This German-English template for a bank power of attorney (without notarisation) is broadly structured and covers all accounts and/or securities accounts held by the principal at any credit institution.

What restrictions does the template contain?

The above template is designed to be as broad as possible and therefore requires a very strong relationship of trust between the principal and the authorised representative.

For example, the template is not limited to a specific account and/or securities account and does not provide for any restrictions on the power of attorney in the external relationship.

If the relationship of trust necessary for the granting of such a far-reaching power of attorney does not exist, the power of attorney can be restricted. Care must be taken to ensure that the restriction is clearly formulated. The following restrictions are common, for example

• Certain maximum amounts of disposal,

• Exclusion of an account overdraft,

• No utilisation of granted loans,

• Inadmissibility of financial futures transactions.

What form must a bank authorisation take?

The bank authorisation is not in itself subject to any special form (Section 167 (2) BGB). For internal bank reasons, however, an identity check by the respective bank will regularly be necessary. In some cases, banks also require the use of their own templates. In practice, these questions must be clarified in advance with the respective bank. At least if the power of attorney is publicly certified or notarised, a power of attorney must be accepted by the banks if the content is structured accordingly.

You can find a sample of a restrictive notarised bank power of attorney (German-English) here.

How does a bank power of attorney differ from a power of attorney for a loan agreement?

A bank power of attorney must be distinguished from a power of attorney for the conclusion of loan agreements. While a bank power of attorney relates to existing accounts and loans granted, a power of attorney to conclude loan agreements enables a new loan agreement to be concluded.