# Legislation Of The Six (6) Greater States

> Legislation of the six (6) Greater States - Ambit & Exclusions

Source: https://wiki.powersofattorney.com/legislation · Updated 2 February 2023

- [**The legislation has different titles** in each state](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons)
- [The legislation has **similarities and differences** as between the Six (6) Greater States](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons)
- [This Wiki contains a **Legislation Index**](https://wiki.powersofattorney.com/legislation#this-wiki-contains-a-legislation-index)
- [**The legislation** governs *Powers of Attorney* **for persons**](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons)
- [**Legislation does not govern** *Powers of Attorney* **for commercial entities**](https://wiki.powersofattorney.com/legislation#legislation-does-not-govern-powers-of-attorney-for-commercial-entities)
- [The legislation is **not easy to understand**](https://wiki.powersofattorney.com/legislation#the-legislation-is-not-easy-to-understand)
- [The **legislation** tends to operate **cumulative**ly](https://wiki.powersofattorney.com/legislation#the-legislation-tends-to-operate-cumulatively)
- [If the principal has **affairs in multiple states** relevant considerations are considerably **more complicated**](https://wiki.powersofattorney.com/legislation#affairs-in-multiple-states)
- [Some *Powers of Attorney* are **excluded from** the **ambit** of the **legislation**](https://wiki.powersofattorney.com/legislation#exclusions)
- [The **national experience** continues to change](https://wiki.powersofattorney.com/legislation#the-national-experience-continues-to-change)
- [Importance of **common law**](https://wiki.powersofattorney.com/legislation#importance-of-common-law)
- It may be possible to include **express terms** in a *Power of Attorney* **that override** the effect of the legislation in limited respects
- It is **important to get legal advice** about the legislation and any *Power of Attorney*
- [Six (6) Greater States - **application/exclusion of legislation**](https://wiki.powersofattorney.com/legislation#six-6-greater-states-applicationexclusion-of-legislation)
- [California](https://wiki.powersofattorney.com/legislation#california) - [Texas](https://wiki.powersofattorney.com/legislation#texas) - [New York](https://wiki.powersofattorney.com/legislation#new-york)
- [Florida](https://wiki.powersofattorney.com/legislation#florida) - [Illinois](https://wiki.powersofattorney.com/legislation#illinois) - [Pennsylvania](https://wiki.powersofattorney.com/legislation#pennsylvania)

## Legislation Titles

Below are the names of the pieces of [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) in each of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) with respect to *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^1]:-

- in **California**, the *Power of Attorney Law* ([§4000](https://codes.findlaw.com/ca/probate-code/prob-sect-4000.html))
- in **Texas**, the *Durable Power of Attorney Act* ([§751.001](https://codes.findlaw.com/tx/estates-code/est-sect-751-001.html))
- in **New York**, the *Statutory Short Form and Other Powers of Attorney for Financial and Estate Planning* Article 5, Title 15 (GOB) ([§5-1501](https://www.nysenate.gov/legislation/laws/GOB/5-1501))
- in **Florida**, the *Power of Attorney Act* ([§709-2101](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2102.html))
- in **Illinois**, the *Power of Attorney Act* ([§755-01](https://codes.findlaw.com/il/chapter-755-estates/il-st-sect-755-45-1-1.html))
- in **Pennsylvania**, Title 20, Chapter 56, titled *Powers of Attorney* ([§5601-5614](https://law.justia.com/codes/pennsylvania/2016/title-20/chapter-56/))

The content of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) referred to above varies from state to state, although there are similarities.

Opinions may differ as to what constitutes the law in a given state, particularly where [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) is silent.

> [**Handy Links To Legislation**](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons)

## Differences & Similarities

Under the heading [California Compared To Other States](https://wiki.powersofattorney.com/whatisapoa#california-compared-to-other-states) are examples of the differences between the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) of California and the other five (5) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) and under the heading [Examples of Similarities](https://wiki.powersofattorney.com/whatisapoa#examples-of-similarities) are examples of differences and similarities in the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa).

## This Wiki Contains A Legislation Index

The [Legislation Index](https://wiki.powersofattorney.com/legislationmap) in this Wiki catalogues the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) with respect to around 150 concepts relevant to *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^2].

Of course, more than 150 concepts are relevant to *Powers of Attorney*.

[Common law](https://wiki.powersofattorney.com/terms#meaning-of-common-law) accounts for many principles [outside the scope](https://wiki.powersofattorney.com/introduction#outside-the-focus-of-this-wiki) of this Wiki.

