Short Answer

In North Carolina, a financial power of attorney is not effective until the principal signs it and it is acknowledged by a notary. After the company confirms receipt, promptly complete the notarization, ask if they need an agent’s certification or other items, and send those quickly. A faxed or scanned copy is generally acceptable for review, but the company may still want proof of notarization. If a company unreasonably refuses to honor a properly executed power of attorney, you can ask the Clerk of Superior Court to order acceptance.

Understanding the Problem

You want to know what to do after a company confirms it received power of attorney paperwork so an agent can handle a bill and payment plan for a hospitalized client. The decision point is: after the company acknowledges receipt, what steps must the principal or the named agent take under North Carolina law to get the company to recognize the agent’s authority so the bill can be managed?

Apply the Law

North Carolina’s Uniform Power of Attorney Act requires a power of attorney to be signed by the principal and acknowledged before a notary to be effective. Third parties that receive an acknowledged power of attorney must accept it unless a statutory “good faith” reason exists to refuse (for example, knowing it was revoked). A company may request an agent’s certification, an English translation, or an attorney’s opinion letter; it must act within specific time windows after receipt. If acceptance is improperly refused, you can seek judicial relief before the Clerk of Superior Court.

Key Requirements

• Proper execution: The principal must sign, and a notary must acknowledge the signature; without notarization, the agent cannot act.
• Copies are okay: A faxed or scanned copy can be relied on; the company may later ask to see proof of notarization.
• Third‑party requests: The company can ask for an agent’s certification and, in some cases, an attorney’s opinion or translation before accepting.
• Deadlines to act: The company must accept or request allowed documents within a short statutory window, and then decide shortly after it receives them.
• Judicial relief: If acceptance is wrongfully refused, you may petition the Clerk of Superior Court to compel acceptance and, in some cases, recover fees.

What the Statutes Say

• North Carolina Gen. Stat. § 32C-1-105 (Execution of power of attorney) – Requires signing by the principal and notarization.
• North Carolina Gen. Stat. § 32C-1-120 (Acceptance/refusal by third parties) – Sets what third parties may request, timelines to accept, and fee shifting for wrongful refusal.
• North Carolina Gen. Stat. § 32C-3-302 (Agent’s certification) – Provides a statutory certification the agent can sign to confirm authority.
• North Carolina Gen. Stat. § 32C-1-116 (Judicial relief) – Allows proceedings before the Clerk of Superior Court to resolve POA issues.

Analysis

Apply the Rule to the Facts: Because the client is hospitalized, the most important step is to ensure the power of attorney is notarized; until then, it is not effective and the company may refuse to act. After the company confirms receipt of the faxed paperwork, ask whether it needs an agent’s certification or an attorney’s opinion letter and send those promptly. Once notarized and any requested items are provided, follow up within the statutory response window; if the company still refuses without a permitted reason, consider a petition for judicial relief.

Process & Timing

1. Who files: The principal or named agent. Where: Clerk of Superior Court in the county where the principal resides, an agent resides, or where the principal’s property is located in North Carolina. What: A petition for judicial relief under the power of attorney statute (brought as an estate proceeding). When: After the company fails to accept within the statutory response window or after it unreasonably refuses following your delivery of requested documents.
2. The Clerk sets a hearing. Bring the notarized power of attorney, proof of delivery (fax confirmations/emails), any agent’s certification or opinion letter you provided, and notes of the company’s stated reasons for refusal. Timing to hearing can vary by county.
3. If the Clerk orders acceptance, the company must honor the power of attorney. The order may address costs if the refusal violated the statute. Keep a copy of the order with future requests.

Exceptions & Pitfalls

• If the power of attorney is not notarized, it is not effective; get it notarized as soon as possible.
• If the document is “springing” (effective only upon incapacity), the company can require proof of the triggering condition before accepting.
• Companies may request an agent’s certification or an attorney’s opinion; providing them quickly keeps the statutory clock moving.
• For real estate transactions, record the power of attorney with the register of deeds before the agent signs deeds or related instruments.
• Healthcare decisions require a separate health care power of attorney; a financial power of attorney covers bill payment and financial management.

Talk to a Estate Planning Attorney

If you’re dealing with getting a company to honor a power of attorney so an agent can manage bills and accounts, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.