprehend nature and consequences act executing and granting, revoking, amending or modifying a power attorney, any provision in a power attorney, or authority any person to act as agent under a power attorney. [4.] (d) "Compensation" means reasonable compensation authorized to be paid to agent from assets principal for services actually rendered by agent pursuant to authority granted in a power attorney. [5.] (e) "Financial institution" means a financial entity, including, but not limited to: a bank, trust company, national bank, savings bank, federal mutual savings bank, savings and loan association, federal savings and loan association, federal mutual savings and loan association, credit union, federal credit union, branch a foreign banking corporation, public pension fund, retirement system, securities broker, securities dealer, securities firm, and insurance company. EXPLANATION--Matter in italics is new; matter in brackets [ ] is old law to be omitted. CHAP [6.] (f) "Incapacitated" means to be without capacity. [7.] (g) "Internal Revenue Code" means United States Internal Revenue Code 1986, as amended. Such references, however, shall be deemed to constitute references to any corresponding provisions any subsequent federal tax code. [8.] (h) "Monitor" means a person appointed in power attorney who has authority to request, receive, and seek to compel agent to provide a record all receipts, disbursements, and transactions entered into by agent on behalf principal. [9.] (i) "Person" means an individual, wher acting for himself or herself, or as a fiduciary or as an ficial any legal, governmental or commercial entity (including, but not limited to, any such entity

3 identified in this subdivision), corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, government agency, government entity, government instrumentality, public corporation, or any or legal or commercial entity. [10.] (j) "Power attorney" means a written document, or than a document referred to in section C this title, by which a principal with capacity designates an agent to act on his or her behalf. [11.] (k) "Principal" means an individual who is eighteen years age or older, acting for himself or herself and not as a fiduciary or as an ficial any legal, governmental or commercial entity, who executes a power attorney. [12.] (l) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or or medium and is retrievable in perceivable form. [13.] (m) "Sign" means to place any memorandum, mark or sign, written, printed, stamped, photographed, engraved or orwise upon an instrument or writing, or to use an electronic signature as that term is defined in subdivision three section three hundred two state technology law, with intent to execute instrument, writing or electronic record. In accordance with requirements section three hundred seven state technology law, a power attorney or any or instrument executed by principal or agent that is recordable under real property law shall not be executed with an electronic signature. [14.] (n) "Statutory [major] gifts rider" or ["SMGR"] "SGR" means a document by which principal may supplement a statutory short form power attorney to authorize [major] certain gift transactions [and or transfers], [that meets] or than those permitted by subdivision fourteen section I this title. The document must meet requirements subdivision nine section this title, and

4 [that contains] contain exact wording form set forth in subdivision ten section this title. A mistake in wording, such as in spelling, punctuation or formatting, or use bold or italic type, shall not prevent a statutory gifts rider from being deemed a statutory gifts rider, but wording form set forth in subdivision ten section this title shall govern. The use form set forth in subdivision ten section this title is lawful and when used, it shall be construed as a statutory [major] gifts rider. A statutory [major] gifts rider may contain modifications or additions as provided in section this title as such modifications or additions relate to [major] all gift transactions [and or transfers]. The statutory [major] gifts rider must be executed in manner provided in section this title, simultaneously with 3 CHAP. 340 statutory short form power attorney in which authority [(SMGR)] (SGR) is initialed by principal. A statutory [major] gifts rider and statutory short form power attorney it supplements must be read toger as a single instrument. [15.] (o) "Statutory short form power attorney" means a power attorney that meets requirements paragraphs (a), (b) and (c) subdivision one section B this title, and that contains exact wording form set forth in section this title. A mistake in wording, such as in spelling, punctuation or formatting, or use bold or italic type, shall not prevent a power attorney from being deemed a statutory short form power attorney, but wording form set forth in section this title shall govern. The use form set forth in section this title is lawful and when used, it shall be construed as a statutory short form

5 power attorney. A statutory short form power attorney may be used to grant authority provided in sections A through N this title. A "statutory short form power attorney" may contain modifications or additions as provided in section this title, but in no event may it be modified to grant any authority provided in section this title. If authority [(SMGR)] (SGR) on statutory short form is initialed by principal, statutory short form power attorney must be executed in manner provided in section B this title, simultaneously with statutory [major] gifts rider. A statutory short form power attorney and a statutory [major] gifts rider which supplements it must be read toger as a single instrument. [16.] (p) "Non-statutory power attorney" means a power attorney that is not a statutory short form power attorney. (q) "Third party" means a financial institution or person or than a principal or an agent. 3. The opening paragraph and paragraphs (b) and (c) subdivision 1 section B general obligations law, as added by chapter 644 laws 2008, are amended to read as follows: To be valid, except as orwise provided in section this title, a statutory short form power attorney, or a nonstatutory power attorney, executed in this state by [an individual] a principal, must: (b) Be signed and dated by a principal with capacity, with signature principal duly acknowledged in manner prescribed for [acknowledgement] acknowledgment a conveyance real property. (c) Be signed and dated by any agent acting on behalf principal with signature agent duly acknowledged in manner prescribed for [acknowledgement] acknowledgment a conveyance real property. A power attorney executed pursuant to this section is not invalid solely because re has been a lapse time between date acknowledgment signature principal and date or

