SB 145 - Agency - statutory form for financial power of attorney
Georgia Senate - 1995/1996 Sessions
SB 145 - Agency - statutory form for financial power of attorney
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11
1. Oliver 42nd 2. Hill 4th 3. Marable 52nd
4. Thomas 10th
Senate Comm: Judy / House Comm: Judy /
Senate Vote: Yeas 53 Nays 0
Senate Action House
1/24/95 Read 1st time 2/21/95
2/15/95 Favorably Reported 3/10/95
Committee Amend/Sub Sub
2/16/95 Read 2nd Time 2/22/95
2/20/95 Read 3rd Time
FA Comm/Floor Amend/Sub
Code Sections amended: 10-6-140, 10-6-141, 10-6-142
SB 145 LC 22 1752S
The House Committee on Judiciary offers the
following substitute to SB 145:
A BILL TO BE ENTITLED
1- 1 To amend Chapter 6 of Title 10 of the Official Code of
1- 2 Georgia Annotated, relating to agency, so as to provide a
1- 3 statutory form for financial power of attorney; to provide
1- 4 that such form is not the exclusive method for creating such
1- 5 an agency; to provide an explanation for principals; to
1- 6 provide for related matters; to repeal conflicting laws; and
1- 7 for other purposes.
1- 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1- 9 Chapter 6 of Title 10 of the Official Code of Georgia
1-10 Annotated, relating to agency, is amended by inserting a new
1-11 article to be designated Article 7 to read as follows:
1-12 10-6-140. (Index)
1-13 The Georgia Statutory Form for Financial Power of Attorney
1-14 set out in Code Section 10-6-142 may be used to create a
1-15 financial power of attorney, but is not the exclusive
1-16 method for creating such an agency.
1-17 10-6-141. (Index)
1-18 The following explanation for principals may be used with
1-19 the Georgia Statutory Form for Financial Power of
1-21 EXPLANATION FOR PRINCIPALS
1-22 WHAT IS A FINANCIAL POWER OF ATTORNEY?
1-23 This document is called a 'Financial Power of Attorney.'
1-24 It allows you to name one or more persons to help you
1-25 handle your financial affairs. Depending on your
1-26 individual circumstances, you can give this person or
1-27 persons complete or limited power to act on your behalf.
1-28 This document does not give someone the power to make
1-29 medical decisions or personal decisions for you.
LC 22 1752S
2- 1 WHAT CAN MY AGENT DO?
2- 2 The 'Agent' is the person you give power to handle your
2- 3 financial affairs.
2- 4 The 'Principal' is you.
2- 5 Your decision to use this document is a very important
2- 6 one and you should think carefully about what financial
2- 7 decisions you want your Agent to make for you. With
2- 8 this document, you can give your Agent the right to make
2- 9 all financial decisions or only certain, limited
2-11 For example, you can allow your Agent to handle all your
2-12 financial affairs, including the power to sell, rent, or
2-13 mortgage your home, pay your bills, cash or deposit
2-14 checks, buy and sell your stock, investments, or
2-15 personal items. Or you can allow your Agent to handle
2-16 only certain or specific financial affairs such as to
2-17 pay your monthly bills.
2-18 DO I GIVE ALL MY POWERS AWAY?
2-19 No. Even with this document, you can still handle your
2-20 own financial affairs as long as you choose to or are
2-21 able to.
2-22 You need to talk to your Agent often about what you want
2-23 and what he or she is doing for you using the document.
2-24 If your Agent is not following your instructions or
2-25 doing what you want, you may cancel or revoke the
2-26 document and end your Agent's power to act for you.
2-27 HOW DO I REVOKE MY FINANCIAL POWER OF ATTORNEY?
2-28 You may revoke your financial power of attorney by
2-29 writing a signed and dated revocation of power of
2-30 attorney and giving it to your Agent. You should also
2-31 give it to anyone who has been relying upon the
2-32 financial power of attorney and dealing with your Agent,
2-33 such as your bank and investment institutions.
2-34 Unless you notify all parties dealing with your Agent of
2-35 your revocation, they may continue to deal with your
2-36 Agent. You should contact a lawyer if your Agent
2-37 continues to act after you have revoked the power of
LC 22 1752S
3- 1 WHEN DOES MY AGENT'S AUTHORITY END?
