DURABLE FINANCIAL POWER OF ATTORNEY

State of Arkansas

[// GUIDANCE: This template is drafted to comply with and reference the Arkansas Uniform Power of Attorney Act, Ark. Code Ann. §§ 28-68-101 et seq., and is designed for customization by counsel. Replace all bracketed text before use.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

1.1 Title & Parties.
DURABLE FINANCIAL POWER OF ATTORNEY (the “Power of Attorney”) executed by [PRINCIPAL FULL LEGAL NAME], residing at [PRINCIPAL ADDRESS] (“Principal”), appointing [AGENT FULL LEGAL NAME], residing at [AGENT ADDRESS] (“Agent”).

1.2 Recitals.
A. Principal desires to grant Agent authority to act on Principal’s behalf with respect to financial and property matters.
B. Principal intends this Power of Attorney to be durable and to remain in effect notwithstanding Principal’s subsequent incapacity, pursuant to Ark. Code Ann. § 28-68-104.
C. This instrument is governed by the Arkansas Uniform Power of Attorney Act and all other applicable Arkansas statutes (collectively, the “Act”).

1.3 Effective Date.
This Power of Attorney becomes effective:
☐ Upon execution.
☐ Upon the [occurrence/verification] of the following contingency: [DESCRIBE].

1.4 Governing Law & Venue.
This Power of Attorney and all disputes hereunder shall be governed by Arkansas law (“state_power_of_attorney_law”) and adjudicated exclusively in the [COUNTY] Probate Court of the State of Arkansas (“state_probate_court”), subject to Section 8 (Dispute Resolution).

2. DEFINITIONS

For ease of reference, capitalized terms have the meanings set forth below. Any term not defined herein but defined in the Act shall have the meaning assigned in the Act.

“Act” – see Section 1.2.
“Agent” – see Section 1.1.
“Assets Under Management” – all property, accounts, securities, cash, contractual rights, or other interests subject to Agent’s authority at any time.
“Durable” – having the effect described in Ark. Code Ann. § 28-68-104.
“Limited Arbitration” – arbitration restricted to monetary claims ≤ $250,000, excluding equitable or fiduciary-specific relief (see Section 8.2).
“Principal” – see Section 1.1.
“Specific Authority” – authority that must be expressly granted under Ark. Code Ann. § 28-68-201(b).

3. OPERATIVE PROVISIONS

3.1 Appointment & Acceptance of Agent

(a) Principal hereby designates Agent to act for Principal in accordance with this Power of Attorney.
(b) Agent shall evidence acceptance by executing the Acknowledgment in Section 10.3.

3.2 Durable Nature

This Power of Attorney shall not be affected by Principal’s subsequent incapacity or disability (Ark. Code Ann. § 28-68-104).

3.3 General Grant of Authority

Except as limited herein, Agent may exercise all powers described in Ark. Code Ann. § 28-68-204 through § 28-68-217, which are incorporated by reference, including but not limited to:
1. Real property transactions;
2. Tangible personal property transactions;
3. Banking and financial transactions;
4. Business operations;
5. Insurance and annuity matters;
6. Claims and litigation;
7. Personal and family maintenance.

3.4 Specific Authority (Express Grant)

Pursuant to Ark. Code Ann. § 28-68-201(b), Principal specifically authorizes Agent to:
(a) Create, amend, revoke, or terminate an inter vivos trust;
(b) Make gifts not exceeding [$ AMOUNT or FORMULA] per donee per calendar year;
(c) Exercise fiduciary powers described in any governing instrument;
(d) Change beneficiary designations;
(e) Disclaim or renounce property interests;
(f) Delegate authority granted herein.

[// GUIDANCE: Omit any power the client does not intend to grant.]

3.5 Limitations on Agent’s Authority

(a) Agent shall not take any action that constitutes a breach of fiduciary duty, self-dealing without express authorization, or is otherwise prohibited by law.
(b) Agent’s total liability for monetary damages to Principal for breach of duty is capped at the total Assets Under Management at the time of the breach (see Section 7.2).

