What to Do When a Bank Refuses Your Power of Attorney in South Dakota

You walk into a bank with a notarized, legally valid power of attorney, and the teller says they can't accept it. Maybe they want their own form. Maybe they say it's "too old." Maybe they just say no. This happens more often than it should — and in South Dakota, the law is firmly on your side.

South Dakota's Mandatory Acceptance Rule

Under SDCL 59-12-18, a bank or financial institution presented with a South Dakota-compliant power of attorney must either accept it or request additional documentation within ten business days. The institution cannot ignore the document indefinitely or impose arbitrary delays.

If the institution requests an Agent's Certification, a translation, or a legal opinion of counsel under SDCL 59-12-18(4), it then has an additional five business days after receiving the requested document to accept the POA.

The institution is explicitly prohibited from requiring you to use its own proprietary form if the authority you need is already granted in the POA you presented.

When the Bank Has a Legitimate Reason to Refuse

Under SDCL 59-12-19, a bank can legally refuse a POA in only five narrow circumstances:

1. The bank is not otherwise required to engage in a transaction with the principal under the same circumstances
2. The transaction would violate state or federal law
3. The bank has actual knowledge that the POA has been revoked or terminated
4. The bank has a good faith belief that the POA is invalid or the agent lacks authority for the specific transaction
5. The bank has filed (or knows someone has filed) an elder abuse report with the Department of Social Services or law enforcement regarding the principal

That last point is important. South Dakota's financial exploitation laws give banks statutory immunity to delay or refuse transactions if they suspect the principal is being exploited. This protection exists for good reason, but it can also create friction when the agent's intentions are entirely legitimate.

Step-by-Step Response When You're Refused

1. Present the Agent's Certification form. Under SDCL 59-12-42, this statutory form allows the agent to certify under oath that the POA is valid, in effect, and not revoked. Many bank compliance departments will accept this as sufficient assurance.

2. Reference the statute directly. Politely inform the branch manager that under SDCL 59-12-18, the institution has ten business days to accept the document or request specific additional documentation. Ask them to put any refusal in writing, including the specific legal basis.

3. Request escalation to the compliance department. Branch-level staff often refuse POAs out of caution or unfamiliarity with the law. The bank's legal or compliance team is more likely to understand the statutory acceptance timeline.

4. Send formal written notice. If the verbal approach doesn't work, send a certified letter (return receipt requested) to the bank's legal department. Reference SDCL 59-12-18 and 59-12-19, attach a copy of the POA and Agent's Certification, and note the date of original presentation to start the ten-day clock.

5. Seek a court order. Under SDCL 59-12-19, if a bank unlawfully refuses a compliant POA, you can petition the circuit court for an order compelling acceptance. The bank is liable for reasonable attorney's fees and costs if you prevail.

Common Reasons for Refusal (and How to Prevent Them)

"The POA is too old." South Dakota does not impose an expiration date on powers of attorney. A document executed ten years ago is just as valid as one signed yesterday, provided it hasn't been revoked and the principal was competent at execution. Present the Agent's Certification to confirm current validity.

"We need our own form." SDCL 59-12-18(3) prohibits this. The bank cannot require a proprietary form if the authority is covered by the POA you presented.

"The POA doesn't look right." Banks sometimes object to formatting, especially with downloadable templates. Using the statutory form under SDCL 59-12-41, or a document that closely follows its structure, minimizes these objections because compliance officers recognize the statutory language.

"The account holder needs to come in person." If the principal is incapacitated, that's literally why the POA exists. Reference the durability language and, if needed, provide medical documentation of the principal's condition.

Preventing Bank Problems in Advance

The best approach is to present the POA to the bank before you need to use it. Walk into the branch, meet with a personal banker, provide the POA and Agent's Certification, and ask that the documents be placed on file with the account. When you later need to make transactions, the compliance review is already done.

The South Dakota Power of Attorney Kit includes the Agent's Certification form under SDCL 59-12-42 and a bank presentation checklist designed to minimize institutional pushback.

See more South Dakota guides →