82R11655 T

By: Rodriguez S.B. No. 1192

A BILL TO BE ENTITLED

AN ACT

relating to the creation, administration, and interpretation of powers of attorney, including statutory powers of attorney.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The Texas Probate Code is amended by adding Chapter XIIA to read as follows:

CHAPTER XIIA. POWER OF ATTORNEY ACT

PART 1. GENERAL PROVISIONS

Sec. 521. SHORT TITLE. This chapter may be cited as the Power of Attorney Act.

Sec. 522. DEFINITIONS. In this chapter:

(1) "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.

(2) "Durable," with respect to a power of attorney, means a power of attorney not terminated by the principal's incapacity.

(3) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

(4) "Good faith" means honesty in fact.

(5) "Incapacity" means inability of an individual to manage property or business affairs because the individual:

(A) has an impairment in the ability to receive and evaluate information or make or communicate decisions even with the use of technological assistance; or

(B) is:

(i) missing;

(ii) detained, including incarcerated in a penal system; or

(iii) outside the United States and unable to return.

(6) "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.

(7) "Power of attorney" means a writing or other record that, in accordance with this chapter, grants authority to an agent to act in the place of the principal, whether or not the term power of attorney is used.

(8) "Presently exercisable general power of appointment," with respect to property or a property interest subject to a power of appointment, means power exercisable at the time in question to vest absolute ownership in the principal individually, the principal's estate, the principal's creditors, or the creditors of the principal's estate. The term includes a power of appointment not exercisable until the occurrence of a specified event, the satisfaction of an ascertainable standard, or the passage of a specified period only after the occurrence of the specified event, the satisfaction of the ascertainable standard, or the passage of the specified period. The term does not include a power exercisable in a fiduciary capacity or only by will.

(9) "Principal" means an individual who grants authority to an agent in a power of attorney.

(10) "Property" means anything that may be the subject of ownership, whether real or personal, or legal or equitable, or any interest or right therein.

(11) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(12) "Sign," with respect to present intent to authenticate or adopt a record, means:

(A) to execute or adopt a tangible symbol; or

(B) to attach to or logically associate with the record an electronic sound, symbol, or process.

(13) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

(14) "Stocks and bonds" means stocks, bonds, mutual funds, and other types of securities or financial instruments, whether held directly, indirectly, or in any other manner. The term does not include commodity futures contracts and call or put options on stocks or stock indexes.

Sec. 523. APPLICABILITY. This chapter applies to all writings or other records that grant authority to an agent to act in the place of the principal, whether or not the term "power of attorney" is used, except:

(1) a power to the extent it is coupled with an interest in the subject of the power, including a power given to or for the benefit of a creditor in connection with a credit transaction;

(2) a medical power of attorney under Subchapter D, Chapter 166, Health and Safety Code, or other power to make health care decisions;

(3) a proxy or other delegation to exercise voting rights or management rights with respect to an entity; and

(4) a power created on a form prescribed by a government or governmental subdivision, agency, or instrumentality for a governmental purpose.

Sec. 524. POWER OF ATTORNEY IS DURABLE. A power of attorney created under this chapter is durable unless the power of attorney expressly provides that it is terminated by the incapacity of the principal.

Sec. 525. PRINCIPLES OF LAW AND EQUITY. Unless displaced by a provision of this chapter, the principles of law and equity supplement this chapter.

Sec. 526. EFFECT OF CHAPTER ON LAWS APPLICABLE TO FINANCIAL INSTITUTIONS AND ENTITIES. This chapter does not supersede any other law applicable to financial institutions or other entities, and the other law controls to the extent the law is inconsistent with this chapter.

Sec. 527. REMEDIES UNDER OTHER LAW. The remedies under this chapter are not exclusive and do not abrogate any right or remedy under the other laws of this state.

Sec. 528. UNIFORMITY OF APPLICATION AND CONSTRUCTION. In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to the subject matter of this chapter among states that enact a law substantially similar to this chapter.

Sec. 529. RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT. This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify, limit, or supersede Section 101(c) of that Act (15 U.S.C. Section 7001(c)) or authorize electronic delivery of any of the notices described in Section 103(b) of that Act (15 U.S.C. Section 7003(b)).

PART 2. CREATION, MEANING, AND EFFECT OF POWER OF ATTORNEY

Sec. 541. EXECUTION OF POWER OF ATTORNEY. (a) A power of attorney is executed if the writing or other record is:

(1) signed by the principal or in the principal's conscious presence by another individual directed by the principal to sign the principal's name on the power of attorney; and

(2) acknowledged by the principal.

(b) A signature on a power of attorney is presumed to be genuine if the principal acknowledges the signature in accordance with Chapter 121, Civil Practice and Remedies Code.

Sec. 542. VALIDITY OF POWER OF ATTORNEY. (a) A power of attorney executed in this state on or after September 1, 2011, is valid if its execution complies with Section 541 of this code.

(b) A power of attorney executed in this state before September 1, 2011, is valid if its execution complied with the law of this state as it existed at the time of execution.

(c) A power of attorney executed other than in this state is valid in this state if, when the power of attorney was executed, the execution complied with:

(1) the law of the jurisdiction that determines the meaning and effect of the power of attorney pursuant to Section 543 of this code; or

(2) the requirements for a military power of attorney pursuant to 10 U.S.C. Section 1044b.

(d) Except as otherwise provided by statute other than this chapter, a photocopy or electronically transmitted copy of an original power of attorney has the same effect as the original.

Sec. 543. MEANING AND EFFECT OF POWER OF ATTORNEY. The meaning and effect of a power of attorney is determined by the law of the jurisdiction indicated in the power of attorney and, in the absence of an indication of jurisdiction, by the law of the jurisdiction in which the power of attorney was executed.

Sec. 544. WHEN POWER OF ATTORNEY EFFECTIVE. (a) A power of attorney is effective when executed in accordance with Section 541 of this code unless the principal provides in the power of attorney that it becomes effective at a future date or on the occurrence of a future event or contingency.

(b) If a power of attorney becomes effective on the occurrence of a future event or contingency, the principal, in the power of attorney, may authorize one or more persons to determine in a writing or other record that the event or contingency has occurred.

(c) If a power of attorney becomes effective on the principal's incapacity and the principal has not authorized a person to determine whether the principal is incapacitated, or the person authorized is unable or unwilling to make the determination, unless the power of attorney otherwise provides, the power of attorney becomes effective on a determination in a writing or other record by:

(1) a physician that the principal is incapacitated within the meaning of Section 522(5)(A) of this code or is incapacitated within the meaning of that term as defined in the power of attorney; or

(2) an attorney at law, a judge, or an appropriate governmental official that the principal is incapacitated within the meaning of Section 522(5)(B) of this code.

(d) A person authorized by the principal in the power of attorney to determine whether the principal is incapacitated may act as the principal's personal representative pursuant to Sections 1171 through 1179, Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Sections 1320d through 1320d-8), and applicable regulations, to obtain access to the principal's health care information and communicate with the principal's health care provider.

