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Entrusted Payment Agreement Template for New Zealand

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Key Requirements PROMPT example:

Entrusted Payment Agreement

"I need an Entrusted Payment Agreement for our Hong Kong-based trading company to handle international payments through our New Zealand subsidiary, including provisions for multiple currencies and compliance with both jurisdictions' regulations, to be implemented by March 2025."

Document background
The Entrusted Payment Agreement is designed for situations where one party needs to engage a professional payment agent to handle funds and execute payments on their behalf. This arrangement is common in various business contexts, including real estate transactions, construction projects, and international trade. The agreement ensures compliance with New Zealand's financial services regulations, including the Financial Markets Conduct Act 2013 and the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. It provides a secure legal framework for the receipt, holding, and disbursement of funds, defining clear processes for payment instructions, compliance requirements, and risk management. The document is particularly relevant in scenarios requiring transparent fund management, third-party oversight, or escrow-like arrangements under New Zealand jurisdiction.
Suggested Sections

1. Parties: Identifies and defines 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 interpretation rules

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

5. Payment Instructions: Details the process for giving and executing payment instructions

6. Handling of Funds: Specifies requirements for receiving, holding, and disbursing entrusted funds

7. Fees and Charges: Outlines all fees, charges, and payment terms for the service

8. AML/CFT Compliance: Sets out anti-money laundering compliance requirements and procedures

9. Representations and Warranties: Contains statements of fact and promises made by each party

10. Liability and Indemnification: Defines the scope of liability and indemnification obligations

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

12. General Provisions: Includes standard legal provisions such as notices, amendments, and governing law

Optional Sections

1. Security Arrangements: Used when specific security or collateral is required for the entrusted funds

2. Foreign Exchange Provisions: Included when the agreement involves multiple currencies or foreign exchange transactions

3. Interest on Funds: Required when interest arrangements apply to held funds

4. Sub-agents and Delegation: Needed when the payment agent may need to appoint sub-agents or delegate duties

5. Insurance Requirements: Included when specific insurance coverage is required for the service

6. Dispute Resolution: Optional detailed dispute resolution procedures beyond standard court jurisdiction

7. Force Majeure: Added when specific force majeure provisions are needed beyond standard provisions

8. Confidentiality: Detailed confidentiality provisions when standard provisions are insufficient

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

2. Schedule 2 - Authorized Persons: List of persons authorized to give instructions on behalf of the entrusting party

3. Schedule 3 - Operating Procedures: Detailed procedures for handling payments, including cutoff times and processing requirements

4. Schedule 4 - Reporting Requirements: Specifications for regular reporting and account statements

5. Appendix A - Payment Instruction Form: Standard form for submitting payment instructions

6. Appendix B - KYC Requirements: Documentation requirements for customer due diligence

7. Appendix C - Service Level Agreement: Detailed service levels and performance standards

Authors

Alex Denne

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

Relevant legal definitions



































Clauses































Relevant Industries

Financial Services

Banking

Real Estate

Construction

International Trade

Professional Services

Investment Management

Property Development

Legal Services

Trust Services

Corporate Services

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Operations

Commercial

Procurement

Company Secretariat

Payment Operations

Trust Administration

Relevant Roles

Finance Director

Chief Financial Officer

Treasury Manager

Compliance Officer

Legal Counsel

Risk Manager

Financial Controller

Operations Manager

Company Secretary

Payment Services Manager

Trust Manager

Account Manager

Commercial Director

Project Manager

Procurement Manager

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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