IBA Compliance Connection

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The mother of one of our safety deposit box customers contacted us. She said that her son had to travel out of state for health reasons and cannot return. She wants to empty the safety deposit boxes. Our procedures require that the customer appear in person before we could add his mother as a signer on the box. The mother would like to present a notarized letter from the customer permitting her to empty out the boxes. Should we accept a notarized letter?

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No, we do not recommend relying on a notarized letter.

If your customer’s mother wishes to exercise control over her son’s safety deposit box, the bank could rely on a power of attorney or court order providing her with that authority. For example, the Illinois Statutory Short Form Power of Attorney for Property provides the power to execute “safe deposit box transactions” in line item (e) (assuming that this line has not been crossed out).

If your bank relies in good faith on a power of attorney document that complies with the Illinois law, the bank is protected as though it “had dealt directly with the named principal as a fully-competent person” — but this protection would not apply if relying on a notarized letter.

For resources related to our guidance, please see:

  • Illinois Power of Attorney Act, 755 ILCS 45/3-3 (Statutory short form power of attorney for property.)

  • Illinois Power of Attorney Act, 755 ILCS 45/3-4 (“Explanation of powers granted in the statutory short form power of attorney for property. . . . (e) Safe deposit box transactions. The agent is authorized to: open, continue and have access to all safe deposit boxes; sign, renew, release or terminate any safe deposit contract; drill or surrender any safe deposit box; and, in general, exercise all powers with respect to safe deposit matters which the principal could if present and under no disability.”)

  • Illinois Power of Attorney Act, 755 ILCS 45/2-8(a) (“(a) Any person who acts in good faith reliance on a copy of a document purporting to establish an agency will be fully protected and released to the same extent as though the reliant had dealt directly with the named principal as a fully-competent person. The named agent shall furnish an affidavit or Agent’s Certification and Acceptance of Authority to the reliant on demand stating that the instrument relied on is a true copy of the agency and that, to the best of the named agent’s knowledge, the named principal is alive and the relevant powers of the named agent have not been altered or terminated; but good faith reliance on a document purporting to establish an agency will protect the reliant without the affidavit or Agent’s Certification and Acceptance of Authority.”)