S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2353
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2021
                                ___________
 
 Introduced  by  M.  of  A.  WEINSTEIN  --  read once and referred to the
   Committee on Judiciary
 
 AN ACT to amend the general obligations law, in relation to the statuto-
   ry short form and other powers of attorney for purposes  of  financial
   and estate planning
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision 1 of section  5-1501B  of  the
 general  obligations  law,  as  amended by a chapter of the laws of 2020
 amending the general obligations law relating to reforming the statutory
 short form and other powers of attorney for purposes  of  financial  and
 estate  planning, as proposed in legislative bills numbers S. 3923-a and
 A. 5630-a, is amended to read as follows:
   (b) Be signed, initialed and dated by a principal with capacity, or in
 the name of such principal by another person, other than a person desig-
 nated as the principal's agent or successor agent,  in  the  principal's
 presence  and  at  the  principal's  direction,  in either case with the
 signature  of  the  person  signing  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  AGENTS
 OR  AS  PERMISSIBLE  RECIPIENTS  OF  GIFTS,  IN  THE MANNER DESCRIBED IN
 SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SECTION 3-2.1 OF THE ESTATE, POWERS
 AND TRUSTS LAW in the presence of the principal. THE  PERSON  WHO  TAKES
 THE  ACKNOWLEDGEMENT  UNDER  THIS PARAGRAPH MAY ALSO SERVE AS ONE OF THE
 WITNESSES. When a person signs at the direction of a principal he or she
 shall sign by writing or printing the principal's name, and printing and
 signing his or her own name.
   § 2. The section heading and subdivisions 1 and 3 of section 5-1504 of
 the general obligations law, as amended by a chapter of the laws of 2020
 amending the general obligations law relating to reforming the statutory
 short form and other powers of attorney for purposes  of  financial  and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07173-01-1

 A. 2353                             2
 
 estate  planning, as proposed in legislative bills numbers S. 3923-a and
 A. 5630-a, are amended to read as follows:
   Acceptance  of  and reliance upon acknowledged AND WITNESSED statutory
 short form power of attorney. 1.   (a) For  purposes  of  this  section,
 "acknowledged"  means  purportedly  verified  before  a notary public or
 other individual authorized to take acknowledgements.  FOR  PURPOSES  OF
 THIS SECTION, "WITNESSED" MEANS PURPORTEDLY WITNESSED BY TWO PERSONS WHO
 ARE  NOT  NAMED IN THE INSTRUMENT AS AGENTS OR AS PERMISSIBLE RECIPIENTS
 OF GIFTS.
   (b) A person that in good faith accepts an acknowledged AND  WITNESSED
 power  of  attorney  without  actual knowledge that the signature is not
 genuine may rely upon the presumption that the signature is genuine.
   (c) A person that in good faith accepts an acknowledged AND  WITNESSED
 power of attorney without actual knowledge that the power of attorney is
 void,  invalid,  or  terminated, that the purported agent's authority is
 void, invalid, or terminated, or that the agent is exceeding or  improp-
 erly  exercising the agent's authority may rely upon the power of attor-
 ney as if the power of attorney were genuine, valid and still in effect,
 the agent's authority were genuine, valid and still in effect,  and  the
 agent had not exceeded and had properly exercised the authority.
   (d)  A  person  that  is asked to accept an acknowledged AND WITNESSED
 power of attorney may request, and rely upon, without  further  investi-
 gation:
   (1)  an  agent's certification under penalty of perjury of any factual
 matter concerning the principal, agent or power of attorney; and
   (2) an opinion of counsel as to any matter of law concerning the power
 of attorney if the person making the request provides in  a  writing  or
 other record the reason for the request.
   (e)  An  opinion  of  counsel  requested  under  this  section must be
 provided at the principal's expense unless the request is made more than
 ten business days after the power of attorney is presented  for  accept-
 ance.
   (f)  For  purposes  of this section, a person that conducts activities
 through employees is without actual knowledge of a fact  relating  to  a
 power  of  attorney, a principal, or an agent if the employee conducting
 the transaction involving the power of attorney is without actual  know-
 ledge of the fact after making reasonable inquiry with respect thereto.
   3.  (a) Not later than the tenth business day after presentation of an
 original or attorney certified copy of a statutory short form  power  of
 attorney  properly  executed  in accordance with section 5-1501B of this
 title or in accordance with the laws  in  effect  at  the  time  of  its
 execution to a third party for acceptance, such third party shall either
 (a)  honor the statutory short form power of attorney, or (b) reject the
 statutory short form power of attorney in a writing that sets forth  the
 reasons for such rejection, which writing shall be sent to the principal
 and  the  agent at the addresses on the power of attorney and such other
 addresses as provided by the principal or the agent, or (c) request  the
 agent to execute an acknowledged affidavit pursuant to subdivision seven
 of  this section stating that the power of attorney is in full force and
 effect if the statutory short form power of attorney was  not  submitted
 for  acceptance  together  with  such  an  acknowledged  affidavit. Such
 reasons for rejection may include, but not be limited to  non-conforming
 form,  missing or wrong signature, invalid notarization, or unacceptable
 identification. In the event that the  statutory  short  form  power  of
 attorney  presented  is  not  an original or attorney certified copy, as
 part of the initial rejection, such short form power of attorney may  be

