Confession of judgment provisions in commercial documents remain in a state of flux until legislation pending in the Pennsylvania House Judiciary Committee is approved and enacted. Until such time, we will keep readers updated on any movement of the bill and corrections it offers.
Recent amendments to Pennsylvania statutes governing powers of attorney (20 Pa.C.S.A Chapter 56) have caused unintended consequences to the laws affecting commercial documents containing powers of attorney, including confession of judgment provisions. What some legislators contend is a drafting error in the statute, has potentially impacted many commercial documents unrelated to the amendments and placed the enforceability of the confession of judgment remedy contained in those documents in jeopardy.
Please see full publication below for more information.