S. 7288--A 2
[3.] (C) "Capacity" means ability to comprehend the nature and conse-
quences of the act of executing and granting, revoking, amending or
modifying a power of attorney, any provision in a power of attorney, or
the authority of any person to act as agent under a power of attorney.
[4.] (D) "Compensation" means reasonable compensation authorized to be
paid to the agent from assets of the principal for services actually
rendered by the agent pursuant to the authority granted in a power of
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 associ-
ation, credit union, federal credit union, branch of a foreign banking
corporation, public pension fund, retirement system, securities broker,
securities dealer, securities firm, and insurance company.
[6.] (F) "Incapacitated" means to be without capacity.
[7.] (G) "Internal Revenue Code" means the United States Internal
Revenue Code of 1986, as amended. Such references, however, shall be
deemed to constitute references to any corresponding provisions of any
subsequent federal tax code.
[8.] (H) "Monitor" means a person appointed in the power of attorney
who has the authority to request, receive, and seek to compel the agent
to provide a record of all receipts, disbursements, and transactions
entered into by the agent on behalf of the principal.
[9.] (I) "Person" means an individual, whether acting for himself or
herself, or as a fiduciary or as an official of any legal, governmental
or commercial entity (including, but not limited to, any such entity
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 other legal or commercial entity.
[10.] (J) "Power of attorney" means a written document, OTHER THAN A
DOCUMENT REFERRED TO IN SECTION 5-1501C OF THIS TITLE, by which a prin-
cipal with capacity designates an agent to act on his or her behalf.
[11.] (K) "Principal" means an individual who is eighteen years of age
or older, ACTING FOR HIMSELF OR HERSELF AND NOT AS A FIDUCIARY OR AS AN
OFFICIAL OF ANY LEGAL, GOVERNMENTAL OR COMMERCIAL ENTITY, who executes a
power of attorney.
[12.] (L) "Record" means information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is
retrievable in perceivable form.
[13.] (M) "Sign" means to place any memorandum, mark or sign, written,
printed, stamped, photographed, engraved or otherwise upon an instrument
or writing, or to use an electronic signature as that term is defined in
subdivision three of section three hundred two of the state technology
law, with the intent to execute the instrument, writing or electronic
record. In accordance with the requirements of section three hundred
seven of the state technology law, a power of attorney or any other
instrument executed by the principal or agent that is recordable under
the real property law shall not be executed with an electronic signa-
ture.
[14.] (N) "Statutory [major] gifts rider" or ["SMGR"] "SGR" means a
document by which the principal may supplement a statutory short form
power of attorney to authorize [major] CERTAIN gift transactions [and
other transfers], [that meets] OTHER THAN THOSE PERMITTED BY SUBDIVISION
S. 7288--A 3
FOURTEEN OF SECTION 5-1502I OF THIS TITLE. THE DOCUMENT MUST MEET the
requirements of subdivision nine of section 5-1514 of this title, and
[that contains] CONTAIN the exact wording of the form set forth in
subdivision ten of section 5-1514 of this title. A MISTAKE IN WORDING,
SUCH AS IN SPELLING, PUNCTUATION OR FORMATTING, OR THE USE OF BOLD OR
ITALIC TYPE, SHALL NOT PREVENT A STATUTORY GIFTS RIDER FROM BEING DEEMED
A STATUTORY GIFTS RIDER, BUT THE WORDING OF THE FORM SET FORTH IN SUBDI-
VISION TEN OF SECTION 5-1514 OF THIS TITLE SHALL GOVERN. The use of the
form set forth in subdivision ten of section 5-1514 of 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 5-1503 of this title as such modifica-
tions or additions relate to [major] ALL gift transactions [and other
transfers]. The statutory [major] gifts rider must be executed in the
manner provided in section 5-1514 of this title, simultaneously with the
statutory short form power of attorney in which the authority [(SMGR)]
(SGR) is initialed by the principal. A statutory [major] gifts rider and
the statutory short form power of attorney it supplements must be read
together as a single instrument.
[15.] (O) "Statutory short form power of attorney" means a power of
attorney that meets the requirements of paragraphs (a), (b) and (c) of
subdivision one of section 5-1501B of this title, and that contains the
exact wording of the form set forth in section 5-1513 of this title. A
MISTAKE IN WORDING, SUCH AS IN SPELLING, PUNCTUATION OR FORMATTING, OR
THE USE OF BOLD OR ITALIC TYPE, SHALL NOT PREVENT A POWER OF ATTORNEY
FROM BEING DEEMED A STATUTORY SHORT FORM POWER OF ATTORNEY, BUT THE
WORDING OF THE FORM SET FORTH IN SECTION 5-1513 OF THIS TITLE SHALL
GOVERN. The use of the form set forth in section 5-1513 of this title is
lawful and when used, it shall be construed as a statutory short form
power of attorney. A statutory short form power of attorney may be used
to grant authority provided in sections 5-1502A through 5-1502N of this
title. A "statutory short form power of attorney" may contain modifica-
tions or additions as provided in section 5-1503 of this title, but in
no event may it be modified to grant any authority provided in section
5-1514 of this title. If the authority [(SMGR)] (SGR) on the statutory
short form is initialed by the principal, the statutory short form power
of attorney must be executed in the manner provided in section 5-1501B
of this title, simultaneously with the statutory [major] gifts rider. A
statutory short form power of attorney and a statutory [major] gifts
rider which supplements it must be read together as a single instrument.
[16.] (P) "NON-STATUTORY POWER OF ATTORNEY" MEANS A POWER OF ATTORNEY
THAT IS NOT A STATUTORY SHORT FORM POWER OF ATTORNEY.
(Q) "Third party" means a financial institution or person OTHER THAN A
PRINCIPAL OR AN AGENT.
S 3. The opening paragraph and paragraphs (b) and (c) of subdivision 1
of section 5-1501B of the general obligations law, as added by chapter
644 of the laws of 2008, are amended to read as follows:
To be valid, EXCEPT AS OTHERWISE PROVIDED IN SECTION 5-1512 OF THIS
TITLE, a statutory short form power of attorney, or a non-statutory
power of attorney, executed in this state by [an individual] A
PRINCIPAL, must:
(b) Be signed and dated by a principal with capacity, with the signa-
ture of the principal duly acknowledged in the manner prescribed for the
[acknowledgement] ACKNOWLEDGMENT of a conveyance of real property.
(c) Be signed and dated by any agent acting on behalf of the principal
with the signature of the agent duly acknowledged in the manner
S. 7288--A 4
prescribed for the [acknowledgement] ACKNOWLEDGMENT of a conveyance of
real property. A power of attorney executed pursuant to this section is
not invalid solely because there has been a lapse of time between the
date of acknowledgment of the signature of the principal and the date OR
DATES of [acknowledgement] ACKNOWLEDGMENT of the signature OR SIGNATURES
of [the] ANY agent [acting] OR AGENTS OR SUCCESSOR AGENT OR SUCCESSOR
AGENTS AUTHORIZED TO ACT on behalf of the principal or because the prin-
cipal became incapacitated during any such lapse of time.
S 4. The opening paragraph and paragraph (a) of subdivision 2 of
section 5-1501B of the general obligations law, as added by chapter 644
of the laws of 2008, is amended to read as follows:
In addition to the requirements of subdivision one of this section, to
be valid for the purpose of authorizing the agent to make [any gift or
other transfer] CERTAIN GIFT TRANSACTIONS described in section 5-1514 of
this title:
(a) a statutory short form power of attorney must contain the authori-
ty [(SMGR)] (SGR) initialed by the principal and be accompanied by a
valid statutory [major] gifts rider; and
S 5. Subdivisions 3 and 4 of section 5-1501B of the general obli-
gations law, as added by chapter 644 of the laws of 2008, are amended to
read as follows:
3. (a) The date on which an agent's signature is acknowledged is the
effective date of the power of attorney as to that agent; provided,
however, that if two or more agents are designated to act together, the
power of attorney takes effect when all the agents so designated have
signed [the] SUCH power of attorney with their signatures acknowledged.
