C.R.S. § 15-14-715 Exoneration of Agent

• Library: Colorado Statutes
• Edition: 2023
• Currency: Current through 2023 Regular and 1st Extraordinary Session
• Year: 2023
• Citation: C.R.S. § 15-14-715

(1) Provision in a power of attorney relieving an agent of liability for breach of duty is binding on the principal and the principal's successors in interest except to the extent the provision:

(a) Relieves the agent of liability for breach of duty committed dishonestly, with an improper motive, or with reckless indifference to the purposes of the power of attorney or the best interest of the principal; or

(b) Was inserted as a result of an abuse of a confidential or fiduciary relationship with the principal.

Cite as C.R.S. § 15-14-715

History: L. 2009: Entire part added, <actcitation href="" statecd="CO" actaltid="106" sessionyear="2009" description="Uniform Power Of Attorney Act - AN ACT CONCERNING THE "UNIFORM POWER OF ATTORNEY ACT"">(HB 09 -1198), ch. 106, p. 392</actcitation>, § 1, effective April 9.</note> </notes-history>

Note:

OFFICIAL COMMENT

This section permits a principal to exonerate an agent from liability for breach of fiduciary duty, but prohibits exoneration for a breach committed dishonestly, with improper motive, or with reckless indifference to the purposes of the power of attorney or the best interest of the principal. The mandatory minimum standard of conduct required of an agent is equivalent to the good faith standard applicable to trustees. A trustee's failure to adhere to that standard cannot be excused by language in the trust instrument. See Unif. Trust Code § 1008 cmt. (2003) (noting that "a trustee must always act in good faith with regard to the purposes of the trust an...