Colorado Code
Part 7 - Uniform Power of Attorney Act
§ 15-14-719. Acceptance of and Reliance Upon Acknowledged Power of Attorney

Source: L. 2009: Entire part added, (HB 09-1198), ch. 106, p. 393, § 1, effective April 9.
This section protects persons who in good faith accept an acknowledged power of attorney. Section 15-14-719 does not apply to unacknowledged powers of attorney. See Section 15-14-705 (providing that the signature on a power of attorney is presumed genuine if acknowledged). Subsection (1) states that for purposes of this section and Section 15-14-720 "acknowledged" means "purportedly" verified before an individual authorized to take acknowledgments. The purpose of this definition is to protect a person that in good faith accepts an acknowledged power of attorney without knowledge that it contains a forged signature or a latent defect in the acknowledgment. See, e.g., Cal. Prob. Code § 4303(a)(2) (West Supp. 2006); 755 Ill. Comp. Stat. Ann. 45/2-8 (Supp. 2006); Ind. Code Ann. § 30-5-8-2 (West 1994); N.C. Gen. Stat. § 32A-40 (2005). The Act places the risk that a power of attorney is invalid upon the principal rather than the person that accepts the power of attorney. This approach promotes acceptance of powers of attorney, which is essential to their effectiveness as an alternative to guardianship. The national survey conducted by the Joint Editorial Board for Uniform Trust and Estate Acts ( see Prefatory Note) found that a majority of respondents had difficulty obtaining acceptance of powers of attorney. Sixty-three percent reported occasional difficulty and seventeen percent reported frequent difficulty. Linda S. Whitton, National Durable Power of Attorney Survey Results and Analysis , National Conference of Commissioners on Uniform State Laws 12-13 (2002), available at http://www.law.upenn.edu/bll/ulc/dpoaa /surveyoct2002.htm.
Section 15-14-719 permits a person to rely in good faith on the validity of the power of attorney, the validity of the agent's authority, and the propriety of the agent's exercise of authority, unless the person has actual knowledge to the contrary (subsection (3)). Although a person is not required to investigate whether a power of attorney is valid or the agent's exercise of authority proper, subsection (4) permits a person to request an agent's certification of any factual matter ( see Section 15-14-742 for a sample certification form) and an opinion of counsel as to any matter of law. If the power of attorney contains, in whole or part, language other than English, an English translation may also be requested. Further protection is provided in subsection (6) for persons that conduct activities through employees. Subsection (6) states that for purposes of Sections 15-14-719 and 15-14-720, a person is without actual knowledge of a fact if the employee conducting the transaction is without actual knowledge of the fact.

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