§ 18-16-7 - Business operating transactions. - Rhode Island Statutes

SECTION 18-16-7

   § 18-16-7  Business operating transactions.– (a) In a statutory short form power of attorney, the language conferringgeneral authority with respect to business operating transactions shall beconstrued to mean that the principal authorizes the agent:

   (1) To the extent that an agent is permitted by law to actfor a principal, to discharge and perform any duty or liability and also toexercise any right, power, privilege or option which the principal has, orclaims to have, under any contract of partnership, whether the principal is ageneral or special partner; to enforce the terms of any partnership agreementfor the protection of the principal, by action, proceeding or otherwise, as theagent deems desirable or necessary, and to defend, submit to arbitration,settle or compromise any action or other legal proceeding to which theprincipal is a party because of his or her membership in the partnership;

   (2) To exercise in person or by proxy or enforce by action,proceeding or otherwise any right, power, privilege or option which theprincipal has as the holder of any bond, share or other instrument of similarcharacter, and to defend, submit to arbitration, settle or compromise anyaction or other legal proceeding to which the principal is a party because ofany bond, share or other instrument of similar character;

   (3) With respect to any business enterprise which is ownedsolely by the principal:

   (i) To continue, modify, renegotiate, extend and terminateany contractual arrangements made with any person, firm, association orcorporation by or on behalf of the principal with respect thereto prior to thecreation of the agency;

   (ii) To determine the policy of the enterprise as to thelocation of the site or sites to be utilized for its operation, as to thenature and extent of the business to be undertaken by it, as to methods ofmanufacturing, selling, merchandising, financing, accounting and advertising tobe employed in its operation, as to the amount and types of insurance to becarried, as to the mode of securing, compensating and dealing with accountants,attorneys, servants and other agents and employees required for its operation;to agree and contract, in any manner, and with any person and on any termswhich the agent deems desirable or necessary for effectuating any or all ofthese decisions of the agent as to policy, and to perform, rescind, reform,release or modify any business agreement or contract or any other similaragreement or contract made by or on behalf of the principal;

   (iii) To change the name or form of organization under whichthe business is operated and enter into a partnership agreement with otherpersons or organize a corporation to take over the operation of the business,or any part of it, that the agent deems desirable or necessary; and

   (iv) To demand and to receive all moneys which are, or maybecome, due to the principal, or which may be claimed by the principal or onhis or her behalf, in the operation of the enterprise, and to control anddisburse any funds in the operation of the enterprise in any way which theagent deems desirable or necessary; to engage in any banking transactions whichthe agent deems desirable or necessary for effectuating the execution of any ofthe powers of the agent described in this subdivision;

   (4) To prepare, sign, file and deliver all reports,compilations of information, returns or other papers with respect to anybusiness operating transaction of the principal, which are required by anygovernmental agency, department or instrumentality or which the agent deemsdesirable or necessary for any purpose, and to make any payments with respectto them;

   (5) To pay, compromise or contest taxes or assessments and todo any act or acts which the agent deems desirable or necessary to protect theprincipal from illegal or unnecessary taxation, fines, penalties or assessmentsin connection with his or her business operations, including power to attemptto recover, in any manner permitted by law, sums paid before or after thecreation of the agency as taxes, fines, penalties or assessments;

   (6) To demand, receive or obtain by action, proceeding orotherwise any money, or other thing of value to which the principal is, or maybecome, or may claim to be entitled as the proceeds of any business operationof the principal; to conserve, invest, disburse or utilize anything receivedfor the purposes enumerated in this section, and to be reimbursed for anyexpenditures properly made by him or her in the execution of the powersconferred upon by him or her by the statutory short form power of attorney;

   (7) To execute, acknowledge, seal and deliver any deed,assignment, mortgage, lease, notice, consent, agreement, authorization, checkor other instrument which the agent deems useful for the accomplishment of anyof the purposes enumerated in this section;

   (8) To prosecute, defend, submit to arbitration, settle, andpropose or accept a compromise with respect to any claim existing in favor of,or against, the principal based on or involving any business operatingtransaction or to intervene in any action or proceeding relating to it;

   (9) To hire, discharge and compensate any attorney,accountant, expert witness or other assistant or assistants when the agentdeems this action to be desirable for the proper execution by him or her of anyof the powers described in this section, and for the keeping of needed recordsof these actions; and

   (10) In general, and in addition to all the specific actsenumerated in this section, to do any other act or acts, which the principalcan do through an agent, in connection with any business operated by theprincipal, which the agent deems desirable or necessary for the furtherance orprotection of the interests of the principal.

   (b) All powers described in this section shall be equallyexercisable with respect to any business in which the principal is interestedat the creation of the agency or in which the principal shall thereafter becomeinterested, whether operated in the state of Rhode Island or elsewhere.