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) or an Opinion of Counsel

If the bank requests additional documentation, it gets 7 more business days after receiving it to accept or reject.

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. If your POA complies with Texas statutory requirements, the bank must accept it.

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 A POA signed five years ago is just as valid as one signed yesterday, as long as it hasn't been revoked and the principal is alive.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• The POA has not been revoked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 and notarized. 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 has actual knowledge the principal is deceased
2. The bank has actual knowledge the POA has been revoked or terminated
3. The bank is asked to complete a transaction the agent isn't authorized to perform
4. The agent refuses to provide an Agent's Certification when requested
5. The bank believes in good faith that the POA or agent's conduct is not valid
6. The bank has reported suspected financial exploitation to Adult Protective Services
7. The bank has filed a Suspicious Activity Report related to the principal
8. The bank has actual knowledge the principal was coerced or subject to undue influence when signing
9. The agent refuses to comply with a lawful request for identification
10. The bank has been notified of a pending guardianship proceeding
11. The transaction involves federal requirements that conflict with the POA

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 →