New York State Enacts Changes Impacting the Creation and Potential Uses of Powers of Attorney

September 15, 2009
Broad changes to the laws governing the creation and uses of powers of attorney recently became effective in the State of New York, affecting not only New York residents, but also individuals who execute powers of attorney while conducting business in New York. The revised law does not provide for an exclusion for commercial transactions; thus, it appears to govern all powers of attorney that are executed by individuals in New York, including those that may be incorporated into other documents such as limited partnership agreements and limited liability company operating agreements, or granted in connection with registration statements and other SEC filings. This update examines the revised law and its implications for commercial transactions.