Michigan Laws 556.202a – Notice or knowledge of a fact involving a power of attorney
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Terms Used In Michigan Laws 556.202a
- Actual knowledge: means knowledge in fact. See Michigan Laws 556.202
- Agent: means a person granted authority to act for a principal under a power of attorney, whether denominated an agent, attorney-in-fact, or otherwise. See Michigan Laws 556.202
- Entity: means a person other than an individual. See Michigan Laws 556.202
- Person: means an individual or corporation, including a fiduciary of an estate or trust, a business trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Michigan Laws 556.202
- power: means a power of attorney. See Michigan Laws 556.202
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Power of attorney: means a written record that grants authority to an agent to act in 1 or more matters on behalf of the principal, whether or not the term power of attorney is used. See Michigan Laws 556.202
- Principal: means an individual who grants authority to an agent in a power of attorney. See Michigan Laws 556.202
(1) Except as otherwise provided in this section, a person has knowledge of a fact involving a power of attorney if 1 or more of the following are true:
(a) The person has actual knowledge of the fact.
(b) The person has received a notice or notification of the fact.
(c) From all the facts and circumstances known to the person at the time in question, the person has reason to know the fact.
(2) An entity that conducts activities through 1 or more employees has notice or knowledge of a fact involving a power of attorney, a principal, or an agent only from the time the information is received by an employee conducting a transaction or from the time the information would have been brought to the employee’s attention if the entity had exercised reasonable diligence.
(3) An entity that conducts activities through 1 or more employees has actual knowledge of a fact relating to a power of attorney, a principal, or an agent only if the employee conducting the transaction has actual knowledge of the fact.
(4) As used in this section:
(a) “Reasonable diligence” means the maintenance of and reasonable compliance with reasonable routines for communicating significant information to the employee conducting the transaction. Reasonable diligence does not require an employee of the entity to communicate information unless the communication is part of the individual’s regular duties or the individual knows a matter concerning the transaction would be materially affected by the information.
(b) “Transaction” means a transaction that is conducted for the entity and that involves the power of attorney.