CHAPTER 7a
DURABLE POWER OF ATTORNEY BANK ACCOUNTS

For the purposes of this section and section 1-56b:
(1) "Account" means any account at a financial institution which is in the name of one or more natural persons and into which deposits may be made;
(2) "Power of attorney account" means an account in the name of a natural person as principal and with respect to which one or more other natural persons have been designated as agents with the right to make deposits to and to withdraw funds from or draw checks on such account;
(3) "Financial institution" means any state bank and trust company, national banking association, state or federally chartered savings bank, state or federally chartered savings and loan association or state or federally chartered credit union.
(P.A. 89-67, S. 1.)

(Return to List of Chapters)

(Return to List of Titles)

(a) The use of the following form in the creation of a power of attorney account is authorized and, when used, shall be construed in accordance with the provisions of this section:

Witnessed by:
(Acknowledgment)

(b) No provisions of section 1-56a and this section shall be construed to bar the use of any other form of power of attorney desired by the parties concerned or to require a financial institution to offer the power of attorney account created under this section.
(c) If more than one agent is designated by the principal, such agents, in the exercise of the powers conferred, shall act jointly unless the principal specifically provides that they are to act severally.
(d) The authority granted by the execution of a power of attorney in the form set forth in subsection (a) of this section shall survive the subsequent disability or incompetence of the principal.
(e) If a conservator of the estate of the principal is appointed, the power of attorney shall cease at the time of the appointment, and the person acting under the power of attorney shall account to the conservator rather than to the principal. If the principal dies, the power of attorney shall cease at the time of the principal's death, and the person acting under the power of attorney shall account to the fiduciary of the principal's estate.
(f) Payment by a financial institution of funds held in a power of attorney account in accordance with powers authorized pursuant to a power of attorney in the form set forth in subsection (a) of this section shall be a valid and sufficient release and discharge of said financial institution from all liability for all claims for payments so made, unless and until actual written notice of termination of said power of attorney, including termination by death of the principal or by reason of the appointment of a conservator of the principal's estate, is received by an officer of said financial institution at its main office, during the regular banking hours and in such time and manner as to afford the financial institution a reasonable opportunity to act, but in no event less than two business days.
(P.A. 89-67, S. 2; P.A. 98-52, S. 12.)
History: P.A. 98-52 amended Subsec. (e) by deleting "after the occurrence of the disability or incompetence of the principal"; (Revisor's note: In 2001 the reference in this section to the date "19.." was changed editorially by the Revisors to "20.." to reflect the new millennium).

(Return to List of Chapters)

(Return to List of Titles)

Reserved for future use.

(Return to List of Chapters)

(Return to List of Titles)