Kentucky Statutes 457.200 – Liability for refusal to accept acknowledged power of attorney
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(1) Except as otherwise provided in subsection (2) of this section:
(a) A person shall either accept an acknowledged power of attorney or request a certification, a translation, or an opinion of counsel under KRS § 457.190(4) no later than seven (7) business days after presentation of the power of attorney for acceptance;
(b) If a person requests a certification, a translation, or an opinion of counsel under KRS § 457.190(4), the person shall accept the power of attorney no later than five (5) business days after receipt of the certification, translation, or opinion of counsel; and
(c) A person may not require an additional or different form of power of attorney for authority granted in the power of attorney presented.
(2) A person is not required to accept an acknowledged power of attorney if:
(a) The person is not otherwise required to engage in a transaction with the principal in the same circumstances;
(b) Engaging in a transaction with the agent or the principal in the same circumstances would be inconsistent with federal law;
(c) The person has actual knowledge of the termination of the agent’s authority or of the power of attorney before exercise of the power;
(d) A request for a certification, a translation, or an opinion of counsel under KRS
457.190(4) is refused;
(e) The person in good faith believes that the power is not valid or that the agent does not have the authority to perform the act requested, whether or not a certification, a translation, or an opinion of counsel under KRS § 457.190(4) has been requested or provided; or
(f) The person makes, or has actual knowledge that another person has made, a report to the Cabinet for Health and Family Services stating a good faith belief that the principal may be subject to physical or financial abuse, neglect, exploitation, or abandonment by the agent or a person acting for or with the agent.
(3) A person that refuses in violation of this section to accept an acknowledged power of attorney is subject to:
(a) A court order mandating acceptance of the power of attorney; and
(b) Liability for reasonable attorney’s fees and costs incurred in any action or proceeding that confirms the validity of the power of attorney or mandates acceptance of the power of attorney.
(4) A person that accepts a power of attorney pursuant to this section shall not be liable for his or her good faith reliance on the agent’s representation of the scope of authority granted to the agent by the power of attorney. In addition, the person shall not be responsible to determine or ensure the proper application of funds or property by the agent.
Effective: July 14, 2018
History: Created 2018 Ky. Acts ch. 185, sec. 20, effective July 14, 2018.
(a) A person shall either accept an acknowledged power of attorney or request a certification, a translation, or an opinion of counsel under KRS § 457.190(4) no later than seven (7) business days after presentation of the power of attorney for acceptance;
Terms Used In Kentucky Statutes 457.200
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Agent: means a person granted authority to act for a principal under a power of attorney, whether denominated an agent, attorney-in-fact, or otherwise. See Kentucky Statutes 457.020
- Attorney: means attorney-at-law. See Kentucky Statutes 446.010
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Good faith: means honesty in fact. See Kentucky Statutes 457.020
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Kentucky Statutes 457.020
- Power of attorney: means a writing or other record that grants authority to an agent to act in the place of the principal, whether or not the term power of attorney is used. See Kentucky Statutes 457.020
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Principal: means an individual who grants authority to an agent in a power of attorney. See Kentucky Statutes 457.020
- Property: means anything that may be the subject of ownership, whether real or personal, or legal or equitable, or any interest or right therein. See Kentucky Statutes 457.020
(b) If a person requests a certification, a translation, or an opinion of counsel under KRS § 457.190(4), the person shall accept the power of attorney no later than five (5) business days after receipt of the certification, translation, or opinion of counsel; and
(c) A person may not require an additional or different form of power of attorney for authority granted in the power of attorney presented.
(2) A person is not required to accept an acknowledged power of attorney if:
(a) The person is not otherwise required to engage in a transaction with the principal in the same circumstances;
(b) Engaging in a transaction with the agent or the principal in the same circumstances would be inconsistent with federal law;
(c) The person has actual knowledge of the termination of the agent’s authority or of the power of attorney before exercise of the power;
(d) A request for a certification, a translation, or an opinion of counsel under KRS
457.190(4) is refused;
(e) The person in good faith believes that the power is not valid or that the agent does not have the authority to perform the act requested, whether or not a certification, a translation, or an opinion of counsel under KRS § 457.190(4) has been requested or provided; or
(f) The person makes, or has actual knowledge that another person has made, a report to the Cabinet for Health and Family Services stating a good faith belief that the principal may be subject to physical or financial abuse, neglect, exploitation, or abandonment by the agent or a person acting for or with the agent.
(3) A person that refuses in violation of this section to accept an acknowledged power of attorney is subject to:
(a) A court order mandating acceptance of the power of attorney; and
(b) Liability for reasonable attorney’s fees and costs incurred in any action or proceeding that confirms the validity of the power of attorney or mandates acceptance of the power of attorney.
(4) A person that accepts a power of attorney pursuant to this section shall not be liable for his or her good faith reliance on the agent’s representation of the scope of authority granted to the agent by the power of attorney. In addition, the person shall not be responsible to determine or ensure the proper application of funds or property by the agent.
Effective: July 14, 2018
History: Created 2018 Ky. Acts ch. 185, sec. 20, effective July 14, 2018.