PAYMASTER ARRANGEMENT Clause Samples
A paymaster arrangement clause establishes the role and responsibilities of a third-party paymaster who is designated to receive and distribute payments on behalf of the parties involved in a contract. Typically, this clause outlines how funds are to be transferred to the paymaster, the conditions under which the paymaster will release payments to the intended recipients, and any documentation or approvals required for disbursement. The core practical function of this clause is to provide a neutral and efficient mechanism for handling payments, thereby reducing the risk of disputes and ensuring that funds are distributed according to the agreed terms.
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PAYMASTER ARRANGEMENT. American Family Mutual Insurance Company ("AFMIC"), an affiliate of both Distributor and AFLIC, all of which are under control of a common parent company, will pay commissions payable to designated Representatives of Distributor as paying agent on behalf of Distributor and will maintain the books and records reflecting such payments in accordance with the requirements of the 1934 Act on behalf of Distributor. Such payments may include certain amounts to Representatives as an advance on commissions payable by Distributor. In accordance with the terms of a Paymaster Agreement dated the same date as this Agreement between AFMIC and Distributor, AFMIC has acknowledged and agreed that its services in this regard are purely ministerial and clerical in nature and shall not interfere with the control and supervision exercised by Distributor over its Representatives with regard to the Contracts. AFMIC has further acknowledged and agreed that Distributor shall not be liable to any party for commissions payable hereunder. AFMIC shall have no right to compensation for the performance of any activities described in this Section 5.a. Representatives of Distributor shall have no interest in this Agreement or right to any compensation to be paid by or on behalf of Distributor hereunder prior to their receipt thereof.
PAYMASTER ARRANGEMENT. In accordance with the terms of the Letter of Instruction dated the same date as this Agreement and attached hereto as Exhibit A, as it may be amended from time to time, from EquiTrust Marketing to Farm Bureau, Farm Bureau will pay commissions payable to designated associated persons of EquiTrust Marketing as paying agent on behalf of EquiTrust Marketing and will maintain the books and records reflecting such payments in accordance with the requirements of the 1934 Act on behalf of EquiTrust Marketing. Farm Bureau acknowledges and agrees that its services in this regard are purely ministerial and clerical in nature and shall not interfere with the control and supervision exercised by EquiTrust Marketing over its associated persons with regard to the Policies. Farm Bureau further acknowledges and agrees that EquiTrust Marketing shall not be liable to any party for commissions payable hereunder. Farm Bureau may delegate its responsibility to pay compensation or commissions pursuant to this Section 11 to any other insurer affiliated with Farm Bureau, in its discretion, provided such insurer agrees to comply with the provisions hereof applicable to the payment of such compensation or commissions. Farm Bureau shall have no right to compensation for the performance of any activities pursuant to this Section 11. Associated persons of EquiTrust Marketing shall have no interest in this Agreement or right to any compensation to be paid by or on behalf of EquiTrust Marketing hereunder prior to their receipt thereof.
PAYMASTER ARRANGEMENT a. In the interests of administrative convenience and practical business considerations, Principal Underwriter hereby authorizes and directs Insurer, as Principal Underwriter’s agent, to pay or cause to be paid all commissions and compensation due and to become due to broker-dealers pursuant to the various Selling Group Agreements, directly to such broker-dealers, or as it or they may direct Insurer in writing, without offset, abatement, withholding or reduction of any kind, until such time as this Agreement is terminated in accordance with its provisions.
b. Payments by Insurer of such amounts pursuant to this Agreement or as such broker-dealer(s) may direct in writing shall fully satisfy and discharge Insurer’s obligations hereunder with respect to such payments.
c. Such payments shall be made by Insurer only in strict accordance with the instructions of Principal Underwriter, and Insurer shall not exercise any discretion with respect to the amount or allocations of such payments. Insurer further represents that it will not retain any portion of such payments for its own benefit.
PAYMASTER ARRANGEMENT. Modern Woodmen will pay commissions payable to designated Representatives of MWAFS as paying agent on behalf of MWAFS and will maintain the books and records reflecting such payments in accordance with the requirements of the 1934 Act on behalf of MWAFS. Such payments may include certain amounts to Representatives as an advance on commissions payable by MWAFS. In accordance with the terms of a Paymaster Agreement dated the same date as this Agreement between Modern Woodmen and MWAFS, Modern Woodmen has acknowledged and agreed that its services in this regard are purely ministerial and clerical in nature and shall not interfere with the control and supervision exercised by MWAFS over its Representatives with regard to the Contracts. Modern Woodmen has further acknowledged and agreed that MWAFS shall not be liable to any party for commissions payable hereunder. Modern Woodmen shall have no right to compensation for the performance of any activities described in this Section 5.a. Representatives of MWAFS shall have no interest in this Agreement or right to any compensation to be paid by or on behalf of MWAFS hereunder prior to their receipt thereof.
PAYMASTER ARRANGEMENT a. In the interests of administrative convenience and practical business considerations, Principal Underwriter hereby authorizes and directs Insurer, as Principal Underwriter’s agent, to pay all commissions and compensation due and to become due to broker-dealers pursuant to the various Selling Group Agreements, directly to such broker-dealers, or as it or they may direct Insurer in writing, without offset, abatement, withholding or reduction of any kind, until such time as this Agreement is terminated in accordance with its provisions.
b. Payments by Insurer of such amounts pursuant to this Agreement or as such broker-dealer(s) may direct in writing shall fully satisfy and discharge KILICO’s obligations hereunder with respect to such payments.
c. Principal Underwriter agrees that it shall record on its books and records, as required under applicable law and in accordance with FINRA Rules, all payments made by Insurer, as Principal Underwriter’s agent.
d. The parties hereto acknowledge and agree that the services of Insurer hereunder are purely clerical and ministerial in nature. Consequently, such payments shall be made by Insurer only in strict accordance with the instructions of Principal Underwriter, and Insurer shall not exercise any discretion with respect to the amount or allocations of such payments. Insurer further represents that it will not retain any portion of such payments for its own benefit.
PAYMASTER ARRANGEMENT. Section 5.a of the Original Agreement is hereby amended to read in its entirety as follows: Modern Woodmen shall pay MWAFS commissions for the sale and solicitation of Contracts and Purchase Payments in amounts and at rates equal to the commissions that MWAFS has agreed to pay its Representatives for such sale and solicitation activities, including any advances on commissions that have been agreed upon, it being understood and agreed that (1) Modern Woodmen shall not be required to pay MWAFS any commissions or advances if MWAFS in turn is not required to pay commissions or advances to any Representatives with respect to any such sale or solicitation and (2) pursuant to a Paymaster Agreement dated the same date as the Original Agreement, MWAFS has separately requested that Modern Woodmen pay the commissions payable to Representatives of MWAFS as paying agent on behalf of MWAFS and is directing that all commissions otherwise payable to MWAFS under the Agreement be used by Modern Woodmen to make such payments. Pursuant to such Paymaster Agreement, Modern Woodmen has agreed that it will maintain the books and records reflecting such payments in accordance with the requirements of the 1934 Act on behalf of MWAFS, has acknowledged and agreed that its services in this regard are purely ministerial and clerical in nature and has agreed that it shall not interfere with the control and supervision exercised by MWAFS over its Representatives with regard to the Contracts.