§ 59-12-10 — Coagents and successor agents.

(1) A principal may designate two or more persons to act as co-agents. If two or more persons are appointed as co-agents, and unless the power of attorney otherwise provides, the concurrence of a majority is required on all acts connected with the power of attorney. This restriction does not apply when any co-agent receives and receipts for property due the principal, when the concurrence of a majority cannot readily be obtained in the time reasonably available for emergency action necessary to act in the principal’s best interest, or when a co-agent has been delegated to act for others as provided in § 59-12-23 . Persons dealing with a co-agent if actually unaware that another has been appointed to serve or if advised by the agent with whom they deal that the agent has authority to act alone for any of the reasons mentioned herein, are fully protected as if the person with whom they dealt has been the sole agent. (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 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 subdivision (4), 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 subdivision is liable for any reasonably foreseeable damages that could have been avoided if the agent had notified the principal or taken any action under this section.

Legislative History

SL 2020, ch 214, § 10.