6 dates [acknowledgement] acknowledgment signature or signatures [] any agent [acting] or agents or successor agent or successor agents authorized to act on behalf principal or because principal became incapacitated during any such lapse time. 4. The opening paragraph and paragraph (a) subdivision 2 section B general obligations law, as added by chapter 644 laws 2008, is amended to read as follows: In addition to requirements subdivision one this section, to be valid for purpose authorizing agent to make [any gift or or transfer] certain gift transactions described in section this title: CHAP (a) a statutory short form power attorney must contain authority [(SMGR)] (SGR) initialed by principal and be accompanied by a valid statutory [major] gifts rider; and 5. Subdivisions 3 and 4 section B general obligations law, as added by chapter 644 laws 2008, are amended to read as follows: 3. (a) The date on which an agent's signature is acknowledged is effective date power attorney as to that agent; provided, however, that if two or more agents are designated to act toger, power attorney takes effect when all agents so designated have signed [] such power attorney with ir signatures acknowledged. (b) If power attorney states that it takes effect upon occurrence a date or a contingency specified in document, n power attorney takes effect only when date or contingency identified in document has occurred, and signature agent acting on behalf principal has been acknowledged. If document requires that a person or persons named or orwise identified rein declare, in writing, that identified contingency has occurred, such a declaration satisfies requirement this paragraph without regard

7 to wher specified contingency has occurred. 4. Nothing this title shall be construed to bar use or validity any or or different form power attorney desired by a person or than [an individual] a principal as term [person] principal is defined in section this title. 6. The general obligations law is amended by adding a new section C to read as follows: C. Powers attorney excluded from this title. The provisions this title shall not apply to following powers attorney: 1. a power attorney given primarily for a business or commercial purpose, including without limitation: (a) a power to extent it is coupled with an interest in subject power; (b) a power given to or for benefit a creditor in connection with a loan or or credit transaction; (c) a power given to facilitate transfer or disposition one or more specific stocks, bonds or or assets, wher real, personal, tangible or intangible; 2. a proxy or or delegation to exercise voting rights or management rights with respect to an entity; 3. a power created on a form prescribed by a government or governmental subdivision, agency or instrumentality for a governmental purpose; 4. a power authorizing a third party to prepare, execute, deliver, submit and/or file a document or instrument with a government or governmental subdivision, agency or instrumentality or or third party; 5. a power authorizing a financial institution or employee a financial institution to take action relating to an account in which financial institution holds cash, securities, commodities or or financial assets on behalf person giving power; 6. a power given by an individual who is or is seeking to become a director, ficer, shareholder, employee, partner, limited partner, member, unit owner or manager a corporation, partnership, limited liability company, condominium or or legal or commercial entity in his or her capacity as such;

8 7. a power contained in a partnership agreement, limited liability company operating agreement, declaration trust, declaration condo- 5 CHAP. 340 minium, condominium bylaws, condominium fering plan or or agreement or instrument governing internal affairs an entity authorizing a director, ficer, shareholder, employee, partner, limited partner, member, unit owner, manager or or person to take lawful action relating to such entity; 8. a power given to a condominium managing agent to take action in connection with use, management and operation a condominium unit; 9. a power given to a licensed real estate broker to take action in connection with a listing real property, mortgage loan, lease or management agreement; 10. a power authorizing acceptance service process on behalf principal; and 11. a power created pursuant to authorization provided by a federal or state statute, or than this title, that specifically contemplates creation power, including without limitation a power to make health care decisions or decisions involving disposition remains. Nothing in this section shall be deemed to prohibit use a statutory short form power attorney or a nonstatutory power attorney in connection with any transactions described in this section. 7. Subdivisions 2, 9 and 10 section A general obligations law, subdivisions 2 and 9 as amended by chapter 644 laws 2008, are amended to read as follows: 2. To sell, to exchange, to convey eir with or without covenants, to quit-claim, to release, to surrender, to mortgage, to incumber, to partition or to consent to partitioning, to create, modify or revoke a trust unless such creation, modification or revocation is a gift transaction governed by section this title, to grant options

