Important Changes on the “New” Form

MEMORANDUM – LEGAL SERVICES UPDATE
To:
From:
Date:
Subject:
Sutton Land Title Agency Clients
Scott Spinner
August 12, 2009
The “New” Statutory Short Form Power of Attorney
On September 1, 2009 a “New” Statutory Short Form Power of Attorney, as set forth in
Section 5-1513 of the General Obligations Law, will become effective. The “New”
Statutory Short Form Power of Attorney replaces the “Old” Statutory Short Form Power
of Attorney, as set forth in current section 5-1501 of the General Obligations Law.
An “Old” Statutory Short Form Power of Attorney executed before 9/1/09 will still be valid
after September 1, 2009. Please note however, if a “New” form is executed, it revokes (see
paragraph (e) on the “New” form) all prior Powers of Attorney unless the “Principal”
indicates otherwise in “Modifications” (paragraph (g)) on the “New” form.
Important Changes on the “New” Form
The “New” form refers to the person given the authority to act on behalf of the Principal as
an "Agent”. The “Old” form referred to this person as the “Attorney in fact”.
The “New” form is a durable power of attorney (paragraph (d)). It will not be affected by
the subsequent incapacity of the Principal unless the Principal states otherwise in
“Modifications” (paragraph (g)).
The “New” form revokes any and all prior Powers Of Attorney (paragraph (e)) unless
otherwise stated in Modifications (paragraph (g)).
Modifications (Optional)(paragraph (g)): This paragraph may be used to limit or
supplement the authority given to the “Agent”. The Principal may not however use this
paragraph to grant the Agent the authority to grant “Major Gifts” (gifts of more than $
500). In order to give the Agent the authority to grant major gifts the Principal must
execute a “New York Statutory Major Gifts Rider” at the same time as the execution of the
Power Of Attorney.
515 Rockaway Avenue, Valley Stream, NY 11581
tel: 516.837.6100 fax: 516.837.6400
www.suttonalliance.com
New York Statutory Major Gifts Rider (Optional) (paragraph (h): If the Principal wishes
to grant the Agent the authority to make Major Gifts, he or she must initial the bracket in
paragraph (h) and also execute the “Power of Attorney New York Statutory Major Gifts
Rider” form at the same time as the execution of the Statutory Short Form Power of
Attorney. The Power of Attorney New York Statutory Major Gifts Rider needs to be
signed by the Principal, acknowledged by a notary public, signed by two witnesses and it
must state who prepared it.
Designation Of Monitors (Optional) (paragraph (i)): The Principal has the option of
designating a monitor or monitors to monitor the activity of the Agent or Agents.
Compensation of Agents (Optional) (paragraph (j)): The Principal has the option of
indicating that the Agent shall be entitled to compensation for services rendered by
initializing the bracket set forth in paragraph (j). Such compensation may be defined in
“Modifications” (paragraph (g)).
Agents Signature and Acknowledgement of Appointment (paragraph (o)): The Agent(s)
must sign the “New” form and have his or her signature acknowledged by a notary public
in order for the power to be effective. The Agent(s) does/do not have to sign at the same
time as the Principal.
The “New” Statutory Short Form Power of Attorney and the Power Of Attorney New York
Statutory Major Gifts Rider forms can be found within the “Forms” section of our website.
Any question regarding the “New” Statutory Short Form Power Of Attorney and the
Power Of Attorney New York Statutory Major Gifts Rider forms should be directed to the
Sutton Legal Department.
[email protected]
Scott Spinner, President and General Counsel
Raizy Moskovits, VP and Sr. Commercial Title Officer [email protected]
[email protected]
Ellen Petrillo, Counsel
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515 Rockaway Avenue, Valley Stream, NY 11581
tel: 516.837.6100 fax: 516.837.6400
www.suttonalliance.com