The [Legislation Index](https://wiki.powersofattorney.com/legislationmap) is no substitute for reading the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) in full and legal advice.[^3]

## The Legislation Governs *Powers of Attorney* For Persons

Five (5) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) have [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) governing [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) and [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^4] that are not of a kind [excluded](https://wiki.powersofattorney.com/legislation#exclusions) from the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons):

The exception is **Texas**, where:-

- [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) only governs [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney*[^5]
- [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney* remain governed solely by [common law](https://wiki.powersofattorney.com/terms#meaning-of-common-law)[^6]

## Legislation Does Not Govern *Powers of Attorney* For Commercial Entities

There is no [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) of the kind that exists in respect of *Powers of Attorney* for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person) in respect of *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by [commercial entities](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity).

## The Legislation Is Not Easy To Understand

Broadly speaking, the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) have taken different approaches to the concepts and issues relating to *Powers of Attorney* for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person).

The [Legislation Index](https://wiki.powersofattorney.com/legislationmap) illustrates the patchwork approach:-

1. There are more than 150 concepts relevant to *Powers of Attorney* addressed in the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa)
2. Each of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) have legislated about a different selection of these concepts
3. Each of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) have legislated with respect to around 40-60% of 150 odd relevant concepts
4. A handful of relatively [non-contentious respects](https://wiki.powersofattorney.com/uniqueandsimilarlegislation#examples-of-similarities) issues have been approached similarly and many other issues are approached differently
5. In some respects the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) governing *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^7] operates to override any inconsistent [common law](https://wiki.powersofattorney.com/terms#meaning-of-common-law) principle
6. In other respects the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) governing *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^8] may only operate in respect of [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) or [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney* [^9]
7. Each state has legislated with respect to a different collection of around eighty to ninety (80-90) issues[^10]

## The Legislation Tends To Operate Cumulatively

The [common law](https://wiki.powersofattorney.com/terms#meaning-of-common-law) operates in conjunction with [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) relating to *Powers of Attorney* for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person),[^11] to the extent that it is not overriden by [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons).

This includes [common law](https://wiki.powersofattorney.com/terms#meaning-of-common-law) relating to issues like:-

- agency and [fiduciary](https://wiki.powersofattorney.com/terms#meaning-of-fiduciary) duties
- unconscionable conduct, duress and undue influence and estoppel
- statutory interpretation
- intention to create legal relations
- quantifying [damages](https://wiki.powersofattorney.com/agententitle#damages-remedies)
- [termination](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end)

The following references to notions of [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) operating either cumulatively or exclusively may be helpful:

|  |  |
| --- | --- |
| **California** | [§4406](https://codes.findlaw.com/ca/probate-code/prob-sect-4406.html), [§4501](https://codes.findlaw.com/ca/probate-code/prob-sect-4501.html) and [§4231.5](https://codes.findlaw.com/ca/probate-code/prob-sect-4231-5.html) speak respectively of cumulative remedies with respect to the [third party enforcement regime](https://wiki.powersofattorney.com/thirdparty/interests#a-third-party-enforcement-regime-operates-in-five-of-the-six-6-greater-states), remedies under the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) more generally and unscrupulous [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal). |
| **Texas** | [§751.006](https://codes.findlaw.com/tx/estates-code/est-sect-751-006.html) speak of "remedies" being "*not exclusive.. or.. abrogating any right or remedy under any law of this state.*." and [§751.212](https://codes.findlaw.com/tx/estates-code/est-sect-751-212.html) refers to certain remedies under the [third party enforcement regime](https://wiki.powersofattorney.com/thirdparty/interests#a-third-party-enforcement-regime-operates-in-five-of-the-six-6-greater-states) being exclusive. |
| **New York** | The only reference to notions of this kind in the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) is in [§5-1504](https://codes.findlaw.com/ny/general-obligations-law/gob-sect-5-1504.html), regarding remedies under the [third party enforcement regime](https://wiki.powersofattorney.com/thirdparty/interests#a-third-party-enforcement-regime-operates-in-five-of-the-six-6-greater-states) being exclusive. |

| **Florida** | [§709.2301](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2301.html) provides to the effect “*except as provided in legislation governing Powers of Attorney, the principles of law and equity (or perhaps the common law of agency) supplement the legislation*” and [§709.2303](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2301.html) provides "*the remedies under this part are not exclusive and do not abrogate any right or remedy under any other law other than this part..* | | **Illinois** | [§2-7](https://codes.findlaw.com/il/chapter-755-estates/il-st-sect-755-45-2-7.html) states of *An agent that violates this Act is liable to the principal or the principal's successors in interest for the amount required (i) to restore the value of the principal's property to what it would have been had the violation not occurred, and (ii) to reimburse the principal or the principal's successors in interest for the attorney's fees and costs paid on the agent's behalf. This subsection does not limit any other applicable legal or equitable remedies..*" and [§2-10](https://codes.findlaw.com/il/chapter-755-estates/il-st-sect-755-45-2-10.html) provides "*this Section shall not be construed to limit any other remedies available..*" | | **Pennsylvania** | [§2-7](https://codes.findlaw.com/il/chapter-755-estates/il-st-sect-755-45-2-7.html) states of *An agent that violates this Act is liable to the principal or the principal's successors in interest for the amount required (i) to restore the value of the principal's property to what it would have been had the violation not occurred, and (ii) to reimburse the principal or the principal's successors in interest for the attorney's fees and costs paid on the agent's behalf. This subsection does not limit any other applicable legal or equitable remedies..*" and [§2-10](https://codes.findlaw.com/il/chapter-755-estates/il-st-sect-755-45-2-10.html) provides "*this Section shall not be construed to limit any other remedies available..*" |

## Affairs in Multiple States

Where a *Power of Attorney* is [inexorably linked](https://wiki.powersofattorney.com/propinotherstates#inexorably-linked-means-certain-criteria-are-satisfied) to more than one state, how it operates in various states would be a matter of legal opinion.

