Bank Refused Your Power of Attorney in Texas? Here's What to Do

You walk into a bank with a validly executed Statutory Durable Power of Attorney, and the compliance officer tells you they won't honor it. Maybe they want you to fill out the bank's own form. Maybe they say the document is "too old." Maybe they just stall without explanation.

This happens far more often than it should — and Texas law has specific protections to stop it.

The 10-Day Acceptance Rule

Under Texas Estates Code § 751.201, a financial institution that receives a valid Statutory Durable Power of Attorney must take action within 10 business days. The bank must either:

1. Accept the POA and begin processing the agent's requests, OR
2. Reject the POA with a written explanation citing one of the eleven statutory grounds for refusal under § 751.206, OR
3. Request additional documentation — specifically an Agent's Certification (§ 751.203), an Opinion of Counsel, or, if applicable, an English translation

If the bank requests an Agent's Certification or Opinion of Counsel, it gets 7 more business days after receiving the requested document to accept or reject. An English-translation request has separate timing rules.

What the Bank Cannot Do

Texas law explicitly prohibits certain bank behaviors:

Cannot require their own form: Under § 751.202, a financial institution cannot require the agent to use the bank's proprietary power of attorney form for authority already granted in the presented POA. If no statutory ground for refusal applies, the bank must accept the POA.

Cannot refuse based on age alone: There is no expiration date on a Texas SDPOA unless the document itself specifies one. A POA signed five years ago is just as valid as one signed yesterday, as long as it hasn't been revoked and the principal is alive.

Cannot stall indefinitely: The 10-day clock starts when the bank receives the document. Silence is not an option — the bank must act.

The Agent's Certification

If the bank requests additional documentation, the most common request is an Agent's Certification under § 751.203. This is a sworn statement from the agent affirming:

• The principal is alive (or the agent doesn't know of their death)
• The POA has not been revoked
• The agent's authority has not been terminated
• The agent is acting within the scope of authority granted by the POA
• The agent is the person named in the document

The certification must be signed by the agent under penalty of perjury. Presenting a properly executed Agent's Certification eliminates most bank compliance concerns on the spot.

The Eleven Statutory Grounds for Refusal

Under § 751.206, a bank can only refuse a POA for specific, documented reasons:

1. The bank would not otherwise have to engage in the same transaction with the principal, including establishing a new customer relationship or providing a product it does not offer
2. The transaction conflicts with another state or federal law, a law-enforcement request, or a good-faith compliance policy required by applicable law or regulation
3. The bank would not engage in a similar transaction because of a Suspicious Activity Report, a good-faith belief about the agent's financial-crime history, or a prior unsatisfactory business relationship for a listed statutory reason
4. The bank has actual knowledge the agent's authority or the POA has terminated
5. The agent refuses a requested certification, opinion of counsel, or translation, or the supplied document is deficient in a way that prevents the bank from determining validity or authority
6. The bank believes in good faith that the POA is invalid, the agent lacks authority for the attempted act, or the act conflicts with business-entity documents or agreements
7. A judicial proceeding to construe the POA or review the agent's conduct is pending
8. A final judicial determination found the POA invalid for the purpose presented or found that the agent lacked authority for the attempted act
9. The bank or another person made a good-faith report to law enforcement or a state or federal agency, including DFPS, about abuse, neglect, exploitation, or abandonment involving the principal and agent
10. The bank receives conflicting instructions from co-agents or from agents under different POAs signed by the same principal
11. The law governing the POA does not require acceptance, or the authority being exercised is outside that law's scope

If the bank's refusal doesn't fall squarely within one of these grounds, the refusal is unlawful.

Your Legal Enforcement Options

If a bank wrongfully refuses a valid SDPOA after the 10-day window expires:

Step 1: Demand letter. Have an attorney send a formal demand citing Texas Estates Code Subchapter E and the specific violation. This resolves most cases without litigation.

Step 2: Court action. Under § 751.212, the principal or agent can file a lawsuit. If the court finds the refusal unlawful, it must order the bank to accept the POA and may award the plaintiff court costs and reasonable attorney's fees.

The threat of paying the plaintiff's attorney fees is a powerful incentive for banks to comply. Most banks that receive a well-documented demand letter with statutory citations will reverse their refusal.

How to Prevent Rejection

Prevention is easier than enforcement:

• Use the Texas statutory form: Banks recognize it immediately. Custom-drafted POAs invite scrutiny.
• Include durability language: The exact phrasing required by § 751.0021.
• Notarize properly: An acknowledgment before a Texas notary public.
• Bring an Agent's Certification: Have one prepared in advance, even before the bank asks.
• Bring identification: A government-issued photo ID matching the agent's name in the POA.

The Texas Power of Attorney Kit includes the statutory POA form, a pre-formatted Agent's Certification template, and a bank presentation checklist to minimize the chance of rejection and maximize your enforcement leverage if it happens.

See more Texas guides →