Sec. 545. JUDICIAL RELIEF. (a) The following persons may petition a court to construe a power of attorney or review the agent's conduct, and grant appropriate relief:

(1) the principal or the agent;

(2) a guardian, conservator, or other fiduciary acting for the principal;

(3) a person named as a beneficiary to receive any property, benefit, or contractual right on the principal's death;

(4) a governmental agency having regulatory authority to protect the welfare of the principal; and

(5) a person that demonstrates to the court sufficient interest in the principal's welfare or estate.

(b) A person asked to accept the power of attorney may petition a court to construe the power of attorney.

(c) On motion by the principal, the court shall dismiss a petition filed under this section unless the court finds that the principal lacks capacity to revoke the agent's authority or the power of attorney.

PART 3. DUTIES OF AGENTS; EFFECT OF CERTAIN ACTS ON EXERCISE OF

AGENT'S AUTHORITY

Sec. 551. RELATION OF ATTORNEY IN FACT OR AGENT TO COURT-APPOINTED GUARDIAN OF ESTATE. (a) If, after execution of a power of attorney, a court of the principal's domicile appoints a permanent guardian of the estate of the principal, the powers of the agent terminate on the qualification of the permanent guardian of the estate, and the agent shall deliver to that guardian all assets of the ward's estate in the agent's possession and shall account to the permanent guardian of the estate as an agent would be required to account to the principal had the principal terminated the agent's powers.

(b) If, after execution of a power of attorney, a court of the principal's domicile appoints a temporary guardian of the estate of the principal, the court may suspend the powers of the agent on the qualification of the temporary guardian of the estate until the date on which the term of the temporary guardian expires.

(c) Subsection (b) of this section may not be construed to prohibit the application for or issuance of a temporary restraining order under applicable law.

Sec. 552. TERMINATION OF POWER OF ATTORNEY OR AGENT'S AUTHORITY. (a) A power of attorney terminates when:

(1) the principal dies;

(2) the principal becomes incapacitated, if the power of attorney is not durable;

(3) the principal revokes the power of attorney;

(4) the power of attorney provides that it terminates;

(5) the purpose of the power of attorney is accomplished;

(6) the principal revokes the agent's authority or the agent dies, becomes incapacitated, or resigns, and the power of attorney does not provide for another agent to act under the power of attorney; or

(7) a permanent guardian of the estate of the principal has qualified to serve in that capacity as provided by Section 551 of this code.

(b) An agent's authority terminates when:

(1) the principal revokes the authority;

(2) the agent dies, becomes incapacitated, or resigns;

(3) an action is filed for the dissolution or annulment of the agent's marriage to the principal or to declare the marriage of the agent and principal void, unless the power of attorney otherwise provides; or

(4) the power of attorney terminates.

(c) Unless the power of attorney otherwise provides, an agent's authority is exercisable until the authority terminates under Subsection (b) of this section, notwithstanding a lapse of time since the execution of the power of attorney.

(d) Termination of an agent's authority or of a power of attorney is not effective as to the agent or another person that, without actual knowledge of the termination, acts in good faith under the power of attorney. An act so performed, unless otherwise invalid or unenforceable, binds the principal and the principal's successors in interest.

(e) For a power of attorney that is not durable, incapacity of the principal does not revoke or terminate the power of attorney as to an agent or other person that, without actual knowledge of the incapacity, acts in good faith under the power of attorney. An act so performed, unless otherwise invalid or unenforceable, binds the principal and the principal's successors in interest.

(f) The execution of a power of attorney does not revoke a power of attorney previously executed by the principal unless the subsequent power of attorney provides that the previous power of attorney is revoked or that all other powers of attorney are revoked.

Sec. 554. REIMBURSEMENT AND COMPENSATION OF AGENT. Unless the power of attorney otherwise provides, an agent is entitled to reimbursement of expenses reasonably incurred on the principal's behalf and to compensation that is reasonable under the circumstances.

Sec. 555. AGENT'S ACCEPTANCE OF APPOINTMENT. Except as otherwise provided in the power of attorney, a person accepts appointment as an agent under a power of attorney by exercising authority or performing duties as an agent or by any other assertion or conduct indicating acceptance.

Sec. 556. AGENT'S DUTIES. (a) Notwithstanding provisions in the power of attorney to the contrary, an agent that has accepted appointment shall:

(1) act in accordance with the principal's reasonable expectations to the extent actually known by the agent and, otherwise, in the principal's best interest;

(2) act in good faith; and

(3) act only within the scope of authority granted in the power of attorney.

(e) If an agent is selected by the principal because of special skills or expertise possessed by the agent or in reliance on the agent's representation that the agent has special skills or expertise, the special skills or expertise must be considered in determining whether the agent has acted with care, competence, and diligence under the circumstances.

(f) Absent a breach of duty to the principal, an agent is not liable if the value of the principal's property declines.

(h) Except as otherwise provided in the power of attorney, an agent is not required to disclose receipts, disbursements, or transactions conducted on the principal's behalf unless ordered by a court or requested by the principal, a guardian, a conservator, another fiduciary acting for the principal, a governmental agency having authority to protect the welfare of the principal, or, on the principal's death, the personal representative or successor in interest of the principal's estate. Not later than the 60th day after the date a request is made by a person described by this subsection, the agent shall comply with the request or provide a writing or other record substantiating why additional time is needed to comply with the request. An agent requesting an extension of time has no more than 30 additional days to comply with the request. Unless directed otherwise by the requesting party, a disclosure by the agent of documentation or information requested under this subsection must include:

(1) the property belonging to the principal that has come to the agent's knowledge or into the agent's possession;

(2) all actions taken or decisions made by the agent;

(3) a complete account of receipts, disbursements, and other actions of the agent, including their source and nature, with receipts of principal and income shown separately;

(4) a list of all property over which the agent has exercised control, with an adequate description of each asset and the asset's current value if known to the agent;

(5) the cash balance on hand and the name and location of the depository where the cash is kept;

(6) all known liabilities of the principal; and

(7) any other information and facts known to the agent as may be necessary to a full and definite understanding of the exact condition of the property belonging to the principal.

(i) If the agent fails or refuses to inform the principal of the actions taken under the power of attorney or to provide documentation or the requested disclosure within the 60-day period, or as extended, the requesting party may file suit to compel the agent to:

(1) provide the disclosure;

(2) deliver the assets; or

(3) terminate the power of attorney.

Sec. 558. AGENT'S LIABILITY. An agent that violates this chapter is liable to the principal or the principal's successors in interest for the amount required to:

(1) restore the value of the principal's property to what the value of the property would have been had the violation not occurred; and

(2) reimburse the principal or the principal's successors in interest for the attorney's fees and costs paid on the agent's behalf.

Sec. 559. AGENT'S RESIGNATION; NOTICE. Unless the power of attorney provides a different method for an agent's resignation, an agent may resign by giving notice to the principal and, if the principal is incapacitated:

(1) to the permanent guardian of the estate, conservator, or other personal representative of the principal if one has been appointed for the principal, and a successor agent under the power of attorney; or

(2) if there is no person described in Subsection (a) of this section, to:

(A) the principal's caregiver;

(B) another person reasonably believed by the agent to have sufficient interest in the principal's welfare; or

(C) a governmental agency having authority to protect the welfare of the principal.

