Powers of Attorney: Frequently Asked Questions on Financial Matters

We all hope to manage our financial affairs and make our own decisions throughout our lives. This is not always possible, and it is why many people resort to using powers of attorney to manage these matters. Keep in mind that while Powers of Attorney can be useful, you should only grant a power of attorney if you are sure that the chosen attorney-in-fact will act in your best interest. Because a power of attorney can grant very broad powers over your property, including your bank accounts, we recommend that you consult with an attorney of your choice to see what is right for your particular situation. The laws governing powers of attorney vary state by state. Your legal advisor can guide you through the various subjects and legal requirements.

1. What is a Power of Attorney?

A power of attorney ("Power of Attorney") is a legal document granted by a person in full use of their mental faculties (the “Principal”) that authorizes an attorney-in-fact (the “Agent”) to act on their behalf and represent them in certain matters. Powers of Attorney can be general or specific.

2. What can an Agent do with Banco Popular de Puerto Rico?

For an Agent to represent a Principal in any financial matter, Banco Popular de Puerto Rico ("Popular") requires Powers of Attorney in Puerto Rico to be granted by public deed and to be duly registered in the Registry of Powers and Wills of the Office of Notary Inspection (ODIN), therefore, you should consult an attorney of your choice for the diligence of a Power of Attorney. Additionally, Popular requires a Certificate of Validity from the Registry of Powers and Wills of ODIN ("Certificate of Validity") with ninety (90) days or less from its issuance, and that states that the deed has not been revoked or amended in any way.

It is important to know that Popular evaluates and interprets Powers of Attorney according to their integral reading. Therefore, it is advisable that Powers of Attorney should be as clear and detailed as possible, as they will be interpreted literally and restrictively. An Agent cannot carry out any act that is not authorized in the Power of Attorney, and Popular is not authorized to interpret the intention of what the Agent intended to authorize.

3. What should I do to add an Agent to my account with Popular?

The first step is to bring your Power of Attorney to any of Popular's branches around the island so that it can be evaluated. The process of adding an Agent to your account through a Power of Attorney is free of charge.

We recommend that, if possible, you as the account holder accompany your Agent to one of our branches and provide a copy of the duly granted Power of Attorney, along with the Certificate of Validity.

Your Agent will need to present a valid and current photo ID issued by the government.

Your Power of Attorney will then be analyzed by Popular, and in some cases, depending on the Power of Attorney and specific circumstances, additional information or documents may be required to proceed with the request made to Popular.

4. What should I do to remove an Agent from my account with Popular?

You, as the Principal, can revoke a Power of Attorney at any time. We recommend consulting with a notary of your choice to assist you with the steps to revoke a Power of Attorney. If you have revoked a Power of Attorney that you previously presented to Popular, you must notify us immediately and provide the corresponding documents.

A Power of Attorney becomes ineffective automatically if the Principal dies or if the Agent dies and there is no substitute Agent named. It is important to know that if Popular does not receive reliable information related to the cancellation or revocation of the Power of Attorney, Popular assumes that the Power of Attorney remains in effect and will continue to receive instructions from the Agent.

5. Can an Agent transfer the Principal's funds to their own account?

No. An Agent cannot take possession of money that belongs to the Principal. The Agent must limit themselves to representing the best interests of the Principal without becoming the owner of those funds.

6. Does Popular have an example of the language it typically receives and accepts?

It is important to know that Popular does not impose any particular language and does not tell its clients what should or should not be included in their Power of Attorney. However, as a discretionary method and for customer service purposes, we share an example of a clause that Popular typically receives and accepts. This language should be consulted with an attorney of your choice and adapted according to the particular circumstances of your case.

Clause for Conducting Banking Transactions (Example):

"The Agent has the authority to draw or withdraw funds belonging to the Principal deposited in their name at Banco Popular de Puerto Rico or any banking institutions in Puerto Rico; in any checking, savings, or investment accounts, as well as to deposit and withdraw money from such accounts; endorse and cash checks made payable to the Principal; open and close bank accounts of any kind and certificates of deposit."

7. Can an Agent receive a debit card (ATH) from the Principal's account?

As a policy, Popular does not issue debit cards (ATH) to Agents, unless the Power of Attorney expressly and literally authorizes it.

8. Are there different types of Powers of Attorney?

Yes. There are general or specific Powers of Attorney and durable Powers of Attorney.

General Powers of Attorney are typically open, delegating all types of authority to the Agent and can be as broad as the Principal desires. Specific Powers of Attorney authorize one or more things but detail them with a certain degree of specificity. General or specific Powers of Attorney can become ineffective, among other reasons, when the person granting them becomes mentally incapacitated, is declared legally incapacitated, or dies.

Durable Powers of Attorney are those in which a trusted person is designated to perform a series of acts aimed at managing the assets, even in the event that the Agent may become incapacitated.

9. Do Powers of Attorney have an expiration date?

Typically, Powers of Attorney do not have an expiration date. However, they can be revoked, amended, or become ineffective for various reasons such as:

• the incapacity or death of the Agent, if there is no substitute named
• the death of the Principal
• the mental incapacity of the Principal if the Power of Attorney is not durable.

10. Is it the same for a person to be a co-owner on my account as having a Power of Attorney?

No, it is not the same. When a duly authorized Agent requests to be included in an account, they do so not as a co-owner but as a representative of the owner.

11. Can I bring a notarized Power of Attorney from outside Puerto Rico?

Yes. Popular accepts Powers of Attorney notarized outside Puerto Rico. Powers of Attorney notarized in the United States must be received with their corresponding "County Clerk," which is a document that confirms the authority of the notary to act as such in a particular state. It is important to note that for certain transactions (such as those involving real estate), the Power of Attorney notarized in the United States must be protocolized by a notary in Puerto Rico and registered in the Registry of Powers and Wills of ODIN.

Powers of Attorney notarized abroad (outside the United States or Puerto Rico) must be protocolized by a notary in Puerto Rico and duly registered in the Registry of Powers and Wills of ODIN.

For more information, we recommend seeking guidance from a notary of your choice.

12. Can an Agent manage funds corresponding to Social Security benefits?

No. The United States Department of the Treasury does not recognize Powers of Attorney to negotiate federal payments, including Social Security or SSI checks. This means that if you have a Power of Attorney for someone who cannot manage their own benefits, you must apply to the Social Security Administration to act as their representative.

Services offered by Banco Popular de Puerto Rico. Member FDIC.

NOTICE:

Popular reserves the right to reject any Power of Attorney in cases where it believes that the best interests of the Principal client could be compromised by accepting the Power of Attorney. The content of this website is provided solely for informational, educational, and independent consideration purposes; it is not to be considered or viewed as advice or a suggestion to take (or refrain from taking) any particular action. By providing this information, we assume that you are capable of evaluating this information and the general descriptions found here to exercise your independent judgment. This material should not be considered as legal or any other type of advice. Banco Popular de Puerto Rico, its subsidiaries, and/or affiliates, do not provide legal services. If you need legal, accounting, or tax advice, you should seek the services of a competent professional of your choice.