§ 5-1504. Acceptance of and reliance upon acknowledged and witnessed
statutory short form power of attorney. 1. (a) For purposes of this
section, "acknowledged" means purportedly verified before a notary
public or other individual authorized to take acknowledgements. For
purposes of this section, "witnessed" means purportedly witnessed by two
persons who are not named in the instrument as agents or as permissible
recipients of gifts.

(b) A person that in good faith accepts an acknowledged and witnessed
power of attorney without actual knowledge that the signature is not
genuine may rely upon the presumption that the signature is genuine.

(c) A person that in good faith accepts an acknowledged and witnessed
power of attorney without actual knowledge that the power of attorney is
void, invalid, or terminated, that the purported agent's authority is
void, invalid, or terminated, or that the agent is exceeding or
improperly exercising the agent's authority may rely upon the power of
attorney as if the power of attorney were genuine, valid and still in
effect, the agent's authority were genuine, valid and still in effect,
and the agent had not exceeded and had properly exercised the authority.

(d) A person that is asked to accept an acknowledged and witnessed
power of attorney may request, and rely upon, without further
investigation:

(1) an agent's certification under penalty of perjury of any factual
matter concerning the principal, agent or power of attorney; and

(2) an opinion of counsel as to any matter of law concerning the power
of attorney if the person making the request provides in a writing or
other record the reason for the request.

(e) An opinion of counsel requested under this section must be
provided at the principal's expense unless the request is made more than
ten business days after the power of attorney is presented for
acceptance.

(f) For purposes of this section, a person that conducts activities
through employees is without actual knowledge of a fact relating to a
power of attorney, a principal, or an agent if the employee conducting
the transaction involving the power of attorney is without actual
knowledge of the fact after making reasonable inquiry with respect
thereto.

2. No third party located or doing business in this state shall
refuse, without reasonable cause, to honor a statutory short form power
of attorney properly executed in accordance with section 5-1501B of this
title, or a statutory short form power of attorney properly executed in
accordance with the laws in effect at the time of its execution.

(a) Reasonable cause under this subdivision shall include, but not be
limited to:

(1) the refusal by the agent to provide an original power of attorney
or a copy certified by an attorney pursuant to section twenty-one
hundred five of the civil practice law and rules, or by a court or other
government entity;

(2) the third party's good faith referral of the principal and the
agent or a person acting for or with the agent to the local adult
protective services unit;

(3) actual knowledge of a report having been made by any person to the
local adult protective services unit alleging physical or financial
abuse, neglect, exploitation or abandonment of the principal by the
agent or a person acting for or with the agent;

(4) actual knowledge of the principal's death or a reasonable basis
for believing the principal has died;

(5) actual knowledge of the incapacity of the principal or a
reasonable basis for believing that the principal is incapacitated where
the power of attorney tendered is a nondurable power of attorney;

(6) actual knowledge or a reasonable basis for believing that the
principal was incapacitated at the time the power of attorney was
executed;

(7) actual knowledge or a reasonable basis for believing that the
power of attorney was procured through fraud, duress or undue influence;

(8) actual notice, pursuant to subdivision five of this section, of
the termination or revocation of the power of attorney;

(9) the refusal by a title insurance company to underwrite title
insurance for a gift of real property made pursuant to a statutory short
form power of attorney or non-statutory power of attorney that does not
contain express instructions or purposes of the principal with respect
to gifts in the modifications section of the statutory short form power
of attorney or in the non-statutory power of attorney; or

(10) the refusal of a request for a certification or an opinion of
counsel under paragraph (d) of subdivision one of this section.

(b) It shall be deemed unreasonable for a third party to refuse to
honor a statutory short form power of attorney properly executed in
accordance with section 5-1501B of this title or a statutory short form
power of attorney properly executed in accordance with the laws in
effect at the time of its execution, if the only reason for the refusal
is any of the following:

(1) the power of attorney is not on a form prescribed by the third
party to whom the power of attorney is presented.

(2) there has been a lapse of time since the execution of the power of
attorney.

(3) on the face of the statutory short form power of attorney, there
is a lapse of time between the date of acknowledgment of the signature
of the principal and the date of acknowledgment of the signature of any
agent.