(b) If the power of attorney states that it takes effect upon the
occurrence of a date or a contingency specified in the document, then
the power of attorney takes effect only when the date or contingency
identified in the document has occurred, and the signature of the agent
acting on behalf of the principal has been acknowledged. If the document
requires that a person or persons named or otherwise identified therein
declare, in writing, that the identified contingency has occurred, such
a declaration satisfies the requirement of this paragraph without regard
to whether the specified contingency has occurred.
4. Nothing of this title shall be construed to bar the use OR VALIDITY
of any other or different form of power of attorney desired by a person
other than [an individual] A PRINCIPAL as the term [person] PRINCIPAL is
defined in section 5-1501 of this title.
S 6. The general obligations law is amended by adding a new section
5-1501C to read as follows:
S 5-1501C. POWERS OF ATTORNEY EXCLUDED FROM THIS TITLE. THE PROVISIONS
OF THIS TITLE SHALL NOT APPLY TO THE FOLLOWING POWERS OF ATTORNEY:
1. A POWER OF ATTORNEY GIVEN PRIMARILY FOR A BUSINESS OR COMMERCIAL
PURPOSE, INCLUDING WITHOUT LIMITATION:
(A) A POWER TO THE EXTENT IT IS COUPLED WITH AN INTEREST IN THE
SUBJECT OF THE POWER;
(B) A POWER GIVEN TO OR FOR THE BENEFIT OF A CREDITOR IN CONNECTION
WITH A LOAN OR OTHER CREDIT TRANSACTION;
(C) A POWER GIVEN TO FACILITATE TRANSFER OR DISPOSITION OF ONE OR MORE
SPECIFIC STOCKS, BONDS OR OTHER ASSETS, WHETHER REAL, PERSONAL, TANGIBLE
OR INTANGIBLE;
2. A PROXY OR OTHER DELEGATION TO EXERCISE VOTING RIGHTS OR MANAGEMENT
RIGHTS WITH RESPECT TO AN ENTITY;
S. 7288--A 5
3. A POWER CREATED ON A FORM PRESCRIBED BY A GOVERNMENT OR GOVERN-
MENTAL 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 GOVERN-
MENTAL SUBDIVISION, AGENCY OR INSTRUMENTALITY OR OTHER THIRD PARTY;
5. A POWER AUTHORIZING A FINANCIAL INSTITUTION OR EMPLOYEE OF A FINAN-
CIAL INSTITUTION TO TAKE ACTION RELATING TO AN ACCOUNT IN WHICH THE
FINANCIAL INSTITUTION HOLDS CASH, SECURITIES, COMMODITIES OR OTHER
FINANCIAL ASSETS ON BEHALF OF THE PERSON GIVING THE POWER;
6. A POWER GIVEN BY AN INDIVIDUAL WHO IS OR IS SEEKING TO BECOME A
DIRECTOR, OFFICER, SHAREHOLDER, EMPLOYEE, PARTNER, LIMITED PARTNER,
MEMBER, UNIT OWNER OR MANAGER OF A CORPORATION, PARTNERSHIP, LIMITED
LIABILITY COMPANY, CONDOMINIUM OR OTHER LEGAL OR COMMERCIAL ENTITY IN
HIS OR HER CAPACITY AS SUCH;
7. A POWER CONTAINED IN A PARTNERSHIP AGREEMENT, LIMITED LIABILITY
COMPANY OPERATING AGREEMENT, DECLARATION OF TRUST, DECLARATION OF CONDO-
MINIUM, CONDOMINIUM BYLAWS, CONDOMINIUM OFFERING PLAN OR OTHER AGREEMENT
OR INSTRUMENT GOVERNING THE INTERNAL AFFAIRS OF AN ENTITY AUTHORIZING A
DIRECTOR, OFFICER, SHAREHOLDER, EMPLOYEE, PARTNER, LIMITED PARTNER,
MEMBER, UNIT OWNER, MANAGER OR OTHER PERSON TO TAKE LAWFUL ACTION RELAT-
ING TO SUCH ENTITY;
8. A POWER GIVEN TO A CONDOMINIUM MANAGING AGENT TO TAKE ACTION IN
CONNECTION WITH THE USE, MANAGEMENT AND OPERATION OF A CONDOMINIUM UNIT;
9. A POWER GIVEN TO A LICENSED REAL ESTATE BROKER TO TAKE ACTION IN
CONNECTION WITH A LISTING OF REAL PROPERTY, MORTGAGE LOAN, LEASE OR
MANAGEMENT AGREEMENT;
10. A POWER AUTHORIZING ACCEPTANCE OF SERVICE OF PROCESS ON BEHALF OF
THE PRINCIPAL; AND
11. A POWER CREATED PURSUANT TO AUTHORIZATION PROVIDED BY A FEDERAL OR
STATE STATUTE, OTHER THAN THIS TITLE, THAT SPECIFICALLY CONTEMPLATES
CREATION OF THE POWER, INCLUDING WITHOUT LIMITATION A POWER TO MAKE
HEALTH CARE DECISIONS OR DECISIONS INVOLVING THE DISPOSITION OF REMAINS.
NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT USE OF A STATUTORY
SHORT FORM POWER OF ATTORNEY OR A NONSTATUTORY POWER OF ATTORNEY IN
CONNECTION WITH ANY OF THE TRANSACTIONS DESCRIBED IN THIS SECTION.
S 7. Subdivisions 2, 9 and 10 of section 5-1502A of the general obli-
gations law, subdivisions 2 and 9 as amended by chapter 644 of the laws
of 2008, are amended to read as follows:
2. To sell, to exchange, to convey either with or without covenants,
to quit-claim, to release, to surrender, to mortgage, to incumber, to
partition or to consent to the partitioning, TO CREATE, MODIFY OR REVOKE
A TRUST UNLESS SUCH CREATION, MODIFICATION OR REVOCATION IS A GIFT TRAN-
SACTION GOVERNED BY SECTION 5-1514 OF THIS TITLE, to grant options
concerning, to lease or to sublet, or otherwise to dispose of, any
estate or interest in land;
9. To execute, to acknowledge, to seal and to deliver any deed,
CREATION, MODIFICATION OR REVOCATION OF A TRUST UNLESS SUCH CREATION,
MODIFICATION OR REVOCATION IS A GIFT TRANSACTION GOVERNED BY SECTION
5-1514 OF THIS TITLE, mortgage, lease, notice, check or other instrument
which the agent may think useful for the accomplishment of any of the
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 of, or against, the princi-
S. 7288--A 6
pal based on or involving any real estate transaction or to intervene in
any action or proceeding relating thereto;
S 8. Subdivisions 2, 7 and 8 of section 5-1502B of the general obli-
gations law, subdivisions 2 and 7 as amended by chapter 644 of the laws
of 2008, are amended to read as follows:
2. To sell, to exchange, to convey either with or without covenants,
to release, to surrender, to mortgage, to incumber, to pledge, to
hypothecate, to pawn, TO CREATE, MODIFY OR REVOKE A TRUST UNLESS SUCH
CREATION, MODIFICATION OR REVOCATION IS A GIFT TRANSACTION GOVERNED BY
SECTION 5-1514 OF THIS TITLE to grant options concerning, to lease or to
sublet to others, or otherwise to dispose of 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 OF A TRUST UNLESS
SUCH CREATION, MODIFICATION OR REVOCATION IS A GIFT TRANSACTION GOVERNED
BY SECTION 5-1514 OF THIS TITLE, notice, check or other instrument which
the agent may think useful for the accomplishment of any of the purposes
enumerated in this section;
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 of, or against, the princi-
pal based on or involving any chattel or goods transaction or to inter-
vene in any action or proceeding relating thereto;
S 9. Subdivisions 2, 9 and 11 of section 5-1502C of the general obli-
gations law, subdivisions 2 and 9 as amended by chapter 644 of the laws
of 2008, are amended to read as follows:
2. To sell (including short sales), to exchange, to transfer either
with or without a guaranty, to release, to surrender, to hypothecate, to
pledge, TO CREATE, MODIFY OR REVOKE A TRUST UNLESS SUCH CREATION,
MODIFICATION OR REVOCATION IS A GIFT TRANSACTION GOVERNED BY SECTION
5-1514 OF THIS TITLE, to grant options concerning, to loan, to trade in,
or otherwise to dispose of any bond, share, instrument of similar char-
acter, commodity interest or any instrument with respect thereto;
9. To execute, to acknowledge, to seal and to deliver any consent,
agreement, authorization, CREATION, MODIFICATION OR REVOCATION OF A
TRUST UNLESS SUCH CREATION, DECLARATION, MODIFICATION OR REVOCATION IS A
GIFT TRANSACTION GOVERNED BY SECTION 5-1514 OF THIS TITLE, assignment,
notice, waiver of notice, check, or other instrument which the agent may
think useful for the accomplishment of any of the 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 of, or against, the princi-
pal based on or involving any bond, share or commodity transaction or to
intervene in any action or proceeding relating thereto;
S 10. Paragraphs (a) and (b) of subdivision 1 of section 5-1502D of
the general obligations law, as added by chapter 644 of the laws of
2008, are amended to read as follows:
(a) with respect to joint accounts existing at the creation of the
agency, the authority granted hereby shall not include the power to
change the title of the account by the addition of a new joint tenant or
the deletion of an existing joint tenant, unless the authority to make
such changes is conveyed in a statutory [major] gifts rider to a statu-
tory short form power of attorney or in a non-statutory power of attor-
ney signed and dated by the principal with the signature of the princi-
pal duly acknowledged in the manner prescribed for the acknowledgement
S. 7288--A 7
of a conveyance of real property, and which is executed pursuant to the
requirements of paragraph (b) of subdivision nine of section 5-1514 of
this title, and
(b) with respect to totten trust accounts existing at the creation of
the agency, the authority granted hereby shall not include the power to
add, delete, or otherwise change the designation of beneficiaries in
effect for any such accounts, unless the authority to make such addi-
tions, deletions or changes is conveyed in a statutory [major] gifts
rider to a statutory short form power of attorney or in a non-statutory
power of attorney signed and dated by the principal with the signature
of the principal duly acknowledged in the manner prescribed for the
acknowledgment of a conveyance of real property, and which is executed
pursuant to the requirements of paragraph (b) of subdivision nine of
section 5-1514 of this title.