 A. 2353                             3
 
 rejected  for  such  reason, provided, however, in explaining the reason
 for rejecting the short form power of attorney, the  third  party  shall
 also identify such other provisions of the short form power of attorney,
 if any, that would otherwise constitute cause for rejection of the stat-
 utory short form power of attorney. If the third party initially rejects
 the  statutory short form power of attorney in a writing that sets forth
 the reasons for such rejection, the third party shall within seven busi-
 ness days after receipt of a writing in response to the reasons for such
 rejection (i) honor the statutory short form power of attorney, or  (ii)
 finally  reject  the statutory short form power of attorney in a writing
 that sets forth the reasons for such rejection. Such  writing  shall  be
 sent to the address provided on the power of attorney, to the address of
 the  agent,  if any, and may also be sent to such other address as shall
 be provided on the account documents, or to the address of the  attorney
 as  provided  in  an opinion of counsel pursuant to this section. If the
 third party requests the agent to execute such an  acknowledged  affida-
 vit,  the  third  party  shall  honor such statutory short form power of
 attorney within seven business days after receipt by the third party  of
 an acknowledged affidavit which complies with the provisions of subdivi-
 sion  seven  of  this  section, stating that the power of attorney is in
 full force and effect unless reasonable cause  exists  as  described  in
 paragraph  (a)  of  subdivision two of this section. For the purposes of
 this subdivision, notice shall be considered delivered at the time  such
 notice  is  mailed and the time requirements in which to honor or reject
 the statutory short form power of  attorney  or  request  the  agent  to
 execute  an  acknowledged affidavit shall not apply to the department of
 audit and control [or], a public  retirement  system  of  the  state  as
 defined  in  subdivision  six  of  section  one hundred fifty-two of the
 retirement and social security law, OR THE DEPARTMENT OF HEALTH, INCLUD-
 ING SOCIAL SERVICES DISTRICTS, IN  THE  ADMINISTRATION  OF  THE  MEDICAL
 ASSISTANCE  "MEDICAID"  PROGRAM  PURSUANT  TO  TITLE  XIX OF THE FEDERAL
 SOCIAL SECURITY ACT OR OTHER PUBLIC HEALTH INSURANCE PROGRAMS.
   (b) Notice to the agent as required by paragraph (a) of this  subdivi-
 sion  shall  not  be  sent  until after a determination is made by adult
 protective services if the reason for rejection is a reason set forth in
 subdivision two of this section and is otherwise prohibited  by  law  or
 regulation.
   §  3.  Section  5-1513 of the general obligations law, as amended by a
 chapter of the laws of 2020 amending the general obligations law  relat-
 ing  to  reforming the statutory short form and other powers of attorney
 for purposes of financial and estate planning, as proposed  in  legisla-
 tive  bills  numbers  S.  3923-a  and  A.  5630-a, is amended to read as
 follows:
   § 5-1513. Statutory short form power of attorney.    The  use  of  the
 following  form,  or  one  which substantially conforms to 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; provided
 however, that any section indicated as "Optional" which is not used  may
 be omitted and replaced by the words "Intentionally Omitted":
 
                            "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

 A. 2353                             4
 
 "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
 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, 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.nysenate.gov or www.nyassembly.gov.
   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 and you do not initial [a]
 THE statement below, they must act together.
       [( ) My agents must act TOGETHER.]
       ( ) My [successor] agents may act SEPARATELY.
 (c) DESIGNATION OF SUCCESSOR AGENT(S): (OPTIONAL)
   If 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)
   If you do not initial [a] THE statement below, successor agents desig-
 nated above must act together.
       [( ) My agents must act TOGETHER.]
       ( ) 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 DOES NOT REVOKE any Powers of Attorney previ-
 ously  executed  by  me  unless  I  have  stated  otherwise below, under
 "Modifications."
 (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

