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
Code Sections - 10-6-140/ 10-6-141/ 10-6-142
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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 Committed 3/17/95 2/20/95 Read 3rd Time 2/20/95 Passed/Adopted 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 AN ACT 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: SECTION 1. 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: "ARTICLE 7 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 1-20 Attorney: 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. -1- (Index) 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 2-10 decisions. 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 2-38 attorney. -2- (Index) 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. -3- (Index) 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, -4- (Index) 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, -5- (Index) 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, -6- (Index) 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 7-43 optional. -7- (Index) 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: 8-16 _______________________________________________________ 8-17 _______________________________________________________ 8-18 Signed:______________________________ Principal ______________________________ Agent 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 8-25 disabled. 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 -8- (Index) 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_____. ______________________________ Principal WITNESSES ______________________________ ______________________________ 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 9-20 transactions. 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. ______________________________ Notary Public 9-25 State of Georgia 9-26 County of ____________________ -9- (Index) 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___. 10-39 (Signature)______________________________ 10-40 (Address)______________________________ -10- (Index) 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. ______________________________ Notary Public" SECTION 2. 11- 9 All laws and parts of laws in conflict with this Act are 11-10 repealed. -11- (Index)

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