S 11. Subdivision 15 of section 5-1502D of the 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
with respect to, any claim existing in favor of, or against, the princi-
pal based on or involving any banking transaction or to intervene in any
action or proceeding relating thereto;
S 12. Subdivisions 1, 2 and 8 of section 5-1502E of the general obli-
gations law are amended to read as follows:
1. To the 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 the principal has,
or claims to have, under any contract of partnership whether the princi-
pal is a general or special partner thereunder, to enforce the terms of
any such partnership agreement for the protection of the principal, by
action, proceeding or otherwise, as the agent shall think to be desira-
ble or necessary, and to defend, submit to [arbitration] ALTERNATIVE
DISPUTE RESOLUTION, settle or compromise any action or other legal
proceeding to which the principal is a party because of his membership
in said partnership;
2. To exercise in person or by proxy or to enforce by action, proceed-
ing or otherwise, any right, power, privilege or option which the prin-
cipal has as the holder of any bond, share, or other instrument of simi-
lar character and to defend, submit to [arbitration] ALTERNATIVE DISPUTE
RESOLUTION, settle or compromise any action or other legal proceeding to
which the principal is a party because of any such bond, share, or other
instrument of 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 of, or against, the princi-
pal based on or involving any business operating transaction or to
intervene in any action or proceeding relating thereto;
S 13. Subdivisions 1, 3 and 11 of section 5-1502F of the general obli-
gations law, subdivisions 1 and 3 as amended by chapter 644 of the laws
of 2008, are amended to read as follows:
1. To continue, to pay the premium or assessment on, to modify, to
rescind, to release or to terminate any contract of life, accident,
health, disability or liability insurance or any combination of such
insurance procured by or on behalf of the principal prior to the
creation of the agency which insures either the principal or any other
person, without regard to whether the principal is or is not a benefici-
ary thereunder; provided, however, with respect to life insurance
S. 7288--A 8
contracts existing at the creation of the agency, the authority granted
hereby shall not include the power to add, delete or otherwise change
the designation of beneficiaries in effect for any such contract, unless
the authority to make such additions, deletions or changes is conveyed
in a statutory [major] gifts rider to a statutory short form power of
attorney or in a non-statutory power of attorney signed and dated by the
principal with the signature of the principal duly acknowledged in the
manner prescribed for the acknowledgment of a conveyance of real proper-
ty, and which is executed pursuant to the requirements of paragraph (b)
of subdivision nine of section 5-1514 of this title;
3. To apply for and to receive any available loan on the security of
the contract of insurance, whether for the payment of a premium or for
the procuring of cash, to surrender and thereupon to receive the cash
surrender value, to exercise an election as to beneficiary or mode of
payment, to change the manner of paying premiums, and to change or to
convert the type of insurance contract, with respect to any contract of
life, accident, health, disability or liability insurance as to which
the principal has, or claims to have, any one or more of the powers
described in this section; provided, however, that the authority granted
hereby shall not include the power to add, delete or otherwise change
the designation of beneficiaries in effect for any such contract, unless
the authority to make such additions, deletions or changes is conveyed
in a statutory [major] gifts rider to a statutory short form power of
attorney or in a non-statutory power of attorney signed and dated by the
principal with the signature of the principal duly acknowledged in the
manner prescribed for the acknowledgment of a conveyance of real proper-
ty, and which is executed pursuant to the requirements of paragraph (b)
of subdivision nine of section 5-1514 of 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 of, or against, the princi-
pal based on or involving any insurance transaction or to intervene in
any action or proceeding relating thereto;
S 14. Subdivision 8 of section 5-1502G of the 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 the estate of a decedent, absentee,
infant or incompetent, or the administration of a trust or other fund,
in any one of which the principal has, or claims to have, an interest,
and to do any and all acts which the agent shall think to be desirable
or necessary in effectuating such compromise;
S 15. Subdivision 5 of section 5-1502H of the 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 of or against the principal, or any litigation
to which the principal is, or may become or be designated a party;
S 16. Subdivisions 12 and 14 of section 5-1502I of the general obli-
gations law, subdivision 14 as added by chapter 644 of the laws of 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 of, or against, the princi-
pal based on or involving any transaction enumerated in this section or
to intervene in any action or proceeding relating thereto;
S. 7288--A 9
14. To continue gifts that the principal customarily made to individ-
uals and charitable organizations prior to the creation of the agency,
provided that [no person or charitable organization may be the recipient
of gifts] in any one calendar year [which, in the aggregate,] ALL SUCH
GIFTS SHALL NOT exceed five hundred dollars IN THE AGGREGATE; and
S 17. Subdivisions 2, 4 and 6 of section 5-1502L of the general obli-
gations law, subdivisions 2 and 4 as amended by chapter 644 of the laws
of 2008 and subdivision 6 as added by chapter 499 of the laws of 1996,
are amended to read as follows:
2. To make investment directions, to select and change payment
options, and to exercise any other election for the principal with
regard to any retirement benefit or plan in which the principal has an
interest, provided, however, that the authority granted hereby shall not
include the authority to add, delete, or otherwise change the desig-
nation of beneficiaries in effect for any such retirement benefit or
plan, unless the authority to make such additions, deletions or changes
is conveyed in a statutory [major] gifts rider to a statutory short form
power of attorney or in a non-statutory power of attorney signed and
dated by the principal with the signature of the principal duly acknowl-
edged in the manner prescribed for the acknowledgment of a conveyance of
real property, and which is executed pursuant to the requirements of
paragraph (b) of subdivision nine of section 5-1514 of this title;
4. To prepare, execute and deliver any application, agreement, TRUST
AGREEMENT UNLESS SUCH TRUST AGREEMENT IS A GIFT TRANSACTION GOVERNED BY
SECTION 5-1514 OF THIS TITLE, authorization, check or other instrument
or document which may be required under the terms of any retirement
benefit or plan in which the principal has an interest or by the admin-
istrator thereof, or which the agent deems useful for the accomplishment
of any of the purposes enumerated in this section;
6. To prosecute, defend, submit to [arbitration] ALTERNATIVE DISPUTE
RESOLUTION, settle, and propose or accept a compromise with respect to
any claim existing in favor of, or against, the principal based upon or
involving any retirement benefit or plan and to intervene in any action
or proceeding relating thereto;
S 18. Section 5-1503 of the general obligations law, as amended by
chapter 644 of the laws of 2008, is amended to read as follows:
S 5-1503. Modifications of the statutory short form power of attorney
and of the statutory [major] gifts rider. A power of attorney which
satisfies the requirements of paragraphs (a), (b) and (c) of subdivision
one of section 5-1501B and section 5-1513 of this title is not prevented
from being a "statutory short form power of attorney", and a document
which satisfies the requirements of section 5-1514 of this title is not
prevented from being a "statutory [major] gifts rider" as either of
these terms is used in the sections of this title, by the fact that it
also contains additional language at the section labeled "modifications"
which:
1. Eliminates from the statutory short form power of attorney or from
the statutory [major] gifts rider one or more of the powers enumerated
in one or more of the constructional sections of this title with respect
to a subdivision of the statutory short form power of attorney or of the
statutory [major] gifts rider, affirmatively chosen by the principal; or
2. Supplements one or more of the powers enumerated in one or more of
the constructional sections in this title with respect to a subdivision
of the statutory short form power of attorney or of the statutory
[major] gifts rider, affirmatively chosen by the principal, by specif-
ically listing additional powers of the agent; or
S. 7288--A 10
3. Makes some additional provision which is not inconsistent with the
other provisions of the statutory short form power of attorney or of the
statutory [major] gifts rider, INCLUDING A PROVISION REVOKING ONE OR
MORE POWERS OF ATTORNEY PREVIOUSLY EXECUTED BY THE PRINCIPAL.
