NY State Senate Bill 2019-S3847

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to banks
Feb 19, 2019	referred to banks

2019-S3847 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §§9-x & 9-y, Bank L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5983
2021-2022: S2601

2019-S3847 (ACTIVE) - Summary

Requires all banking institutions in the state to accept a statutory short form power of attorney and powers of attorney which survive disability or incompetence; references existing provisions relating to powers of attorney in the general obligations law; holds banks harmless for such acceptance unless they have actual written notice of revocation or termination.

2019-S3847 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3847

SPONSOR: HELMING
 
TITLE OF BILL:  An act to amend the banking law, in relation to the
use of powers of attorney in banking transactions

 
PURPOSE:

To require banks authorized to do business in the state to accept a
statutory short form power of attorney.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new Section 9-x to the Banking Law to require all
"banking institutions" authorized to do business in this state to honor
a statutory short form power of attorney. No employee, agent or officer
of a banking institution in New York, who has received a statutory short
form power of attorney, shall incur any liability for acting upon the
authority thereof unless the institution has received, at the office
where the account is located, written notice of the revocation or termi-
nation of such power of attorney.

A new Section 9-y is added to the Banking Law to provide that the subse-
quent disability or incompetence of a principal shall not revoke or
terminate the authority of an attorney-in-fact who acts under a power of
attorney. This must be specified in writing, executed by the principal,
containing the words "This power of attorney shall not be affected by
the subsequent disability or incompetence of the principal," or words of
similar import. If a committee or conservator is appointed for such
principal, the attorney in-fact will account to the committee or conser-
vator. The committee or conservator will hold the same power as the
principal to suspend or terminate any part of such power of attorney.

Section 2 sets the effective date.

 
JUSTIFICATION:

The provisions of this proposal are contained in Sections 5-1504 and
5-1601 of the General Obligations Law. However, these are not in the
Banking Law and the current long form power of attorney forms are very
complex and are often improperly executed.  There is a proposal to begin
using one single form and, however, it will most likely take time to
implement this proposal. This legislation will assure that banks are
allowed to use a short form until this proposal goes into effect.

 
PRIOR LEGISLATIVE HISTORY:

(2003) A3394 - Referred to banks
(2004) A9669 - Referred to rules
(2005) A0411 - Referred to rules
(2006) A0411 - Referred to banks

(2007) A8500 - Referred to banks
(2008) A8500 - Referred to banks
(2009) A5906 - Referred to banks
(2010) A5906 - Referred to banks
(2011) A4690 - Referred to banks
(2012) A4690 - Referred to banks
(2013-14) A3427 - Referred to banks
(2015-16) A2748 - Referred to banks
(2017-18) S5983/A6456 Referred to banks

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S3847 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3847
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 19, 2019
                                ___________
 
 Introduced  by  Sen. HELMING -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law, in relation to the  use  of  powers  of
   attorney in banking transactions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The banking law is amended by adding two new  sections  9-x
 and 9-y to read as follows:
   §  9-X.  ACCEPTANCE  OF STATUTORY SHORT FORM POWER OF ATTORNEY.  1. NO
 BANK, TRUST COMPANY, NATIONAL BANK, SAVINGS BANK, FEDERAL MUTUAL SAVINGS
 BANK LOCATED IN  THIS  STATE,  SAVINGS  AND  LOAN  ASSOCIATION,  FEDERAL
 SAVINGS  AND  LOAN  ASSOCIATION, FEDERAL MUTUAL SAVINGS AND LOAN ASSOCI-
 ATION, CREDIT UNION OR FEDERAL CREDIT UNION OR BRANCH OF A FOREIGN BANK-
 ING CORPORATION OR ANY OTHER CORPORATION AUTHORIZED TO  CONDUCT  BANKING
 BUSINESS  IN  THIS  STATE  (EACH  OF  THE  FOREGOING REFERRED TO IN THIS
 SECTION AS "BANKING INSTITUTION") LOCATED IN THIS STATE SHALL REFUSE  TO
 HONOR  A  STATUTORY  SHORT  FORM  POWER OF ATTORNEY PROPERLY EXECUTED IN
 ACCORDANCE WITH SECTION 5-1501B OF THE GENERAL OBLIGATIONS LAW.
   2. THE FAILURE OF A BANKING INSTITUTION TO HONOR A  PROPERLY  EXECUTED
 STATUTORY SHORT FORM POWER OF ATTORNEY SHALL BE DEEMED UNLAWFUL.
   3.  NO  BANKING  INSTITUTION RECEIVING AND RETAINING A STATUTORY SHORT
 FORM POWER OF ATTORNEY PRESENTED TO IT AS PROVIDED IN SUBDIVISION ONE OF
 THIS SECTION NOR ANY OFFICER, AGENT  OR  EMPLOYEE  OF  SUCH  INSTITUTION
 SHALL INCUR ANY LIABILITY BY REASON OF ACTING UPON THE AUTHORITY THEREOF
 UNLESS THE INSTITUTION SHALL HAVE ACTUALLY RECEIVED, AT THE OFFICE WHERE
 THE  ACCOUNT IS LOCATED, WRITTEN NOTICE OF THE REVOCATION OR TERMINATION
 OF SUCH POWER OF ATTORNEY.
   4. IF THE APPLICATION OF THE PROVISIONS OF SUBDIVISION ONE OR  TWO  OF
 THIS  SECTION  SHALL  BE  HELD  INVALID  TO ANY BANKING INSTITUTION, THE
 APPLICATION OF SUCH PROVISIONS TO ANY OTHER  BANKING  INSTITUTION  OTHER
 THAN THOSE TO WHICH IT IS HELD INVALID, SHALL NOT BE AFFECTED THEREBY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10045-01-9

