The power of attorney relating to the bank account from a practical perspective

Abstract

This article contains the first in Poland, a broad analysis of the so-called “bank power of attorney”, which is granted by the bank account holder to another person (and sometimes to the bank-contractor as well) in order to dispose of the funds on the holder’s bank account (Article 725 of the Civil Code). This kind of the power of attorney, granted relatively often, raises many legal concerns. The general rules of the power of attorney have been regulated in Articles 95–109 of the Civil Code while Article 384 of the Civil Code deals with this institution in the sphere of standard contractual terms. The Author analyzes the legal structure of the power of attorney in a bank practice, ways of granting authorization, choice of the attorney, scope of the power of attorney as well as forms thereof. He also describes extensively the power of attorney granted by the bank account holder for security purposes. This kind of attorney, as a special form a form of personal security, is irrevocable and it can be granted to the creditor of the account holder. There may appear many different forms of abuse of such a power of attorney. The first judgments in this matter confirm this practice.