Power Of Attorney

Definition

Power Of Attorney. Legal authorization given by one party (the principal) to another (the agent or attorney-in-fact) to perform certain acts on the principal's behalf

The appointment can be effective immediately or if the principal is unable to make decisions or perform certain actions on their own. It may be a (1) general power of attorney that authorizes the agent to act generally on behalf of the principal, such as to transfer funds from one account to another, pay debts, make investments, and so forth, or (2) limited to a specific act or situation, such as for management of an individual's finances in a single account, such as a brokerage account, or for management of healthcare. Decisions made and actions taken by an attorney in fact (within the scope of his or her authority) are legally binding on the principal.

See Also

• Barron's Dictionary of Banking Terms, Sixth Edition, 2012
• http://www.businessdictionary.com/definition/power-of-attorney.html

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.