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Texas Durable Power of Attorney Act Updated
Wednesday, May 24, 2017 6:45 AM

House Bill 1974 by Rep. John Wray (R-Waxahachie)/Sen. José Rodríguez (D-El Paso), which updates the Durable Power of Attorney Act, was favorably reported from the Senate State Affairs Committee. The changes to the bill are intended to ensure that validly executed durable powers of attorney (DPOA) can be used more effectively in Texas, in furtherance of the legislative goal of reducing the need for guardianship proceedings and to provide additional powers to the designated agents.

Although it imposes mandatory acceptance of a power of attorney, it provides many avenues through which a credit union can still deny acceptance. It allows a financial institution to request an opinion of counsel to be paid for by the principal. Under the bill, a third party is permitted to request a certification from the agent, as well as an opinion of counsel concerning certain permitted grounds for refusal. A third party improperly denying a POA could be liable for damages as well as attorneys’ fees and court costs. The bill clarifies that if the applicable language conflicts with other laws applicable to financial institutions, the other law controls.

HB 1974 is set for the Senate Local and Uncontested Calendar.

For more information, please contact Texas Credit Union Association President Jeff Huffman at 469-385-6488 or jhuffman@txcua.coop.