3.6 Successor & Co-Agents

Principal appoints [SUCCESSOR AGENT] as successor Agent, to serve (check one):
☐ upon the resignation, death, or incapacity of the initial Agent;
☐ concurrently with the initial Agent, exercising authority (check one): ☐ jointly ☐ independently.

4. REPRESENTATIONS & WARRANTIES

4.1 Principal represents that:
(a) Principal is at least eighteen (18) years of age, of sound mind, and under no undue influence;
(b) All information provided herein is accurate and complete.

4.2 Agent represents and warrants that:
(a) Agent is willing, able, and qualified to accept the fiduciary obligations imposed by the Act and this instrument;
(b) Agent will exercise the authority granted herein in good faith and in Principal’s best interest;
(c) Agent is not disqualified under any applicable statute from serving.

Survival. All representations and warranties survive execution and any revocation or termination to the extent necessary to enforce the remedies provided herein.

5. COVENANTS & RESTRICTIONS

5.1 Fiduciary Duties. Agent shall:
(a) Act loyally for the benefit of Principal;
(b) Avoid conflicts of interest;
(c) Keep records of all transactions, including receipts, disbursements, and accountings;
(d) Preserve Principal’s estate plan if consistent with Principal’s best interest;
(e) Comply with any court order or statutory reporting requirement.

5.2 Notice & Reporting.
Within thirty (30) days of written request by Principal, a guardian, conservator, or a court of competent jurisdiction, Agent shall deliver a full accounting.

5.3 Compensation & Reimbursement.
Agent is entitled to (select one):
☐ Reasonable compensation in accordance with Ark. Code Ann. § 28-68-112;
☐ No compensation.
Agent shall be reimbursed for reasonable expenses properly incurred.

6. DEFAULT & REMEDIES

6.1 Events of Default. Any of the following constitutes Agent default:
(a) Breach of fiduciary duty;
(b) Misappropriation or self-dealing;
(c) Failure to provide requested accounting within the time specified in Section 5.2;
(d) Incapacity, resignation without notice, or death of Agent without successor acceptance.

6.2 Cure. Principal or interested party shall provide written notice specifying the default. Agent has ten (10) days to cure unless the breach is incapable of cure or involves misappropriation.

6.3 Remedies. Upon default and failure to cure, Principal (or court-appointed fiduciary) may:
(a) Revoke this Power of Attorney;
(b) Seek injunctive relief (Section 8.3);
(c) Obtain monetary damages up to the liability cap (Section 7.2);
(d) Recover attorney fees and costs incurred in enforcement.

7. RISK ALLOCATION

7.1 Indemnification.
Agent shall indemnify and hold harmless Principal from any loss, liability, or expense arising from Agent’s breach of fiduciary duty or unlawful acts (“agent_fiduciary_duty”).

7.2 Limitation of Liability.
Except for willful misconduct or gross negligence, Agent’s aggregate liability shall not exceed the total Assets Under Management at the time the cause of action accrues.

7.3 Insurance.
[Optional] Agent shall maintain fiduciary liability insurance with limits not less than [$ AMOUNT] and shall name Principal as an additional insured.

7.4 Force Majeure.
Agent shall not be liable for failure to act during events beyond Agent’s reasonable control, including natural disasters, war, or system failures, provided Agent acts prudently upon cessation of the event.

8. DISPUTE RESOLUTION

8.1 Governing Law & Forum.
See Section 1.4.

8.2 Limited Arbitration.
Except as provided in Section 8.3, disputes seeking solely monetary relief not exceeding two hundred fifty thousand dollars (US $250,000) shall be resolved by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. Judgment on the award may be entered in state_probate_court.

8.3 Injunctive & Fiduciary Relief.
Claims involving alleged breach of fiduciary duty, requests for injunctive relief, accounting, or appointment of a receiver/guardian are reserved exclusively to state_probate_court.

