Power of Attorney Acceptance and Refusal Rules in New York

At a glance

Requirements one by one

Covered form and first response

Section 5-1504 applies its honor-or-reject duty to the statutory short form. For an original or attorney-certified copy presented for acceptance, the third party generally has ten business days to honor it, reject it in writing with reasons, or request the agent's acknowledged affidavit that the power remains in effect (§ 5-1504(3)(a)). The section expressly does not compel acceptance of a non-short-form instrument (§ 5-1504(8)).

Requested material and later clocks

A recipient may request an agent's factual certification under penalty of perjury or a counsel opinion about law if it gives a written or recorded reason. A counsel opinion requested more than ten business days after presentation is not at the principal's expense under this provision (§ 5-1504(1)(d)–(e)). The recipient may also require an acknowledged affidavit of continuing effect (§ 5-1504(7)).

If the agent answers a written initial rejection, the third party has seven business days after the reply to honor or finally reject in writing. If it requested the acknowledged affidavit, it must honor within seven business days after receiving a compliant affidavit unless reasonable cause remains (§ 5-1504(3)(a)). The statute treats a notice as delivered when mailed. The listed audit, public-retirement and Medicaid agencies are outside these time requirements (§ 5-1504(3)(a)).

Written reasons and court consequence

The initial rejection goes in writing to the principal and agent at their addresses on the instrument and any other addresses they supplied. A final rejection after an agent's reply also states reasons in writing (§ 5-1504(3)(a)). An unreasonable refusal can be challenged in the special proceeding the statute names; the court may award damages, including reasonable attorney's fees and costs, if it finds the refusal unreasonable (§ 5-1504(4)(b)).

What trips people up

The statute lists reasonable-cause grounds that include an agent's failure to supply the required original or certified copy, specified protective-services referrals, death or incapacity concerns, and refusal of a requested certification or counsel opinion (§ 5-1504(2)(a)). Refusal solely because time passed since execution is deemed unreasonable (§ 5-1504(2)(b)). Whether another reason is reasonable depends on the facts.

Common questions

Can an institution demand its own form? The short-form statute expressly treats refusal based only on the institution's own-form requirement as unreasonable (§ 5-1504(2)(b)).

Can a photocopy start the same clock as an original? The ten-business-day procedure expressly refers to an original or attorney-certified copy; § 5-1504(3)(a) permits rejection of another copy on that ground while requiring the recipient to identify any other defects it has found.

Statutes and sources

The quoted current New York General Obligations Law was accessed October 3, 2026.