On January 1, 2015 a new Power of Attorney Act (the “Act”) went into effect and as a result new rules govern the signing of Powers of Attorney executed in Pennsylvania.
The revisions are significant because as currently drafted, the Act requires any power of attorney to be notarized, including those granted in commercial credit transactions. Although the statute exempts commercial credit transactions from the application of most of the new statutory requirements, it does not exempt commercial credit transactions from the requirement that the signature of the person signing the power be acknowledged before a Notary.
The notary requirement has been identified as an issue by commentators. However, the provisions of the Act presently in effect require that any document containing a power of attorney be notarized (including a credit agreement, security agreement or promissory note containing a warrant to confess judgment).
Until the legislature further addresses this issue, all loan documents that contain a power of attorney (including a warrant to confess judgment) should be notarized.
