In 2021, New York enacted legislation significantly reinforcing protections for individuals presenting properly drafted Power of Attorney (POA) documents. Under these laws, banks and financial institutions face penalties and fines for unjustified refusals to honor a validly executed New York POA.
However, the protective scope of these New York laws encounters limitations when documents are presented out of state. Financial institutions outside New York may refuse to recognize POAs based on specific procedural variations, such as the format or method of dating signatures. Such refusals expose the jurisdictional limitations in New York’s ability to enforce compliance beyond state borders.
New York statutes such as the Estates, Powers, and Trusts Law (EPTL), Uniform Commercial Code (UCC), and General Business Law generally do not explicitly require dates accompanying signatures to be handwritten. For instance, UCC § 3-114 notes that negotiability is unaffected by the absence or dating variations on instruments. Furthermore, while notarization under Executive Law § 137 mandates inclusion of certain information, it does not specifically require handwritten dates. These laws suggest flexibility in how dates may be affixed, focusing more on substantive execution rather than strict procedural form.
Recognizing these challenges, White Plains Apostille and Mobile Notary has adopted stringent measures to enhance document security and combat fraud. One critical security practice we maintain is the exclusive use of a very dark blue date stamp on all notarized documents. Handwritten dates, while traditional, are highly vulnerable to alterations—fraudsters can easily modify or obscure them, jeopardizing document authenticity.
We are fully aware that certain New York State laws mandate the use of black ink for signatures. However, our deliberate use of dark blue ink allows us to easily make color pdf copies and readily spot any inconsistencies or alterations as documents are transferred from individual to individual.
Our use of a dark blue date stamp significantly mitigates this risk. The ink’s vivid and unique characteristics render fraudulent alterations visibly apparent. Even when principals insist on handwriting the date, we require our secure blue date stamp to be placed immediately beneath their handwritten entry. This dual-dating approach creates a robust security feature, ensuring that any attempt at modifying the handwritten date is easily detectable by comparison to our stamped date.
This practice aligns with the core intent of the 2021 legislation—to ensure that properly executed POAs are honored without dispute while protecting all involved parties from fraud. Although our secure dating procedure may not universally prevent out-of-state institutions from challenging documents based on procedural differences, it underscores our commitment to document integrity and provides a strong deterrent against fraudulent activities.
By mandating this secure stamping practice, White Plains Apostille and Mobile Notary proactively addresses a common vulnerability and champions a higher standard of notarial and apostille services. Our methods offer an additional layer of assurance to both principals and institutions, demonstrating meticulous attention to detail and unwavering dedication to safeguarding document authenticity.
Footnote:
What if the bank or financial institution rejects a properly drafted POA (with our blue date stamp)? The law in NY is clear that the principal or agent can recover damages and litigation fees. This is no joke in New York: https://www.nysenate.gov/legislation/laws/GOB/5-1504