Entrusted Payment Agreement for Australia

Entrusted Payment Agreement Template for Australia

An Entrusted Payment Agreement is a legally binding document used in Australian jurisdiction that establishes and governs the arrangement whereby one party (the Payment Agent) is authorized to receive, hold, and disburse funds on behalf of another party (the Principal). This agreement outlines the terms, conditions, and procedures for handling entrusted funds, including security measures, compliance requirements, and reporting obligations. It incorporates provisions to ensure compliance with Australian financial services laws, including the Corporations Act 2001, Anti-Money Laundering legislation, and relevant banking regulations.

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What is a Entrusted Payment Agreement?

The Entrusted Payment Agreement is essential in situations where a trusted intermediary is required to manage payment processes on behalf of another party. This document type is commonly used in Australian business transactions where secure and regulated payment handling is necessary, such as in property developments, investment funds, or large-scale commercial projects. The agreement ensures compliance with Australian financial services regulations, including the Corporations Act 2001, Banking Act 1959, and Anti-Money Laundering legislation. It provides a comprehensive framework for payment processing, defining the roles and responsibilities of the Payment Agent, establishing security protocols, and detailing compliance requirements. This agreement is particularly important in protecting all parties' interests while facilitating efficient payment processes in accordance with Australian law.

What sections should be included in a Entrusted Payment Agreement?

1. Parties: Identifies and provides details of all parties to the agreement, including the entrusting party, the payment agent, and any other relevant parties

2. Background: Sets out the context and purpose of the agreement, including the nature of the entrusted payment arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules for interpretation

4. Appointment and Authority: Establishes the formal appointment of the payment agent and defines the scope of their authority

5. Payment Terms and Processing: Details the mechanics of how payments will be processed, including timelines, procedures, and verification requirements

6. Fees and Charges: Specifies all fees payable to the payment agent and related charges

7. Security and Controls: Outlines security measures and internal controls for handling payments and preventing fraud

8. Compliance Requirements: Addresses regulatory compliance obligations, including AML/CTF requirements

9. Representations and Warranties: States the assurances given by each party regarding their capacity and authority

10. Liability and Indemnification: Defines the extent of liability and indemnification obligations of each party

11. Term and Termination: Specifies the duration of the agreement and circumstances for termination

12. Confidentiality: Establishes obligations regarding the protection of confidential information

13. Dispute Resolution: Sets out procedures for resolving disputes between parties

14. General Provisions: Contains standard boilerplate clauses including notices, governing law, and assignment

What sections are optional to include in a Entrusted Payment Agreement?

1. Foreign Currency Provisions: Additional terms for handling multiple currencies and exchange rates, included when payments involve foreign currencies

2. Special Reporting Requirements: Additional reporting obligations beyond standard requirements, included when specific reporting is needed

3. Sub-agent Arrangements: Terms governing the appointment and management of sub-agents, included when sub-agents will be used

4. Internet Banking Facilities: Specific provisions for online banking arrangements, included when electronic banking facilities are used

5. Insurance Requirements: Specific insurance obligations, included when additional insurance coverage is required

6. Business Continuity: Provisions for business continuity and disaster recovery, included for high-value or critical payment arrangements

7. Data Protection: Enhanced data protection requirements, included when handling sensitive personal data or operating in multiple jurisdictions

What schedules should be included in a Entrusted Payment Agreement?

1. Schedule 1 - Payment Processing Procedures: Detailed procedures for processing payments, including flowcharts and timelines

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees and charges applicable under the agreement

3. Schedule 3 - Authorized Signatories: List of authorized persons who can give payment instructions or make decisions

4. Schedule 4 - Required Forms: Standard forms for payment instructions, notifications, and other routine communications

5. Schedule 5 - Service Levels: Detailed service level requirements and performance metrics

6. Schedule 6 - Compliance Checklist: Checklist of regulatory compliance requirements and procedures

7. Appendix A - System Requirements: Technical specifications for any electronic systems or interfaces used

8. Appendix B - Security Protocols: Detailed security procedures and protocols for payment processing

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Real Estate

Construction

Investment Management

Insurance

Property Development

Infrastructure

Private Equity

Fund Management

Corporate Services

Trust Services

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Operations

Payment Operations

Trust Administration

Commercial

Company Secretariat

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Compliance Officer

Legal Counsel

Trust Manager

Payment Operations Manager

Financial Controller

Risk Manager

Company Secretary

Transaction Manager

Fund Manager

Account Manager

Operations Director

Commercial Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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