PART 4. PRESENTATION OF POWER OF ATTORNEY TO THIRD PARTIES

Sec. 561. ACCEPTANCE OF AND RELIANCE ON POWER OF ATTORNEY. (a) A person that in good faith accepts a power of attorney without actual knowledge that the signature is not genuine may rely on the presumption under Section 541(b) of this code that the signature is genuine.

(b) A person that in good faith accepts a power of attorney without actual knowledge that the power of attorney is void, invalid, or terminated, that the purported agent's authority is void, invalid, or terminated, or that the agent is exceeding or improperly exercising the agent's authority may rely on the power of attorney as if:

(1) the power of attorney were genuine, valid, and still in effect;

(2) the agent's authority were genuine, valid, and still in effect; and

(3) the agent had not exceeded and had properly exercised the authority.

(c) A person that is asked to accept a power of attorney may request, and rely on, without further investigation:

(1) an agent's certification under penalty of perjury of any factual matter concerning the principal, agent, or power of attorney;

(2) an English translation of the power of attorney if the power of attorney contains, wholly or partly, language other than English; and

(3) an opinion of counsel as to any matter of law concerning the power of attorney if the person making the request provides in a writing or other record the reason for the request.

(d) An English translation or an opinion of counsel requested under this section must be provided at the principal's expense unless the request is made more than seven business days after the power of attorney is presented for acceptance.

(e) For purposes of this section and Section 562 of this code, a person that conducts activities through employees is without actual knowledge of a fact relating to a power of attorney, a principal, or an agent if the employee conducting the transaction involving the power of attorney is without actual knowledge of the fact.

Sec. 562. LIABILITY FOR REFUSAL TO ACCEPT POWER OF ATTORNEY. (a) Except as otherwise provided in Subsection (d) of this section, a person shall either accept a power of attorney or request a certification, a translation, or an opinion of counsel under Section 561(c) of this code not later than the seventh business day after presentation of the power of attorney for acceptance.

(b) If a person requests a certification, a translation, or an opinion of counsel under Section 561 of this code, the person shall accept the power of attorney not later than the fifth business day after receipt of the certification, translation, or opinion of counsel.

(c) Except as provided by Subsection (d) of this section, a person may not:

(1) require an additional or different form of power of attorney for authority granted in the power of attorney presented; or

(2) require that the power of attorney be recorded in the official public records of a county clerk unless such recordation is required by Section 571 of this code.

(d) A person is not required to accept a power of attorney if:

(1) the person is not otherwise required to engage in a transaction with the principal in the same circumstances;

(2) the person's engaging in a transaction with the agent or the principal in the same circumstances would be inconsistent with federal law or state law other than this chapter;

(3) the person has actual knowledge of the termination of the agent's authority or of the power of attorney before exercise of the power;

(4) a request for a certification, a translation, or an opinion of counsel under Section 561 of this code is refused;

(5) 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 Section 561 of this code has been requested or provided; or

(6) the person makes, or has actual knowledge that another person has made, a report to a law enforcement agency or other federal or state agency, including the Department of Family and Protective 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.

(e) A person that refuses to accept a power of attorney in violation of this section is subject to:

(1) a judgment for damages to the same extent as if the person had refused to allow the principal to act on the principal's own behalf;

(2) a court order mandating acceptance of the power of attorney; and

(3) liability for reasonable attorney's fees and costs incurred in any action or proceeding that:

(A) confirms the validity of the power of attorney;

(B) results in the award of damages against the person; or

(C) mandates acceptance of the power of attorney.

PART 5. EXERCISE OF POWER OF ATTORNEY; CONSTRUCTION OF POWERS

RELATED TO POWER OF ATTORNEY

Sec. 571. AUTHORITY THAT REQUIRES SPECIFIC GRANT; GRANT OF GENERAL AUTHORITY. (a) An agent under a power of attorney may do the following on behalf of the principal or with the principal's property only if the power of attorney expressly grants the agent the authority and exercise of the authority is not otherwise prohibited by another agreement or instrument to which the authority or property is subject:

(1) create, amend, revoke, or terminate an inter vivos trust;

(2) make a gift;

(3) create or change rights of survivorship;

(4) create or change a beneficiary designation; or

(6) waive the principal's right to be a beneficiary of a joint and survivor annuity, including a survivor benefit under a retirement plan.

(b) Notwithstanding a grant of authority to perform an act described in Subsection (a) of this section, unless the power of attorney otherwise provides, an agent that is not an ancestor, spouse, or descendant of the principal may not exercise authority under a power of attorney to create in the agent, or in an individual to whom the agent owes a legal obligation of support, an interest in the principal's property, whether by gift, right of survivorship, beneficiary designation, disclaimer, or otherwise.

(c) Subject to Subsections (a), (b), (d), and (e) of this section, if a power of attorney grants to an agent authority to perform all acts that a principal could perform, the agent has the general authority described in Sections 574 through 586 of this code.

(d) Unless the power of attorney otherwise provides, a grant of authority to make a gift is subject to Section 587 of this code.

(e) Subject to Subsections (a), (b), and (d) of this section, if the subjects over which authority is granted in a power of attorney are similar or overlap, the broadest authority controls.

(f) Authority granted in a power of attorney is exercisable with respect to property that the principal has when the power of attorney is executed or acquires later, whether or not the property is located in this state and whether or not the authority is exercised or the power of attorney is executed in this state.

(g) An act performed by an agent pursuant to a power of attorney has the same effect and inures to the benefit of and binds the principal and the principal's successors in interest as if the principal had performed the act.

Sec. 572. INCORPORATION OF AUTHORITY. (a) An agent has authority described in this chapter if the power of attorney refers to general authority with respect to the descriptive term for the subjects stated in Sections 574 through 586 of this code or cites the section in which the authority is described.

(b) A reference in a power of attorney to general authority with respect to the descriptive term for a subject in Sections 574 through 586 of this code or a citation to one of those sections incorporates the entire section as if it were set out in its entirety in the power of attorney.

(c) A principal may modify authority incorporated by reference.

Sec. 573. CONSTRUCTION OF AUTHORITY GENERALLY. Except as otherwise provided in the power of attorney, by executing a power of attorney that incorporates by reference a subject described in Sections 574 through 586 of this code or that grants to an agent authority to perform all acts that a principal could perform pursuant to Section 571(c) of this code, a principal authorizes the agent, with respect to that subject, to:

(1) demand, receive, and obtain by litigation or otherwise any money or other thing of value to which the principal is, may become, or may claim to be entitled, and conserve, invest, disburse, or use any money or other thing of value received or obtained under this subdivision for the purposes intended;

(2) contract in any manner with any person, on terms agreeable to the agent, to accomplish a purpose of a transaction and perform, rescind, cancel, terminate, reform, restate, release, or modify the contract or another contract made by the principal or on the principal's behalf;

(3) execute, acknowledge, seal, deliver, file, or record any instrument or communication the agent considers desirable to accomplish a purpose of a transaction, including creating at any time a schedule listing some or all of the principal's property and attaching it to the power of attorney;

(4) with respect to a claim existing in favor of or against the principal:

(A) initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise; or

(B) intervene in litigation relating to the claim;

(5) seek on the principal's behalf the assistance of a court or other governmental agency to carry out an act authorized in the power of attorney;

(6) engage, compensate, and discharge an attorney, accountant, discretionary investment manager, expert witness, or other advisor;

(7) prepare, execute, and file a record, report, or other document to safeguard or promote the principal's interest under a statute or regulation;

(8) communicate with any representative or employee of a government or governmental subdivision, agency, or instrumentality on the principal's behalf;

(9) access communications intended for the principal, and communicate on the principal's behalf, whether by mail, electronic transmission, telephone, or other means; and

(10) perform any lawful act with respect to the subject that the principal may perform with respect to the subject or property related to the subject.

