29 Hoosier Banker June 2015 1 ind. Code § 30-5-10-0.5 (2014). 2 Id. § 30-5-10-0.5 to -4. 3 Id. § 30-5-4-1. 4 Id. § 30-5-4-3(a). 5 Id. § 30-5-8-4. 6 Id. § 30-5-8-7(a). 7 Id. § 30-5-9-9. 8 Id. § 30-5-3-5. 9 Id. § 30-5-9-9. This information is provided for general education purposes and is not intended to be legal advice. Please consult legal counsel for specific guidance as to how this information applies to your institution’s circumstances or situation. investigating whether it is valid.5 However, to be immune from liability for relying on a power of attorney, the bank must act in good faith.6 It is arguable whether accepting an instruction from one attorney in fact, which requires the bank to directly contravene the express instructions of the other attorney in fact, is acting in good faith. The bank may resolve this situation and determine whose instructions to follow in a number of ways. If the Principal has the capacity, he or she may either direct the attorneys in fact jointly or may revoke one of the powers of attorney. If the Principal lacks capacity, the two attorneys in fact may determine between themselves which one will act, or they may decide to act jointly. If none of the options above is available, the bank may question the validity of both powers of attorney, due to the conflict between the two,7 and direct the attorneys in fact to seek a declaration from the court as to which power of attorney is effective.8 Because the bank faces potential liability if it does not act in good faith when it accepts the authority of a power of attorney, or if it wrongfully refuses to accept the authority of a power of attorney,9 the bank should seek the advice of counsel promptly upon receipt of contradictory powers of attorney. t Donald C. Danielson, 95, director of Ameriana Bank and of Ameriana Bancorp, New Castle, died May 7. He joined the bank board in 1971 and the holding company board in 1990, and continued to serve until the time of his passing. Esteemed as a philanthropist and business leader, Danielson served as vice chairman of City Securities and was former president of Modernfold. Among numerous community service achievements, he was the longestserving trustee of Indiana University, led the effort to relocate the Indiana Basketball Hall of Fame to New Castle in 1990, served as chairman of the Walther Cancer Foundation, sat on the board of governors for the Riley Children’s Foundation and chaired the Fellowship of Christian Athletes’ national board. In the political arena, Danielson aided with the campaigns of Vice President Dan Quayle, Sen. Dan Coats and Gov. Mike Pence, and was appointed by President George H.W. Bush to the Credit Standards Advisory Committee. Danielson received the Sachem award, Indiana’s highest honor; was inducted into the Junior Achievement of Central Indiana Business Hall of Fame; was honored as a Living Legend by the Indiana Carrier selection is one of the most critical decisions in a BOLI purchase. Not all BOLI providers offer carriers with the top AAA rating. Executive Benefits Network offers its clients the most highly rated BOLI carriers in the industry; delivering the long-term benefits and financial strength our clients expect. Now that is Knowledge You Can Bank On.™ We Peel Back the Layers So Our Clients Can Fully Uncover BOLI. ©2014 EBN BOLI & Deferred Compensation Experts 800.780.4EBN ebn-design.com Historical Society; and multiple times was named a Sagamore of the Wabash, among many other awards. He was a graduate of Indiana University, which later granted him an honorary doctor of laws degree. In the 1940s, Danielson was signed by the Brooklyn Dodgers, and later was again invited to report to training camp, but instead returned to his alma mater to work for its alumni association. In World War II, Danielson served in the U.S. Navy, honorably discharged as a lieutenant, senior grade. t in MeMory of
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