Public Act 97-0868 (IL)

PA 97-0868; SB 3204; Amends: 755 ILCS 45/2-4; Effective Date: July 30, 2012. 

This Act amends Section 2-4 of the Illinois Power of Attorney Act.  It limits the Illinois Power of Attorney Act making it inapplicable to agreements, other than an Illinois Statutory Short Form Power of Attorney, under which a financial institution is named as an agent for a person.  It achieves this by adding subsections (c) and (d) to 755 ILCS 45/2-4.  Subsection (d) states that the agreements described in (c) are “nonstatutory property power” and subject to subsection (b) of Section 3-3.  Subsection (c) states that, notwithstanding subsections (a) and (b), the act does not apply to certain financial institutions when they are named as agents as long as the agency does not include a durable power of attorney that survives incapacity and the agreement or contract is:

  1. a proxy or delegation of voting or management rights in respect to a corporation, partnership, LLC, condominium, commercial entity, or association;
  2. to a financial institution to facilitate a specific transfer of identified stocks, bonds, or assets;
  3. authorizing a financial institution to prepare, execute, deliver, submit, or file a document or instrument with a government or a governmental subdivision, agency or instrumentality, or other third party;
  4. authorizing a financial institution take specific actions in relation to an account in which the financial institution to holds cash, securities, or commodities or act as an investment manager with a third party serving as a custodian of such items;
  5. authorizing a financial institution to take specific actions with respect to collateral un connection with a loan or other secured credit transaction other than a mortgage;
  6. to a financial institution by someone who is attempting to become a director, officer, stockholder, employee, partner, member, unit owner, equity owner, trustee, manager, or agent of a corporation, partnership, llc, condominium, legal or commercial entity, or an association, in their capacity as such;
  7. an authorization contained in a certificate of incorporation, bylaws, general or limited partnership agreement, llc agreement, declaration of trust, declaration of condominium, condominium offering plan, or other agreement governing the internal affairs of an entity authorizing someone to take lawful actions relating to such entity; or
  8. authorizing acceptance of service of process.
Statute(s): 
Illinois Power of Attorney Act, 755 ILCS 45/2-4
Bill Number: 
SB 3204
Public Act or Public Law Number: 
PA 97-0868
By: ATG Underwriting Department | Posted on: Wed, 09/19/2012 - 8:41am