Mandatory Acceptance of Powers of Attorneys by Banks - Jay L. Hack
The New York Power of Attorney law has been revamped, effective June 12, 2021. All businesses, including banks, must accept a properly executed power of attorney unless there is a good reason to reject it. A notice of rejection, including a list of the reasons for rejection, must be given within 7 business days. Failure to follow the required procedures, or an unjustified rejection, can lead to a claim for money damages and attorney’s fees. This presentation will describe the new requirements and discuss the procedures that a bank should follow in order to avoid liability. Banks must establish policies and procedures to deal with the new law and train all employees in it before the June 12 implementation date to avoid the risk of liability.