9 concerning, to lease or to sublet, or orwise to dispose, any estate or interest in land; 9. To execute, to acknowledge, to seal and to deliver any deed, creation, modification or revocation a trust unless such creation, modification or revocation is a gift transaction governed by section this title, mortgage, lease, notice, check or or instrument which agent may think useful for accomplishment any purposes enumerated in this section; 10. To prosecute, to defend, to submit to [arbitration] alternative dispute resolution, to settle, and to propose or to accept a compromise with respect to, any claim existing in favor, or against, principal based on or involving any real estate transaction or to intervene in any action or proceeding relating reto; 8. Subdivisions 2, 7 and 8 section B general obligations law, subdivisions 2 and 7 as amended by chapter 644 laws 2008, are amended to read as follows: 2. To sell, to exchange, to convey eir with or without covenants, to release, to surrender, to mortgage, to incumber, to pledge, to hypocate, to pawn, to create, modify or revoke a trust unless such creation, modification or revocation is a gift transaction governed by section this title to grant options concerning, to lease or to sublet to ors, or orwise to dispose any chattel or goods or any interest in any chattel or goods; 7. To execute, to acknowledge, to seal and to deliver any conveyance, mortgage, lease, creation, revocation or modification a trust unless such creation, modification or revocation is a gift transaction governed by section this title, notice, check or or instrument which agent may think useful for accomplishment any purposes enumerated in this section; CHAP To prosecute, to defend, to submit to [arbitration] alternative

10 dispute resolution, to settle, and to propose or to accept a compromise with respect to, any claim existing in favor, or against, principal based on or involving any chattel or goods transaction or to intervene in any action or proceeding relating reto; 9. Subdivisions 2, 9 and 11 section C general obligations law, subdivisions 2 and 9 as amended by chapter 644 laws 2008, are amended to read as follows: 2. To sell (including short sales), to exchange, to transfer eir with or without a guaranty, to release, to surrender, to hypocate, to pledge, to create, modify or revoke a trust unless such creation, modification or revocation is a gift transaction governed by section this title, to grant options concerning, to loan, to trade in, or orwise to dispose any bond, share, instrument similar character, commodity interest or any instrument with respect reto; 9. To execute, to acknowledge, to seal and to deliver any consent, agreement, authorization, creation, modification or revocation a trust unless such creation, declaration, modification or revocation is a gift transaction governed by section this title, assignment, notice, waiver notice, check, or or instrument which agent may think useful for accomplishment any purposes enumerated in this section; 11. To prosecute, to defend, to submit to [arbitration] alternative dispute resolution, to settle and to propose or to accept a compromise with respect to, any claim existing in favor, or against, principal based on or involving any bond, share or commodity transaction or to intervene in any action or proceeding relating reto; 10. Paragraphs (a) and (b) subdivision 1 section D general obligations law, as added by chapter 644 laws 2008, are amended to read as follows: (a) with respect to joint accounts existing at creation agency, authority granted hereby shall not include power to

11 change title account by addition a new joint tenant or deletion an existing joint tenant, unless authority to make such changes is conveyed in a statutory [major] gifts rider to a statutory short form power attorney or in a non-statutory power attorney signed and dated by principal with signature principal duly acknowledged in manner prescribed for acknowledgement a conveyance real property, and which is executed pursuant to requirements paragraph (b) subdivision nine section this title, and (b) with respect to totten trust accounts existing at creation agency, authority granted hereby shall not include power to add, delete, or orwise change designation beneficiaries in effect for any such accounts, unless authority to make such additions, deletions or changes is conveyed in a statutory [major] gifts rider to a statutory short form power attorney or in a nonstatutory power attorney signed and dated by principal with signature principal duly acknowledged in manner prescribed for acknowledgment a conveyance real property, and which is executed pursuant to requirements paragraph (b) subdivision nine section this title. 11. Subdivision 15 section D general obligations law is amended to read as follows: 15. To prosecute, to defend, to submit to [arbitration] alternative dispute resolution, to settle, and to propose or to accept a compromise 7 CHAP. 340 with respect to, any claim existing in favor, or against, principal based on or involving any banking transaction or to intervene in any action or proceeding relating reto; 12. Subdivisions 1, 2 and 8 section E general obligations law are amended to read as follows:

12 1. To extent that an agent is permitted by law thus to act for a principal, to discharge and to perform any duty or liability and also to exercise any right, power, privilege or option which principal has, or claims to have, under any contract partnership wher principal is a general or special partner reunder, to enforce terms any such partnership agreement for protection principal, by action, proceeding or orwise, as agent shall think to be desirable or necessary, and to defend, submit to [arbitration] alternative dispute resolution, settle or compromise any action or or legal proceeding to which principal is a party because his membership in said partnership; 2. To exercise in person or by proxy or to enforce by action, proceeding or orwise, any right, power, privilege or option which principal has as holder any bond, share, or or instrument similar character and to defend, submit to [arbitration] alternative dispute resolution, settle or compromise any action or or legal proceeding to which principal is a party because any such bond, share, or or instrument similar character; 8. To prosecute, to defend, to submit to [arbitration] alternative dispute resolution, to settle, and to propose or to accept a compromise with respect to, any claim existing in favor, or against, principal based on or involving any business operating transaction or to intervene in any action or proceeding relating reto; 13. Subdivisions 1, 3 and 11 section F general obligations law, subdivisions 1 and 3 as amended by chapter 644 laws 2008, are amended to read as follows: 1. To continue, to pay premium or assessment on, to modify, to rescind, to release or to terminate any contract life, accident, health, disability or liability insurance or any combination such insurance procured by or on behalf principal prior to