S 19. The opening paragraph of subdivision 1 of section 5-1504 of the
general obligations law, as amended by chapter 644 of the laws of 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 of
attorney properly executed in accordance with section 5-1501B of this
title, including a statutory short form power of attorney which is
supplemented by a statutory [major] gifts rider, or a statutory short
form power of attorney properly executed in accordance with the laws in
effect at the time of its execution.
S 20. Subparagraphs 1 and 9 of paragraph (a) of subdivision 1 of
section 5-1504 of the general obligations law, as amended by chapter 644
of the laws of 2008, are amended to read as follows:
(1) the refusal by the agent to provide an original power of attorney
or a copy certified by an attorney pursuant to [rule] SECTION twenty-one
hundred five of the civil practice law and rules, or by a court or other
government entity;
(9) the refusal by a title insurance company to underwrite title
insurance for a [transfer] GIFT of real property made pursuant to a
[major] STATUTORY gifts rider or non-statutory power of attorney that
does not contain express instructions or purposes of the principal.
S 21. Paragraph (b) of subdivision 1 of section 5-1504 of the general
obligations law, as amended by chapter 644 of the laws of 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 of attorney, including a statutory
short form power of attorney which is supplemented by a statutory
[major] gifts rider, or a statutory short form power of attorney proper-
ly 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.
S 22. Subdivisions 2, 3 and 5 of section 5-1504 of the general obli-
gations law, subdivisions 2 and 3 as amended and subdivision 5 as added
by chapter 644 of the laws of 2008, are amended and a new subdivision 7
is added to read as follows:
2. Except as provided in subdivision three 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, including a
statutory short form power of attorney which is supplemented by a statu-
tory [major] gifts rider, or a statutory short form power of attorney
properly executed in accordance with the laws in effect at the time of
its execution. A special proceeding as authorized by section 5-1510 of
this title shall be the exclusive remedy for a violation of this
section.
S. 7288--A 11
3. In the absence of actual knowledge that the principal lacked capac-
ity 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
properly executed statutory short form power of attorney, including a
statutory short form power of attorney which is supplemented by a statu-
tory [major] gifts rider 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.
5. 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 affida-
vit 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 [or], revoked OR MODIFIED, except as to any third party
who had actual notice that the power of attorney had terminated [or],
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 attor-
ney has been so modified; [and]
(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 ATTOR-
NEY EXPRESSLY PROVIDES THAT DIVORCE OR ANNULMENT AS DEFINED IN SUBPARA-
GRAPH 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.
7. 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 ACKNOWL-
EDGED. 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
S. 7288--A 12
ATTORNEY OR NON-STATUTORY POWER OF ATTORNEY WITH THE AGENT'S SIGNATURE
ACKNOWLEDGED, THE INSTRUMENT SHALL BE ACCEPTED FOR RECORDING.
S 23. Section 5-1505 of the general obligations law, as added by chap-
ter 644 of the laws of 2008, is amended to read as follows:
S 5-1505. Standard of care; fiduciary [duty] DUTIES; compelling
disclosure of record. 1. Standard of care. In dealing with property of
the principal, an agent shall observe the standard of care that would be
observed by a prudent person dealing with property of another.
2. Fiduciary [duty] DUTIES. (a) An agent acting under a power of
attorney has a fiduciary [duty to] RELATIONSHIP WITH the principal. The
fiduciary [duty includes] DUTIES INCLUDE BUT ARE NOT LIMITED TO each of
the following obligations:
(1) To act according to any instructions from the principal or, where
there are no instructions, in the best interest of the principal, and to
avoid conflicts of interest.
(2) To keep the principal's property separate and distinct from any
other property owned or controlled by the agent, except for property
that is jointly owned by the principal and agent at the time of the
execution of the power of attorney, and property that becomes jointly
owned after the execution of the power of attorney as the result of the
agent's acquisition of an interest in the principal's property by reason
of the agent's exercise of authority granted in a statutory [major]
gifts rider or in a non-statutory power of attorney signed and dated by
the principal with the signature of the principal duly acknowledged in
the manner prescribed for the acknowledgment of a conveyance of real
property, and which is executed pursuant to the requirements of para-
graph (b) of subdivision nine of section 5-1514 of this title. The agent
may not [transfer] MAKE GIFTS TO the principal's property to himself or
herself without specific authorization IN A POWER OF ATTORNEY.
(3) To keep a record of all receipts, disbursements, and transactions
entered into by the agent on behalf of the principal and to make such
record and power of attorney available TO THE PRINCIPAL OR TO THIRD
PARTIES at the request of the principal. The agent shall make such
record and a copy of the power of attorney available within fifteen days
of a written request by any of the following:
(i) a monitor;
(ii) a co-agent or successor agent acting under the power of attorney;
(iii) a government entity, or official thereof, investigating a report
that the principal may be in need of protective or other services, or
investigating a report of abuse or neglect;
(iv) a court evaluator appointed pursuant to section 81.09 of the
mental hygiene law;
(v) a guardian ad litem appointed pursuant to section seventeen
hundred fifty-four of the surrogate's court procedure act;
(vi) the guardian or conservator of the estate of the principal, if
such record has not already been provided to the court evaluator or
guardian ad litem; or
(vii) the personal representative of the estate of a deceased princi-
pal if such record has not already been provided to the guardian or
conservator of the estate of the principal.
The failure of the agent to make the record available pursuant to this
paragraph may result in a special proceeding under subdivision one of
section 5-1510 of this title. [Such proceeding shall be the exclusive
remedy to compel the agent to provide such record.]
(b) The agent may be subject to liability for conduct or omissions
which violate [the] ANY fiduciary duty.
S. 7288--A 13
(c) The agent is not liable to third parties for any act pursuant to a
power of attorney if the act was authorized at the time and the act did
not violate subdivision one or two of this section.
3. Resignation. (a) An agent who has signed the power of attorney may
resign by giving written notice to the principal and the agent's co-a-
gent, successor agent or the monitor, if one has been named, or the
principal's guardian if one has been appointed. If no co-agent, succes-
sor agent, monitor or guardian is known to the agent and the principal
is incapacitated or the agent has notice of any facts indicating the
principal's incapacity, the agent may give written notice to a govern-
ment entity having authority to protect the welfare of the principal, or
may petition the court to approve the resignation.
(b) The principal may provide for alternative means for an agent's
resignation in the power of attorney.
S 24. Subdivision 2 of section 5-1508 of the general obligations law,
as added by chapter 644 of the laws of 2008, is amended to read as
follows:
2. A principal may designate one or more successor agents to serve, if
[every] ANY initial or predecessor agent resigns, dies, becomes incapac-
itated, is not qualified to serve or declines to serve. Unless the prin-
cipal provides otherwise in the power of attorney, a successor agent has
the same authority as that granted to an initial agent. A PRINCIPAL MAY
PROVIDE FOR SPECIFIC SUCCESSION RULES.