3. (a) Not later than the tenth business day after presentation of an
original or attorney certified copy of a statutory short form power of
attorney properly executed in accordance with section 5-1501B of this
title or in accordance with the laws in effect at the time of its
execution to a third party for acceptance, such third party shall either
(a) honor the statutory short form power of attorney, or (b) reject the
statutory short form power of attorney in a writing that sets forth the
reasons for such rejection, which writing shall be sent to the principal
and the agent at the addresses on the power of attorney and such other
addresses as provided by the principal or the agent, or (c) request the
agent to execute an acknowledged affidavit pursuant to subdivision seven
of this section stating that the power of attorney is in full force and
effect if the statutory short form power of attorney was not submitted
for acceptance together with such an acknowledged affidavit. Such
reasons for rejection may include, but not be limited to non-conforming
form, missing or wrong signature, invalid notarization, or unacceptable
identification. In the event that the statutory short form power of
attorney presented is not an original or attorney certified copy, as
part of the initial rejection, such short form power of attorney may be
rejected for such reason, provided, however, in explaining the reason
for rejecting the short form power of attorney, the third party shall
also identify such other provisions of the short form power of attorney,
if any, that would otherwise constitute cause for rejection of the
statutory short form power of attorney. If the third party initially
rejects the statutory short form power of attorney in a writing that
sets forth the reasons for such rejection, the third party shall within
seven business days after receipt of a writing in response to the
reasons for such rejection (i) honor the statutory short form power of
attorney, or (ii) finally reject the statutory short form power of
attorney in a writing that sets forth the reasons for such rejection.
Such writing shall be sent to the address provided on the power of
attorney, to the address of the agent, if any, and may also be sent to
such other address as shall be provided on the account documents, or to
the address of the attorney as provided in an opinion of counsel
pursuant to this section. If the third party requests the agent to
execute such an acknowledged affidavit, the third party shall honor such
statutory short form power of attorney within seven business days after
receipt by the third party of an acknowledged affidavit which complies
with the provisions of subdivision seven of this section, stating that
the power of attorney is in full force and effect unless reasonable
cause exists as described in paragraph (a) of subdivision two of this
section. For the purposes of this subdivision, notice shall be
considered delivered at the time such notice is mailed and the time
requirements in which to honor or reject the statutory short form power
of attorney or request the agent to execute an acknowledged affidavit
shall not apply to the department of audit and control, a public
retirement system of the state as defined in subdivision six of section
one hundred fifty-two of the retirement and social security law, or the
department of health, including social services districts, in the
administration of the medical assistance "Medicaid" program pursuant to
title XIX of the federal social security act or other public health
insurance programs.

(b) Notice to the agent as required by paragraph (a) of this
subdivision shall not be sent until after a determination is made by
adult protective services if the reason for rejection is a reason set
forth in subdivision two of this section and is otherwise prohibited by
law or regulation.

4. (a) Once reasonably accepted, if a third party conducts a
transaction in reliance on a properly executed statutory short form
power of attorney, the third party shall be held harmless from liability
for the transaction.

(b) Except as provided in subdivision five of this section, it shall
be deemed unlawful for a third party to unreasonably refuse to honor a
properly executed statutory short form power of attorney executed in
accordance with section 5-1501B of this title or a statutory short form
power of attorney properly executed in accordance with the laws in
effect at the time of its execution. If a special proceeding as
authorized by section 5-1510 of this title is brought to compel the
third party to honor the statutory short form power of attorney, the
court may award damages, including reasonable attorney's fees and costs,
if the court finds that the third party acted unreasonably in refusing
to honor the agent's authority under the statutory short form power of
attorney. Such special proceeding shall be the exclusive remedy for a
violation of this section.

5. In the absence of actual knowledge that the principal lacked
capacity to execute a statutory short form power of attorney or that the
statutory short form power of attorney was procured through fraud,
duress or undue influence, no third party receiving and retaining a
statutory short form power of attorney properly executed in accordance
with section 5-1501B of this title, or a statutory short form power of
attorney properly executed in accordance with the laws in effect at the
time of its execution, or a complete photostatic copy of the properly
executed original thereof, nor any officer, agent, attorney-in-fact or
employee of such third party shall incur any liability by reason of
acting upon the authority thereof unless the third party shall have
received actual notice of the revocation or termination of such power of
attorney.

If a principal maintains an account at a financial institution, the
financial institution is deemed to have actual notice after it has had a
reasonable opportunity to act on a written notice of the revocation or
termination following its receipt of the same at its office where such
account is located.

6. If the application of the provisions of subdivision two or four of
this section shall be held invalid to any third party the application of
such provisions to any third party other than those to which it is held
invalid, shall not be affected thereby.

7. When the power of attorney is presented to a third party, it shall
not be deemed unreasonable for a third party to require the agent to
execute an acknowledged affidavit pursuant to this subdivision stating
that the power of attorney is in full force and effect. Such an
affidavit is conclusive proof to the third party relying on the power of
attorney that the power of attorney is valid and effective, and has not
been terminated, revoked or modified, except as to any third party who
had actual notice that the power of attorney had terminated, been
revoked or been modified prior to the execution of the affidavit. Such
affidavit shall state that:

(a) the agent does not have, at the time of the transaction, actual
notice of the termination or revocation of the power of attorney, or
notice of any facts indicating that the power of attorney has been
terminated or revoked;

(b) the agent does not have, at the time of the transaction, actual
notice that the power of attorney has been modified in any way that
would affect the ability of the agent to authorize or engage in the
transaction, or notice of any facts indicating that the power of
attorney has been so modified;

(c) if the agent was named as a successor agent, the prior agent is no
longer able or willing to serve; and

(d) if the agent has been the principal's spouse, the power of
attorney expressly provides that divorce or annulment as defined in
subparagraph two of paragraph (f) of section 5-1.4 of the estates,
powers and trusts law does not terminate the agent's authority
thereunder, or the agent does not have actual notice that the marriage
has been terminated by divorce or annulment as defined in subparagraph
two of paragraph (f) of section 5-1.4 of the estates, powers and trusts
law at the time of the transaction.

8. Nothing in this section shall require the acceptance of a form that
is not a statutory short form power of attorney.

9. A statutory short form power of attorney or a non-statutory power
of attorney that meets the requirements of subdivision one of section
5-1501B of this title shall be accepted for recording so long as it has
been signed by one agent named therein whose signature has been
acknowledged. If two or more agents acting on behalf of the principal
are required to act together, the power of attorney shall be accepted
for recording as long as their signatures have been acknowledged. When a
successor or co-agent authorized to act separately from any other agents
presents a certified copy of a recorded statutory short form power of
attorney or non-statutory power of attorney with the agent's signature
acknowledged, the instrument shall be accepted for recording.