13 creation agency which insures eir principal or any or person, without regard to wher principal is or is not a beneficiary reunder; provided, however, with respect to life insurance contracts existing at creation agency, authority granted hereby shall not include power to add, delete or orwise change designation beneficiaries in effect for any such contract, unless authority to make such additions, deletions or changes is conveyed in a statutory [major] gifts rider to a statutory short form power attorney or in a non-statutory power attorney signed and dated by principal with signature principal duly acknowledged in manner prescribed for acknowledgment a conveyance real property, and which is executed pursuant to requirements paragraph (b) subdivision nine section this title; 3. To apply for and to receive any available loan on security contract insurance, wher for payment a premium or for procuring cash, to surrender and reupon to receive cash surrender value, to exercise an election as to beneficiary or mode payment, to change manner paying premiums, and to change or to convert type insurance contract, with respect to any contract life, accident, health, disability or liability insurance as to which principal has, or claims to have, any one or more powers CHAP described in this section; provided, however, that authority granted hereby shall not include power to add, delete or orwise change designation beneficiaries in effect for any such contract, unless authority to make such additions, deletions or changes is conveyed in a statutory [major] gifts rider to a statutory short form power attorney or in a non-statutory power attorney signed and dated by principal with signature principal duly acknowledged in

14 manner prescribed for acknowledgment a conveyance real property, and which is executed pursuant to requirements paragraph (b) subdivision nine section this title; 11. To prosecute, to defend, to submit to [arbitration] alternative dispute resolution, to settle, and to propose or to accept a compromise with respect to any claim existing in favor, or against, principal based on or involving any insurance transaction or to intervene in any action or proceeding relating reto; 14. Subdivision 8 section G general obligations law is amended to read as follows: 8. To submit to [arbitration] alternative dispute resolution or to settle, and to propose or to accept a compromise with respect to any controversy or claim which affects estate a decedent, absentee, infant or incompetent, or administration a trust or or fund, in any one which principal has, or claims to have, an interest, and to do any and all acts which agent shall think to be desirable or necessary in effectuating such compromise; 15. Subdivision 5 section H general obligations law is amended to read as follows: 5. To submit to [arbitration] alternative dispute resolution, to settle, and to propose or to accept a compromise with respect to, any claim existing in favor or against principal, or any litigation to which principal is, or may become or be designated a party; 16. Subdivisions 12 and 14 section I general obligations law, subdivision 14 as added by chapter 644 laws 2008, are amended to read as follows: 12. To prosecute, to defend, to submit to [arbitration] alternative dispute resolution, to settle, and to propose or to accept a compromise with respect to, any claim existing in favor, or against, principal based on or involving any transaction enumerated in this section or to intervene in any action or proceeding relating reto; 14. To continue gifts that principal customarily made to individ-

15 uals and charitable organizations prior to creation agency, provided that [no person or charitable organization may be recipient gifts] in any one calendar year [which, in aggregate,] all such gifts shall not exceed five hundred dollars in aggregate; and 17. Subdivisions 2, 4 and 6 section L general obligations law, subdivisions 2 and 4 as amended by chapter 644 laws 2008 and subdivision 6 as added by chapter 499 laws 1996, are amended to read as follows: 2. To make investment directions, to select and change payment options, and to exercise any or election for principal with regard to any retirement benefit or plan in which principal has an interest, provided, however, that authority granted hereby shall not include authority to add, delete, or orwise change designation beneficiaries in effect for any such retirement benefit or plan, unless authority to make such additions, deletions or changes is conveyed in a statutory [major] gifts rider to a statutory short form power attorney or in a non-statutory power attorney signed and 9 CHAP. 340 dated by principal with signature principal duly acknowledged in manner prescribed for acknowledgment a conveyance real property, and which is executed pursuant to requirements paragraph (b) subdivision nine section this title; 4. To prepare, execute and deliver any application, agreement, trust agreement unless such trust agreement is a gift transaction governed by section this title, authorization, check or or instrument or document which may be required under terms any retirement benefit or plan in which principal has an interest or by administrator re, or which agent deems useful for accomplishment any purposes enumerated in this section; 6. To prosecute, defend, submit to [arbitration] alternative dispute