 S. 3847                             2
 
   § 9-Y. POWERS OF ATTORNEY WHICH SURVIVE DISABILITY OR INCOMPETENCE. 1.
 THE  SUBSEQUENT  DISABILITY  OR  INCOMPETENCE  OF  A PRINCIPAL SHALL NOT
 REVOKE OR TERMINATE THE AUTHORITY OF AN ATTORNEY-IN-FACT WHO ACTS  UNDER
 A  POWER  OF  ATTORNEY  IN  A  WRITING  EXECUTED BY SUCH PRINCIPAL WHICH
 CONTAINS  THE WORDS "THIS POWER OF ATTORNEY SHALL NOT BE AFFECTED BY THE
 SUBSEQUENT DISABILITY OR INCOMPETENCE OF THE  PRINCIPAL,"  OR  WORDS  OF
 SIMILAR  IMPORT  SHOWING THE INTENT OF SUCH PRINCIPAL THAT THE AUTHORITY
 CONFERRED SHALL BE EXERCISABLE NOTWITHSTANDING HIS SUBSEQUENT DISABILITY
 OR INCOMPETENCE.
   2. ALL ACTS DONE BY AN ATTORNEY-IN-FACT PURSUANT TO  A  POWER  GRANTED
 PURSUANT  TO  SUBDIVISION ONE OF THIS SECTION DURING ANY PERIOD OF DISA-
 BILITY OR INCOMPETENCE SHALL HAVE THE SAME EFFECT AND INURE TO THE BENE-
 FIT OF AND BIND A PRINCIPAL AND HIS DISTRIBUTEES, DEVISEES, LEGATEES AND
 PERSONAL REPRESENTATIVES AS IF SUCH PRINCIPAL  WERE  COMPETENT  AND  NOT
 DISABLED.    IF  A  COMMITTEE OR CONSERVATOR THEREAFTER IS APPOINTED FOR
 SUCH PRINCIPAL, SUCH ATTORNEY-IN-FACT, DURING  THE  CONTINUANCE  OF  THE
 APPOINTMENT,  SHALL  ACCOUNT TO THE COMMITTEE OR CONSERVATOR RATHER THAN
 TO SUCH PRINCIPAL.  THE COMMITTEE OR CONSERVATOR  SHALL  HAVE  THE  SAME
 POWER  SUCH PRINCIPAL WOULD HAVE HAD IF HE WERE NOT DISABLED OR INCOMPE-
 TENT TO REVOKE, SUSPEND OR TERMINATE ALL OR ANY PART OF  SUCH  POWER  OF
 ATTORNEY.
   § 2. This act shall take effect immediately.

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Senate Bill S3847

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

2019-S3847 (ACTIVE) - Details

2019-S3847 (ACTIVE) - Summary

2019-S3847 (ACTIVE) - Sponsor Memo

2019-S3847 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3847

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Sponsored By

Pamela Helming

Archive: Last Bill Status - In Senate Committee Banks Committee

2019-S3847 (ACTIVE) - Details

2019-S3847 (ACTIVE) - Summary

2019-S3847 (ACTIVE) - Sponsor Memo

2019-S3847 (ACTIVE) - Bill Text download pdf

Comments