§ 45-2-707 — Powers of attorney

(a) A bank, which for the purposes of this section also includes a lessor, as defined in § 45-2-901 , may recognize the authority of a power of attorney authorizing in writing an attorney-in-fact to operate, in whole or in part, the account of a depositor, or to access a customer's safe deposit box, until the bank receives written notice of the revocation of this authority. (b) Written notice of the death or adjudication of incompetency of the depositor or customer shall constitute written notice of revocation of the authority of the attorney-in-fact, except where the Uniform Durable Power of Attorney Act, compiled in title 34, chapter 6, part 1, is applicable. Until the bank receives written notice of adjudication of incompetency of the depositor, the bank's authority to recognize a power of attorney shall not be rendered ineffective by the incompetency, whether existing at the time the power of attorney is granted or at the time the bank acts upon it. (c) Notwithstanding that a bank has received written notice of revocation of the authority of the attorney-in-fact, it may, until ten (10) days after receipt of notice, pay any item made, drawn, accepted or endorsed by the attorney-in-fact prior to the revocation; provided, that the item is otherwise properly payable. (d) No bank shall be liable for damages, penalty or tax by reason of any payment made or property withdrawn pursuant to this section.

Legislative History

Acts 1969, ch. 36, § 1 (3.208); T.C.A., § 45-411; Acts 1983, ch. 299, § 9; 1988, ch. 926, § 3.