16 resolution, settle, and propose or accept a compromise with respect to any claim existing in favor, or against, principal based upon or involving any retirement benefit or plan and to intervene in any action or proceeding relating reto; 18. Section general obligations law, as amended by chapter 644 laws 2008, is amended to read as follows: Modifications statutory short form power attorney and statutory [major] gifts rider. A power attorney which satisfies requirements paragraphs (a), (b) and (c) subdivision one section B and section this title is not prevented from being a "statutory short form power attorney", and a document which satisfies requirements section this title is not prevented from being a "statutory [major] gifts rider" as eir se terms is used in sections this title, by fact that it also contains additional language at section labeled "modifications" which: 1. Eliminates from statutory short form power attorney or from statutory [major] gifts rider one or more powers enumerated in one or more constructional sections this title with respect to a subdivision statutory short form power attorney or statutory [major] gifts rider, affirmatively chosen by principal; or 2. Supplements one or more powers enumerated in one or more constructional sections in this title with respect to a subdivision statutory short form power attorney or statutory [major] gifts rider, affirmatively chosen by principal, by specifically listing additional powers agent; or 3. Makes some additional provision which is not inconsistent with or provisions statutory short form power attorney or statutory [major] gifts rider, including a provision revoking one or more powers attorney previously executed by principal. 19. The opening paragraph subdivision 1 section

17 general obligations law, as amended by chapter 644 laws 2008, is amended to read as follows: No third party located or doing business in this state shall refuse, without reasonable cause, to honor a statutory short form power attorney properly executed in accordance with section B this title, including a statutory short form power attorney which is supplemented by a statutory [major] gifts rider, or a statutory short form power attorney properly executed in accordance with laws in effect at time its execution. 20. Subparagraphs 1 and 9 paragraph (a) subdivision 1 section general obligations law, as amended by chapter 644 laws 2008, are amended to read as follows: CHAP (1) refusal by agent to provide an original power attorney or a copy certified by an attorney pursuant to [rule] section twenty-one hundred five civil practice law and rules, or by a court or or government entity; (9) refusal by a title insurance company to underwrite title insurance for a [transfer] gift real property made pursuant to a [major] statutory gifts rider or non-statutory power attorney that does not contain express instructions or purposes principal. 21. Paragraph (b) subdivision 1 section general obligations law, as amended by chapter 644 laws 2008, is amended to read as follows: (b) It shall be deemed unreasonable for a third party to refuse to honor a statutory short form power attorney, including a statutory short form power attorney which is supplemented by a statutory [major] gifts rider, or a statutory short form power attorney properly executed in accordance with laws in effect at time its execution, if only reason for refusal is any following: (1) power attorney is not on a form prescribed by third party to whom power attorney is presented.

18 (2) re has been a lapse time since execution power attorney. (3) on face statutory short form power attorney, re is a lapse time between date acknowledgment signature principal and date acknowledgment signature any agent. 22. Subdivisions 2, 3 and 5 section general obligations law, subdivisions 2 and 3 as amended and subdivision 5 as added by chapter 644 laws 2008, are amended and a new subdivision 7 is added to read as follows: 2. Except as provided in subdivision three this section, it shall be deemed unlawful for a third party to unreasonably refuse to honor a properly executed statutory short form power attorney, including a statutory short form power attorney which is supplemented by a statutory [major] gifts rider, or a statutory short form power attorney properly executed in accordance with laws in effect at time its execution. A special proceeding as authorized by section this title shall be exclusive remedy for a violation this section. 3. In absence actual knowledge that principal lacked capacity to execute a statutory short form power attorney or that statutory short form power attorney was procured through fraud, duress or undue influence, no third party receiving and retaining a properly executed statutory short form power attorney, including a statutory short form power attorney which is supplemented by a statutory [major] gifts rider or a statutory short form power attorney properly executed in accordance with laws in effect at time its execution, or a complete photostatic copy properly executed original re, nor any ficer, agent, attorney-in-fact or employee such third party shall incur any liability by reason acting upon

19 authority re unless third party shall have received actual notice revocation or termination such power attorney. If a principal maintains an account at a financial institution, financial institution is deemed to have actual notice after it has had a reasonable opportunity to act on a written notice revocation or termination following its receipt same at its fice where such account is located. 11 CHAP When power attorney is presented to a third party, it shall not be deemed unreasonable for a third party to require agent to execute an acknowledged affidavit pursuant to this subdivision stating that power attorney is in full force and effect. Such an affidavit is conclusive pro to third party relying on power attorney that power attorney is valid and effective, and has not been terminated [or], revoked or modified, except as to any third party who had actual notice that power attorney had terminated [or], been revoked or been modified prior to execution affidavit. Such affidavit shall state that: (a) agent does not have, at time transaction, actual notice termination or revocation power attorney, or notice any facts indicating that power attorney has been terminated or revoked; (b) agent does not have, at time transaction, actual notice that power attorney has been modified in any way that would affect ability agent to authorize or engage in transaction, or notice any facts indicating that power attorney has been so modified; [and] (c) if agent was named as a successor agent, prior agent is no longer able or willing to serve[.]; and (d) if agent has been principal's spouse, power attorney expressly provides that divorce or annulment as defined in subpara-