Differences between the laws of various states may have serious ramifications where a single *Power of Attorney* is used in more than one state.

These differences may undermine the [principal's](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) intentions and in certain instances, the only means to adequately manage difference between laws of various states may be to execute separate *Powers of Attorney*, limited in the scope of their operation to only govern local affairs on a state-by-state basis.

The implications of the laws of every relevant state would require detailed consideration, together with the [principal's](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) circumstances.

## Exclusions

*Powers of Attorney* for certain purposes are excluded from being governed by the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) operating with respect to *Powers of Attorney* for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person) in the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa).

Common exclusions include voting proxies and powers coupled with an interest.

> As to the meaning of the term "coupled with an interest" the following extract from the Californian decision of *Jozefowicz v. Allstate Ins. Co* [247 Cal. Rptr. 3d 758, 35 Cal. App. 5th 829 (2019)](https://cite.case.law/cal-rptr-3d/247/758/) is useful:
> 
> *"The Probate Code provisions explicitly do not apply to "[a] Power of Attorney to the extent that the authority of the attorney-in-fact is coupled with an interest in the subject of the power of attorney." ( Prob. Code, § 4050, subd. (b)(1).)...*
> 
> *" 'California decisional law has consistently followed the definition of [a power coupled with an interest] set out by Chief Justice Marshall in Hunt v. Rousmanier (1823) 21 U.S. (8 Wheat.)..: " 'A power coupled with an interest,' is a power which accompanies, or is connected with, an interest. The power and the interest are united in the same person." .. Such a power is irrevocable if there is a ' "coexisting interest in the subject of the agency.".. 'The agency must be created for the benefit of the agent in order to protect some title or right in the subject of the agency or secure some performance to him..*
> 
> *"Because the purpose of a power coupled with an interest is to protect the agent's interest in the subject and its value, this kind of Power of Attorney is not an 'agency' as that term is commonly understood. Rather, the creator of the power relinquishes irrevocably any authority to direct the attorney in fact who is permitted, under such an arrangement, to act solely in his own interests. As is explained in the Restatement Third of Agency, section 3.12, comment b, page 247, a 'power given as security does not create a relationship of agency ... because it is neither given for, nor exercised for, the benefit of the person who creates it. The holder is not subject to the creator's control and the holder does not owe fiduciary duties to the creator.' ( Bonfigli v. Strachan (2011) 192 Cal.App.4th 1302, 1309, 122 Cal.Rptr.3d 447.)"*

The [Exclusions Table](https://wiki.powersofattorney.com/exclusionstable#table-summarizing-exclusions-from-legislation) indexes where various exclusions apply in the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa).

### A Special Word About California

The [1994 California Law Revision Commission Report](http://www.clrc.ca.gov/pub/Printed-Reports/Pub181.pdf) which led to enactment of [Division 4.5 of the Probate Code](https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=PROB&division=4.5.&title=&part=&chapter=&article=&nodetreepath=6) profides useful insight about the nature the applicability of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons), stating:

"..*The scope of the proposed law is broad, but not unlimited. It applies to durable Powers of Attorney (including durable powers of attorney for health care), statutory form powers of attorney, and any other power of attorney that incorporates or refers to the Power of Attorney Law. A Power of Attorney is defined as a written agency agreement executed by a natural person that grants powers to an attorney-in-fact, and a durable power is one that survives the incapacity of the principal. The effect of these provisions is to avoid unintentional application of the Power of Attorney Law to Powers of Attorney commonly used in business dealings..*"

Having cited [§4050](https://www.lawserver.com/law/state/california/codes/california_probate_code_4050), the [1994 California Law Revision Commission Report](http://www.clrc.ca.gov/pub/Printed-Reports/Pub181.pdf) went on to say:

