81R13895 CLG-D
By: Wentworth S.B. No. 1625
A BILL TO BE ENTITLED
AN ACT
relating to the acceptance of durable powers of attorney by third
parties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter XII, Texas Probate Code, is amended by
adding Section 489C to read as follows:
Sec. 489C. ACCEPTANCE OF DURABLE POWER OF ATTORNEY BY THIRD
PARTIES REQUIRED. (a) A third party located in this state may not
refuse, without reasonable cause, to honor a durable power of
attorney properly executed in accordance with this chapter,
including a statutory durable power of attorney.
(b) Reasonable cause for a third party's refusal to honor a
durable power of attorney under Subsection (a) of this section
includes the third party's:
(1) actual knowledge of the principal's death;
(2) actual notice of the termination or revocation of
the power of attorney;
(3) actual knowledge of the appointment of a guardian
of the estate for the principal; and
(4) actual knowledge of the principal's divorce or
annulment of the principal's marriage, if the principal's attorney
in fact or agent was the principal's spouse.
(c) A third party may not refuse to honor a durable power of
attorney under this section if the sole reason for the refusal is:
(1) the power of attorney is not on a form prescribed
by the third party to whom the power of attorney is presented; or
(2) there has been a lapse of time since the execution
of the power of attorney.
(d) A third party that violates this section is liable to
the principal and the principal's heirs to the same extent as if the
third party had refused to allow the principal to act on the
principal's own behalf.
SECTION 2. This Act takes effect September 1, 2009.