20 graph two paragraph (f) section estates, powers and trusts law does not terminate agent's authority reunder, or agent does not have actual notice that marriage has been terminated by divorce or annulment as defined in subparagraph two paragraph (f) section estates, powers and trusts law at time transaction. 7. A statutory short form power attorney or a non-statutory power attorney that meets requirements subdivision one section B this title shall be accepted for recording so long as it has been signed by one agent named rein whose signature has been acknowledged. If two or more agents acting on behalf principal are required to act toger, power attorney shall be accepted for recording as long as ir signatures have been acknowledged. When a successor or co-agent authorized to act separately from any or agents presents a certified copy a recorded statutory short form power attorney or non-statutory power attorney with agent's signature acknowledged, instrument shall be accepted for recording. 23. Section general obligations law, as added by chapter 644 laws 2008, is amended to read as follows: Standard care; fiduciary [duty] duties; compelling disclosure record. 1. Standard care. In dealing with property principal, an agent shall observe standard care that would be observed by a prudent person dealing with property anor. 2. Fiduciary [duty] duties. (a) An agent acting under a power attorney has a fiduciary [duty to] relationship with principal. The fiduciary [duty includes] duties include but are not limited to each following obligations: (1) To act according to any instructions from principal or, where re are no instructions, in best interest principal, and to avoid conflicts interest. (2) To keep principal's property separate and distinct from any

21 or property owned or controlled by agent, except for property that is jointly owned by principal and agent at time CHAP execution power attorney, and property that becomes jointly owned after execution power attorney as result agent's acquisition an interest in principal's property by reason agent's exercise authority granted in a statutory [major] gifts rider or in a non-statutory power attorney signed and dated by principal with signature principal duly acknowledged in manner prescribed for acknowledgment a conveyance real property, and which is executed pursuant to requirements paragraph (b) subdivision nine section this title. The agent may not [transfer] make gifts to principal's property to himself or herself without specific authorization in a power attorney. (3) To keep a record all receipts, disbursements, and transactions entered into by agent on behalf principal and to make such record and power attorney available to principal or to third parties at request principal. The agent shall make such record and a copy power attorney available within fifteen days a written request by any following: (i) a monitor; (ii) a co-agent or successor agent acting under power attorney; (iii) a government entity, or ficial re, investigating a report that principal may be in need protective or or services, or investigating a report abuse or neglect; (iv) a court evaluator appointed pursuant to section mental hygiene law; (v) a guardian ad litem appointed pursuant to section seventeen hundred fifty-four surrogate's court procedure act; (vi) guardian or conservator estate principal, if such record has not already been provided to court evaluator or guardian ad litem; or

22 (vii) personal representative estate a deceased principal if such record has not already been provided to guardian or conservator estate principal. The failure agent to make record available pursuant to this paragraph may result in a special proceeding under subdivision one section this title. [Such proceeding shall be exclusive remedy to compel agent to provide such record.] (b) The agent may be subject to liability for conduct or omissions which violate [] any fiduciary duty. (c) The agent is not liable to third parties for any act pursuant to a power attorney if act was authorized at time and act did not violate subdivision one or two this section. 3. Resignation. (a) An agent who has signed power attorney may resign by giving written notice to principal and agent's co-agent, successor agent or monitor, if one has been named, or principal's guardian if one has been appointed. If no co-agent, successor agent, monitor or guardian is known to agent and principal is incapacitated or agent has notice any facts indicating principal's incapacity, agent may give written notice to a government entity having authority to protect welfare principal, or may petition court to approve resignation. (b) The principal may provide for alternative means for an agent's resignation in power attorney. 24. Subdivision 2 section general obligations law, as added by chapter 644 laws 2008, is amended to read as follows: 13 CHAP A principal may designate one or more successor agents to serve, if [every] any initial or predecessor agent resigns, dies, becomes incapacitated, is not qualified to serve or declines to serve. Unless principal provides orwise in power attorney, a successor agent has

