By Wentworth                                          S.B. No. 1006
         76R7722 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring financial institutions to accept certain
 1-3     durable powers of attorney; providing penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle Z, Title 3, Finance Code, is amended by
 1-6     adding Chapter 277 to read as follows:
 1-7          CHAPTER 277.  ACCEPTANCE OF CERTAIN RECORDED INSTRUMENTS
 1-8           Sec. 277.001.  DEFINITIONS.  In this chapter:
 1-9                 (1)  "Appropriate regulating official" means the
1-10     banking commissioner with respect to a bank, the savings and loan
1-11     commissioner with respect to a savings and loan association and
1-12     savings bank, and the credit union commissioner with respect to a
1-13     credit union.
1-14                 (2)  "Durable power of attorney" has the meaning
1-15     assigned by Section 482, Texas Probate Code.
1-16                 (3)  "Financial institution" means  a state or national
1-17     bank, state or federal savings bank, state or federal savings and
1-18     loan association, and state or federal credit union doing business
1-19     in this state.
1-20           Sec. 277.002.  ACCEPTANCE OF DURABLE POWERS OF ATTORNEY.  A
1-21     financial institution may not refuse to honor a durable power of
1-22     attorney or statutory durable power of attorney that has language
1-23     conferring authority with respect to banking and other financial
1-24     transactions or matters if the power of attorney:
 2-1                 (1)  satisfies the requirements for a durable power of
 2-2     attorney or statutory durable power of attorney under Chapter XII,
 2-3     Texas Probate Code;
 2-4                 (2)  is presented to the financial institution by the
 2-5     attorney or agent in fact under the power of attorney; and
 2-6                 (3)  has not been terminated or revoked.
 2-7           Sec. 277.003.  CIVIL PENALTY.  (a)  A financial institution
 2-8     that violates Section 277.002 is liable to the state for a civil
 2-9     penalty not to exceed $1,000 for each violation.
2-10           (b)  At the request of the appropriate regulating official,
2-11     the attorney general shall institute a suit to recover the civil
2-12     penalty.
2-13           Sec. 277.004.  CRIMINAL PENALTY.  (a)  A financial
2-14     institution commits an offense if the financial institution
2-15     violates Section 277.002.
2-16           (b)  An offense under this section is a Class C misdemeanor.
2-17           SECTION 2.   This Act takes effect September 1, 1999.