Bulletin: IL2024003

Dear Associates:

On August 9, 2024, Illinois passed Public Act 103-0994 (Illinois General Assembly - Full Text of Public Act 103-0994 (ilga.gov) which amends the Illinois Power of Attorney Act, (755 ILCS 45/2-8): Reliance on document purporting to establish an agency. The amendment makes it unlawful for third parties to unreasonably refuse to honor a power of attorney properly executed in accordance with the laws in effect at the time of its execution. It also provides multiple reasonable causes for refusal, under 755 ILCS 45/2-8 (f).

Under the Act, it is unreasonable for a third party to refuse to honor the power of attorney, if the only reasons for refusal are any of the following:

(1) the power of attorney is not on a form required by the terms of any account agreement between the account holder and third party; 

(2) there has been a lapse of time since the execution of the power of attorney;

(3) on the face of the statutory short form power of attorney, there is a lapse of time between the date of acknowledgment of the signature of the principal and the date of the acceptance by the agent;

(4) the document provided does not bear an original signature, original witness, or original notarization but is accompanied by a properly executed Agent's Certification and Acceptance of Authority, Successor Agent's Certification and Acceptance of Authority, or Co-Agent's Certification and Acceptance of Authority bearing the original signature of the named agent; or 

(5) the document appoints an entity as the agent.

The Act does not prohibit or limit a third party from requiring the named agent to furnish a properly executed Agent's Certification and Acceptance of Authority, Successor Agent's Certification and Acceptance of Authority, or Co-Agent's Certification and Acceptance of Authority.

If you are presented with a power of attorney and need additional guidance as to acceptance or refusal of the document, please contact a Stewart Title Guaranty Company underwriter.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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