3- 2 Unless you say in the document when you want your
3- 3 Agent's power to end, your document will remain in
3- 4 effect even if you become incapacitated or unable to
3- 5 communicate your wishes. However, upon your death or
3- 6 the death of your Agent or successor Agents, the
3- 7 document will be cancelled and the Agent's power to act
3- 8 for you will end.
3- 9 You can also include a date or a specific occurrence
3-10 like your incapacity or illness as the time when you
3-11 want your document to be canceled and your Agent's power
3-12 to act for you to end.
3-13 WHEN DO THE POWERS TAKE EFFECT?
3-14 Depending on your circumstances, you may wish to specify
3-15 an occurrence or a future date for the document to
3-16 become effective. Unless you do so, it becomes
3-17 effective immediately.
3-18 MUST MY AGENT DO THOSE THINGS I AUTHORIZE?
3-19 No. But if your Agent accepts this responsibility and
3-20 agrees to act for you, he or she is required to sign and
3-21 date the 'Acceptance of Appointment' contained in the
3-22 financial power of attorney form.
3-23 HOW DO I COMPLETE THIS DOCUMENT?
3-24 Both the Principal and the Agent should read the full
3-25 document carefully before initialing or signing. The
3-26 Principal and the Agent should fully understand what
3-27 powers are being granted to the Agent and what
3-28 restrictions, if any, exist.
3-29 Read each paragraph carefully. If you decide to give
3-30 your Agent the power described in the paragraph, initial
3-31 your name at the end of the paragraph.
3-32 If you do not wish to give your Agent the power
3-33 described in a paragraph, strike through and initial the
3-34 paragraph or any line within a paragraph.
3-35 HOW DO I EXECUTE THE DOCUMENT?
3-36 Two adult witnesses must watch you sign your name on the
3-37 document. At least one witness cannot be the
3-38 Principal's spouse or blood relative. After they
3-39 witness you signing your name, the witnesses must sign
3-40 their names.
LC 22 1752S
4- 1 This document does not need to be notarized unless real
4- 2 property transactions such as leasing, selling, or
4- 3 mortgaging of property are authorized.
4- 4 THIS DOCUMENT REFLECTS THE WISHES OF THE PRINCIPAL.
4- 5 Do not let anyone pressure you into making a financial
4- 6 power of attorney, naming an Agent, or granting a power
4- 7 unless it is your choice.
4- 8 If you do not understand any portion of this document,
4- 9 you should ask a lawyer to explain it to you.
4-10 10-6-142. (Index)
4-11 The Georgia Statutory Form for Financial Power of Attorney
4-12 shall be substantially as follows:
4-13 FINANCIAL POWER OF ATTORNEY
4-14 County of _____________________
N State of Georgia
4-16 I, ______________________________, (hereinafter
4-17 'Principal'), a resident of ______________________________
4-18 County, Georgia, do hereby constitute and appoint
4-19 __________________________________ my true and lawful
4-20 attorney-in-fact (hereinafter 'Agent') for me and give
4-21 such person the power(s) specified below to act in my
4-22 name, place, and stead in any way which I, myself, could
4-23 do if I were personally present with respect to the
4-24 following matters:
4-25 (Directions: To give the Agent the powers described in
4-26 paragraphs 1 through 13, place your initials on the
4-27 blank line at the end of each paragraph. If you DO NOT
4-28 want to give a power to the Agent, strike through the
4-29 paragraph or a line within the paragraph and place your
4-30 initials beside the stricken paragraph or stricken line.
4-31 The powers described in any paragraph not initialed or
4-32 which has been struck through will not be conveyed to
4-33 the Agent. Both the Principal and the Agent must sign
4-34 their full names at the end of the last paragraph.)