Sec. 574. REAL PROPERTY. (a) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to real property authorizes the agent to:

(1) demand, buy, lease, receive, accept as a gift or as security for an extension of credit, or otherwise acquire or reject an interest in real property or a right incident to real property;

(2) sell, exchange, convey with or without covenants, representations, or warranties, quitclaim, release, surrender, retain title for security, encumber, partition, consent to partitioning, subject to an easement or covenant, subdivide, apply for zoning or other governmental permits, plat or consent to platting, develop, grant an option concerning, lease, sublease, contribute to an entity in exchange for an interest in that entity, or otherwise grant or dispose of an interest in real property or a right incident to real property;

(3) pledge or mortgage an interest in real property or right incident to real property as security to borrow money or pay, renew, or extend the time of payment of a debt of the principal or a debt guaranteed by the principal;

(4) release, assign, satisfy, or enforce by litigation or otherwise a mortgage, deed of trust, conditional sale contract, encumbrance, lien, or other claim to real property that exists or is asserted to exist;

(5) manage or conserve an interest in real property or a right incident to real property owned or claimed to be owned by the principal, including:

(A) insuring against liability, a casualty, or other loss;

(B) obtaining or regaining possession of or protecting the interest or right by litigation or otherwise;

(C) paying, assessing, compromising, or contesting taxes or assessments or applying for and receiving refunds in connection with the taxes or assessments; and

(D) purchasing supplies, hiring assistance or labor, and making repairs or alterations to the real property;

(6) use, develop, alter, replace, remove, erect, or install structures or other improvements on real property in or incident to which the principal has or claims to have an interest or right;

(7) participate in a reorganization with respect to real property or an entity that owns an interest in or right incident to real property and receive, and hold, and act with respect to stocks, bonds, or other property received in a plan of reorganization, including:

(A) selling or otherwise disposing of the stocks, bonds, or other property received in the reorganization plan;

(B) exercising or selling an option, right of conversion, or similar right with respect to the stocks, bonds, or other property received in the reorganization plan; and

(C) exercising any voting rights with respect to the property in person or by proxy;

(8) change the form of title of an interest in or right incident to real property;

(9) dedicate to public use, with or without consideration, easements or other real property in which the principal has or claims to have an interest;

(10) enter into mineral transactions, including:

(A) negotiating and making oil, gas, and other mineral leases covering any land, mineral, or royalty interest in which the principal has, or claims to have, an interest;

(B) pooling and unitizing part or all of the principal's land, mineral leasehold, mineral, royalty, or other interest with land, mineral leasehold, mineral, royalty, or other interest of one or more persons for the purpose of developing and producing oil, gas, or other minerals, and making leases or assignments granting the right to pool and unitize;

(C) entering into contracts and agreements concerning the installation and operation of plants or other facilities for the cycling, repressuring, processing, or other treating or handling of oil, gas, or other minerals;

(D) conducting or contracting for the conducting of seismic evaluation operations;

(E) drilling or contracting for the drilling of wells for oil, gas, or other minerals;

(F) contracting for and making "dry hole" and "bottom hole" contributions of cash, leasehold interests, or other interests towards the drilling of wells;

(G) using or contracting for the use of any method of secondary or tertiary recovery of any mineral, including the injection of water, gas, air, or other substances;

(H) purchasing oil, gas, or other mineral leases, leasehold interests, or other interests for any type of consideration, including farmout agreements requiring the drilling or reworking of wells or participation therein;

(I) entering into farmout contracts or agreements committing the principal to assign oil, gas, or other mineral leases or interests in consideration for the drilling of wells or other oil, gas, or mineral operations;

(J) negotiating the transfer of and transferring oil, gas, or other mineral leases or interests for any consideration, such as retained overriding royalty interests of any nature, drilling or reworking commitments, or production interests; and

(K) executing and entering into contracts, conveyances, and other agreements or transfers considered necessary or desirable to carry out the powers granted in this section, whether or not the action is now or subsequently recognized or considered as a common or proper practice by those engaged in the business of prospecting for, developing, producing, processing, transporting, or marketing minerals, including entering into and executing division orders, oil, gas, or other mineral sales contracts, exploration agreements, processing agreements, and other contracts relating to the processing, handling, treating, transporting, and marketing of oil, gas, or other mineral production from or accruing to the principal and receiving and receipting for the proceeds thereof on behalf of the principal; and

(11) designate the property that constitutes the principal's homestead.

(b) If a real property transaction requires the agent to execute an instrument that is to be recorded, then the power of attorney shall be recorded in the office of the county clerk in which the real property that is the subject of the transaction is located.

Sec. 575. TANGIBLE PERSONAL PROPERTY. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to tangible personal property authorizes the agent to:

(1) demand, buy, receive, accept as a gift or as security for an extension of credit, or otherwise acquire or reject ownership or possession of tangible personal property or an interest in tangible personal property;

(2) sell, exchange, convey with or without covenants, representations, or warranties, quitclaim, release, surrender, create a security interest in, grant options concerning, lease, sublease, or otherwise dispose of tangible personal property or an interest in tangible personal property;

(3) grant a security interest in tangible personal property or an interest in tangible personal property as security to borrow money or pay, renew, or extend the time of payment of a debt of the principal or a debt guaranteed by the principal;

(4) release, assign, satisfy, or enforce, by litigation or otherwise, a security interest, lien, or other claim on behalf of the principal, with respect to tangible personal property or an interest in tangible personal property;

(5) manage or conserve tangible personal property or an interest in tangible personal property on behalf of the principal, including:

(A) insuring the property or interest against liability, casualty, or other loss;

(B) obtaining or regaining possession of or protecting the property or interest, by litigation or otherwise;

(C) paying, assessing, compromising, or contesting taxes or assessments or applying for and receiving refunds in connection with taxes or assessments;

(D) moving the property from place to place;

(E) storing the property for hire or on a gratuitous bailment; and

(F) using and making repairs, alterations, or improvements to the property; and

(6) change the form of title of an interest in tangible personal property.

