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A BILL TO BE ENTITLED
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AN ACT
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relating to the acceptance of durable powers of attorney by third |
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parties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter XII, Texas Probate Code, is amended by |
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adding Section 489C to read as follows: |
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Sec. 489C. ACCEPTANCE OF DURABLE POWER OF ATTORNEY BY THIRD |
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PARTIES REQUIRED. (a) A third party located in this state may not |
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refuse, without reasonable cause, to honor a durable power of |
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attorney properly executed in accordance with this chapter, |
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including a statutory durable power of attorney. |
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(b) Reasonable cause for a third party's refusal to honor a |
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durable power of attorney under Subsection (a) of this section |
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includes: |
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(1) the third party's: |
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(A) actual knowledge of the principal's death; |
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(B) actual notice of the termination or |
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revocation of the power of attorney; |
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(C) actual knowledge of the appointment of a |
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guardian of the estate for the principal; |
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(D) actual knowledge of the principal's divorce |
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or annulment of the principal's marriage, if the principal's |
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attorney in fact or agent was the principal's spouse; and |
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(E) actual knowledge that a report has been made |
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to the Department of Family and Protective Services stating a good |
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faith belief that the principal may have been or is subject to |
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physical or financial abuse, neglect, exploitation, or abandonment |
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by the principal's attorney in fact or agent or a person acting for |
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or with the attorney in fact or agent; and |
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(2) that it is apparent on the face of the durable |
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power of attorney that the instrument is fraudulent or has been |
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forged or altered. |
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(c) A third party may not refuse to honor a durable power of |
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attorney under this section if the sole reason for the refusal is: |
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(1) the power of attorney is not on a form prescribed |
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by the third party to whom the power of attorney is presented; or |
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(2) there has been a lapse of time since the execution |
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of the power of attorney. |
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(d) A third party that violates this section is liable to |
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the principal, the principal's heirs, and other successors in |
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interest of the principal to the same extent as if the third party |
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had refused to allow the principal to act on the principal's own |
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behalf. |
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(e) A third party that honors a durable power of attorney as |
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required by this section may not be held liable for damages |
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resulting from use of the durable power of attorney to the |
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principal, the principal's heirs, other successors in interest of |
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the principal, or any other person. |
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SECTION 2. This Act takes effect September 1, 2009. |
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