(1) Subsections (2) and (3) apply where an instrument which did not create a valid enduring power has been registered, whether or not the registration has been cancelled at the time of the act or transaction in question.

(2) An attorney who acts in pursuance of an enduring power which is not or no longer a valid power or which has ceased to be inforce shall not thereby incur any liability (either to the donor or to any other person) unless at the time of acting the attorney knows -

(a) that the instrument did not create a valid enduring power; or

(b) that an event has occurred which, if the instrument had created a valid enduring power, would have invalidated the power or caused it to cease to be in force; or

(c) that the instrument has been cancelled.

(3) Any transaction between the attorney and another person shall, in favour of that person, be as valid as if the power had then been in existence, unless at the time of the transaction that person has knowledge of any of the matters mentioned in subsection (2).