Sec. 576. STOCKS AND BONDS. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to stocks and bonds authorizes the agent to:

(1) buy, sell, and exchange stocks and bonds;

(2) establish, continue, modify, or terminate an account with respect to stocks and bonds;

(3) pledge stocks and bonds as security to borrow, pay, renew, or extend the time of payment of a debt of the principal;

(4) receive certificates and other evidences of ownership with respect to stocks and bonds; and

(5) exercise voting rights with respect to stocks and bonds in person or by proxy, enter into voting trusts, and consent to limitations on the right to vote.

Sec. 577. COMMODITIES AND OPTIONS. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to commodities and options authorizes the agent to:

(1) buy, sell, exchange, assign, settle, and exercise commodity futures contracts and call or put options on stocks or stock indexes traded on a regulated option exchange; and

(2) establish, continue, modify, or terminate option accounts.

Sec. 578. BANKS AND OTHER FINANCIAL INSTITUTIONS. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to banks and other financial institutions authorizes the agent to:

(1) continue, modify, or terminate an account or other banking arrangement made by the principal or on the principal's behalf;

(2) establish, modify, or terminate an account or other banking arrangement with a bank, trust company, savings and loan association, credit union, thrift company, brokerage firm, or other financial institution selected by the agent;

(3) contract for services available from a financial institution, including renting a safe deposit box or space in a vault;

(4) withdraw, by check, order, electronic funds transfer, or otherwise, money or property of the principal deposited with or left in the custody of a financial institution;

(5) receive statements of account, vouchers, notices, or similar documents from a financial institution and act with respect to those documents;

(6) enter a safe deposit box or vault and withdraw from or add to the contents;

(7) borrow money and pledge as security personal property of the principal as necessary to borrow money or pay, renew, or extend the time of payment of a debt of the principal or a debt guaranteed by the principal;

(8) make, assign, draw, endorse, discount, guarantee, and negotiate promissory notes, checks, drafts, or other negotiable or nonnegotiable paper of the principal or payable to the principal or the principal's order, transfer money, receive the cash or other proceeds of those transactions, and accept a draft drawn by a person on the principal and pay the draft when due;

(9) receive for the principal and act on a sight draft, warehouse receipt, or other document of title whether tangible or electronic, or other negotiable or nonnegotiable instrument;

(10) apply for, receive, and use letters of credit, credit or debit cards, electronic transaction authorizations, and traveler's checks from a financial institution and give an indemnity or other agreement in connection with letters of credit; and

(11) consent to an extension of the time of payment with respect to commercial paper or a financial transaction with a financial institution.

Sec. 579. OPERATION OF ENTITY OR BUSINESS. Subject to the terms of a document or an agreement governing an entity or an entity ownership interest, and unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to operation of an entity or business authorizes the agent to:

(1) operate, buy, sell, enlarge, reduce, or terminate an ownership interest;

(2) perform a duty or discharge a liability or exercise in person or by proxy a right, power, privilege, or option that the principal has, may have, or claims to have;

(3) enforce the terms of an ownership agreement;

(4) initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation to which the principal is a party because of an ownership interest;

(5) exercise in person or by proxy, or enforce by litigation or otherwise, a right, power, privilege, or option the principal has or claims to have as the holder of stocks or bonds;

(6) initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation concerning stocks or bonds to which the principal is a party;

(7) with respect to an entity or business owned solely by the principal:

(A) continue, modify, renegotiate, extend, and terminate a contract made by the principal or on the principal's behalf with respect to the entity or business before execution of the power of attorney;

(B) determine:

(i) the location of the entity's or business's operation;

(ii) the nature and extent of the business;

(iii) the methods of manufacturing, selling, merchandising, financing, accounting, and advertising employed in the entity's or business's operation;

(iv) the amount and types of insurance carried; and

(v) the method of engaging, compensating, and dealing with the entity's or business's employees and accountants, attorneys, or other advisors;

(C) change the name or form of organization under which the entity or business is operated and enter into an ownership agreement with other persons to take over all or part of the operation of the entity or business; and

(D) demand and receive money due or claimed by the principal or on the principal's behalf in the operation of the entity or business and control and disburse the money in the operation of the entity or business;

(8) put additional capital into an entity or business in which the principal has an interest;

(9) join in a plan of reorganization, consolidation, conversion, domestication, or merger of the entity or business;

(10) sell or liquidate all or part of an entity or business;

(11) establish the value of an entity or business under a buy-out agreement to which the principal is a party;

(12) prepare, sign, file, and deliver reports, compilations of information, returns, or other papers with respect to an entity or business and make related payments; and

(13) pay, compromise, or contest taxes, assessments, fines, or penalties and perform any other act to protect the principal from illegal or unnecessary taxation, assessments, fines, or penalties, with respect to an entity or business, including attempts to recover, in any manner permitted by law, money paid before or after the execution of the power of attorney.

Sec. 580. INSURANCE AND ANNUITIES. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to insurance and annuities authorizes the agent to:

(1) continue, pay the premium or make a contribution on, modify, exchange, rescind, release, or terminate a contract procured by or on behalf of the principal that insures or provides an annuity to either the principal or another person, whether or not the principal is a beneficiary under the contract;

(2) procure new, different, or additional insurance contracts and annuities for the principal or the principal's spouse, children, and other dependents, and select the amount, type of insurance or annuity, and method of payment;

(3) pay the premium or make a contribution on, modify, exchange, rescind, release, or terminate an insurance contract or annuity procured by the agent;

(4) apply for and receive a loan secured by an insurance contract or annuity;

(5) surrender and receive the cash surrender value on an insurance contract or annuity;

(6) exercise an election;

(7) exercise investment powers available under an insurance contract or annuity;

(8) change the manner of paying premiums on an insurance contract or annuity;

(9) change or convert the type of insurance or annuity with respect to which the principal has or claims to have authority described in this section;

(10) apply for and procure a benefit or assistance under a statute or regulation to guarantee or pay premiums of an insurance contract on the life of the principal;

(11) collect, sell, assign, hypothecate, borrow against, or pledge the principal's interest in an insurance contract or annuity;

(12) select the form and timing of the payment of proceeds from an insurance contract or annuity; and

(13) pay, from proceeds or otherwise, compromise or contest, or apply for refunds in connection with a tax or assessment levied by a taxing authority with respect to an insurance contract or annuity or its proceeds or liability accruing because of the tax or assessment.

Sec. 581. ESTATES, TRUSTS, AND OTHER BENEFICIAL INTERESTS. (a) In this section, "estate, trust, or other beneficial interest" means a trust, probate estate, guardianship, conservatorship, life estate, escrow, or custodianship or a fund from which the principal is, may become, or claims to be, entitled to a share or payment.

(b) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to estates, trusts, and other beneficial interests authorizes the agent to:

(1) accept, receive, receipt for, sell, assign, pledge, or exchange a share in or payment from an estate, trust, or other beneficial interest;

(2) demand or obtain by litigation or otherwise money or any other thing of value to which the principal is, may become, or claims to be entitled because of an estate, trust, or other beneficial interest;

(3) exercise for the principal's benefit a presently exercisable general power of appointment held by the principal;

(4) initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation to:

(A) ascertain the meaning, validity, or effect of a deed, will, declaration of trust, or other instrument or transaction affecting the interest of the principal; or

(B) remove, substitute, or surcharge a fiduciary;

(5) conserve, invest, disburse, or use anything received for an authorized purpose;

(6) transfer an interest of the principal in real property, stocks, bonds, accounts with financial institutions or securities intermediaries, insurance, annuities, and other property to the trustee of a revocable trust created by the principal as settlor; and

(7) reject, renounce, disclaim, release, or consent to a reduction in or modification of a share in or payment from an estate, trust, or other beneficial interest.

