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.