 A. 2353                             5
 
       (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 thousand dollars;
       ( )  (J)  benefits from governmental programs or civil or military
                 service;
       ( )(K) financial matters related to health care; 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  delegate
       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) CERTAIN GIFT TRANSACTIONS: (OPTIONAL)
   In  order to authorize your agent to make gifts in excess of an annual
 total of $5,000 for all gifts described in (I) of the grant of authority
 section of this document (under personal and family maintenance), and/or
 to make changes to interest in your property, you must  expressly  grant
 that  authorization  in  the Modifications section below. If you wish to
 authorize your agent to make gifts  to  himself  or  herself,  you  must
 expressly  grant  such authorization in the Modifications section below.
 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.  Your  choice  to
 grant such authority should be discussed with a lawyer.
   ( )  I  grant  my agent authority to make gifts in accordance with the
 terms and conditions of the Modifications that supplement this Statutory
 Power of Attorney.
   (h) MODIFICATIONS: (OPTIONAL)
   In this section, you may make additional  provisions,  including,  but
 not  limited  to,  language  to limit or supplement authority granted to
 your agent, language to grant your agent the specific authority to  make
 gifts  to  himself  or  herself, and/or language to grant your agent the
 specific authority to make other gift  transactions  and/or  changes  to
 interests in your property. Your agent is entitled to be reimbursed from
 your  assets  for  reasonable  expenses incurred on your behalf. In this
 section, you may make  additional  provisions  if  you  ALSO  wish  your

 A. 2353                             6
 
 agent(s)  to  be  compensated  from your assets for services rendered on
 your behalf, and you may define "reasonable compensation."
 (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):
   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,
 and/or you wish to define  "reasonable  compensation",  you  may  do  so
 above, under "Modifications".
 (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) SIGNATURES OF WITNESSES:
   BY SIGNING AS A WITNESS, I ACKNOWLEDGE THAT THE PRINCIPAL  SIGNED  THE
 POWER  OF  ATTORNEY  IN  MY  PRESENCE  AND  IN THE PRESENCE OF THE OTHER
 WITNESS, OR THAT THE PRINCIPAL ACKNOWLEDGED TO ME THAT  THE  PRINCIPAL'S
 SIGNATURE  WAS AFFIXED BY HIM OR HER OR AT HIS OR HER DIRECTION.  I ALSO
 ACKNOWLEDGE THAT THE PRINCIPAL HAS STATED THAT THIS  POWER  OF  ATTORNEY
 REFLECTS HIS OR HER WISHES AND THAT HE OR SHE HAS SIGNED IT VOLUNTARILY.
 I  AM  NOT  NAMED  HEREIN  AS  AN AGENT OR AS A PERMISSIBLE RECIPIENT OF
 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
   (O) IMPORTANT INFORMATION FOR THE AGENT:

 A. 2353                             7
 
   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:
   (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 of all transactions conducted for the principal or
 keep all receipts of payments and transactions conducted for the princi-
 pal; 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 manners:  (Principal's  Name)
 by  (Your Signature) as Agent, or (your signature) as Agent for (Princi-
 pal's Name).
   You may not use the principal's assets to benefit yourself  or  anyone
 else  or  make gifts to yourself or anyone else unless the principal has
 specifically granted you that authority in the modifications section  of
 this  document  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 inter-
 est. 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 docu-
 ment, 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)] (P) 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.
 In  Witness  Whereof  I have hereunto signed my name on ________________
 20_____.
 Agent(s) sign(s) here:==>__________________________________________
 (acknowledgment(s))
 [(p)] (Q) 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.
 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.

 A. 2353                             8

 In Witness Whereof I have hereunto signed my  name  on  ________________
 20_____.
 Successor Agent(s) sign(s) here:==>______________________________________
 (acknowledgment(s))"
   §  4.  This  act  shall  take  effect on the same date and in the same
 manner as a chapter of the laws of 2020 amending the general obligations
 law relating to reforming the statutory short form and other  powers  of
 attorney  for  purposes of financial and estate planning, as proposed in
 legislative bills numbers S. 3923-a and A. 5630-a, takes effect.