Entrusted payment Clause Samples
The entrusted payment clause defines the process by which a third party, typically a financial institution, is authorized to make payments on behalf of one party to another under a contract. In practice, this means that instead of the buyer directly transferring funds to the seller, the payment is routed through a designated bank or agent, who ensures that the payment is made only when certain contractual conditions are met, such as delivery of goods or completion of services. This arrangement provides an added layer of security and trust, reducing the risk of non-payment or premature payment and ensuring that both parties fulfill their obligations before funds are released.
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Entrusted payment. Entrusted payment means Party A pays the loan amount to Party B’s counter-party meeting the purpose specified herein through Party B’s account according to Party B’s drawdown application and payment entrustment. Party B authorizes Party A to pay the loan funds adopting entrusted payment to Party B’s counter-party through Party B’s account on the date when the loan funds are issued (or the working day after the issuance).
Entrusted payment. 3.4.3.1.1 In case one of the following circumstances exists, the borrower shall commission the lender to pay the loan to the counterparty of the borrower that is in line with this contract and agreed purpose in the business contract related to use of the loan:
(1) The payment object is definite and the amount of one single withdrawal exceeds 90% of the loan amount;
(2) The payment object is definite and the amount of one single withdrawal exceeds RMB Nine million (including the equivalence of foreign currency);
(3) Other circumstance agreed between the two parties: N/A
3.4.3.1.2 In case entrusted payment is used, the borrower shall submit to the lender around three days before to application of withdrawal and “Entrusted Payment Notice”, and provide business contract, invoices, other documents and materials related to use of loan. After they are examined and confirmed, the lender will pay the loan directly to the counterparty of the borrower through the account of the borrower. In case the withdrawal application of the borrower is not in line with withdrawal conditions hereunder, or the application of entrusted payment has inconformity with the contract, incomplete or untrue trading materials or other circumstances, the lender could refuse to issue or pay the corresponding loan. The lender assumes no liability for borrower’s breach of contract with his counterparty or other losses. The lender assumes no liability for delayed or failed payment of loan arising from inaccurate or incomplete payment information provided by the borrower.
3.4.3.1.3 In case the borrower applies to defer or withdraw the entrusted payment, he shall file the application to the lender in writing before the payment is made by the lender; the entrusted payment will be suspended and corresponding loan could be taken back after it is examined and confirmed by the lender. In this period, interest shall be calculated as agreed hereunder for the corresponding loan. In case the borrower wants to resume the entrusted payment after it is suspended, he shall handle it as agreed in Subparagraph 3.4.3.1.2.
3.4.3.1.4 Payment entrustment shall be attached no conditions. In case the borrower attaches conditions in the “Entrusted Payment Notice”, the conditions shall bring no obligations to the lender. Unless otherwise agreed in writing between the two parties, the lender bears no obligations of informing the borrower when handling entrusted payment, payment suspension, payment withdrawal, payment res...
Entrusted payment. In case where payment is in compliance with the conditions of entrusted payment method, the Borrower shall clearly include in its drawdown application such entrust, which shall authorize and entrust the Lender to transfer to drawdown of the Loan from the Borrower’s account to the bank account of the trading party for which the purpose of the Loan is in compliance with the conditions under this Contract, and shall include the name, account number and amount of the payment of the trading party, which is necessary for the entrusted payment.
Entrusted payment. Party A submits a Payment Request and related documents to Party B in accordance with the requirements set out in Appendix IV herein; if the request is approved, Party B will pay the relevant sums to a transaction party of Party A for the purpose described in this Contract, in accordance with Party A’s payment request and payment entrustment. If the amount of a single payment requested by Party A is more than 5% of the total investment of the fixed-asset investment project or is in excess of RMB 5 million yuan, Party A shall use Entrusted Payment.
Entrusted payment. If a single payment amount of the loan funds exceeds RMB ZERO YUAN (in words), the Lender shall be entrusted to make the payment. The Lender shall, upon approval, pay the loan funds to the Borrower’s trading partner through the Borrower’s account according to the Borrower’s payment power of attorney, corresponding payment vouchers, business contracts and other supporting materials.
Entrusted payment. Method of entrusted payment should be used in one of the following situations that:
i. the Borrower and the Lender have newly established a credit business relationship and the internal rating of the Borrower at the Lender is below B3(included). “Newly established credit business relationship” means a credit business relationship established by the Borrower and the Lender for the first time or no credit business relationship occurs during the last 2 years.
Entrusted payment. (1) Party A shall open or designate an account with Party B, which will be dedicated for the entrusted payment.
(2) In relation to entrusted payment, Party A shall, upon each drawdown, provide Party B with information of its own designated account to receive the financing and payee’s account and relevant supporting documents to prove that such drawdown is for the agreed purpose. Party A warrants that all information provided to Party B is true, complete and effective.
(3) In relation to entrusted payment, Party B will only carry out a pro forma review on information provided by Party A including information on payees and supporting documents evidencing purpose of financing. Party B is not liable for its failure to promptly complete entrusted payment due to the fact that any information provided by Party A is untrue, inaccurate and incomplete.
(4) If Party B finds that the information provided by Party A including supporting documents to prove purpose of financing is inconsistent with each other or has other defects, Party B may require Party A to provide supplemental information, or replace, explain on or re-submit relevant information. Party B may refuse to advance or pay relevant amount until Party A provides relevant information to the satisfaction of Party B.
(5) According to Party A's purpose of financing, Party B may require relevant supporting documents including a jointly-signed certificate to be issued by Party A, an independent intermediary and other relevant parties, and Party B will advance and pay relevant financing upon provision of such supporting documents.
(6) If Party B finds that the information provided by Party A is consistent with the agreed purpose of financing and all conditions precedent to drawdown as agreed under the Financing Contract have been satisfied, Party B shall first remit the financing into an account designated by Party A and then transfer relevant amount to the accounts of Party A's payees as required and in accordance with relevant business vouchers provided by Party A.
(7) Party B may decide to adjust the conditions for advance and payment of financing, or cease to advance and pay the financing proceeds, upon occurrence of any of the following events:
1. Party A provides Party B with false or invalid information to obtain financing;
2. there is any material adverse change or deterioration of credit condition in Party A's production and operation, or any default under the Financing Contract;
3. Where the proceeds of ...
Entrusted payment. If the single payment amount of the loan exceeds __/_ million RMB (in words), it will be made through the lender’s entrusted payment method. The lender will review and approve the borrower’s payment authorization letter along with corresponding payment vouchers, business contracts, and other supporting documents before transferring the loan funds to the borrower’s transaction counterpart via the borrower’s account.
Entrusted payment. Where the single payment amount exceeds RMB ____ (handwritten in original), entrusted payment shall be adopted. The Borrower shall provide the payment instruction and supporting payment documents (including but not limited to trade contracts). Upon approval, the Lender will transfer the funds from the Borrower’s account to the Borrower’s counterparty.
Entrusted payment. 1.1 Party A entrusts Party B to make the payment and Party A and Party B agree that Party B shall make such payment according to the actual situation of Party C.