S 25. Section 5-1508 of the general obligations law is amended by
adding a new subdivision 4 to read as follows:
4. ANY PERSON, OTHER THAN AN ESTATE OR A TRUST, MAY ACT AS AN AGENT,
CO-AGENT OR SUCCESSOR AGENT UNDER A POWER OF ATTORNEY.
S 26. Subdivisions 2, 3, 4, 5 and 6 of section 5-1511 of the general
obligations law, as added by chapter 644 of the laws of 2008, are
amended to read as follows:
2. An agent's authority terminates when:
(a) the principal revokes the agent's authority;
(b) the agent dies, becomes incapacitated or resigns;
(c) the agent's marriage to the principal is terminated by divorce[,]
OR annulment [or declaration of nullity], AS DEFINED IN SUBPARAGRAPH TWO
OF PARAGRAPH (F) OF SECTION 5-1.4 OF THE ESTATES, POWERS AND TRUSTS LAW,
unless the power of attorney expressly provides otherwise. If the
authority of an agent is revoked solely by this subdivision, it shall be
revived by the principal's remarriage to the former spouse; or
(d) the power of attorney terminates.
3. A principal may revoke a power of attorney[;]:
(a) in accordance with the terms of the power of attorney; OR
(b) by delivering a [written, signed and dated] revocation of the
power of attorney [as follows:
(1)] to the agent[, and the] IN PERSON OR BY SENDING A SIGNED AND
DATED REVOCATION BY MAIL, COURIER, ELECTRONIC TRANSMISSION OR FACSIMILE
TO THE AGENT'S LAST KNOWN ADDRESS. THE agent must comply with the prin-
cipal's revocation notwithstanding the actual or perceived incapacity of
the principal unless the principal is subject to a guardianship under
article eighty-one of the mental hygiene law[; and
(2) to any third party that the principal has reason to believe has
received, retained or acted upon, the power of attorney].
4. Where [the] A power of attorney has been recorded pursuant to
section two hundred ninety-four of the real property law, the principal
shall also record [a written] THE revocation IN THE OFFICE IN WHICH THE
POWER OF ATTORNEY IS RECORDED pursuant to section three hundred twenty-
S. 7288--A 14
six of the real property law, PROVIDED THE REVOCATION COMPLIES WITH
SECTION THREE HUNDRED SEVEN OF THE STATE TECHNOLOGY LAW. [Notwithstand-
ing the recording of a revocation, a third party must have actual notice
of the revocation for the revocation to be effective.]
5. (A) Termination of an agent's authority or of the power of attorney
is not effective as to any third party who has not received actual
notice of the termination and acts in good faith under the power of
attorney. Any action so taken, unless otherwise invalid or unenforcea-
ble, shall bind the principal and the principal's successors in inter-
est. A financial institution is deemed to have actual notice after it
has had a reasonable opportunity to act on a written notice of the revo-
cation or termination following receipt of the same at its office where
an account is located.
(B) TERMINATION OF AN AGENT'S AUTHORITY OR OF THE POWER OF ATTORNEY IS
NOT EFFECTIVE AS TO THE AGENT UNTIL THE AGENT HAS RECEIVED A REVOCATION
AS REQUIRED BY SUBDIVISION THREE OF THIS SECTION. AN AGENT IS DEEMED TO
HAVE RECEIVED A REVOCATION WHEN IT HAS BEEN DELIVERED TO THE AGENT IN
PERSON, OR WITHIN A REASONABLE TIME AFTER IT HAS BEEN SENT BY MAIL,
COURIER, ELECTRONIC TRANSMISSION OR FACSIMILE IN ACCORDANCE WITH SUBDI-
VISION THREE OF THIS SECTION.
6. [Unless the principal expressly provides otherwise, the execution
of a power of attorney revokes any and all prior powers of attorney
executed by the principal] THE EXECUTION OF A POWER OF ATTORNEY DOES NOT
REVOKE ANY POWER OF ATTORNEY PREVIOUSLY EXECUTED BY THE PRINCIPAL.
S 27. Section 5-1512 of the general obligations law, as added by chap-
ter 644 of the laws of 2008, is amended to read as follows:
S 5-1512. Powers of attorney executed in other jurisdictions. [A]
NOTWITHSTANDING THE PROVISIONS OF SECTION 5-1501B OF THIS TITLE, A power
of attorney executed in another state or jurisdiction in compliance with
the law of that state or jurisdiction or the law of this state is valid
in this state, regardless of whether the principal is a domiciliary of
this state. A POWER OF ATTORNEY THAT COMPLIES WITH SECTION 5-1501B OF
THIS TITLE AND IS EXECUTED IN ANOTHER STATE OR JURISDICTION BY A DOMICI-
LIARY OF THIS STATE IS VALID IN THIS STATE. A POWER OF ATTORNEY EXECUTED
IN THIS STATE BY A DOMICILIARY OF ANOTHER STATE OR JURISDICTION IN
COMPLIANCE WITH THE LAW OF THAT STATE OR JURISDICTION OR THE LAW OF THIS
STATE IS VALID IN THIS STATE.
S 28. Section 5-1513 of the general obligations law, as added by chap-
ter 644 of the laws of 2008, is amended to read as follows:
S 5-1513. Statutory short form power of attorney. 1. The use of the
following form in the creation of a power of attorney is lawful, and,
when used, and executed in accordance with subdivision one of section
5-1501B of this title, it shall be construed as a statutory short form
power of attorney in accordance with the provisions of this title:
"POWER OF ATTORNEY
NEW YORK STATUTORY SHORT FORM
(a) CAUTION TO THE PRINCIPAL: Your Power of Attorney is an important
document. As the "principal," you give the person whom you choose (your
"agent") authority to spend your money and sell or dispose of your prop-
erty during your lifetime without telling you. You do not lose your
authority to act even though you have given your agent similar authori-
ty.
When your agent exercises this authority, he or she must act according
to any instructions you have provided or, where there are no specific
S. 7288--A 15
instructions, in your best interest. "Important Information for the
Agent" at the end of this document describes your agent's responsibil-
ities.
Your agent can act on your behalf only after signing the Power of
Attorney before a notary public.
You can request information from your agent at any time. If you are
revoking a prior Power of Attorney [by executing this Power of Attor-
ney], you should provide written notice of the revocation to your prior
agent(s) and to ANY THIRD PARTIES WHO MAY HAVE ACTED UPON IT, INCLUDING
the financial institutions where your accounts are located.
You can revoke or terminate your Power of Attorney at any time for any
reason as long as you are of sound mind. If you are no longer of 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.
The law governing Powers of Attorney is contained in the New York
General Obligations Law, Article 5, Title 15. This law is available at a
law library, or online through the New York State Senate or Assembly
websites, www.senate.state.ny.us or www.assembly.state.ny.us.
If there is anything about this document that you do not understand,
you should ask a lawyer of your own choosing to explain it to you.
(b) DESIGNATION OF AGENT(S):
I, _______________________________________________, hereby appoint:
name and address of principal
_____________________________________________________as my agent(s)
name(s) and address(es) of agent(s)
If you designate more than one agent above, they must act together
unless you initial the 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) of successor agent(s)
Successor agents designated above must act together unless you initial
the 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 inca-
pacity unless I have stated otherwise below, under "Modifications".
(e) This POWER OF ATTORNEY [REVOKES] DOES NOT REVOKE any [and all prior]
Powers of Attorney PREVIOUSLY executed by me unless I have stated other-
wise below, under "Modifications."
If [your are] YOU DO NOT [revoking] INTEND TO REVOKE your prior Powers
of Attorney, and if you [are granting] HAVE GRANTED the same authority
in [two or more Powers] THIS POWER of Attorney[, you must also indicate
under "Modifications" whether the agents given these powers] AS YOU
GRANTED TO ANOTHER AGENT IN A PRIOR POWER OF ATTORNEY, EACH AGENT CAN
S. 7288--A 16
ACT SEPARATELY UNLESS YOU INDICATE UNDER "MODIFICATIONS" THAT THE AGENTS
WITH THE SAME AUTHORITY are to act together [or separately].