*"Section 4050 describes the types of instruments that are subject to the Power of Attorney Law. If a section in this division refers to a “Power of Attorney,” it generally refers to a durable Power of Attorney, but may, under certain circumstances, also apply to a nondurable Power of Attorney. For example, a statutory form Power of Attorney may be durable or nondurable. See Sections 4401, 4404. A nondurable power may incorporate provisions of this division, thereby becoming subject to its provisions as provided in Section 4050(a)(4). Subdivision (b) makes clear that certain specialized types of Power of Attorney are not subject to the Power of Attorney Law. This list is not intended to be exclusive. See subdivision (c). Subdivision (b)(1) recognizes the special rule applicable to a power coupled with an interest in the subject of a Power of Attorney provided in Civil Code Section 2356(a). Subdivision (b)(2) continues the substance of the limitation in former Civil Code Section 2420(b) and broadens it to apply to the entire Power of Attorney Law. See Ins. Code § 1280 et seq. Subdivision (b)(3) restates former Civil Code Section 2400.5 without substantive change and supersedes the second sentence of former Civil Code Section 2410(c). For the rules applicable to proxy voting in business corporations, see Corp. Code § 705. For other statutes dealing with proxies, see Corp. Code §§ 178, 702, 5069, 5613, 7613, 9417, 12405, 13242; Fin. Code §§ 5701, 5702, 5710, 6005. See also Civ. Code § 2356(e) (proxy under general agency rules). Subdivision (c) makes clear that this division does not affect the validity of other agencies and powers of attorney. The Power of Attorney Law thus does not apply to other specialized agencies, such as real estate agents under Section 2373 et seq. As a corollary, an instrument denominated a Power of Attorney that does not satisfy the execution requirements for a power of attorney under this division may be valid under general agency law or other principles. The general rules in this division are subject to the special rules applicable to statutory form Power of Attorney in Part 3 (commencing with Section 4400).."*

### A Special Word About New York

**New York** identifies a broad class of excluded *Powers of Attorney*:-

- [§5-1501C](https://www.nysenate.gov/legislation/laws/GOB/5-1501C) excludes from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) any *Power of Attorney* “*given primarily for a business or commercial purpose*”
- [§5-1501C](https://www.nysenate.gov/legislation/laws/GOB/5-1501C) identifies classes of *Powers of Attorney* excluded in other states as sub-classes, resulting in arguably, a larger class than in other states

In **New York**, interesting questions may arise where a *Power of Attorney* is used in an [estate planning](https://wiki.powersofattorney.com/terms#meaning-of-estate-planning) and business context as to how the 'primary purpose test' works.[^12]

## The National Experience Continues To Change

Most recently, the ULC published the [*Power of Attorney Act* ULC, (2006)](https://www.uniformlaws.org/committees/community-home?CommunityKey=b1975254-8370-4a7c-947f-e5af0d6cb07c), being another example of [patchwork](https://wiki.powersofattorney.com/legislation#this-wiki-contains-a-legislation-index) legislation in the sense explained above.

Some states:-

- have adopted parts of the [*Power of Attorney Act* ULC, (2006)](https://www.uniformlaws.org/committees/community-home?CommunityKey=b1975254-8370-4a7c-947f-e5af0d6cb07c)
- have come close to adopting the [*Power of Attorney Act* ULC, (2006)](https://www.uniformlaws.org/committees/community-home?CommunityKey=b1975254-8370-4a7c-947f-e5af0d6cb07c)
- largely ignore the [*Power of Attorney Act* ULC, (2006)](https://www.uniformlaws.org/committees/community-home?CommunityKey=b1975254-8370-4a7c-947f-e5af0d6cb07c)

Some states have take a relatively novel approach, for example:-

- in **Louisiana** a *Power of Attorney* is known as a ‘mandate’, not a *Power of Attorney* ([Art. 2989](https://codes.findlaw.com/la/civil-code/la-civ-code-tit-xv-art-2989.html))
- states like **Arizona** and the **District of Columbia** have adopted much shorter [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) than exists in the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) (see respectively [Chapter 5, Article 5](https://www.lawserver.com/law/state/arizona/az-laws/arizona_laws_title_14_chapter_5_article_5); & [Title 21, Chapter 21](https://law.justia.com/codes/district-of-columbia/2018/title-21/chapter-21/))
- even in the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) which have legislation with a semblance of being similar we see stark differences, such as:-

  - **California**, **New York**, **Florida**, **Illinois** and **Pennsylvania** have [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) governing [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney* and [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney,* whereas **Texas** has not adopted this approach
  - **California**, **Texas** and **Florida** all require inclusion of an [expression of durable preference](https://wiki.powersofattorney.com/durablenondurable#expression-of-durable-preference-california-texas-florida) in a [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Power of Attorney*, whereas **New York**, **Illinois** & **Pennsylvania** prefer a '[default approach](https://wiki.powersofattorney.com/durablenondurable#new-york-illinois-and-pennsylvania)', deeming all *Powers of Attorney* [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) unless they state otherwise

National reform efforts have to date, entirely focused upon *Powers of Attorney* for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person).

*Powers of Attorney* for [commercial entities](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) receive scant mention.

## Importance Of Common Law

Reading [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) relating to *Powers of Attorney* for [persons](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^13] is a starting point, in terms of understanding *Powers of Attorney*.

