SLS 12RS-603 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 316
BY SENATOR MARTINY
FINANCIAL INSTITUTIONS. Provides for the use of a power of attorney at a financial
institution. (8/1/12)
AN ACT1
To enact R.S. 6:356, relative to financial institutions; to provide relative to the use of a2
power of attorney for certain bank transactions; to provide for revocation of a power3
of attorney; to provide for definitions; to provide for terms, conditions, and4
procedures; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 6:356 is hereby enacted to read as follows: 7
ยง356. Powers of Attorney; written notice of revocation8
A.(1) Notwithstanding any provision of law to the contrary, any9
federally insured financial institution presented with an original or certified10
true copy of a power of attorney that is sufficient to authorize the named agent11
to transact business in a deposit account, with a certificate of deposit, or with12
other funds on deposit, or sufficient to authorize access to a safe deposit box,13
may rely on the authority designated in such power of attorney as being in full14
force and effect, unless the federally insured financial institution receives15
written notice that such power of attorney has been terminated or revoked and16
the institution has reasonable opportunity to act on it.17 SB NO. 316
SLS 12RS-603 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2) Written notice shall be deemed to be received upon receipt by an1
officer of the federally insured financial institution.2
(3) For the purposes of this Section, "written notice" shall mean a3
writing addressed to the federally insured financial institution indicating that4
the principal has revoked the authority of the agent, or indicating that one of5
the events of termination as specified in Louisiana Civil Code Article 3024 has6
occurred.7
B. A federally insured financial institution shall not be liable for8
transactions or activity by an agent occurring prior to the receipt of written9
notice and a reasonable opportunity to act on it.10
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Martiny (SB 316)
Proposed law provides that notwithstanding any provision of law to the contrary, any
federally insured financial institution that is presented with an original or certified true copy
of a power of attorney, sufficient to authorize the named agent to transact business in a
deposit account, with a certificate of deposit, or with other funds on deposit, or sufficient to
authorize access to a safe deposit box, may rely on the authority designated in such power
of attorney as being in full force and effect unless and until the federally insured financial
institution receives written notice that such power of attorney has been terminated or
revoked and the institution has reasonable opportunity to act on it.
Proposed law provides that receipt of written notice shall be effective upon receipt by an
officer of the federally insured financial institution.
Proposed law defines "written notice" as a writing addressed to the federally insured
financial institution indicating that the principal has revoked the authority of the agent, or
indicating that one of the events of termination as specified in law has occurred.
Proposed law provides that a federally insured financial institution shall not be liable for
transactions or activity by an agent occurring prior to the receipt of written notice and a
reasonable opportunity to act on it.
Effective August 1, 2012.
(Adds R.S. 6:356)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill.
1. Adds that the power of attorney shall be an original or a certified true copy.