A Useful Checklist When Credit Unions Are Presented with a Power of Attorney
Credit unions have always found it necessary to review, analyze and, where appropriate, accept a power of attorney that has been signed and presented by a member or on behalf of a member.
However, there are increasing situations involving elder abuse, fraud and forgery and many credit unions are being more cautious as they act upon a power of attorney. Some have an attorney review and opine on each and every power of attorney. Others will seek legal consultation only if the situation, the form or the language of the power of attorney is somewhat unusual.
An increasing number of state laws are providing protection to financial institutions that rely upon powers of attorney when certain provisions are included in the power of attorney.
The following checklist may be of assistance to a credit union that is presented with a power of attorney (PoA).
Power of Attorney Checklist
This checklist is intended to provide credit union clients with a reference for use in determining whether to accept a PoA. In making such a determination, the following items should be taken into consideration:
In addition, an agent's certification/affidavit pursuant to which the agent attests to the document's continuing validity is always a good idea for the credit union if there are any questions concerning the validity of the instrument.
E. Andrew Keeney is a Norfolk, Virginia-based credit union attorney with more than 35 years of experience. This article was originally published in Credit Union Times at www.cutimes.com and is reprinted with permission.
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