404.719. Exemption of third persons from liability.
Exemption of third persons from liability.
404.719. 1. A third person, who is acting in good faith, withoutliability to the principal or the principal's successors in interest, mayrely and act on any power of attorney executed by the principal; and, withrespect to the subjects and purposes encompassed by or separately expressedin the power of attorney, may rely and act on the instructions of orotherwise contract and deal with the principal's attorney in fact orsuccessor attorney in fact and, in the absence of actual knowledge, asdefined in subsection 3 of this section, is not responsible for determiningand has no duty to inquire as to any of the following:
(1) The authenticity of a certified true copy of a power of attorneyfurnished by the principal's attorney in fact or successor;
(2) The validity of the designation of the attorney in fact orsuccessor;
(3) Whether the attorney in fact or successor is qualified to act asan attorney in fact for the principal;
(4) The propriety of any act of the attorney in fact or successor inthe principal's behalf, including, but not limited to, whether or not anact taken or proposed to be taken by the attorney in fact, constitutes abreach of any duty or obligation owed to the principal, including, but notlimited to, the obligation to the principal not to modify or alter theprincipal's estate plan or other provisions for distributions of assets atdeath, as provided in subsection 1 of section 404.714;
(5) Whether any future event, condition or contingency makingeffective or terminating the authority conferred in a power of attorney hasoccurred;
(6) Whether the principal is disabled or incapacitated or has beenadjudicated disabled or incapacitated;
(7) Whether the principal, the principal's legal representative or acourt has given the attorney in fact any instructions or the content of anyinstructions, or whether the attorney in fact is following any instructionsreceived;
(8) Whether the authority granted in a power of attorney has beenmodified by the principal, a legal representative of the principal or acourt;
(9) Whether the authority of the attorney in fact has beenterminated, except by an express provision in the power of attorney showingthe date on which the power of attorney terminates;
(10) Whether the power of attorney, or any modification ortermination thereof, has been recorded, except as to transactions affectingreal estate;
(11) Whether the principal had legal capacity to execute the power ofattorney at the time the power of attorney was executed;
(12) Whether, at the time the principal executed the power ofattorney, the principal was subjected to duress, undue influence or fraud,or the power of attorney was for any other reason void or voidable, if thepower of attorney appears to be regular on its face;
(13) Whether the principal is alive;
(14) Whether the principal and attorney in fact were married at orsubsequent to the time the power of attorney was created and whether themarriage has been dissolved; or
(15) The truth or validity of any facts or statements made in anaffidavit of the attorney in fact or successor with regard to the abilityor capacity of the principal, the authority of the attorney in fact orsuccessor under the power of attorney, the happening of any event or eventsvesting authority in any successor or contingent attorney in fact, theidentity or authority of a person designated in the power of attorney toappoint a substitute or successor attorney in fact or that the principal isalive.
2. A third person, in good faith and without liability to theprincipal or the principal's successors in interest, even with knowledgethat the principal is disabled or incapacitated, may rely and act on theinstructions of or otherwise contract and deal with the principal'sattorney in fact or successor attorney in fact acting pursuant to authoritygranted in a durable power of attorney.
3. A third person that conducts activities through employees shallnot be charged under sections 404.700 to 404.735 with actual knowledge ofany fact relating to a power of attorney, nor of a change in the authorityof an attorney in fact, unless the information is received at a home officeor a place where there is an employee with responsibility to act on theinformation, and the employee has a reasonable time in which to act on theinformation using the procedures and facilities that are available to thethird person in the regular course of its operations.
4. A third person, when being requested to engage in transactionswith a principal through the principal's attorney in fact, may require theattorney in fact to provide specimens of his or her signature and any otherinformation reasonably necessary or appropriate in order to facilitate theactions of the third person in transacting business through the attorney infact, may require the attorney in fact to indemnify the third personagainst forgery of the power of attorney, by bond or otherwise; provided,however, that if the power of attorney is durable as defined in subsection1 of section 404.705 and if either the principal or the attorney in factseeking to act is and has been a resident of this state for at least twoyears, and if the attorney in fact has executed in the name of theprincipal and delivered to the third person an indemnity agreementreasonably satisfactory in form to such third person, no such bond shall berequired; and may prescribe the place and manner in which the third personwill be given any notice respecting the principal's power of attorney andthe time in which the third person has to comply with any notice.
(L. 1989 H.B. 145 § 9, A.L. 1995 S.B. 178, A.L. 1997 S.B. 265)