Authorization Letter For Gold Loan Release for Malaysia

Authorization Letter For Gold Loan Release Template for Malaysia

An Authorization Letter for Gold Loan Release is a formal document used in Malaysian banking and financial institutions that enables a loan account holder to authorize another person to collect gold items that were pledged as collateral for a loan. The document must comply with Malaysian financial regulations, particularly the Financial Services Act 2013 and relevant banking guidelines. It includes specific details about the original loan, the pledged gold items, and clear identification of both the authorizing party and the authorized collector, ensuring secure and legally compliant release of valuable assets.

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What is a Authorization Letter For Gold Loan Release?

The Authorization Letter For Gold Loan Release is a crucial document in Malaysian banking operations, specifically designed for situations where a gold loan borrower needs to delegate the collection of their pledged gold items to another person. This document becomes necessary when the original borrower cannot personally retrieve their gold collateral after loan settlement. It must conform to Malaysian banking regulations and typically includes comprehensive details about the loan account, specific authorization provisions, and clear identification of all parties involved. The letter serves as a legal protection for both the financial institution and the loan account holder, ensuring secure and properly authorized release of valuable assets. Financial institutions in Malaysia require this documentation to maintain compliance with regulatory requirements and internal risk management protocols.

What sections should be included in a Authorization Letter For Gold Loan Release?

1. Letter Header: Complete contact details of the authorizing person including full name, address, and identification number

2. Date: Current date of the authorization letter

3. Recipient Details: Full details of the bank/financial institution including branch details

4. Subject Line: Clear indication that this is an authorization letter for gold loan release

5. Loan Reference: Original gold loan agreement number and date

6. Authorization Statement: Clear statement of authorization including details of the gold items to be released

7. Authorized Person Details: Full details of the person authorized to collect the gold including their identification information

8. Declaration: Statement confirming the authenticity of the authorization and accepting responsibility

9. Signature Block: Space for authorizing person's signature, name, and date

What sections are optional to include in a Authorization Letter For Gold Loan Release?

1. Witness Details: Used when additional verification is required, includes witness name, signature and contact details

2. Time Limitation: Include when the authorization needs to be valid only for a specific time period

3. Special Instructions: Any specific conditions or instructions for the release process

4. Reason for Authorization: Include when explanation for third-party collection is required by the institution

5. Alternative Authorized Person: Used when a backup person needs to be authorized in case the primary person is unavailable

What schedules should be included in a Authorization Letter For Gold Loan Release?

1. Copy of Original Loan Agreement: Attached as reference to verify loan details

2. Identity Proof Copies: Copies of identification documents of both the authorizing person and authorized collector

3. Gold Item Details: Detailed list of gold items to be released including weight, description and any identification numbers

4. Loan Closure Certificate: If applicable, proof that the loan has been fully repaid

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

Malaysia

Publisher

Genie AI

Document Type

Letter of Authority

Sector

Banking

Cost

Free to use
Industries

Financial Services Act 2013: The primary legislation governing financial institutions and banking activities in Malaysia, including gold loan services and related transactions

Contracts Act 1950: Defines the requirements for valid contracts in Malaysia, ensuring the authorization letter meets legal standards for enforceability

Consumer Protection Act 1999: Protects the interests of consumers in financial transactions, including transparency requirements and fair dealing provisions

Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001: Regulates high-value transactions including those involving gold, requiring proper documentation and verification

Personal Data Protection Act 2010: Governs the collection and handling of personal data in commercial transactions, ensuring proper consent and data protection in the authorization process

Powers of Attorney Act 1949: Relevant for understanding the legal framework of authorization and delegation of powers in Malaysia

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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