23 same authority as that granted to an initial agent. A principal may provide for specific succession rules. 25. Section general obligations law is amended by adding a new subdivision 4 to read as follows: 4. Any person, or than an estate or a trust, may act as an agent, co-agent or successor agent under a power attorney. 26. Subdivisions 2, 3, 4, 5 and 6 section general obligations law, as added by chapter 644 laws 2008, are amended to read as follows: 2. An agent's authority terminates when: (a) principal revokes agent's authority; (b) agent dies, becomes incapacitated or resigns; (c) agent's marriage to principal is terminated by divorce[,] or annulment [or declaration nullity], as defined in subparagraph two paragraph (f) section estates, powers and trusts law, unless power attorney expressly provides orwise. If authority an agent is revoked solely by this subdivision, it shall be revived by principal's remarriage to former spouse; or (d) power attorney terminates. 3. A principal may revoke a power attorney[;]: (a) in accordance with terms power attorney; or (b) by delivering a [written, signed and dated] revocation power attorney [as follows: (1)] to agent[, and ] in person or by sending a signed and dated revocation by mail, courier, electronic transmission or facsimile to agent's last known address. The agent must comply with principal's revocation notwithstanding actual or perceived incapacity principal unless principal is subject to a guardianship under article eighty-one mental hygiene law[; and (2) to any third party that principal has reason to believe has received, retained or acted upon, power attorney]. 4. Where [] a power attorney has been recorded pursuant to section two hundred ninety-four real property law, principal shall also record [a written] revocation in fice in which power attorney is recorded pursuant to section three hundred twenty-

24 six real property law, provided revocation complies with section three hundred seven state technology law. [Notwithstanding recording a revocation, a third party must have actual notice revocation for revocation to be effective.] 5. (a) Termination an agent's authority or power attorney is not effective as to any third party who has not received actual notice termination and acts in good faith under power attorney. Any action so taken, unless orwise invalid or unenforceable, shall bind principal and principal's successors in interest. A financial institution is deemed to have actual notice after it has had a reasonable opportunity to act on a written notice revocation or termination following receipt same at its fice where an account is located. (b) Termination an agent's authority or power attorney is not effective as to agent until agent has received a revocation as required by subdivision three this section. An agent is deemed to have received a revocation when it has been delivered to agent in CHAP person, or within a reasonable time after it has been sent by mail, courier, electronic transmission or facsimile in accordance with subdivision three this section. 6. [Unless principal expressly provides orwise, execution a power attorney revokes any and all prior powers attorney executed by principal] The execution a power attorney does not revoke any power attorney previously executed by principal. 27. Section general obligations law, as added by chapter 644 laws 2008, is amended to read as follows: Powers attorney executed in or jurisdictions. [A] Notwithstanding provisions section B this title, a power attorney executed in anor state or jurisdiction in compliance with law that state or jurisdiction or law this state is valid

25 in this state, regardless wher principal is a domiciliary this state. A power attorney that complies with section B this title and is executed in anor state or jurisdiction by a domiciliary this state is valid in this state. A power attorney executed in this state by a domiciliary anor state or jurisdiction in compliance with law that state or jurisdiction or law this state is valid in this state. 28. Section general obligations law, as added by chapter 644 laws 2008, is amended to read as follows: Statutory short form power attorney. 1. The use following form in creation a power attorney is lawful, and, when used, and executed in accordance with subdivision one section B this title, it shall be construed as a statutory short form power attorney in accordance with provisions this title: "POWER OF ATTORNEY NEW YORK STATUTORY SHORT FORM (a) CAUTION TO THE PRINCIPAL: Your Power Attorney is an important document. As "principal," you give person whom you choose (your "agent") authority to spend your money and sell or dispose your property during your lifetime without telling you. You do not lose your authority to act even though you have given your agent similar authority. When your agent exercises this authority, he or she must act according to any instructions you have provided or, where re are no specific instructions, in your best interest. "Important Information for Agent" at end this document describes your agent's responsibilities. Your agent can act on your behalf only after signing Power Attorney before a notary public. You can request information from your agent at any time. If you are revoking a prior Power Attorney [by executing this Power Attor-

26 ney], you should provide written notice revocation to your prior agent(s) and to any third parties who may have acted upon it, including financial institutions where your accounts are located. You can revoke or terminate your Power Attorney at any time for any reason as long as you are sound mind. If you are no longer sound mind, a court can remove an agent for acting improperly. Your agent cannot make health care decisions for you. You may execute a "Health Care Proxy" to do this. 15 CHAP. 340 The law governing Powers Attorney is contained in New York General Obligations Law, Article 5, Title 15. This law is available at a law library, or online through New York State Senate or Assembly websites, or If re is anything about this document that you do not understand, you should ask a lawyer your own choosing to explain it to you. (b) DESIGNATION OF AGENT(S): I,, hereby appoint: name and address principal as my agent(s) name(s) and address(es) agent(s) If you designate more than one agent above, y must act toger unless you initial statement below. ( ) My agents may act SEPARATELY. (c) DESIGNATION OF SUCCESSOR AGENT(S): (OPTIONAL) If [every] any agent designated above is unable or unwilling to serve, I appoint as my successor agent(s): name(s) and address(es) successor agent(s) Successor agents designated above must act toger unless you initial statement below. ( ) My successor agents may act SEPARATELY. You may provide for specific succession rules in this section. Insert specific succession provisions here: (d) This POWER OF ATTORNEY shall not be affected by my subsequent incapacity unless I have stated orwise below, under "Modifications".