Sec. 582. CLAIMS AND LITIGATION. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to claims and litigation authorizes the agent to:

(1) assert and maintain before a court or administrative agency a claim, claim for relief, cause of action, counterclaim, offset, recoupment, or defense, including an action to:

(A) recover property or another thing of value;

(B) recover damages sustained by the principal;

(C) eliminate or modify tax liability; or

(D) seek an injunction, specific performance, or other relief;

(2) bring an action to determine an adverse claim or intervene or otherwise participate in litigation;

(3) seek an attachment, garnishment, order of arrest, or other preliminary, provisional, or intermediate relief and use an available procedure to effect or satisfy a judgment, order, or decree;

(4) make or accept a tender, offer of judgment, or admission of facts, submit a controversy on an agreed statement of facts, consent to examination, and bind the principal in litigation;

(5) submit to alternative dispute resolution, settle, and propose or accept a compromise;

(6) waive the issuance and service of process on the principal, accept service of process, appear for the principal, designate persons on which process directed to the principal may be served, execute and file or deliver stipulations on the principal's behalf, verify pleadings, seek appellate review, procure and give surety and indemnity bonds, contract and pay for the preparation and printing of records and briefs, receive, execute, and file or deliver a consent, waiver, release, confession of judgment, satisfaction of judgment, notice, agreement, or other instrument in connection with the prosecution, settlement, or defense of a claim or litigation;

(7) act for the principal with respect to voluntary or involuntary bankruptcy or insolvency proceedings concerning the principal or another person, or with respect to a reorganization, receivership, or application for the appointment of a receiver or trustee that affects an interest of the principal in property or other thing of value;

(8) pay a judgment, award, or order against the principal or a settlement made in connection with a claim or litigation; and

(9) receive money or another thing of value paid in settlement of or as proceeds of a claim or litigation.

Sec. 583. PERSONAL AND FAMILY MAINTENANCE. (a) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to personal and family maintenance authorizes the agent to:

(1) perform the acts necessary to maintain the customary standard of living of the principal, the principal's spouse, and the following individuals, whether living when the power of attorney is executed or later born:

(A) the principal's children;

(B) other individuals legally entitled to be supported by the principal; and

(C) the individuals whom the principal has customarily supported or indicated the intent to support;

(2) make periodic payments of child support and other family maintenance required by a court or governmental agency or an agreement to which the principal is a party;

(3) provide living quarters for the individuals described by Subsection (a)(1) of this section by:

(A) purchase, lease, or other contract; or

(B) paying the operating costs, including interest, amortization payments, repairs, improvements, and taxes, for premises owned by the principal or occupied by those individuals;

(4) provide for the individuals described by Subsection (a)(1) of this section:

(A) normal domestic help;

(B) usual vacations and travel expenses; and

(C) funds for shelter, clothing, food, appropriate education, including postsecondary and vocational education, and other current living costs;

(5) pay expenses for necessary health care and custodial care on behalf of the individuals described by Subsection (a)(1) of this section;

(6) act as the principal's personal representative pursuant to Sections 1171 through 1179, Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Sections 1320d through 1320d-8), and applicable regulations, in making decisions related to the past, present, or future payment for the provision of health care consented to by the principal or anyone authorized under the law of this state to consent to health care on behalf of the principal;

(7) continue any provision made by the principal for the individuals described by Subsection (a)(1) of this section for automobiles or other means of transportation, including registering, licensing, insuring, and replacing the automobiles or other means of transportation;

(8) maintain credit and debit accounts for the convenience of the individuals described by Subsection (a)(1) of this section and open new accounts; and

(9) continue payments incidental to the membership or affiliation of the principal in a religious institution, club, society, order, or other organization or continue contributions to those organizations.

(b) Authority with respect to personal and family maintenance is neither dependent on, nor limited by, authority that an agent may or may not have with respect to gifts under this chapter.

Sec. 584. BENEFITS FROM GOVERNMENTAL PROGRAMS OR CIVIL OR MILITARY SERVICE. (a) In this section, "benefits from governmental programs or civil or military service" means any benefit, program, or assistance provided under a statute or regulation, including social security, Medicare, and Medicaid.

(b) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to benefits from governmental programs or civil or military service authorizes the agent to:

(1) execute vouchers in the principal's name for an allowance or reimbursement payable by the United States, a foreign government, or a state or subdivision of a state to the principal, including an allowance or reimbursement for transportation of the individuals described by Section 583(a)(1) of this code, and for shipment of their household effects;

(2) take possession and order the removal and shipment of the principal's property from a post, warehouse, depot, dock, or other governmental or private place of storage or safekeeping and execute and deliver a release, voucher, receipt, bill of lading, shipping ticket, certificate, or other instrument for that purpose;

(3) enroll in, apply for, select, reject, change, amend, or discontinue, on the principal's behalf, a benefit or program;

(4) prepare, file, and maintain a claim of the principal for a benefit or assistance, financial or otherwise, to which the principal may be entitled under a statute or regulation;

(5) initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation concerning any benefit or assistance the principal may be entitled to receive under a statute or regulation; and

(6) receive the financial proceeds of a claim described in Subsection (b)(4) of this section and conserve, invest, disburse, or use for a lawful purpose anything so received.

Sec. 585. RETIREMENT PLANS. (a) In this section, "retirement plan" means a plan or account created by an employer, the principal, or another individual to provide retirement benefits or deferred compensation of which the principal is a participant, beneficiary, or owner, including a plan or account under the following:

(1) an individual retirement account described by Section 408, Internal Revenue Code of 1986;

(2) a Roth IRA described by Section 408A, Internal Revenue Code of 1986;

(3) a deemed IRA described by Section 408(q), Internal Revenue Code of 1986;

(4) an annuity or mutual fund custodial account described by Section 403(b), Internal Revenue Code of 1986;

(5) a pension, profit-sharing, stock bonus, or other retirement plan qualified described by Section 401(a), Internal Revenue Code of 1986;

(6) a deferred compensation plan described by Section 457(b), Internal Revenue Code of 1986; and

(7) a nonqualified deferred compensation plan described by Section 409A, Internal Revenue Code of 1986.

(b) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to retirement plans authorizes the agent to:

(1) select the form and timing of payments under a retirement plan and withdraw benefits from a plan;

(2) make a rollover, including a direct trustee-to-trustee rollover, of benefits from one retirement plan to another;

(3) establish a retirement plan in the principal's name;

(4) make contributions to a retirement plan;

(5) exercise investment powers available under a retirement plan; and

(6) borrow from, sell assets to, or purchase assets from a retirement plan.