4-35 1. Bank and Credit Union Transactions: To make,
4-36 receive, sign, endorse, execute, acknowledge, deliver,
4-37 and possess checks, drafts, bills of exchange, letters
4-38 of credit, notes, stock certificates, withdrawal
4-39 receipts and deposit instruments relating to accounts or
4-40 deposits in, or certificates of deposit of banks,
LC 22 1752S
5- 1 savings and loans, credit unions, or other institutions
5- 2 or associations. __________
5- 3 2. Payment Transactions: To pay all sums of money, at
5- 4 any time or times, that may hereafter be owing by me
5- 5 upon any account, bill or exchange, check, draft,
5- 6 purchase, contract, note, or trade acceptance made,
5- 7 executed, endorsed, accepted, and delivered by me or for
5- 8 me in my name, by my Agent. __________
5- 9 Note: If you initial paragraph 3 or paragraph 4 which
5-10 follow, a notarized signature will be required on behalf
5-11 of the Principal.
5-12 3. Real Property Transactions: To lease, sell,
5-13 mortgage, purchase, exchange, and acquire, and to agree,
5-14 bargain, and contract for the lease, sale, purchase,
5-15 exchange, and acquisition of, and to accept, take,
5-16 receive, and possess any interest in real property
5-17 whatsoever, on such terms and conditions, and under such
5-18 covenants, as my Agent shall deem proper; and to
5-19 maintain, repair, tear down, alter, rebuild, improve,
5-20 manage, insure, move, rent, lease, sell, convey, subject
5-21 to liens, mortgages, and security deeds, and in any way
5-22 or manner deal with all or any part of any interest in
5-23 real property whatsoever, including specifically, but
5-24 without limitation, real property lying and being
5-25 situate in the State of Georgia, under such terms and
5-26 conditions, and under such covenants, as my Agent shall
5-27 deem proper and may for all deferred payments accept
5-28 purchase money notes payable to me and secured by
5-29 mortgages or deeds to secure debt, and may from time to
5-30 time collect and cancel any of said notes, mortgages,
5-31 security interests, or deeds to secure debt. __________
5-32 4. Personal Property Transactions: To lease, sell,
5-33 mortgage, purchase, exchange, and acquire, and to agree,
5-34 bargain, and contract for the lease, sale, purchase,
5-35 exchange, and acquisition of, and to accept, take,
5-36 receive, and possess any personal property whatsoever,
5-37 tangible or intangible, or interest thereto, on such
5-38 terms and conditions, and under such covenants, as my
5-39 Agent shall deem proper; and to maintain, repair,
5-40 improve, manage, insure, rent, lease, sell, convey,
5-41 subject to liens or mortgages, or to take any other
5-42 security interests in said property which are recognized
5-43 under the Uniform Commercial Code as adopted at that
5-44 time under the laws of Georgia or any applicable state,
LC 22 1752S
6- 1 or otherwise hypothecate, and in any way or manner deal
6- 2 with all or any part of any real or personal property
6- 3 whatsoever, tangible or intangible, or any interest
6- 4 therein, that I own at the time of execution or may
6- 5 thereafter acquire, under such terms and conditions, and
6- 6 under such covenants, as my Agent shall deem
6- 7 proper. __________
6- 8 5. Stock and Bond Transactions: To purchase, sell,
6- 9 exchange, surrender, assign, redeem, vote at any
6-10 meeting, or otherwise transfer any and all shares of
6-11 stock, bonds, or other securities in any business,
6-12 association, corporation, partnership, or other legal
6-13 entity, whether private or public, now or hereafter
6-14 belonging to me. __________
6-15 6. Safe Deposits: To have free access at any time or
6-16 times to any safe deposit box or vault to which I might
6-17 have access. __________
6-18 7. Borrowing: To borrow from time to time such sums of
6-19 money as my Agent may deem proper and execute promissory
6-20 notes, security deeds or agreements, financing
6-21 statements, or other security instruments in such form
6-22 as the lender may request and renew said notes and
6-23 security instruments from time to time in whole or in
6-24 part. __________
6-25 8. Business Operating Transactions: To conduct, engage
6-26 in, and otherwise transact the affairs of any and all
6-27 lawful business ventures of whatever nature or kind that
6-28 I may now or hereafter be involved in. __________
6-29 9. Insurance Transactions: To exercise or perform any
6-30 act, power, duty, right, or obligation, in regard to any
6-31 contract of life, accident, health, disability,