27 (e) This POWER OF ATTORNEY [REVOKES] DOES NOT REVOKE any [and all prior] Powers Attorney previously executed by me unless I have stated orwise below, under "Modifications." If [your are] you do NOT [revoking] intend to revoke your prior Powers Attorney, and if you [are granting] have granted same authority in [two or more Powers] this Power Attorney[, you must also indicate under "Modifications" wher agents given se powers] as you granted to anor agent in a prior Power Attorney, each agent can act separately unless you indicate under "Modifications" that agents with same authority are to act toger [or separately]. (f) GRANT OF AUTHORITY: To grant your agent some or all authority below, eir (1) Initial bracket at each authority you grant, or (2) Write or type letters for each authority you grant on blank line at (P), and initial bracket at (P). If you initial (P), you do not need to initial or lines. I grant authority to my agent(s) with respect to following subjects as defined in sections A through N New York General Obligations Law: ( ) (A) real estate transactions; ( ) (B) chattel and goods transactions; ( ) (C) bond, share, and commodity transactions; ( ) (D) banking transactions; ( ) (E) business operating transactions; CHAP agent gifts including total cannot military ( ) (F) insurance transactions; ( ) (G) estate transactions; ( ) (H) claims and litigation; ( ) (I) personal and family maintenance. If you grant your this authority, it will allow agent to make that you customarily have made to individuals, agent, and charitable organizations. The amount all such gifts in any one calendar year exceed five hundred dollars; ( ) (J) benefits from governmental programs or civil or service;

28 ( ) (K) health care billing and payment matters; records, reports, and statements; ( ) (L) retirement benefit transactions; ( ) (M) tax matters; ( ) (N) all or matters; ( ) (O) full and unqualified authority to my agent(s) to delegate any or all foregoing powers to any person or persons whom my agent(s) select; ( ) (P) EACH matters identified by following letters. You need not initial or lines if you initial line (P). (g) MODIFICATIONS: (OPTIONAL) In this section, you may make additional provisions, including language to limit or supplement authority granted to your agent. However, you cannot use this Modifications section to grant your agent authority to make [major] gifts or changes to interests in your property. If you wish to grant your agent such authority, you MUST complete Statutory [Major] Gifts Rider. (h) [MAJOR GIFTS AND OTHER TRANSFERS] CERTAIN GIFT TRANSACTIONS: STATU- TORY [MAJOR] GIFTS RIDER (OPTIONAL) In order to authorize your agent to make [major] gifts [and or transfers your property] in excess an annual total $500 for all gifts described in (I) grant authority section this document (under personal and family maintenance), you must initial statement below and execute a Statutory [Major] Gifts Rider at same time as this instrument. Initialing statement below by itself does not authorize your agent to make [major] gifts [and or transfers]. The preparation Statutory [Major] Gifts Rider should be supervised by a lawyer. ( )[(SMGR)] (SGR) I grant my agent authority to make [major] gifts [and or transfers my property,] in accordance with terms and conditions Statutory [Major] Gifts Rider that supplements this Statutory Power Attorney. (i) DESIGNATION OF MONITOR(S): (OPTIONAL)

29 If you wish to appoint monitor(s), initial and fill in section below: ( ) I wish to designate, whose address(es) is (are), as monitor(s). Upon request monitor(s), my agent(s) must provide monitor(s) with a copy power attorney and a record all transactions done or made on my behalf. Third parties holding 17 CHAP. 340 records such transactions shall provide records to monitor(s) upon request. (j) COMPENSATION OF AGENT(S): (OPTIONAL) Your agent is entitled to be reimbursed from your assets for reasonable expenses incurred on your behalf. If you ALSO wish your agent(s) to be compensated from your assets for services rendered on your behalf, initial statement below. If you wish to define "reasonable compensation", you may do so above, under "Modifications". ( ) My agent(s) shall be entitled to reasonable compensation for services rendered. (k) ACCEPTANCE BY THIRD PARTIES: I agree to indemnify third party for any claims that may arise against third party because reliance on this Power Attorney. I understand that any termination this Power Attorney, wher result my revocation Power Attorney or orwise, is not effective as to a third party until third party has actual notice or knowledge termination. (l) TERMINATION: This Power Attorney continues until I revoke it or it is terminated by my death or or event described in section General Obligations Law. Section General Obligations Law describes manner in which you may revoke your Power Attorney, and events which terminate Power Attorney.