Credit unions have always found it necessary to review, analyzeand, where appropriate, accept a power of attorney that has beensigned and presented by a member or on behalf of a member.

However, there are increasing situations involving elder abuse,fraud and forgery and many credit unions are being more cautious asthey act upon a power of attorney. Some have an attorney review andopine on each and every power of attorney. Others will seek legalconsultation only if the situation, the form or the language of thepower of attorney is somewhat unusual.

An increasing number of state laws are providing protection tofinancial institutions that rely upon powers of attorney whencertain provisions are included in the power of attorney.

The following checklist may be of assistance to a credit unionthat is presented with a power of attorney.

Power of AttorneyChecklist

This checklist is intended to provide credit union clients witha reference for use in determining whether to accept a PoA. Inmaking such a determination, the following items should be takeninto consideration:

1. Signatures

(a) Is the PoA inwriting (including typed writings) and signed by the principal?Does the signature of the principal match the principal/member'ssignature on such member's account card?

(b) Is the PoAdated?

(c) Is the PoAproperly notarized by a notary public?

2. Identification of Agent

(a) Is the individualpresenting and attempting to utilize the PoA actually theattorney-in-fact named as agent in the PoA?

(b) Does the agenthave a valid government-issued identification card to establish andprove his or her identity?

3. Scope

(a) What is the scopeof the PoA – general durable PoA or a limited PoA – and what arethe scope of the powers and authority granted to theattorney-in-fact?

(b) Is theattorney-in-fact proposing to take actions on behalf of theprincipal that are authorized in the PoA, or are the proposedactions outside the scope of authority granted in the PoA?

(i) Specifically, does the PoA grant authority to the agent to accessfinancial institution accounts and transact business with respectto such accounts?

4. Continuing Validity

(a) Does the creditunion have knowledge of forgery, invalidity, termination, death ofthe member/principal or other revocation of the PoA?

(b) Does the creditunion have knowledge of events or circumstances that, by the termsof the PoA, would terminate or revoke the authority granted in thePoA (for example, a divorce)?

5. Concerns

(a) If the creditunion, after answering the above questions, has any questionsregarding validity of a PoA, consider:

(i) Requestingan attorney review of the PoA; and/or

(ii) Requiring theagent/attorney-in-fact to execute an affidavit/certificationattesting to the continuing validity of and non-revocation ortermination of the PoA; and/or

(iii) Contacting themember/principal to inquire into validity of PoA and its continuingin force and effect as a safety precaution to the member.

6. Documentation

(a) Always retain acopy of the PoA in the member/principal's file;

(b) Always make a copyof the government issued identification card presented by the agentand retain along with the PoA in the member/principal's file;

(c) If an attorneyreview is requested and received, always maintain the attorney'scorrespondence in the member/principal's file;

(d) If the member iscontacted to verify the validity of the PoA, document the contact(whether a memo commemorating a phone conversation or a printedemail exchange) and maintain this correspondence in themember/principal's file.

In addition, an agent's certification/affidavit pursuant towhich the agent attests to the document's continuing validity isalways a good idea for the credit union if there are any questionsconcerning the validity of the instrument.

E.Andrew Keeney is a Norfolk, Va.-based credit union attorneywith more than 35 years of experience.