§ 32A-42. Protection for third parties. - North Carolina Statutes

§ 32A‑42.  Protectionfor third parties.

(a)        A person is notrequired to honor the attorney‑in‑fact's authority or to conductbusiness with the attorney‑in‑fact if the person is not otherwiserequired to conduct business with the principal in the same circumstances.

(b)        Without limitingthe generality of subsection (a) of this section, nothing in this Articlerequires a person to do any of the following:

(1)        Engage in anytransaction with an attorney‑in‑fact if the attorney‑in‑facthas previously breached any agreement with the person, whether in an individualor fiduciary capacity.

(2)        Open an account fora principal at the request of an attorney‑in‑fact if the principalis not currently a customer of the person.

(3)        Make a loan to theprincipal at the request of the attorney‑in‑fact.

(c)        A person who ispresented with a power of attorney shall not be deemed to have unreasonablyrefused to accept the power of attorney solely on the basis of failure toaccept the power of attorney within seven business days.

(d)        A person who hasreasonable cause to question the authenticity or validity of a power ofattorney may refuse to accept the authority granted by that document.

(e)        A person whopromptly requests, and does not within a reasonable time receive, an affidavitas described in G.S. 32A‑40(b), is not deemed under G.S. 32A‑41 tohave unreasonably refused to accept a power of attorney.

(f)         The principal, theattorney‑in‑fact, or a person presented with a power of attorneymay initiate a special proceeding in accordance with the procedures of Article33 of Chapter 1 of the General Statutes to request a determination of thevalidity of the power of attorney. If the decision in that special proceedingis that reasonable cause to refuse to accept the power of attorney existed, andthat the attorney‑in‑fact willfully misrepresented the authenticityor validity of the power of attorney, the attorney‑in‑fact, and notthe principal, is liable for reasonable attorneys' fees and costs incurred inthat action.

(g)        Nothing in thisArticle requires a person who accepts a power of attorney to permit an attorney‑in‑factto conduct business not authorized by the terms of the power of attorney, orotherwise not permitted by applicable statute or regulation.

(h)        Nothing in thisArticle amends or modifies the rights of banks and other depositoryinstitutions to terminate any deposit account in accordance with applicablelaw. (2005‑178,s. 1; 2006‑264, s. 39(a).)