# Bank Mandate > Bank Mandate means the written instructions given from the customer, appointing the bank as their own banker **Term:** Bank Mandate **Last updated:** 2026-07-29 ## Definition ## What Bank Mandate Means in a Contract A Bank Mandate is the formal document that appoints a bank to act as the customer's banker and sets out the terms under which the account will operate. It records who is authorized to give instructions, sign checks, initiate transfers, and open or close accounts. When a contract refers to a Bank Mandate, it is usually pointing to this underlying banking arrangement as evidence of who has authority to deal with company funds. Contracts often rely on the mandate to confirm that a signatory named in an agreement actually has the power to bind the account holder financially. For example, a supply agreement or loan facility may require that payments be authorized by individuals listed on the current Bank Mandate, tying contractual performance directly to the banking authority already established with the financial institution. Because the mandate governs access to money, it is treated as a foundational governance document rather than a routine administrative form. Parties negotiating finance-related terms will frequently ask to see or confirm the mandate before relying on payment instructions from a counterparty. ## How Bank Mandate Is Defined or Measured A Bank Mandate is typically defined by reference to the specific document lodged with the bank, along with any amendments filed afterward. It is not measured in the sense of a quantity, but rather assessed for validity, currency, and scope, meaning whether the people named still hold the roles required and whether their signing authority matches what the contract assumes. Key elements usually addressed include the list of authorized signatories, the number of signatures required for different transaction types (sometimes called signing thresholds), and any monetary limits attached to individual authority. Some mandates distinguish between authority to view account information and authority to authorize payments. - Names and positions of authorized signatories - Whether single or joint signatures are required - Any transaction value limits tied to specific signatories - Procedures for updating the mandate when personnel change Contracts that depend on the mandate will often require the account holder to keep it updated and to notify counterparties promptly when signatories change, since an outdated mandate can create disputes over whether a payment instruction was properly authorized. ## Where Bank Mandate Appears in Agreements Bank Mandate provisions commonly appear in loan agreements, escrow arrangements, joint venture agreements, and corporate governance documents where control over cash movement is a central concern. Lenders in particular will often request a copy of the current mandate as a condition precedent to drawdown, confirming that the borrower's payment instructions come from properly authorized individuals. The term also surfaces in agreements involving