6-32 liability, or other type of insurance or any combination
6-33 of insurance; and to procure new or additional contracts
6-34 of insurance for me and to designate the beneficiary of
6-35 same; provided, however, that my Agent cannot designate
6-36 himself or herself as beneficiary of any such insurance
6-37 contracts. __________
6-38 10. Disputes and Proceedings: To commence, prosecute,
6-39 discontinue, or defend all actions or other legal
6-40 proceedings touching my property, real or personal, or
6-41 any part thereof, or touching any matter in which I or
6-42 my property, real or personal, may be in any way
6-43 concerned. To defend, settle, adjust, make allowances,
LC 22 1752S
7- 1 compound, submit to arbitration, and compromise all
7- 2 accounts, reckonings, claims, and demands whatsoever
7- 3 that now are, or hereafter shall be, pending between me
7- 4 and any person, firm, corporation, or other legal
7- 5 entity, in such manner and in all respects as my Agent
7- 6 shall deem proper. __________
7- 7 11. Hiring Representatives: To hire accountants,
7- 8 attorneys at law, consultants, clerks, physicians,
7- 9 nurses, agents, servants, workmen, and others and to
7-10 remove them, and to appoint others in their place, and
7-11 to pay and allow the persons so employed such salaries,
7-12 wages, or other remunerations, as my Agent shall deem
7-13 proper. __________
7-14 12. Tax, Social Security, and Unemployment: To prepare,
7-15 to make elections, to execute and to file all tax,
7-16 social security, unemployment insurance, and
7-17 informational returns required by the laws of the United
7-18 States, or of any state or subdivision thereof, or of
7-19 any foreign government; to prepare, to execute, and to
7-20 file all other papers and instruments which the Agent
7-21 shall think to be desirable or necessary for
7-22 safeguarding of me against excess or illegal taxation or
7-23 against penalties imposed for claimed violation of any
7-24 law or other governmental regulation; and to pay, to
7-25 compromise, or to contest or to apply for refunds in
7-26 connection with any taxes or assessments for which I am
7-27 or may be liable. __________
7-28 13. Broad Powers: Without, in any way, limiting the
7-29 foregoing, generally to do, execute, and perform any
7-30 other act, deed, matter, or thing whatsoever, that
7-31 should be done, executed, or performed, including, but
7-32 not limited to, powers conferred by Code Section
7-33 53-12-232 of the Official Code of Georgia Annotated, or
7-34 that in the opinion of my Agent, should be done,
7-35 executed, or performed, for my benefit or the benefit of
7-36 my property, real or personal, and in my name of every
7-37 nature and kind whatsoever, as fully and effectually as
7-38 I could do if personally present.
7-39 14. Effective Date: This document will become effective
7-40 upon the date of the Principal's signature unless the
7-41 Principal indicates that it should become effective at a
7-42 later date by completing the following, which is
LC 22 1752S
8- 1 The powers conveyed in this document shall not become
8- 2 effective until the following time or upon the
8- 3 occurrence of the following event or contingency:
8- 4 _______________________________________________________
8- 5 _______________________________________________________
8- 6 Note: The Principal may choose to designate one or more
8- 7 persons to determine conclusively that the
8- 8 above-specified event or contingency has occurred. Such
8- 9 person or persons must make a written declaration under
8-10 penalty of false swearing that such event or contingency
8-11 has occurred in order to make this document effective.
8-12 Completion of this provision is optional.
8-13 The following person or persons are designated to
8-14 determine conclusively that the above-specified event or
8-15 contingency has occurred:
8-19 It is my desire and intention that this power of attorney
8-20 shall not be affected by my subsequent disability,
8-21 incapacity, or mental incompetence. Any and all acts done
8-22 by the Agent pursuant to the powers conveyed herein during
8-23 any period of my disability or incapacity shall have the
8-24 same force and effect as if I were competent and not
8-26 I may, at any time, revoke this power of attorney, but it
8-27 shall be deemed to be in full force and effect as to all
8-28 persons, institutions, and organizations which shall act
8-29 in reliance thereon prior to the receipt of written
8-30 revocation thereof signed by me and prior to receipt of
8-31 actual notice of my death.