(f) GRANT OF AUTHORITY:
To grant your agent some or all of the authority below, either
(1) Initial the bracket at each authority you grant, or
(2) Write or type the letters for each authority you grant on the
blank line at (P), and initial the bracket at (P). If you initial
(P), you do not need to initial the other lines.
I grant authority to my agent(s) with respect to the following
subjects as defined in sections 5-1502A through 5-1502N of the 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;
( ) (F) insurance transactions;
( ) (G) estate transactions;
( ) (H) claims and litigation;
( ) (I) personal and family maintenance. IF YOU GRANT YOUR AGENT
THIS AUTHORITY, IT WILL ALLOW THE AGENT TO MAKE GIFTS
THAT YOU CUSTOMARILY HAVE MADE TO INDIVIDUALS, INCLUDING
THE AGENT, AND CHARITABLE ORGANIZATIONS. THE TOTAL
AMOUNT OF ALL SUCH GIFTS IN ANY ONE CALENDAR YEAR CANNOT
EXCEED FIVE HUNDRED DOLLARS;
( ) (J) benefits from governmental programs or civil or military
service;
( ) (K) health care billing and payment matters; records,
reports, and statements;
( ) (L) retirement benefit transactions;
( ) (M) tax matters;
( ) (N) all other matters;
( ) (O) full and unqualified authority to my agent(s) to dele-
gate any or all of the foregoing powers to any person or
persons whom my agent(s) select;
( ) (P) EACH of the matters identified by the following
letters______.
You need not initial the other 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 proper-
ty. If you wish to grant your agent such authority, you MUST complete
the 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 other
transfers of your property] IN EXCESS OF AN ANNUAL TOTAL OF $500 FOR ALL
GIFTS DESCRIBED IN (I) OF THE GRANT OF AUTHORITY SECTION OF THIS DOCU-
MENT (UNDER PERSONAL AND FAMILY MAINTENANCE), you must initial the
statement below and execute a Statutory [Major] Gifts Rider at the same
time as this instrument. Initialing the statement below by itself does
S. 7288--A 17
not authorize your agent to make [major] gifts [and other transfers].
The preparation of the Statutory [Major] Gifts Rider should be super-
vised by a lawyer.
( )[(SMGR)] (SGR) I grant my agent authority to make [major]
gifts [and other transfers of my property,] in accordance with the terms
and conditions of the Statutory [Major] Gifts Rider that supplements
this STATUTORY Power of Attorney.
(i) DESIGNATION OF MONITOR(S): (OPTIONAL)
IF YOU WISH TO APPOINT MONITOR(S), INITIAL AND FILL IN THE SECTION
BELOW:
( ) I wish to designate ______________________, whose address(es)
is (are) ____________________________________________________________,
as monitor(s). Upon the request of the monitor(s), my agent(s) must
provide the monitor(s) with a copy of the power of attorney and a record
of all transactions done or made on my behalf. Third parties holding
records of such transactions shall provide the records to the monitor(s)
upon request.
(j) COMPENSATION OF AGENT(S): (OPTIONAL)
Your agent is entitled to be reimbursed from your assets for reason-
able 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 the statement below. If you wish to define "reasonable compen-
sation", 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 the third party
for any claims that may arise against the third party because of reli-
ance on this Power of Attorney. I understand that any termination of
this Power of Attorney, whether the result of my revocation of the Power
of Attorney or otherwise, is not effective as to a third party until the
third party has actual notice or knowledge of the termination.
(l) TERMINATION: This Power of Attorney continues until I revoke it or
it is terminated by my death or other event described in section 5-1511
of the General Obligations Law.
Section 5-1511 of the General Obligations Law describes the manner in
which you may revoke your Power of Attorney, and the events which termi-
nate the Power of Attorney.
(m) SIGNATURE AND ACKNOWLEDGMENT:
In Witness Whereof I have hereunto signed my name on ___________,20___.
PRINCIPAL signs here: ==>__________________________________________
(acknowledgment)
(n) IMPORTANT INFORMATION FOR THE AGENT:
When you accept the authority granted under this Power of Attorney, a
special legal relationship is created between you and the principal.
This relationship imposes on you legal responsibilities that continue
until you resign or the Power of Attorney is terminated or revoked. You
must:
S. 7288--A 18
(1) act according to any instructions from the principal, or, where
there are no instructions, in the principal's best interest;
(2) avoid conflicts that would impair your ability to act in the prin-
cipal's best interest;
(3) keep the principal's property separate and distinct from any
assets you own or control, unless otherwise permitted by law;
(4) keep a record or all receipts, payments, and transactions
conducted for the principal; and
(5) disclose your identity as an agent whenever you act for the prin-
cipal by writing or printing the principal's name and signing your own
name as "agent" in either of the following [manner] MANNERS: (Princi-
pal's Name) by (Your Signature) as Agent, or (your signature) as Agent
for (Principal's Name).
You may not use the principal's assets to benefit yourself OR ANYONE
ELSE or [give major] MAKE gifts to yourself or anyone else unless the
principal has specifically granted you that authority in this [Power of
Attorney or in a Statutory Major Gifts Rider attached to this Power of
Attorney] DOCUMENT, WHICH IS EITHER A STATUTORY GIFTS RIDER ATTACHED TO
A STATUTORY SHORT FORM POWER OF ATTORNEY OR A NON-STATUTORY POWER OF
ATTORNEY. If you have that authority, you must act according to any
instructions of the principal or, where there are no such instructions,
in the principal's best interest. You may resign by giving written
notice to the principal and to any co-agent, successor agent, monitor if
one has been named in this document, or the principal's guardian if one
has been appointed. If there is anything about this document or your
responsibilities that you do not understand, you should seek legal
advice.
Liability of agent:
The meaning of the authority given to you is defined in New York's
General Obligations Law, Article 5, Title 15. If it is found that you
have violated the law or acted outside the authority granted to you in
the Power of Attorney, you may be liable under the law for your
violation.
(o) AGENT'S SIGNATURE AND ACKNOWLEDGMENT OF APPOINTMENT:
It is not required that the principal and the agent(s) sign at the
same time, nor that multiple agents sign at the same time.
I/we, ___________________________________________, have read the forego-
ing Power of Attorney. I am/we are the person(s) identified therein as
agent(s) for the principal named therein.
I/we acknowledge my/our legal responsibilities.
Agent(s) sign(s) here:==>__________________________________________
(acknowledgment(s))["]
(P) SUCCESSOR AGENT'S SIGNATURE AND ACKNOWLEDGMENT OF APPOINTMENT:
IT IS NOT REQUIRED THAT THE PRINCIPAL AND THE SUCCESSOR AGENT(S), IF
ANY, SIGN AT THE SAME TIME, NOR THAT MULTIPLE SUCCESSOR AGENTS SIGN AT
THE SAME TIME. FURTHERMORE, SUCCESSOR AGENTS CAN NOT USE THIS POWER OF
ATTORNEY UNLESS THE AGENT(S) DESIGNATED ABOVE IS/ARE UNABLE OR UNWILLING
TO SERVE.
S. 7288--A 19
I/WE, ___________________________________________, HAVE READ THE FOREGO-
ING POWER OF ATTORNEY. I AM/WE ARE THE PERSON(S) IDENTIFIED THEREIN AS
SUCCESSOR AGENT(S) FOR THE PRINCIPAL NAMED THEREIN.
SUCCESSOR AGENT(S) SIGN(S) HERE:==>______________________________________
(ACKNOWLEDGMENT(S))"
S 29. Section 5-1514 of the general obligations law, as added by chap-
ter 644 of the laws of 2008, is amended to read as follows:
S 5-1514. [Major gifts and other transfers] CERTAIN GIFT TRANSACTIONS;
formal requirements; statutory form. 1. If the principal intends to
authorize the agent to make gifts [and transfers] other than gifts
authorized by subdivision fourteen of section 5-1502I of this title, the
principal must expressly grant such authority either in a statutory
[major] gifts rider to a statutory short form power of attorney or in a
non-statutory power of attorney executed pursuant to the requirements of
paragraph (b) of subdivision nine of this section.
2. The principal may authorize the agent to make gifts to the princi-
pal's spouse, children and more remote descendents, and parents, not to
exceed, for each donee, the annual federal gift tax exclusion amount
pursuant to the Internal Revenue Code. For gifts to the principal's
children and more remote descendants, and parents, the maximum amount of
the gift to each donee shall not exceed twice the gift tax exclusion
amount, if the principal's spouse agrees to split gift treatment pursu-
ant to the Internal Revenue Code.