Sec. 586. TAXES. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to taxes authorizes the agent to:

(1) prepare, sign, and file:

(A) federal, state, local, and foreign income, gift, payroll, property, Federal Insurance Contributions Act, and other tax returns;

(B) claims for refunds;

(C) requests for extension of time;

(D) petitions regarding tax matters; and

(E) any other tax-related documents, including:

(i) receipts and offers;

(ii) waivers and consents, including consents and agreements under Section 2032A, Internal Revenue Code of 1986;

(iii) closing agreements; and

(iv) any power of attorney required by the Internal Revenue Service or other taxing authority with respect to a tax year on which the statute of limitations has not run and 25 years following that tax year;

(2) pay taxes due, collect refunds, post bonds, receive confidential information, and contest deficiencies determined by the Internal Revenue Service or other taxing authority;

(3) exercise any election available to the principal under federal, state, local, or foreign tax law; and

(4) act for the principal in all tax matters for all periods before the Internal Revenue Service, or other taxing authority.

Sec. 587. GIFTS. (a) In this section, a gift for the benefit of a person includes:

(1) a gift to a trust;

(2) an account under the Texas Uniform Transfers to Minors Act; and

(3) a tuition savings account or prepaid tuition plan as described by Section 529, Internal Revenue Code of 1986.

(b) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to gifts authorizes the agent to only:

(1) make outright to, or for the benefit of, a person, a gift of any of the principal's property, including by the exercise of a presently exercisable general power of appointment held by the principal, in an amount per donee not to exceed:

(A) the annual dollar limits of the federal gift tax exclusion under Section 2503(b), Internal Revenue Code of 1986, without regard to whether the federal gift tax exclusion applies to the gift; or

(B) if the principal's spouse agrees to consent to a split gift pursuant to Section 2513, Internal Revenue Code of 1986, twice the annual federal gift tax exclusion limit; and

(2) consent, pursuant to Section 2513, Internal Revenue Code of 1986, to the splitting of a gift made by the principal's spouse in an amount per donee not to exceed the aggregate annual gift tax exclusions for both spouses.

(c) An agent may make a gift of the principal's property only as the agent determines is consistent with the principal's objectives if actually known by the agent and, if unknown, as the agent determines is consistent with the principal's best interest based on all relevant factors, including:

(1) the value and nature of the principal's property;

(2) the principal's foreseeable obligations and need for maintenance;

(3) minimization of taxes, including income, estate, inheritance, generation-skipping transfer, and gift taxes;

(4) eligibility for a benefit, a program, or assistance under a statute or regulation; and

(5) the principal's personal history of making or joining in making gifts.

PART 6. STATUTORY FORM POWER OF ATTORNEY

Sec. 591. STATUTORY FORM POWER OF ATTORNEY. A document substantially in the following form may be used to create a statutory form power of attorney that has the meaning and effect prescribed by this chapter.

TEXAS STATUTORY FORM POWER OF ATTORNEY

IMPORTANT INFORMATION

This power of attorney authorizes another person (your agent) to make decisions concerning your property for you (the principal). Your agent will be able to make decisions and act with respect to your property (including your money) whether or not you are able to act for yourself. The meaning of authority over subjects listed on this form is explained in the Power of Attorney Act, Chapter XIIA, Texas Probate Code.

This power of attorney does not authorize the agent to make health care decisions for you.

You should select someone you trust to serve as your agent. Unless you specify otherwise, generally the agent's authority will continue until you die or revoke the power of attorney or the agent resigns or is unable to act for you.

Your agent is entitled to reasonable compensation unless you state otherwise in the Special Instructions.

If your agent is unable or unwilling to act for you, your power of attorney will end unless you have named a successor agent. You may also name a second successor agent.

This power of attorney becomes effective immediately unless you state otherwise in the Special Instructions.

If you have questions about the power of attorney or the authority you are granting to your agent, you should seek legal advice before signing this form.

DESIGNATION OF AGENT

I _____________________________________ (Name of Principal) name the following person as my agent:

Name of Agent: ____________________________________________

Agent's Address: __________________________________________

Agent's Telephone Number: _________________________________

DESIGNATION OF SUCCESSOR AGENT(S) (OPTIONAL)

If my agent is unable or unwilling to act for me, I name as my successor agent:

Name of Successor Agent: __________________________________

Successor Agent's Address: ________________________________

Successor Agent's Telephone Number: _______________________

If my successor agent is unable or unwilling to act for me, I name as my second successor agent:

Name of Second Successor Agent: ___________________________

Second Successor Agent's Address: _________________________

Second Successor Agent's Telephone Number: ________________

GRANT OF GENERAL AUTHORITY

I grant my agent and any successor agent general authority to act for me with respect to the following subjects as defined in the Power of Attorney Act, Chapter XIIA, Texas Probate Code, except the subjects that I have crossed out below:

(TO WITHHOLD A SUBJECT, YOU MUST CROSS OUT EACH SUBJECT WITHHELD.)

Real Property

Tangible Personal Property

Stocks and Bonds

Commodities and Options

Banks and Other Financial Institutions

Operation of Entity or Business

Insurance and Annuities

Estates, Trusts, and Other Beneficial Interests

Claims and Litigation

Personal and Family Maintenance

Benefits from Governmental Programs or Civil or Military Service

Retirement Plans

Taxes

GRANT OF SPECIFIC AUTHORITY (OPTIONAL)

My agent MAY NOT do any of the following specific acts for me UNLESS I have INITIALED the specific authority listed below: UNLESS I have INITIALED the specific authority listed below:

(CAUTION: Granting any of the following will give your agent the authority to take actions that could significantly reduce your property or change how your property is distributed at your death. INITIAL ONLY the specific authority you WANT to give your agent. If you DO NOT want to grant your agent one or more of the following powers, you may also CROSS OUT such power.) the authority to take actions that could significantly reduce your property or change how your property is distributed at your death. INITIAL ONLY the specific authority you WANT to give your agent. If you DO NOT want to grant your agent one or more of the following powers, you may also CROSS OUT such power.)

(__) Create, amend, revoke, or terminate an inter vivos trust

(__) Make a gift, subject to the limitations of Section 587, Power of Attorney Act, and any special instructions in this power of attorney

(__) Create or change rights of survivorship

(__) Create or change a beneficiary designation

(__) Waive the principal's right to be a beneficiary of a joint and survivor annuity, including a survivor benefit under a retirement plan

SPECIAL INSTRUCTIONS (OPTIONAL)

You may give special instructions on the following lines: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________

EFFECTIVE DATE

This power of attorney is effective immediately unless I have stated otherwise in the Special Instructions.

RELIANCE ON THIS POWER OF ATTORNEY

Any person, including my agent, may rely on the validity of this power of attorney or a copy of it unless that person knows it has terminated or is invalid.

REVOCATION OF PRIOR POWERS OF ATTORNEY

This power of attorney (initial A or B):

____ A. does not revoke any prior power of attorney I have executed.

____ B. revokes all prior powers of attorney I have executed except the following:

____________________________________________________.

(If you do not initial A or B, then A shall apply)

SIGNATURE AND ACKNOWLEDGMENT

__________________________________

Your Signature

Date _____________________________

____________________________________________

Your Name Printed

____________________________________________

____________________________________________

Your Address

State of ______________________________

County of _____________________________

This document was acknowledged before me on _________________________ (Date), by _____________________ (Name of Principal).

