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#2182334 - 06/19/18 06:24 PM POA Verification Procedures
deh Offline
Platinum Poster
Joined: Mar 2006
Posts: 866
Hi,

Would anyone be willing to share their procedures for documenting that the Bank has a valid POA? Whether it be for a R/E closing or for a deposit account where the account holder has suffered a medical issue and is no longer mentally capable of handling their affairs.

We are trying to determine is our best option is submit to an attorney for review. As it is so easy to print poa documents off the internet and find someone to notarize.

Thanks in advance.

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General Discussion
#2182337 - 06/19/18 06:27 PM Re: POA Verification Procedures deh
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Certain States have adopted laws regarding the steps that a financial institution must take and the time period allowed in order to reject a POA. I highly suggest sitting down and having a discussion with your legal counsel.
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#2182343 - 06/19/18 06:38 PM Re: POA Verification Procedures deh
deh Offline
Platinum Poster
Joined: Mar 2006
Posts: 866
We primarily deal with IL and WI; however that can change based on where the customer relationship is.

I just wanted to find out if a majority used attorney review or if they had state specific procedures and just relied on staff to review the POA and determine it looked valid.

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#2182356 - 06/19/18 07:37 PM Re: POA Verification Procedures deh
Tracey, CRCM Offline
Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
We consulted with our legal counsel who drafted a POA affidavit for us to use per our State law. The POA presenting signs the affidavit and that is pretty much it. The affidavit states they are acknowledging a number of things, like the POA is in effect, they are the POA, etc....
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Tracey

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#2182374 - 06/19/18 08:57 PM Re: POA Verification Procedures deh
Rocky P Online
Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
Like Randy said, a lot is dependent on state law, which changes.
One state had POA, but if it were for real estate, it was a different POA format, and had to be recorded before it was valid.

A slip by not knowing what is covered could invalidate the lien on the collateral, and note.
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Integrity. With it, nothing else matters. Without it, nothing else matters.

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#2182397 - 06/20/18 03:13 AM Re: POA Verification Procedures deh
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
We use a centralized review team (ours resides in the Compliance department) for POAs. The review team maintains checklists to ensure that a presented POA contains all of the necessary elements. The review team also maintains a record of each review, and whether or not the POA was accepted.

We brought in counsel to train our review team and ensure that our checklists address the right elements. When we are presented with a POA from a state unfamiliar to us, or containing unique/specific language (such as an unusual triggering term), we escalate those reviews to counsel.

Overall, this process has been very beneficial for us.

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