Tell the bank that New York General Obligations Law, Article 5, Section 1504-1 says that in the absence of reasonable cause, they must honor a properly executed power of attorney. In addition, recent amendments to the law now allow a court to award damages, including attorney’s fees and costs, if a proceeding is brought to compel acceptance of a power of attorney that was unreasonably rejected.
By Esther Schwartz Zelmanovitz