Chapter 395 Oregon Laws 2001

AN ACT

HB 2365

Relating to durable power of attorneys; creating new provisions; and amending ORS 127.005.

Be It Enacted by the People of the State of Oregon:

SECTION 1. A person may not refuse to recognize the authority of an attorney-in-fact or agent under a power of attorney based solely on the passage of time since the power of attorney was executed.

SECTION 2. Any person who reasonably relies in good faith on the authority of an attorney-in-fact or agent under a power of attorney is not liable to any other person based on that reliance, and is not required to ensure that assets of the principal that are paid or delivered to the attorney-in-fact or agent are properly applied. Any person who has not received actual notice of revocation of a power of attorney is not liable to any other person by reason of relying on a power of attorney that has been revoked.

SECTION 3. Unless otherwise provided in the power of attorney document, an attorney-in-fact or agent must use the property of the principal for the benefit of the principal.

SECTION 4. ORS 127.005 is amended to read:

127.005. (1) When a principal designates another an attorney-in-fact or agent by a power of attorney in writing and the writing does not contain words [which] that otherwise limit the period of time of its effectiveness[,]:

(a) The power of attorney shall remain in effect until the power is revoked by the principal;

(b) The powers of the attorney-in-fact or agent are unaffected by the passage of time; and

(c) The powers of the attorney-in-fact or agent shall be exercisable by the attorney-in-fact or agent on behalf of the principal notwithstanding the later disability or incompetence of the principal at law.

(2) All acts done by the attorney-in-fact or agent under the power of attorney during any period of disability or incompetence of the principal at law shall have the same effect and shall inure to the benefit of and bind the principal as though the principal were not disabled or incompetent.

(3) If a conservator is appointed thereafter for the principal, the attorney-in-fact or agent, during the continuation of that appointment, shall account to the conservator rather than to the principal. The conservator has the same power that the principal would have, but for the disability or incompetence of the principal, to revoke, suspend or terminate all or any part of the power of attorney or agency.

(4) This section does not apply to powers of attorney for health care executed under ORS 127.505 to 127.660 and 127.995.

SECTION 5. Sections 1 to 3 of this 2001 Act and the amendments to ORS 127.005 by section 4 of this 2001 Act apply to all powers of attorney, whether executed before, on or after the effective date of this 2001 Act.

Approved by the Governor June 15, 2001

Filed in the office of Secretary of State June 15, 2001

Effective date January 1, 2002

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