[Common law](https://wiki.powersofattorney.com/terms#meaning-of-common-law) principles affect the operation of a *Power of Attorney*, many of which may fairly be assumed to only be known to lawyers who have studied them.

### Example Illustrating Effect Of Common Law

Compare the position in **California** and **Texas** in respect of [termination](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end) of a *Power of Attorney* where:-

- in **California**, [§4155](https://codes.findlaw.com/ca/probate-code/prob-sect-4155.html) provides that “*the authority of an attorney-in-fact under a non-durable power of attorney is terminated by the incapacity of the principal.."*
- in **Texas**, a Court declined to investigate [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) to determine if earlier loss of [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) on the part of a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) terminated a [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney*, concluding that where a *Power of Attorney* had remained unchallenged for a number of years, the right of a certain entity to dispute [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) was lost under a statute of limitations, accepting that the Court did not dispute per se that had the allegation been raised within the limitation period the Court would not have received the claim and determined the proceedings including determining [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs), but equally did not take the view that . [^14]

## Contracting Out of Legislation

**California** has addressed in [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) the right to vary operation of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) by terms recorded in a *Power of Attorney*[^15].

There may be difficult questions about the extent to which, if at all, a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) may ‘contract out’ of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons).

None of the other five (5) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) have [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) that is prescriptive as to the extent to which terms of a *Power of Attorney* may modify the effect of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons)

Of all of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa), **Illinois** has the most expansive [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) in terms of favour of the right of a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) to define their *Power of Attorney* affairs however they see fit, reflecting a liberal approach (see [§2-4](https://codes.findlaw.com/il/chapter-755-estates/il-st-sect-755-45-2-4.html)) .

## Importance of Legal Advice

Differences between the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) are significant.

Variations include differences in application, subject matter, depth, approach, terminology and similar.

Legal opinions may vary with respect to the operation and effect of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons).

There is no substitite for legal advice.

## Six (6) Greater States - Application/Exclusion of Legislation

> In the [Six (6) Greater States](https://wiki.powersofattorney.com/home#which-are-the-six-6-greater-states), [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) does not govern all *Powers of Attorney*.
> 
> In ****California****:-
> 
> - [§4050](https://codes.findlaw.com/ca/probate-code/prob-sect-4050.html) recognizes that the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) applies to:-
> 
>   - [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney*
>   - [government forms](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) as well as any other *Power of Attorney* that incorporates or refers to the provisions of [Division 4.5](https://law.justia.com/codes/california/2016/code-prob/division-4.5/) of the *California Probate Code*.
>   - any other *Power of Attorney* that incorporates or refers to the provisions of [Division 4.5](https://law.justia.com/codes/california/2016/code-prob/division-4.5/) of the *California Probate Code*
> 
> In ****California****:-
> 
> - [§4050](https://codes.findlaw.com/ca/probate-code/prob-sect-4050.html) recognizes that the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) provides that [Division 4.5](https://law.justia.com/codes/california/2016/code-prob/division-4.5/) does not applies to:-
> 
>   - *Powers of Attorney for Health Care* governed by Division 4.7
>   - a *Power of Attorney* coupled with an interest in the subject of the power
>   - *Powers of Attorney* in the context of reciprocal or interinsurance exchanges
>   - a proxy to exercise voting rights
> 
> In ****California****, a *Power of Attorney* that is not [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) and not a [government form](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il), will not be governed by the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) if:-
> 
> - it is not [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) or a [government form](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il)
> - it does not incorporate or refer to the provisions of [Division 4.5](https://law.justia.com/codes/california/2016/code-prob/division-4.5/)
> - it is not a class of *Power of Attorney* that involves coupling with an interest, voting rights or similar as explained above.
> 
> Different, other exclusions apply in the other five (5) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa), although for example, *Powers of Attorney* coupled with an interest or proxy with respect to voting rights with respect to management of a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity).

Set out below are the various 'carve-outs' with respect to operation of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons).

The [creation](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) of a *Power of Attorney* that includes for both included and excluded purpose should be avoided, given the confusion and difficulties it would present.

Where it be proposed that an [agent](https://wiki.powersofattorney.com/agentswhatisagent) perform included and excluded [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) separate *Powers of Attorney* might be used.

Care would be needed, to consider precisely how the arrangement then works, so as to ensure that the terms of each of the *Powers of Attorney* accord with the preferences of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney), when they work together.

### California

#### Commercial Purposes

A [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person) may [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) or [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney* for [commercial](https://wiki.powersofattorney.com/typescommonlyusedpersons#commercial-powers-of-attorney-for-commercial-purposes) purposes ([§4022](https://codes.findlaw.com/ca/probate-code/prob-sect-4022.html) & [§4120](https://codes.findlaw.com/ca/probate-code/prob-sect-4120.html)).

