Comments on: “Coupled with an Interest” http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/ Tue, 31 Jan 2012 01:23:03 +0000 hourly 1 http://wordpress.org/?v=abc By: Jane Grubbs http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/comment-page-1/#comment-96511 Jane Grubbs Mon, 23 May 2011 14:53:57 +0000 http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/#comment-96511 I wanted to use this to protect a co-signer, pending payoff of the note and release of security instrument, by authorizing co-signer to take actions in the event of default by the principal. I wanted to use this to protect a co-signer, pending payoff of the note and release of security instrument, by authorizing co-signer to take actions in the event of default by the principal.

]]> By: Tony Palomo http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/comment-page-1/#comment-77982 Tony Palomo Wed, 14 Jan 2009 03:46:35 +0000 http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/#comment-77982 I'm forever grateful for Ken Adams's comments in clarifying the meaning of "coupled with an interest". He put in words what I vaguely suspected in thoughts with this term. I am also relieved "I'm not the only one" wrestling with its meaning. I’m forever grateful for Ken Adams’s comments in clarifying the meaning of “coupled with an interest”.

He put in words what I vaguely suspected in thoughts with this term. I am also relieved “I’m not the only one” wrestling with its meaning.

]]> By: john becks teleseminars http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/comment-page-1/#comment-1899 john becks teleseminars Mon, 15 Jan 2007 10:48:49 +0000 http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/#comment-1899 It would also ensure that the parties understand the implications of the power’s being coupled with an interest. It would also ensure that the parties understand the implications of the power’s being coupled with an interest.

]]> By: john becks teleseminars http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/comment-page-1/#comment-1898 john becks teleseminars Mon, 15 Jan 2007 07:52:02 +0000 http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/#comment-1898 If it doesn’t, then forget about coupled with an interest—simply saying that the power is irrevocable will serve your purpose. If it doesn’t, then forget about coupled with an interest—simply saying that the power is irrevocable will serve your purpose.

]]> By: Ken Adams http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/comment-page-1/#comment-55 Ken Adams Thu, 20 Jul 2006 20:15:00 +0000 http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/#comment-55 Professor Deborah DeMott of Duke University School of Law is the reporter for the Restatement (Third) of Agency. She was kind enough to provide the following comments on my post. They relate to nuances of agency law rather than the contract language that I propose. Ken "1. You're correct that stating that a power is "coupled with an interest" is ineffectual if the power holder lacks a legally sufficient interest. Restatement (Third) covers these doctrines in secs. 3.12 and 3.13. These are available in their final form on Westlaw in the REST-AGEN database; Restatement Third will be published in final book form next week. "2. Stating that a power that's not coupled with an interest is irrevocable wouldn't prevent the grantor's revocation of the holder's authority to act as an agent. A basic point in common-law agency is the principal's power to revoke the agent's authority, even when the revocation constitutes a breach of contract. See Restatement Third sec. 3.10(1). "3. The principal's death also terminates an agent's actual authority (ie there are no "super-durable" powers of attorney) although, like statutes in many states, Restatement Third sec. 3.07 attempts to protect agents and third parties who do not have notice of the principal's death. Creating a durable power - agency authority that is triggered by or survives the principal's loss of capacity - requires careful consideration of applicable state statutes, which are geared to protect vulnerable principals. See Restatement Third sec. 3.08. "4. The death of a grantor of a power coupled with an interest may terminate the power if it terminates the interest secured or supported by the power. See Restatement Third sec. 3.13 (2)(c)." Professor Deborah DeMott of Duke University School of Law is the reporter for the Restatement (Third) of Agency. She was kind enough to provide the following comments on my post. They relate to nuances of agency law rather than the contract language that I propose. Ken

“1. You’re correct that stating that a power is “coupled with an interest” is ineffectual if the power holder lacks a legally sufficient interest. Restatement (Third) covers these doctrines in secs. 3.12 and 3.13. These are available in their final form on Westlaw in the REST-AGEN database; Restatement Third will be published in final book form next week.

“2. Stating that a power that’s not coupled with an interest is irrevocable wouldn’t prevent the grantor’s revocation of the holder’s authority to act as an agent. A basic point in common-law agency is the principal’s power to revoke the agent’s authority, even when the revocation constitutes a breach of contract. See Restatement Third sec. 3.10(1).

“3. The principal’s death also terminates an agent’s actual authority (ie there are no “super-durable” powers of attorney) although, like statutes in many states, Restatement Third sec. 3.07 attempts to protect agents and third parties who do not have notice of the principal’s death. Creating a durable power – agency authority that is triggered by or survives the principal’s loss of capacity – requires careful consideration of applicable state statutes, which are geared to protect vulnerable principals. See Restatement Third sec. 3.08.

“4. The death of a grantor of a power coupled with an interest may terminate the power if it terminates the interest secured or supported by the power. See Restatement Third sec. 3.13 (2)(c).”

]]> By: Josh Ard http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/comment-page-1/#comment-53 Josh Ard Thu, 20 Jul 2006 15:10:03 +0000 http://www.adamsdrafting.com/2006/07/20/coupled-with-an-interest/#comment-53 In the business context of SEC filings, it might make sense to make powers of attorney irrevocable, but it is an extremely dangerous idea for individuals. Estimates are that billions of dollars are stolen every year, especially from older persons or persons with disabilities using powers of attorney. I cannot imagine why an individual asking someone to help manage her finances would want to make it difficult to revoke the power if there are signs of abuse or negligence. In the business context of SEC filings, it might make sense to make powers of attorney irrevocable, but it is an extremely dangerous idea for individuals. Estimates are that billions of dollars are stolen every year, especially from older persons or persons with disabilities using powers of attorney. I cannot imagine why an individual asking someone to help manage her finances would want to make it difficult to revoke the power if there are signs of abuse or negligence.

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