71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 576
 
                           A-Engrossed
 
                         House Bill 2365
                  Ordered by the House April 12
            Including House Amendments dated April 12
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Joint Interim Judiciary
  Committee for the Elder Law section of the Oregon State Bar)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
    { - Allows principal or attorney-in-fact to bring action
against person who refuses to recognize authority of
attorney-in-fact under written, durable power of attorney if
refusal is based solely on passage of time since date on which
power of attorney was executed. Allows principal or
attorney-in-fact who prevails in action to recover reasonable
attorney fees. - }
   { +  Provides that person may not refuse to recognize
authority of attorney-in-fact or agent under power of attorney
based solely on passage of time. Makes related changes. + }
 
                        A BILL FOR AN ACT
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that has been revoked.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. + }
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