Power of Attorney Acceptance and Refusal Rules in Indiana
At a glance
| Covered power and recipient | Any power covered by Article 30-5, including durable powers; a person receiving it, including a bank (IC 30-5-2-6 to -7; 30-5-9-9). |
|---|---|
| What starts the response duty | Recipient receives the power of attorney and the agent seeks to exercise authority it grants; no original or acknowledgment condition in the refusal section (IC 30-5-9-9(a)). |
| Initial response time | Liability provision addresses a refusal within three business days after receipt; it states no affirmative deadline to decide (IC 30-5-9-9(a)). |
| Permitted supporting requests | No list of certification, translation or opinion requests in the refusal provision (IC 30-5-9-9). |
| Time after a request or reply | No later acceptance clock; written reasons for two defenses are due within ten business days after refusal (IC 30-5-9-9(b)(4)-(5)). |
| Written rejection and recipients | Written statement to agent within ten business days after refusal for a reasonable belief of invalidity or insufficient transaction authority (IC 30-5-9-9(b)(4)-(5)). |
| Stated reasons to refuse | Actual revocation notice, expired stated duration, actual knowledge of death, or reasonable belief of invalidity or inadequate authority with timely written reasons (IC 30-5-9-9(b)). |
| Court order and costs | Court action to force acceptance or pursue damages; if liable, three times actual damages, claimant's attorney's fees and prejudgment interest from refusal (IC 30-5-9-9(a)). |
Requirements one by one
Scope and timing
Article 30-5 defines “power of attorney” broadly: it includes durable powers, but excludes certain powers coupled with an interest, entity voting delegations and government-purpose forms (IC 30-5-2-7). Its definition of “person” includes individuals, corporations and other entities (IC 30-5-2-6).
The refusal rule is phrased around a refusal within three business days after receipt, rather than an express instruction to decide by the third business day. It applies when the person refuses the agent's authority to exercise a power the instrument grants (IC 30-5-9-9(a)). That distinction matters if the recipient simply delays: the subsection does not spell out a separate response deadline.
Written reasons and court consequences
Two of the five stated exceptions require more than a belief. A person who reasonably believes the power is invalid under Indiana law, or that it does not authorize the requested transaction, must give the agent a written statement describing the reason within ten business days after refusal to qualify for those exceptions (IC 30-5-9-9(b)(4)-(5)). The statute provides no separate acceptance clock after such a statement.
If a court finds the person liable for refusal in an action to force acceptance or seek damages, the statute calls for three times actual damages, the claimant's attorney's fees, and prejudgment interest on actual damages from the refusal date (IC 30-5-9-9(a)).
What trips people up
The other three exceptions depend on what the recipient actually knows or what the instrument says: actual notice of revocation before exercise, expiration of the duration specified in the power, or actual knowledge of the principal's death (IC 30-5-9-9(b)(1)-(3)). The written-statement condition appears only in the invalidity and insufficient-authority exceptions.
Common questions
Can a recipient demand an agent certification or lawyer's opinion under this section? IC 30-5-9-9 supplies no list of documents it may request. Its listed written document is the recipient's own explanation for two refusal defenses.
Does this rule displace every other remedy? No. Subsection (c) says it does not negate liability under another form of power of attorney, common law or otherwise.
Statutes and sources
The quoted provisions below are from the Indiana General Assembly's 2026 Code PDFs, accessed October 4, 2026.
Ind. Code § 30-5-2-6. “Sec. 6. "Person" means: (1) an individual at least eighteen (18) years of age; (2) a corporation; (3) a trust; (4) a limited liability company; (5) a partnership; (6) a business trust; (7) an estate; (8) an association; (9) a joint venture; (10) a government or political subdivision; (11) an agency; (12) an instrumentality; or (13) any other legal or commercial entity.” Official statute (accessed October 4, 2026).
Ind. Code § 30-5-2-7. “Sec. 7. "Power of attorney" means a writing or other record that grants authority to an attorney in fact or agent to act in place of a principal, whether the term "power of attorney" is used. The term refers to all types of powers of attorney, including durable powers of attorney, except for the following: (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 credit in connection with a credit transaction. (2) A proxy or other delegation to exercise voting rights or management rights with respect to an entity. (3) A power created on a form prescribed by a government or governmental subdivision, agency, or instrumentality for a governmental purpose.” Official statute (accessed October 4, 2026).
Ind. Code § 30-5-9-9. “Sec. 9. (a) Except as provided in subsection (b), a person who, not more than three (3) business days after receiving a power of attorney, refuses to accept the authority of an attorney in fact to exercise a power granted under a power of attorney is liable to the principal and to the principal's heirs, assigns, and the personal representative of the estate of the principal in the same manner as the person would be liable had the person refused to accept the authority of the principal to act on the principal's own behalf. In any action brought in court to either force the acceptance of the authority of the attorney in fact or pursue damages as a result of the person's refusal to accept the authority of an attorney in fact, the person found liable for refusing to accept the authority of an attorney in fact shall pay the following: (1) Three (3) times the amount of the actual damages. (2) The attorney's fees of the person bringing the action to court. (3) Prejudgment interest on the actual damages from the date the person refused to accept the authority of the attorney in fact. (b) A person refusing to accept the authority of an attorney in fact to exercise a power granted under a power of attorney is not liable under subsection (a) if: (1) the person has actual notice of the revocation of the power of attorney before the exercise of the power; (2) the duration of the power of attorney specified in the power of attorney has expired; (3) the person has actual knowledge of the death of the principal;” Official statute (accessed October 4, 2026).
“(4) the person reasonably believes that the power of attorney is not valid under Indiana law and provides the attorney in fact with a written statement not more than ten (10) business days after the refusal, describing the reason that the power of attorney is not valid under Indiana law; or (5) the person reasonably believes that the power of attorney does not grant the attorney in fact with authority to perform the transaction requested and provides the attorney in fact with a written statement not more than ten (10) business days after the refusal, describing the reason the person believes the power of attorney is deficient under Indiana law. (c) This section does not negate the liability a person would have to the principal or the attorney in fact under another form of power of attorney, under the common law, or otherwise.” Official statute (accessed October 4, 2026).
Source links
Every statute quoted above, linked, with the date we checked it.
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