Bill Summary for S 569 (2017-2018)

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Summary date: 

Jun 27 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 569 (Public) Filed Thursday, March 30, 2017
Intro. by Daniel, Newton.

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Bill summary

House committee substitute makes the following changes to the 3rd edition.

Makes an organizational change to proposed GS 32C-1-110 (Termination of power of attorney).

Amends proposed GS 32C-1-111 (Coagents and successor agents). Deletes the provision authorizing a bank or financial institution to rely on the action of any coagent without the joinder of any other coagent. Provides that an agent with actual knowledge of a breach or imminent breach of fiduciary duty by another agent must notify the principal, and if the principal is incapacitated, take any action reasonably appropriate in the circumstances to safeguard the principal's best interest. Failure to take action or notify the principal makes the agent liable for the reasonably foreseeable damages that could have been avoided had the agent taken action or notified the principal.

Amends proposed GS 32C-1-116 (Judicial relief). Further authorizes persons asked to accept a power of attorney to bring proceedings under this statute.

Amends proposed GS 32C-2-201 (Authority requiring specific grant; grant of general authority). Provides that an agent may only exercise authority over the content of electronic communication sent or received by the principal if the power of attorney expressly grants the agent that authority.

Deletes proposed GS 32C-2-220, which specified the authority granted under a general grant of authority with respect to digital assets.

Amends the statutory form power of attorney in GS 32C-3-301. Includes a caption indicating the presence of important information in all-capital letters, and a paragraph explaining that the power of attorney authorizes another person to make decisions concerning the reader's property. Includes a paragraph instructing the reader to select someone they trust to serve as the reader's agent, and how long that agent's authority lasts. Includes a paragraph explaining that an agent is entitled to reasonable compensation. Includes a paragraph explaining provisions for the designation of one agent and two successor agents, as well as the option for coagents and successor coagents. Deletes the portion of the form granting general authority with regard to digital assets. Adds a portion of the form granting specific authority to access the content of electronic communications. Adds a section explaining to agents what accepting authority under the power of attorney means, and what duties and powers are given to them under that authority. Explains to agents what responsibilities they have if their authority is terminated, and what liability they may incur if they violate the NC Uniform Power of Attorney Act or act outside of the authority granted to them. Recommends that agents seek legal advice if they are not certain about the meaning of the document.