3. The principal may also authorize the agent to:
(a) make gifts up to a specified dollar amount, or unlimited in
amount;
(b) make gifts to any person or persons;
(c) make GIFTS IN ANY OF the following [specified transactions] WAYS:
(1) [open, modify or terminate] OPENING, MODIFYING OR TERMINATING a
deposit account in the name of the principal and other joint tenants;
(2) [open, modify or terminate] OPENING, MODIFYING OR TERMINATING any
other joint account in the name of the principal and other joint
tenants;
(3) [open, modify or terminate] OPENING, MODIFYING OR TERMINATING a
bank account in trust form as described in section 7-5.1 of the estates,
powers and trusts law, and designate or change the beneficiary or bene-
ficiaries of such account;
(4) [open, modify or terminate] OPENING, MODIFYING OR TERMINATING a
transfer on death account as described in part four of article thirteen
of the estates, powers and trusts law, and designate or change the bene-
ficiary or beneficiaries of such account;
(5) [change] CHANGING the beneficiary or beneficiaries of any contract
of insurance on the life of the principal or annuity contract for the
benefit of the principal;
(6) [procure] PROCURING new, different or additional contracts of
insurance on the life of the principal or annuity contracts for the
benefit of the principal and designate the beneficiary or beneficiaries
of any such contract;
(7) [designate or change] DESIGNATING OR CHANGING the beneficiary or
beneficiaries of any type of retirement benefit or plan;
(8) [create, amend, revoke, or terminate] CREATING, AMENDING, REVOKING
OR TERMINATING an inter vivos trust; and
S. 7288--A 20
(9) [create, change or terminate] OPENING, MODIFYING OR TERMINATING
other property interests or rights of survivorship, and designate or
change the beneficiary or beneficiaries therein.
A gift [or other transfer] to an individual authorized by this subdi-
vision may be made outright, BY EXERCISE OR RELEASE OF A PRESENTLY EXER-
CISABLE GENERAL OR SPECIAL POWER OF APPOINTMENT HELD BY THE PRINCIPAL,
to a trust established or created for such individual, to a Uniform
Transfers to Minors Act account for such individual (regardless of who
is the custodian), or to a tuition savings account or prepaid tuition
plan as defined under section 529 of the Internal Revenue Code for the
benefit of such individual (without regard to who is the account owner
or responsible individual for such account).
4. An agent may not:
(a) exercise any authority described in subdivision two or three of
this section unless such authority is expressly granted in a statutory
[major] gifts rider to a statutory short form power of attorney or in a
non-statutory power of attorney executed pursuant to the requirements of
paragraph (b) of subdivision nine of this section;
(b) make a gift to himself or herself or create in himself or herself
an interest in the principal's property pursuant to any grant of author-
ity described in subdivision two or three of this section unless such
authority is expressly granted in a statutory [major] gifts rider to a
statutory short form power of attorney or in a non-statutory power of
attorney executed pursuant to the requirements of paragraph (b) of
subdivision nine of this section.
5. Any authority granted to an agent pursuant to subdivision two or
three or paragraph (b) of subdivision four of this section must be exer-
cised according to any instructions IN THIS DOCUMENT OR IN ANY OTHER
WRITING provided by the principal REGARDING THE EXERCISE OF ANY AUTHORI-
TY, or otherwise for purposes which the agent reasonably deems to be in
the best interest of the principal, specifically including financial,
estate, or tax planning, including minimization of income, estate,
inheritance, generation-skipping transfer or gift taxes.
6. Construction of the provisions of the statutory [major] gifts
rider. (a) In a statutory [major] gifts rider to a statutory short form
power of attorney, the language "I grant authority to my agent to make
gifts to my spouse, children and more remote descendants, and parents,
not to exceed, for each donee, the annual federal gift tax exclusion
amount pursuant to the Internal Revenue Code. For gifts to my children
and more remote descendants, and parents, the maximum amount of the gift
to each donee shall not exceed twice the gift tax exclusion amount, if
my spouse agrees to split gift treatment pursuant to the Internal Reven-
ue Code" must be construed to mean that the principal authorizes the
agent:
(1) To make gifts on behalf of the principal to the principal's
spouse, children and other descendants, and parents. Gifts to a donee
shall not exceed in any calendar year the amount of the federal gift tax
exclusion available to the principal under section 2503(b) of the Inter-
nal Revenue Code. Gifts may be made outright or by exercise or release
of a presently exercisable general power OR SPECIAL POWER of appointment
held by the principal, to a trust established or created for such indi-
vidual (provided that gifts to such trust qualify for the federal gift
tax exclusion under section 2503(b) or (c) of the Internal Revenue
Code), to a Uniform Transfers to Minors Act account for such individual
(regardless of who is the custodian), to a tuition savings account or
prepaid tuition plan as defined under section 529 of the Internal Reven-
S. 7288--A 21
ue Code for the benefit of such individual (without regard to who is the
account owner of or responsible person for such account);
(2) To make gifts up to twice the annual federal gift tax exclusion
amount on behalf of both the principal and the principal's spouse, to
the principal's children and other descendants, and parents, if the
principal's spouse consents to the splitting of such gifts pursuant to
section 2513 of the Internal Revenue Code;
(3) To consent, pursuant to Section 2513(a) of the Internal Revenue
Code, to the splitting of gifts made by the principal's spouse to the
principal's children and other descendants in any amount, and to the
splitting of gifts made by the principal's spouse to any other persons
in amounts not exceeding the aggregate annual gift tax exclusions for
both spouses under Section 2503(b) of said Code (or cognate provisions
of any successor statute); and
(4) To satisfy pledges made to organizations, whether charitable or
otherwise, by the principal[; and].
(b) Any authority granted to an agent under a statutory [major] gifts
rider to a statutory short form power of attorney must be construed to
mean that the principal authorizes the agent:
(1) To prepare, execute, consent to on behalf of the principal, and
file any return, report, declaration or other document required by the
laws of the United States, or by any state or political subdivision
thereof, or by any foreign country or political subdivision thereof,
which the agent deems to be desirable or necessary with respect to any
gift made under the authority of this section;
(2) To execute, acknowledge, seal and deliver any deed, assignment,
agreement, trust agreement, authorization, check, or other instrument
which the agent deems useful for the accomplishment of any of the
purposes enumerated in this section;
(3) To prosecute, defend, submit to alternative dispute resolution,
settle and propose or accept a compromise with respect to any claim
existing in favor of or against the principal based on or involving any
gift transaction or to intervene in any related action or proceeding;
(4) To hire, discharge and compensate any attorney, accountant, expert
witness, or other assistant or assistants when the agent deems that
action to be desirable for the proper execution by the agent of any of
the authorities described in this section, and for the keeping of needed
records thereof; and
(5) In general, and in addition to but not in contravention of all the
specific acts listed in this section, to do any other act or acts which
the agent deems desirable or necessary to complete any such gift on
behalf of the principal.
(c) The authority explicitly authorized in this section shall be
construed to include any like authority authorized in any other section
of this title. Accordingly, such like authorities as are authorized in
any other section of this title may not be exercised by the agent unless
they are expressly granted to the agent in the statutory [major] gifts
rider or in a non-statutory power of attorney executed pursuant to the
requirements of paragraph (b) of subdivision nine of this section.
(d) The statutory [major] gifts rider may be modified pursuant to
section 5-1503 of this title to contain additional provisions authoriz-
ing the agent to make any or all of the transactions specified in subdi-
vision three of this section.
7. All authority described in this section shall be exercisable equal-
ly with respect to a gift of any property in which the principal is
interested at the time the power of attorney is given or in which the
S. 7288--A 22
principal becomes interested after that time, and whether located in
this state or elsewhere.