8-32 I do hereby ratify and confirm all acts whatsoever which
8-33 my Agent shall do, or cause to be done, in or about the
8-34 premises, by virtue of this power of attorney.
8-35 All parties dealing in good faith with my Agent may fully
8-36 rely upon the power of and authority of my Agent to act
8-37 for me on my behalf and in my name, and may accept and
LC 22 1752S
9- 1 rely on agreements and other instruments entered into or
9- 2 executed by the agent pursuant to this power of attorney.
9- 3 This instrument shall not be effective as a grant of
9- 4 powers to my Agent until my Agent has executed the
9- 5 Acceptance of Appointment appearing at the end of this
9- 6 instrument. This instrument shall remain effective until
9- 7 revocation by me or my death, whichever occurs first.
9- 8 Compensation of Agent. (Directions: Initial the line
9- 9 opposite your choice.)
9-10 1. My Agent shall receive no compensation for services
9-11 rendered. __________
9-12 2. My Agent shall receive reasonable compensation for
9-13 services rendered. __________
9-14 3. My Agent shall receive $____________________ for
9-15 services rendered. __________
9-16 IN WITNESS WHEREOF, I have hereunto set my hand and seal
9-17 on this _____ day of ____________________, 19_____.
Signature and Address
Signature and Address
9-18 Note: A notarized signature is not required unless you
9-19 have initialed paragraph 3 or 4 regarding property
9-21 I, ______________________________, a Notary Public, do
9-22 hereby certify that ______________________________
9-23 personally appeared before me this date and acknowledged
9-24 the due execution of the foregoing Power of Attorney.
9-25 State of Georgia
9-26 County of ____________________
LC 22 1752S
10- 1 ACCEPTANCE OF APPOINTMENT
10- 2 I, ____________________ (print name), have read the
10- 3 foregoing Power of Attorney and am the person identified
10- 4 therein as Agent for ____________________ (name of grantor
10- 5 of power of attorney), the Principal named therein. I
10- 6 hereby acknowledge the following:
10- 7 I owe a duty of loyalty and good faith to the Principal,
10- 8 and must use the powers granted to me only for the
10- 9 benefit of the Principal.
10-10 I must keep the Principal's funds and other assets
10-11 separate and apart from my funds and other assets and
10-12 titled in the name of the Principal. I must not
10-13 transfer title to any of the Principal's funds or other
10-14 assets into my name alone. My name must not be added to
10-15 the title of any funds or other assets of the Principal,
10-16 unless I am specifically designated as Agent for the
10-17 Principal in the title.
10-18 I must protect and conserve, and exercise prudence and
10-19 caution in my dealings with, the Principal's funds and
10-20 other assets.
10-21 I must keep a full and accurate record of my acts,
10-22 receipts, and disbursements on behalf of the Principal,
10-23 and be ready to account to the Principal for such acts,
10-24 receipts, and disbursements at all times. I must
10-25 provide an annual accounting to the Principal of my
10-26 acts, receipts, and disbursements, and must furnish an
10-27 accounting of such acts, receipts, and disbursements to
10-28 the personal representative of the Principal's estate
10-29 within 90 days after the date of death of the Principal.
10-30 I have read the Compensation of Agent paragraph in the
10-31 Power of Attorney and agree to abide by it.
10-32 I acknowledge my authority to act on behalf of the
10-33 Principal ceases at the death of the Principal.
10-34 I hereby accept the foregoing appointment as Agent for the
10-35 Principal with full knowledge of the responsibilities
10-36 imposed on me, and I will faithfully carry out my duties
10-37 to the best of my ability.
10-38 Dated:_________________________, 19___.
LC 22 1752S
11- 1 Note: A notarized signature is not required unless the
11- 2 Principal initialed paragraph 3 or paragraph 4 regarding
11- 3 property transactions.
11- 4 I, _____________________________, a Notary Public, do
11- 5 hereby certify that ______________________________
11- 6 personally appeared before me this date and acknowledge
11- 7 the due execution of the foregoing Acceptance of
11- 8 Appointment.
11- 9 All laws and parts of laws in conflict with this Act are
Office of the Secretary of the Senate
Frank Eldridge, Jr., Secretary of the Senate
Last Updated on 01/02/97