Banking Spectrum - What's New?

Governor Cuomo has signed legislation that will significantly change New York legislation regarding powers of attorney. The amendment will be effective 180 days from December 15.

To summarize, the legislation:

Expands the grounds for reasonably refusing to honor a power of attorney.
Allows a person who, in good faith, accepts an acknowledged power of attorney without actual knowledge that the signature is not genuine, may rely upon the presumption that the signature is genuine.
Specifies a timetable and process for a third party to accept or reject a power of attorney.
Relaxes the wording requirement providing that a power will be acceptable if the language "substantially conforms" to the statutory language.
Eliminates the statutory gifts rider is eliminated.
Provides authority to make gifts absent language in the modifications section has been increased from $500 to $5,000 in any calendar year.