What it means
A power of attorney is only useful if the bank honors it. Section 709.2120 lists the limited grounds on which a third person may reject one — for example, actual knowledge that the agent's authority ended, a good-faith belief that the POA is invalid, or a refused request for a reasonable affidavit or opinion of counsel. For banking and investment transactions, four business days are presumed reasonable to accept or reject. A third person who rejects a valid power of attorney without a lawful reason can be ordered to accept it and held liable for damages, including attorney fees and costs.
- A third person may reject a POA only on listed grounds — such as knowing the agent's authority ended or a good-faith belief it is invalid.
- For financial institutions, four days (excluding weekends and holidays) are presumed a reasonable time to accept or reject.
- A third person may condition acceptance on an agent's affidavit, English translation, or opinion of counsel.
- Wrongful rejection exposes the third person to a court order to accept, plus damages, attorney fees, and costs.
How it plays out
Banks reject valid powers of attorney more often than people expect, usually out of institutional caution. Section 709.2120 is the answer. We prepare agents to supply what the statute lets a bank ask for — a short affidavit that the POA is still in force — which resolves most refusals in one visit. When an institution keeps stalling past the four-day window without a lawful reason, this section gives real leverage: a court can order acceptance and award the fees the family spent forcing the issue.
Questions people ask