[§4050](https://codes.findlaw.com/ca/probate-code/prob-sect-4050.html) provides that [Division 4.5 of the *California Probate Code*](https://law.justia.com/codes/california/2016/code-prob/division-4.5/) applies to:-

- [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney*
- [statutory](https://wiki.powersofattorney.com/typescommonlyusedpersons#statutory-powers-of-attorney-a-government-form) *Powers of Attorney*
- any other *Power of Attorney* that incorporates or refers to [Division 4.5 of the *California Probate Code*](https://law.justia.com/codes/california/2016/code-prob/division-4.5/) or the provisions of [Division 4.5 of the *California Probate Code*](https://law.justia.com/codes/california/2016/code-prob/division-4.5/)

[§4050](https://codes.findlaw.com/ca/probate-code/prob-sect-4050.html) provides that [Division 4.5 of the California Probate Code](https://law.justia.com/codes/california/2016/code-prob/division-4.5/) does not apply to:-

- *Powers of Attorney for Health Care* governed by [Division 4.7](https://law.justia.com/codes/california/2016/code-prob/division-4.7/)
- a *Power of Attorney* coupled with an interest in the subject of the power (such as most [irrevocable](https://wiki.powersofattorney.com/typescommonlyusedpersons#irrevocable-powers-of-attorney) *Powers of Attorney*)
- *Powers of Attorney* in the context of [reciprocal or interinsurance exchanges](https://wiki.powersofattorney.com/terms#meaning-of-reciprocal-or-interinsurance-exchanges)
- a proxy to exercise voting rights (perhaps with respect to management of an entity if this limitation is read in line with the approach taken in other states which may or or may not be appropriate)

Certain [indicia](https://wiki.powersofattorney.com/whatisapoa#able-to-be-created-by-a-person-or-commercial-entity) suggests that *Powers of Attorney* may be able to be [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity).

In California, [§4050](https://codes.findlaw.com/ca/probate-code/prob-sect-4123.html) states:-

*This division applies to the following*:

*(1) Durable powers of attorney, other than powers of attorney for health care governed by Division 4.7 (commencing with Section 4600 ).*

*(2) Statutory form powers of attorney under Part 3 (commencing with Section 4400 ).*

*(3) Any other power of attorney that incorporates or refers to this division or the provisions of this division.*

Failure to incorporate or refer to Division 4.5 in a [non-statutory non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-statutory-non-durable-powers-of-attorney) *Power of Attorney* might produce a [non-statutory non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-statutory-non-durable-powers-of-attorney) *Power of Attorney* that is not subject to [Division 4.5](https://law.justia.com/codes/california/2016/code-prob/division-4.5/).

#### Other Legislation

Other [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) may also be applicable (as recognized in [§4051](https://codes.findlaw.com/ca/probate-code/prob-sect-4051.html)), such as:-

- [§2019](https://codes.findlaw.com/ca/civil-code/civ-sect-2019.html), [§2020](https://codes.findlaw.com/ca/civil-code/civ-sect-2020.html), [§2021](https://codes.findlaw.com/ca/civil-code/civ-sect-2021.html) and [§2022](https://codes.findlaw.com/ca/civil-code/civ-sect-2022.html): requiring an [agent](https://wiki.powersofattorney.com/agentswhatisagent) to keep the [principal](https://wiki.powersofattorney.com/principal) informed of their actions, collect negotiable instruments (i.e. cheques) promptly and not exceed the [agent's](https://wiki.powersofattorney.com/agentswhatisagent) authority ([§2019](https://codes.findlaw.com/ca/civil-code/civ-sect-2019.html), [§2020](https://codes.findlaw.com/ca/civil-code/civ-sect-2020.html) and [§2021](https://codes.findlaw.com/ca/civil-code/civ-sect-2021.html)) and specifically excludes a [sub-agent](https://wiki.powersofattorney.com/subagents#original-or-successor-agent-may-appoint-sub-agent) of an [agent](https://wiki.powersofattorney.com/agentswhatisagent) from liability to the [principal](https://wiki.powersofattorney.com/principal) ([§2022](https://codes.findlaw.com/ca/civil-code/civ-sect-2022.html))
- [§2295](https://codes.findlaw.com/ca/civil-code/civ-sect-2295.html), [§2296](https://codes.findlaw.com/ca/civil-code/civ-sect-2296.html) and [§2297](https://codes.findlaw.com/ca/civil-code/civ-sect-2297.html)*:* dealing with what constitutes an [agent](https://wiki.powersofattorney.com/agentswhatisagent), who may be an [agent](https://wiki.powersofattorney.com/agentswhatisagent) and distinguishing certain types of agents having regard to the scope of their authority.

### Texas

#### Commercial Purposes

A [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney* for [commercial](https://wiki.powersofattorney.com/typescommonlyusedpersons#commercial-powers-of-attorney-for-commercial-purposes) purposes is not governed by [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons).