_______________________________

Signature of Notary - State of Texas

(Seal, if any)

My commission expires: _______________________

IMPORTANT INFORMATION FOR AGENT

Agent's Duties When you accept the authority granted under this power of attorney, a special legal relationship is created between you and the principal. This relationship imposes on you legal duties that continue until you resign or the power of attorney is terminated or revoked. You must:

(1) do what you know the principal reasonably expects you to do with the principal's property or, if you do not know the principal's expectations, act in the principal's best interest;

(2) act in good faith;

(3) do nothing beyond the authority granted in this power of attorney; and

(4) disclose your identity as an agent whenever you act for the principal by writing or printing the name of the principal and signing your own name as "agent" in the following manner:

(Principal's Name) by (Your Signature) as Agent Termination of Agent's Authority You must stop acting on behalf of the principal if you learn of any event that terminates this power of attorney or your authority under this power of attorney. Events that terminate a power of attorney or your authority to act under a power of attorney include:

(1) death of the principal;

(2) the principal's revocation of the power of attorney or your authority;

(3) the occurrence of a termination event stated in the power of attorney;

(4) the purpose of the power of attorney is fully accomplished;

(5) if you are married to the principal, a legal action is filed with a court to end your marriage or declare it void, unless the Special Instructions in this power of attorney state that such an action will not terminate your authority; or

(6) the qualification of a permanent guardian of the estate appointed for the principal. Liability of Agent The meaning of the authority granted to you is defined in the Power of Attorney Act, Chapter XIIA, Texas Probate Code. If you violate the Power of Attorney Act or act outside the authority granted, you may be liable for any damages caused by your violation and you may be subject to criminal prosecution. If there is anything about this document or your duties that you do not understand, you should seek legal advice.

Sec. 592. AGENT'S CERTIFICATION. The following optional form may be used by an agent to certify facts concerning a power of attorney.

AGENT'S CERTIFICATION AS TO THE VALIDITY OF POWER OF ATTORNEY AND

AGENT'S AUTHORITY

I, ________________________________________________ (Name of Agent), certify under penalty of perjury that _________________________________________ (Name of Principal) granted me authority as an agent or successor agent in a power of attorney dated ___________________________.

I further certify that to my knowledge:

(1) the Principal is alive and has not revoked the Power of Attorney or my authority to act under the Power of Attorney and the Power of Attorney and my authority to act under the Power of Attorney have not terminated;

(2) if the Power of Attorney was drafted to become effective on the happening of an event or contingency, the event or contingency has occurred;

(3) if I was named as a successor agent, the prior agent is no longer able or willing to serve; and

(4) ______________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ __________________________________________ (Insert other relevant statements)

I understand that if I violate the Power of Attorney Act, Chapter XIIA, Texas Probate Code, or act outside the authority granted in the Power of Attorney, I may be liable for any damages caused by my actions and I may be subject to criminal prosecution.

_______________________________

Agent's Signature

Date __________________________ ____________________________________________ Agent's Name Printed ____________________________________________ ____________________________________________ Agent's Address ____________________________________________ Agent's Telephone Number

Subscribed and sworn to before me in the State of ________________________________ on ___________________ (Date), by _______________________________ (Name of Agent).

________________________________

Signature of Notary-State of ____

(Seal, if any)

My commission expires: _______________________

SECTION 2. Section 552.140(c), Government Code, is amended to read as follows:

(c) On request and the presentation of proper identification, the following persons may inspect the military discharge record or obtain from the governmental body free of charge a copy or certified copy of the record:

(1) the veteran who is the subject of the record;

(2) the legal guardian of the veteran;

(3) the spouse or a child or parent of the veteran or, if there is no living spouse, child, or parent, the nearest living relative of the veteran;

(4) the personal representative of the estate of the veteran;

(5) the person named by the veteran, or by a person described by Subdivision (2), (3), or (4), in an appropriate power of attorney executed in accordance with Section 591, Chapter XIIA [Section 490, Chapter XII], Texas Probate Code;

(6) another governmental body; or

(7) an authorized representative of the funeral home that assists with the burial of the veteran.

SECTION 3. Section 825.508(b), Government Code, is amended to read as follows:

(b) The system must honor a power of attorney executed in accordance with Section 541, Chapter XIIA [Chapter XII, Section 490], Texas Probate Code.

SECTION 4. Section 313.003(a), Health and Safety Code, is amended to read as follows:

(a) This chapter does not apply to:

(1) a decision to withhold or withdraw life-sustaining treatment from qualified terminal or irreversible patients under Subchapter B, Chapter 166;

(2) a health care decision made under a medical power of attorney under Subchapter D, Chapter 166, or under Chapter XIIA [XII], Texas Probate Code;

(3) consent to medical treatment of minors under Chapter 32, Family Code;

(4) consent for emergency care under Chapter 773;

(5) hospital patient transfers under Chapter 241; or

(6) a patient's legal guardian who has the authority to make a decision regarding the patient's medical treatment.

SECTION 5. Section 32.45(a)(1), Penal Code, is amended to read as follows:

(1) "Fiduciary" includes:

(A) a trustee, guardian, administrator, executor, conservator, and receiver;

(B) an attorney in fact or agent appointed under a durable power of attorney as provided by Chapter XIIA [Chapter XII], Texas Probate Code;

(C) any other person acting in a fiduciary capacity, but not a commercial bailee unless the commercial bailee is a party in a motor fuel sales agreement with a distributor or supplier, as those terms are defined by Section 153.001, Tax Code; and

(D) an officer, manager, employee, or agent carrying on fiduciary functions on behalf of a fiduciary.

SECTION 6. Notwithstanding the transfer of Chapter XII, Texas Probate Code, to the Estates Code and redesignation as Sections 481 through 506 of that code effective January 1, 2014, by Section 4, Chapter 680 (H.B. 2502), Acts of the 81st Legislature, Regular Session, 2009, Chapter XII, Texas Probate Code, is repealed.

SECTION 7. The validity of the execution of a power of attorney before the effective date of this Act is determined according to the terms of the law of this state as it existed at the time of the execution, and the former law is continued in effect for that purpose.

SECTION 8. (a) Except as otherwise provided in this Act, this Act applies to:

(1) a power of attorney created before, on, or after the effective date of this Act;

(2) a judicial proceeding concerning a power of attorney commenced on or after the effective date of this Act; and

(3) a judicial proceeding concerning a power of attorney commenced before the effective date of this Act.

(b) If the court finds that application of a provision of this Act would substantially interfere with the effective conduct of a judicial proceeding concerning a power of attorney commenced before the effective date of this Act or prejudice the rights of a party to the proceeding, the provision of this Act does not apply and the superseded law applies in those circumstances.

(c) An act performed before the effective date of this Act is not affected by this Act.

SECTION 9. This Act takes effect September 1, 2011.