§ 15-14-711 — Coagents and successor agents

(1) A principal may designate
two or more persons to act as coagents. Unless the power of attorney otherwise
provides, each coagent may exercise its authority independently.

(2) A principal may designate one or more successor agents to act if an
agent resigns, dies, becomes incapacitated, is not qualified to serve, or declines to
serve. A principal may grant authority to designate one or more successor agents to
an agent or other person designated by name, office, or function. Unless the power
of attorney otherwise provides, a successor agent:

(a) Has the same authority as that granted to the original agent; and

(b) May not act until all predecessor agents have resigned, died, become
incapacitated, are no longer qualified to serve, or have declined to serve.

(3) Except as otherwise provided in the power of attorney and subsection (4)
of this section, an agent that does not participate in or conceal a breach of fiduciary
duty committed by another agent, including a predecessor agent, is not liable for
the actions of the other agent.

(4) An agent that has actual knowledge of a breach or imminent breach of
fiduciary duty by another agent shall notify the principal and, if the principal is
incapacitated, take any action reasonably appropriate in the circumstances to
safeguard the principal's best interest. An agent that fails to notify the principal or
take action as required by this subsection (4) is liable for the reasonably
foreseeable damages that could have been avoided if the agent had notified the
principal or taken such action.

Legislative History

Source: L. 2009: Entire part added, (HB 09-1198), ch. 106, p. 389, � 1, effective April 9.