[§751.0015](https://codes.findlaw.com/tx/estates-code/est-sect-751-0015.html) states that [*Subtitle P of Title 2 of the Texas Estates Code*](https://law.justia.com/codes/texas/2017/estates-code/title-2/subtitle-p/) applies to all [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney* except:-

- a *Power of Attorney* coupled with an interest in the subject of the power (such as most [irrevocable](https://wiki.powersofattorney.com/typescommonlyusedpersons#irrevocable-powers-of-attorney) *Powers of Attorney*)
- a *Medical Power of Attorney*
- a proxy or other delegation of voting rights with respect to management of an entity
- a *Power of Attorney* contained in a form used by a government agency

In **Texas** there is no [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) governing [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney* and so:-

- [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney* cannot be said to be the subject of any [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons); although
- it is fair to say that some principles captured in the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) applicable to [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney* apply to [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney*, such as for example, the notion that [the act of an agent is binding upon the principal](https://wiki.powersofattorney.com/terms#meaning-of-legally-bind) which is codified in [§751.051](https://codes.findlaw.com/tx/estates-code/est-sect-751-051.html) and could not be disputed as forming part of the [common law](https://wiki.powersofattorney.com/terms#meaning-of-common-law) applicable to [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney.*

Certain [indicia](https://wiki.powersofattorney.com/whatisapoa#able-to-be-created-by-a-person-or-commercial-entity) suggests that *Powers of Attorney* may be able to be [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity).

### New York

#### C**ommercial** Purposes

[§5-1501](https://www.nysenate.gov/legislation/laws/GOB/5-1501) states that the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) applies to any *Power of Attorney* except *Powers of Attorney* excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) by [§5-1501C](https://www.nysenate.gov/legislation/laws/GOB/5-1501C).

[§5-1501C](https://www.nysenate.gov/legislation/laws/GOB/5-1501C) excludes from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) any *Power of Attorney* “*given primarily for a business or commercial purpose*” in respect of which insight is contained in [§5-1501C](https://www.nysenate.gov/legislation/laws/GOB/5-1501C) which cites examples including: a power coupled with an interest in the subject of the power, a power to benefit a creditor, a power to transfer or dispose of an asset, a proxy to exercise voting rights in respect of management of an entity, a power authorizing a third party to file a document with a government agency a power for accepting service of process, selling real property and similar.

The exclusion cited above with respect to *Powers of Attorney* that are “*given primarily for a business or commercial purpose*” is a somewhat broad exclusion, of a kind also seen in **Florida** in respect of “*Powers of Attorney created other than by an individual*”, both being broad exclusions of a kind not repeated in [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) in states like **Texas**, **California**, **Illinois** or **Pennsylvania**.

Certain [indicia](https://wiki.powersofattorney.com/whatisapoa#able-to-be-created-by-a-person-or-commercial-entity) suggests that *Powers of Attorney* may be able to be [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) which also may fall within the terms of the exception referred to above.

### Florida

#### Commercial Purposes

[Legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) governs [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) and [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by a person for [commercial](https://wiki.powersofattorney.com/typescommonlyusedpersons#commercial-powers-of-attorney-for-commercial-purposes) purposes ([§709.2102](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2102.html) & [§709.2103](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2103.html)).

[§709.2103(4)](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2103.html) expressly excludes from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) the following commonly excluded *Powers of Attorney*:

- a proxy or other delegation of voting rights with respect to management of an entity
- a *Power of Attorney* coupled with an interest in the subject of the power
- a *Power of Attorney* contained in a form used by a government agency

[§709.2103(4)](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2103.html) contains some less common exclusions, in respect of powers to facilitate transfer of a specific stocks or bonds, powers authorizing a financial institution to act as an agent in executing trades or transfers of cash or securities and delegation of powers by a trustee under [§736.0807](https://codes.findlaw.com/fl/title-xlii-estates-and-trusts/fl-st-sect-736-0807.html).

In addition however, [§709.2103(4)](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2103.html) also expressly excludes “*Powers of Attorney created other than by an individual*” which is a broad and unusual exclusion.

The broad exclusion in respect of “*Powers of Attorney created other than by an individual*” renders **Florida** perhaps the most affirmative state in terms of recognizing the right of a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney,* given other states like **New York**, **Texas**, **California**, **Illinois** and **Pennsylvania** makes no clear mention of *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by [commercial entities](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) in the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons).

### Illinois

#### Commercial Purposes

[Legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) in **Illinois** governs [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) and [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney* [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by persons.

[§2-4](https://codes.findlaw.com/il/chapter-755-estates/il-st-sect-755-45-2-4.html) states that the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons):-

- governs “*every agency, whenever and wherever executed” and to apply to “all agencies exercised in Illinois and to all other agencies if the principal is in Illinois at the time the agency is signed or at the time of exercise or if the agency indicates that Illinois law is to apply*”
- applies to “every agency” be governed by Article II, Sections 4-1 to 4-9 and Section 4-11 of Article IV"
- does not apply to certain *Powers of Attorney* for the benefit of certain financial institutions being powers of kinds excluded more generally in other states, such as powers dealing with proxies for voting rights, powers to transfer specific assets and similar.

