Power of Attorney Acceptance and Refusal Rules in New Jersey

At a glance

Requirements one by one

Covered power and presentation

The banking rule covers a signed and acknowledged written power for banking transactions. Its definition of a banking institution includes credit unions as well as banks and savings institutions (§ 46:2B-10). The agent's banking authority is exercisable upon and after presentation to the institution (§ 46:2B-12).

The institution generally views a power bearing the principal's actual original signature. If the agent swears that the original is unavailable, the institution may instead accept a copy certified by another banking institution or the county recording office where the original was recorded (§ 46:2B-13(f)).

Response and proof

The bank has a “reasonable time under the circumstances” to decide whether to rely on the presented power. Section 46:2B-13(b) gives no fixed number of days. For a power effective upon disability, the bank need not act until the agent provides proof satisfactory to it that the principal is disabled as the power provides. An agent withdrawing or paying account funds must also show satisfactory identity evidence and execute the institution's required signature card (§ 46:2B-13(c)–(d)).

Written rejection

When either the agent or principal has supplied the agent's address in writing, a rejecting bank must send the agent a written notice stating the rejection and its reason. Section 46:2B-13(e) does not set a numbered mailing deadline.

What trips people up

The statute distinguishes mandatory refusal for a nongenuine principal signature or an employee's actual notice of death, revocation or disability at execution from permitted refusal based on the bank's good-faith belief about those matters. The bank may also refuse a power first presented more than ten years after its date, or unused for ten years, unless the agent is the principal's spouse, parent or a descendant of a parent (§ 46:2B-13(a)–(b)).

Common questions

Does this banking act invalidate another otherwise valid power? No. The act says it is not the exclusive way to provide a banking power and does not invalidate an otherwise valid power made outside it (§ 46:2B-17).

Does the statute award fees when a bank improperly refuses? Section 46:2B-13 states an acceptance duty and a conditional written-notice duty, but specifies no court order or fee award for a refusal.

Statutes and sources

The quoted provisions below were checked against the New Jersey Legislature's current compilation on October 3, 2026.

N.J.S.A. § 46:2B-10. “"Banking institution" includes banks, savings banks, savings and loan associations and credit unions, whether chartered by the United States, this State or any other state or territory of the United States or a foreign country. A thing is done "in good faith" when it is in fact done honestly, regardless of whether it is done negligently. "Power of attorney" means a duly signed and acknowledged written document in which a principal authorizes an agent to act on his behalf.” Official statute (accessed October 3, 2026).

N.J.S.A. § 46:2B-12. “An agent may exercise all powers described in this act exercisable by the principal upon and after the presentation of the power of attorney to the banking institution with respect to any banking transaction whether conducted in this or any other state.” Official statute (accessed October 3, 2026).

N.J.S.A. § 46:2B-13(a)–(f). “With respect to banking transactions, banking institutions shall accept and rely on a power of attorney which conforms to this act and shall permit the agent to act and exercise the authority set forth in this act, provided that: a. The banking institution shall refuse to rely on or act pursuant to a power of attorney if (1) the signature of the principal is not genuine, or (2) the employee of the banking institution who receives, or is required to act on, the power of attorney has received actual notice of the death of the principal, of the revocation of the power of attorney or of the disability of the principal at the time of the execution of the power of attorney; b. The banking institution is not obligated to rely on or act pursuant to the power of attorney if it believes in good faith that the power of attorney does not appear to be genuine, that the principal is dead, that the power of attorney has been revoked or that the principal was under a disability at the time of the execution of the power of attorney. The banking institution shall have a reasonable time under the circumstances within which to decide whether it will rely on or act pursuant to a power of attorney presented to it, but it may refuse to act or rely upon a power of attorney first presented to it more than 10 years after its date or on which it has not acted for a 10-year period unless the agent is either the spouse, parent or a descendant of a parent of the principal; c. If the power of attorney provides that it "shall become effective upon the disability of the principal" or similar words, the banking institution is not obligated to rely on or act pursuant to the power of attorney unless the banking institution is provided by the agent with proof to its satisfaction that the principal is then under a disability as provided in the power of attorney; d. If the agent seeks to withdraw or pay funds from an account of the principal, the agent shall provide evidence satisfactory to the banking institution of his identity and shall execute a signature card in a form as required by the banking institution; e. If the banking institution refuses to rely on or act pursuant to a power of attorney and the agent or principal has, in writing, provided the banking institution with an address of the agent, the institution shall notify the agent by a writing addressed to the address provided to it that the power of attorney has been rejected and the reason for the rejection; f. The banking institution has viewed a form of power of attorney which contains an actual original signature of the principal. Alternatively, if the banking institution receives an affidavit of the agent that such an original is not available to be presented, the banking institution may accept a photocopy of the power of attorney certified to be a true copy of the original by either (1) another banking institution or (2) the county recording office of the county in which the original was recorded.” Official statute (accessed October 3, 2026).

N.J.S.A. § 46:2B-17. “This act is not intended to be the exclusive method of providing for powers of attorney for bank transactions and nothing herein shall be deemed to invalidate or make inoperable any power of attorney which is not made pursuant to this act and which is otherwise valid. A power of attorney for banking transactions pursuant to this act may be combined with a power of attorney for other purposes.” Official statute (accessed October 3, 2026).