What is a contract/process agent?
You have formed your entity and are ready to start your company. First order of business is a contract agreement possibly for a loan, indenture, or some other type of agreement. You will need a contract/process agent.
I already named a registered agent; do I still need a contract/process agent?
Contract agency differs from statutory representation in that it is not representation required by a federal or state statute. Instead, contract agency is representation that is required by a private agreement between two or more parties.
The appointment of a particular contract agent may be made in the agreement itself, or by a separate appointment letter. The contract/process agent must be able to reliably receive and forward service of process, notices, or other communications.
What is a contract/process agent and is there a difference between them?
There is no functional difference. The term contract agent is popular in the United States, process agent is generally used or recognized internationally.
What does a contract/process agent do?
Commonly, Capital Markets, Project Finance and M&A transactions will require representation of one or more parties by an agent in a specified jurisdiction to ensure that the counterparty knows where they can effectively serve process on the represented party throughout the duration of the agreement. Types of agreements which commonly contain a provision requiring the appointment of an agent include: loan guarantees, indentures and franchise.
Why do I need a contract/process agent?
Lenders or Guarantors (Banks, Mezzanine Lenders, Private Equity) involved in a private agreement generally require that the borrowing parties appoint a process agent so all parties can disseminate legal documents, notices and most importantly service of process.
Are there specific types of entities or situations that require a contract/process agent?
Any active commercial entity that is a borrower may require a contract/process agent.
What do I look for in a contract/process agent?
Availability and working knowledge of the process is critical to success. Here are some service points to look for when selecting a contract/process agent:
- A dedicated appointment service desk focused specifically on appointments.
- Staff available for this specific service during expanded business hours covering all time zones.
- Appointment draft letters are expeditiously generated for your review, and as a result, streamlining the process for these time sensitive transactions.
- Due to the nature of these transactions, flexible payment terms and appointment letters may be processed without remittance of payment.
Where do I hire a contract/process agent?
Still unsure what you need or are confused by the process? No worries, speak directly with Ralph E. Andrew, III our Vice President of International Law Firm Channels at Mobile: 917.566.7046 or firstname.lastname@example.org to determine the best solution for your specific projects, agreements, and transactions.