Certain [indicia](https://wiki.powersofattorney.com/whatisapoa#able-to-be-created-by-a-person-or-commercial-entity) suggests that *Powers of Attorney* may be able to be [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity).

### Pennsylvania

#### Commercial Purposes

[Legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) governs [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) and [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney* created by persons ([§5601.1](https://codes.findlaw.com/pa/title-20-pacsa-decedents-estates-and-fiduciaries/pa-csa-sect-20-5601-1.html)).

However, [§5601(e.1)](https://codes.findlaw.com/pa/title-20-pacsa-decedents-estates-and-fiduciaries/pa-csa-sect-20-5601.html) excludes the operation of certain provisions (notably provisions dealing with witnessing, inclusion of certain notices and similar) from application to the following types of *Powers of Attorney*:-

- a power contained in an instrument used in a commercial transaction
- a power coupled with an interest in the subject of the power or for the benefit of a creditor
- a power to facilitate transfer of stocks, bonds or other assets
- a power contained in governing document for a corporation, partnership, limited liability company or other entity
- a power authorizing a director, shareholder, partner or similar to do things on behalf of an entity
- a proxy or other delegation of voting rights with respect to management of an entity

Certain [indicia](https://wiki.powersofattorney.com/whatisapoa#able-to-be-created-by-a-person-or-commercial-entity) suggests that *Powers of Attorney* may be able to be [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) by a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity).

It may be that the exclusion from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) of *Powers of Attorney* used “*in a commercial transaction which authorizes an agency relationship*" as referred to in [§5601(e)(1.1)(i)](https://codes.findlaw.com/pa/title-20-pacsa-decedents-estates-and-fiduciaries/pa-csa-sect-20-5601.html) excludes from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) *Powers of Attorney* created by a [commercial entities](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity).

[^1]: Being not *Powers of Attorney* excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) - [click here](https://wiki.powersofattorney.com/legislation#exclusions) to read more).
[^2]: The [Legislation Index](https://wiki.powersofattorney.com/legislationmap) contains omissions and may contain errors, pending more resources being committed to developing its contents into a more accurate account.
[^3]: Ibid.
[^4]: Being not *Powers of Attorney* excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) - [click here](https://wiki.powersofattorney.com/legislation#exclusions) to read more.
[^5]: In conjunction with [common law](https://wiki.powersofattorney.com/terms#meaning-of-common-law).
[^6]: This does not mean that the principles recorded in [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) in Texas with respect to [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) *Powers of Attorney* do not apply to [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney,* merely that there is potential for conjecture about as to whether each principle applies in respect of [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney*.
[^7]: Being not *Powers of Attorney* excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) - [click here](https://wiki.powersofattorney.com/legislation#exclusions) to read more.
[^8]: Ibid.
[^9]: See for example, [§4125](https://codes.findlaw.com/ca/probate-code/prob-sect-4125.html) in California.
[^10]: There are many [examples](https://wiki.powersofattorney.com/uniqueandsimilarlegislation#examples-of-unique-legislation) of the differences between the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa). See the [Legislation Index](https://wiki.powersofattorney.com/legislationmap) which demonstrates the patchwork nature of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) and this Wiki generally which under hundreds of headings, examines different topics and principles relevant to *Powers of Attorney* and identifies the hundreds of differences in the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa).
[^11]: Being not *Powers of Attorney* excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) - [click here](https://wiki.powersofattorney.com/legislation#exclusions) to read more.
[^12]: Query whether a *Power of Attorney* in an [estate planning](https://wiki.powersofattorney.com/terms#meaning-of-estate-planning) context is intended to be excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) where it for example, forms part of a business succession plan or similar,.
[^13]: Being not *Powers of Attorney* excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) - [click here](https://wiki.powersofattorney.com/legislation#exclusions) to read more.
[^14]: *Cole & Strack v McWillie, Phillips and Burke*, Texas Court of Appeals, Wright, CJ, Wilson & Bailey JJ, May 29, 2015 (46 S.W 3d 896).
[^15]: In California, certain parts of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) cannot be varied by the terms of a *Power of Attorney* (see [§4101](https://codes.findlaw.com/ca/probate-code/prob-sect-4101.html)) whereas by contrast, in Illinois [§2-4](https://codes.findlaw.com/il/chapter-755-estates/il-st-sect-755-45-2-4.html) speaks freedom on the part of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) to "*specify in the agency the event or time when the agency will begin and terminate, the mode of revocation or amendment and the rights, powers, duties, limitations, immunities and other terms applicable to the agent and to all persons dealing with the agent*" also stating "*the provisions of the agency will control notwithstanding this Act*".