8. If, after naming the spouse as a permissible recipient of gifting
[or other transfers], the [principal is divorced, his or her marriage is
annulled or its nullity declared, the] PRINCIPAL'S MARRIAGE IS TERMI-
NATED BY divorce[,] OR annulment[, declaration of nullity or dissol-
ution], AS DEFINED IN SUBPARAGRAPH TWO OF PARAGRAPH (F) OF SECTION 5-1.4
OF THE ESTATES, POWERS AND TRUSTS LAW, THE DIVORCE OR ANNULMENT revokes
the authority to gift to the former spouse, unless the statutory [major]
gifts rider or the non-statutory power of attorney executed pursuant to
the requirements of paragraph (b) of subdivision nine of this section
expressly provides otherwise. If the authority to gift to the former
spouse is revoked solely by this subdivision, it shall be revived by the
principal's remarriage to the former spouse.
9. To be valid, a statutory [major] gifts rider to a statutory short
form power of attorney must:
(a) Be typed or printed using letters which are legible or of clear
type no less than twelve point in size, or, if in writing, a reasonable
equivalent thereof.
(b) Be signed and dated by a principal with capacity, with the signa-
ture of the principal duly acknowledged in the manner prescribed for the
acknowledgment of a conveyance of real property, and witnessed by two
persons who are not named in the instrument as permissible recipients of
gifts [or other transfers], in the manner described [at paragraph] IN
SUBPARAGRAPH two of [subdivision] PARAGRAPH (a) of section 3-2.1 of the
estates, powers and trusts law. THE PERSON WHO TAKES THE ACKNOWLEDG-
MENT, UNDER THIS PARAGRAPH, MAY ALSO SERVE AS ONE OF THE WITNESSES.
(c) Be accompanied by a statutory short form power of attorney in
which the authority [(SMGR)] (SGR) is initialed by the principal.
(d) Be executed simultaneously with the statutory short form power of
attorney and in the manner provided in this section.
10. The use of the following shall be construed as the "Statutory
[Major] Gifts Rider" for a statutory short form power of attorney:
"POWER OF ATTORNEY
NEW YORK STATUTORY [MAJOR] GIFTS RIDER
AUTHORIZATION [TO MAKE MAJOR GIFTS OR
OTHER TRANSFERS] FOR CERTAIN GIFT TRANSACTIONS
CAUTION TO THE PRINCIPAL: This OPTIONAL rider allows you to authorize
your agent to make [major] gifts IN EXCESS OF AN ANNUAL TOTAL OF $500
FOR ALL GIFTS DESCRIBED IN (I) OF THE GRANT OF AUTHORITY SECTION OF THE
STATUTORY SHORT FORM POWER OF ATTORNEY (UNDER PERSONAL AND FAMILY MAIN-
TENANCE), or [other transfers of your money or other property] CERTAIN
OTHER GIFT TRANSACTIONS during your lifetime. YOU DO NOT HAVE TO
EXECUTE THIS RIDER IF YOU ONLY WANT YOUR AGENT TO MAKE GIFTS DESCRIBED
IN (I) OF THE GRANT OF AUTHORITY SECTION OF THE STATUTORY SHORT FORM
POWER OF ATTORNEY AND YOU INITIALED "(I)" ON THAT SECTION OF THAT FORM.
Granting any of the following authority to your agent gives your agent
the authority to take actions which could significantly reduce your
property or change how your property is distributed at your death.
["Major gifts or other transfers"] "CERTAIN GIFT TRANSACTIONS" are
described in section 5-1514 of the General Obligations Law. This [Major]
Gifts Rider does not require your agent to exercise granted authority,
but when he or she exercises this authority, he or she must act accord-
ing to any instructions you provide, or otherwise in your best interest.
This [Major] Gifts Rider and the Power of Attorney it supplements must
be read together as a single instrument.
S. 7288--A 23
Before signing this document authorizing your agent to make [major]
gifts [and other transfers], you should seek legal advice to ensure that
your intentions are clearly and properly expressed.
(a) GRANT OF LIMITED AUTHORITY TO MAKE GIFTS
Granting gifting authority to your agent gives your agent the authori-
ty to take actions which could significantly reduce your property.
If you wish to allow your agent to make gifts to himself or herself,
you must separately grant that authority in subdivision (c) below.
To grant your agent the gifting authority provided below, initial the
bracket to the left of the authority.
( ) I grant authority to my agent to make gifts to my spouse, children
and more remote descendants, and parents, not to exceed, for each donee,
the annual federal gift tax exclusion amount pursuant to the Internal
Revenue Code. For gifts to my children and more remote descendants, and
parents, the maximum amount of the gift to each donee shall not exceed
twice the gift tax exclusion amount, if my spouse agrees to split gift
treatment pursuant to the Internal Revenue Code.
This authority must be exercised pursuant to my instructions, or other-
wise for purposes which the agent reasonably deems to be in my best
interest.
(b) MODIFICATIONS:
Use this section if you wish to authorize gifts in AMOUNTS SMALLER
THAN THE GIFT TAX EXCLUSION AMOUNT, IN AMOUNTS IN excess of the [above
amount] GIFT TAX EXCLUSION AMOUNT, gifts to other beneficiaries, or
other [types of transfers] GIFT TRANSACTIONS.
Granting such authority to your agent gives your agent the authority to
take actions which could significantly reduce your property and/or
change how your property is distributed at your death. If you wish to
authorize your agent to make gifts [or transfers] to himself or herself,
you must separately grant that authority in subdivision (c) below.
( ) I grant the following authority to my agent to make gifts [or trans-
fers] pursuant to my instructions, or otherwise for purposes which the
agent reasonably deems to be in my best interest[.]:
(c) GRANT OF SPECIFIC AUTHORITY FOR AN AGENT TO MAKE [MAJOR] GIFTS [OR
OTHER TRANSFERS] TO HIMSELF OR HERSELF: (OPTIONAL)
If you wish to authorize your agent to make gifts [or transfers] to
himself or herself, you must grant that authority in this section, indi-
cating to which agent(s) the authorization is granted, and any limita-
tions and guidelines.
( ) I grant specific authority for the following agent(s) to make the
following [major] gifts [or other transfers] to himself or herself:
This authority must be exercised pursuant to my instructions, or other-
wise for purposes which the agent reasonably deems to be in my best
interest.
(d) ACCEPTANCE BY THIRD PARTIES: I agree to indemnify the third party
for any claims that may arise against the third party because of reli-
ance on this [Major] STATUTORY Gifts Rider.
(e) SIGNATURE OF PRINCIPAL AND ACKNOWLEDGMENT:
In Witness Whereof I have hereunto signed my name on _________________,
20____.
PRINCIPAL signs here:
________________________________
[(acknowledgement)] (ACKNOWLEDGMENT)
(f) SIGNATURES OF WITNESSES:
By signing as a witness, I acknowledge that the principal signed the
[Major] STATUTORY Gifts Rider in my presence and the presence of the
S. 7288--A 24
other witness, or that the principal acknowledged to me that the princi-
pal's signature was affixed by him or her or at his or her direction. I
also acknowledge that the principal has stated that this [Major] STATU-
TORY Gifts Rider reflects his or her wishes and that he or she has
signed it voluntarily. I am not named herein as a permissible recipient
of [major] gifts.
___________________________ _________________________
Signature of witness 1 Signature of witness 2
___________________________ _________________________
Date Date
___________________________ _________________________
Print name Print name
___________________________ _________________________
Address Address
___________________________ _________________________
City, State, Zip code City, State, Zip code
(g) This document prepared by: ____________________________"
S 30. The law revision commission shall, over a period of two years,
study all aspects of the implementation of title 15 of article 5 of the
general obligations law, as amended by chapter 644 of the laws of 2008
and this act. Such commission shall consult with individuals and enti-
ties regularly engaged in the utilization of such title, and those indi-
viduals and entities affected by the provisions of such title.
On or before September 1, 2010, the law revision commission shall
submit a preliminary report of its findings, conclusions and recommenda-
tions to the governor and the legislature regarding the statutory gifts
rider. In addition to providing the aforementioned preliminary report,
the law revision commission shall, on or before January 1, 2012, submit
a report of its findings, conclusions and recommendations to the gover-
nor and the legislature.
S 31. This act shall take effect on the thirtieth day after it shall
have become a law and shall be deemed to have been in full force and
effect on and after September 1, 2009. Provided, that any statutory
short form power of attorney and any statutory gifts rider executed
after August 31, 2009 shall remain valid as will any revocation of a
prior power of attorney that was delivered to the agent before the
effective date of this act.