8.4 Jury Waiver.
To the fullest extent permitted by Arkansas law, the parties waive trial by jury for any claim that remains in court; provided, however, that such waiver is inapplicable where prohibited (limited_availability).

9. GENERAL PROVISIONS

9.1 Amendment & Waiver.
Principal may amend or waive provisions only by a written instrument executed with the same formalities as this Power of Attorney.

9.2 Assignment.
Agent may not assign duties without prior written consent of Principal, except as expressly permitted in Section 3.4(f).

9.3 Successors & Assigns.
This Power of Attorney binds and benefits Principal, Agent, and their respective heirs, personal representatives, successors, and permitted assigns.

9.4 Severability.
Invalidity of any provision shall not affect the remaining provisions; the invalid provision shall be reformed to effectuate its intent to the maximum extent permitted.

9.5 Integration.
This instrument constitutes the entire agreement between the parties regarding the subject matter and supersedes all prior powers of attorney, except as expressly referenced.

9.6 Originals & Copies.
A photocopy, facsimile, or electronically transmitted copy of this executed instrument shall have the same effect as the original.

9.7 Counterparts; Electronic Signatures.
This Power of Attorney may be executed in counterparts and by electronic signature pursuant to Ark. Code Ann. § 25-32-101 et seq.

10. EXECUTION BLOCK

10.1 Principal’s Signature & Acknowledgment

[PRINCIPAL FULL LEGAL NAME], Principal

Date: _________

State of Arkansas )
County of ____ )

On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared [PRINCIPAL NAME], known to me or satisfactorily proven to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he/she executed the same for the purposes therein contained.

Notary Public
My Commission Expires: ____

[Seal]

10.2 Successor or Co-Agent Execution (If Applicable)

[SUCCESSOR/CO-AGENT NAME]

Date: _________

10.3 Agent’s Acceptance & Fiduciary Acknowledgment

I, [AGENT FULL LEGAL NAME], have read the foregoing Durable Financial Power of Attorney and accept appointment as Agent. I understand and will act in accordance with my fiduciary duties under Arkansas law and this instrument.

[AGENT FULL LEGAL NAME], Agent

Date: _________

11. STATUTORY NOTICE TO PRINCIPAL

[The following notice is provided to comply with Ark. Code Ann. § 28-68-301.]

“BY SIGNING THIS DOCUMENT, YOU ARE NOTIFYING ALL CONCERNED THAT YOU ARE GIVING THE PERSON YOU DESIGNATE POWER TO HANDLE YOUR PROPERTY AND MONEY. BEFORE SIGNING, KNOW YOUR RIGHTS. YOU MAY REVOKE THIS POWER AT ANY TIME.”

12. STATUTORY NOTICE TO AGENT

“WHEN YOU ACT AS AGENT, YOU ARE A FIDUCIARY UNDER ARKANSAS LAW. YOU MUST ACT IN GOOD FAITH, WITH CARE, COMPETENCE, AND DILIGENCE FOR THE BENEFIT OF THE PRINCIPAL.”

13. REVOCATION PROCEDURES

13.1 Method of Revocation.
Principal may revoke this Power of Attorney by:
(a) Executing a subsequent revocation instrument with notarization and delivering same to Agent and all known third parties relying on this Power of Attorney;
(b) Executing a later-dated power of attorney that expressly revokes prior instruments;
(c) Providing written notice of revocation to Agent and recording such notice if this Power of Attorney has been recorded.

13.2 Notice to Third Parties.
Third parties are deemed to have constructive notice of revocation upon earlier of (i) actual receipt of revocation, or (ii) filing in the deed records of the county where real property is located, if relevant.

[// GUIDANCE: Counsel should consider recording this instrument in any county where the Principal owns real property and providing certified copies to financial institutions as required by their internal policies.]

End of Template